Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

HRG GROUP, INC. filed this Form POS AM on 02/22/1994
Entire Document
 << Previous Page | Next Page >>
     The Company's fish meal is primarily sold to domestic feed producers for
utilization as a high protein ingredient for the poultry industry.  In fiscal
1993, the ten largest customers for fish meal accounted for approximately 58% of
the Company's fish meal sales.  Fish oil sales primarily involve export markets
where the fish oil is refined for use as an edible oil.  More than 95% of the
Company's fiscal 1993 fish oil sales were to export accounts.   The top five
customers for the Company's fiscal 1993 fish oil sales accounted for
approximately 83% of total fish oil revenues.  No single customer accounted for
10% or more of the Company's total consolidated revenue during the fiscal year
ended September 30, 1993.     
     Competition.  The principal competition for the Company's fish meal and
fish solubles are other protein sources such as soybean meal and other vegetable
or animal products.  The Company believes, however, that these other sources are
not complete substitutes because fish meal offers nutritional values not
contained in such sources.  Vegetable fats and oils, such as soybean and palm
oils, provide the primary market competition for fish oil.  In addition, the
Company competes against domestic, privately owned menhaden fishing companies as
well as international producers of fish meal and fish oil derived from species
such as anchovy and mackerel.     
     Fish meal prices generally bear a direct relationship to prevailing soybean
meal prices, while prices for fish oil are generally influenced by prices for
vegetable fats and oils, such as soybean and palm oils.  Thus, the prices for
the Company's products are established by worldwide supply and demand
relationships over which the Company has no control, and tend to fluctuate to a
significant extent over the course of a year and from year to year.     
     Regulation.  The Company's marine protein operations are subject to certain
federal, state and local laws and regulations relating to the location and
periods in which fishing may be conducted, as well as environmental and safety
matters.  The Company, through its operation of fishing vessels, is subject to
the jurisdiction of the U.S. Coast Guard, the National Transportation Safety
Board, and the U.S. Customs Service.  The U.S. Coast Guard and the national
Transportation Safety Board set safety standards and are authorized to
investigate vessel accidents and recommend improved safety standards.  The U.S.
Customs Service is authorized to inspect vessels at will.     
     The marine protein operations of the Company also are subject to federal,
state, and local laws and regulations relating to the protection of the
environment, including the Federal Water Pollution Control Act of 1972, which
was significantly modified in 1977 to deal with toxic water pollutants and re-
named as the Clean Water Act, and which imposes strict controls against the
discharge of oil and other water pollutants into navigable waters.  The Clean
Water Act provides penalties for any discharge of pollutants in reportable
quantities and, along with the Oil Pollution Act of 1990, imposes substantial
liability for the costs of oil removal, remediation and damages.  The Company's
marine protein operations also are subject to the Federal Clean Air Act, as
amended; the Federal Resource Conservation and Recovery Act, which regulates
treatment, storage and disposal of hazardous wastes; the Federal Comprehensive
Environmental Response, Compensation and Liability Act, which imposes liability,
without regard to fault, on certain classes of persons that contributed to the
release of a "hazardous substance" into the environment; and the Federal
Occupational Safety and Health Act ("OSHA").  The OSHA hazard communications
standard, the Environmental Protection Agency community right-to-know
regulations under Title III of the Federal Superfund Amendment and
Reauthorization Act and similar state statutes require the Company to organize
information about hazardous materials used or produced in its operations.
Certain of this information must be provided to employees, state and local
governmental authorities and local citizens.  Numerous other environmental laws
and regulations, along with similar state laws, also apply to the marine protein
operations of the Company, and all such laws and regulations are subject to
     The Company has made, and anticipates that it will make in the future,
certain expenditures in the ordinary course of its business in connection with
environmental matters.  Such expenditures have not been material in the past and
are not expected to be material in the future.  However, there is no assurance
that environmental laws and regulations enacted in the future will not adversely
affect the Company's marine protein operations.     
     The Company now owns approximately 1.0 million shares of Tidewater common
stock.  After the sale of 3.5 million shares of Tidewater common stock in June
1993, the Company owned 4.8 million shares of Tidewater common     


 << Previous Page | Next Page >>