Sunbeam 2007 Annual Report Download - page 18

Our recent acquisitions have led to cross-selling opportunities such as Coleman®branded patio logs (using
Pine Mountain®firelog products) and rope and accessories under the Coleman®brand sold by Lehigh. We intend
to attract new customers through our portfolio of leading brands, innovative products and superior customer
service.
Introduce New Products. To drive organic growth from our existing businesses, we intend to continue to
leverage our strong brand names, customer relationships and proven capacity for innovation to develop new
products and product extensions in each of our major product categories. For example, during 2006, we
successfully launched the Margaritaville®frozen concoction maker, the Sunbeam®rocket grill and the built-in
pump Coleman®airbed. During 2007, Coleman introduced Transmit™Series life vests with a unique built-in two
way radio, premium coolers with Optimaxx™insulation, a new Exponent®Pack-Away®lantern that is the most
compact and brightest LED light in the market, a lighted tent with a hinged door and a new line of Roadtrip®
grills. Other 2007 outdoor recreation innovations include our new Gulp!®fish bait and the Völkl®Tigershark
adjustable high performance ski. In 2007 we also introduced under the First Alert®brand our Tundra®fire
extinguishing spray that we believe is more effective and easier to use than traditional fire extinguishers on the
most common types of fires.
Further Expand Internationally. We derived approximately 30% and 25% of our consolidated sales in 2007
and 2006, respectively, from international markets. We intend to expand our international sales primarily by
leveraging these distribution channel opportunities across product lines and by pursuing strategic cross-selling or
co-branding in our foreign businesses with established complementary distribution channels. We believe our
strong international distribution network will continue to assist us in placing more products into foreign channels
and increase the rate at which our products assimilate themselves into homes in the European, Pacific Rim and
Latin American markets.
Pursue Strategic Acquisitions. We anticipate that the fragmented nature of the consumer products market
will continue to provide opportunities for growth through strategic acquisitions of complementary businesses.
Our acquisition strategy will continue to focus on businesses or brands with product offerings that provide
expansion into related categories and can be marketed through our existing distribution channels or provide us
with new distribution channels for our existing products, thereby increasing marketing and distribution
efficiencies. Furthermore, we seek acquisition candidates that demonstrate a combination of attractive margins,
strong cash flow characteristics, category leading positions and products that generate recurring revenue. We
anticipate that future acquisitions will be financed through a combination of cash on hand, operating cash flow,
availability under our existing credit facilities and new capital market offerings.
Focus on Operating Margin Improvements. We intend to continue to focus on driving improvements in
operating margins through operating efficiencies and the realization of synergies from our acquisitions. We
continue to facilitate the integration of our businesses and the transfer of best practices throughout each of our
operating units. We use our scale to improve supply chain, distribution and production costs as well as
continuing to emphasize the increased utilization of our Asian manufacturing facilities.
Outdoor Solutions
Our Outdoor Solutions segment is comprised of The Coleman Company, Inc. (“Coleman”) and the
businesses of the aforementioned 2007 acquisitions of K2 and Pure Fishing. The Outdoor Solutions segment,
manufactures or sources, markets and distributes worldwide consumer active lifestyle products for outdoor and
outdoor related activities. Coleman, is a leading, worldwide manufacturer and marketer of outdoor recreation
products, offering an array of products that includes camping equipment such as tents, lanterns, foldable
furniture, sleeping bags, camping stoves, propane fuel, air beds, coolers, gas and charcoal grills, and water
recreation products such as tow-behinds, boats and kayaks. The Outdoor Solutions segment also sells fishing
equipment under brand names such as Abu Garcia®, All Star®, Berkley®, Fenwick®, Gulp!®, JRC™, Mitchell®,
Penn®, Pflueger®, Sevenstrand®, Shakespeare®, Spiderwire®, Stren®, Trilene®, Ugly Stik®and Xtools®.
6