Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

HRG GROUP, INC. filed this Form 8-K on 02/05/2016
Entire Document
 << Previous Page | Next Page >>

recorded a non-cash impairment of $54.4 million to its proved oil and natural gas properties during the quarter, due primarily to the decline in oil and natural gas prices. This impairment is reflected in the Operating income of the Energy segment for the Fiscal 2016 Quarter, and, if oil and gas prices do not increase, additional, non-cash impairments to properties may be required in Fiscal 2016. In the Fiscal 2015 Quarter, Compass recorded $190.0 million of impairments.
Asset Management
During the Fiscal 2016 Quarter, $8.4 million of impairments and bad-debt expense were recorded. As of December 31st, Salus' portfolio of asset-based loans receivable was $153.1 million, a decline of $73.6 million from the comparable balance as of September 30th, as Salus continues to execute the orderly wind down of its operations.
Discontinued Operations
During the Fiscal 2016 Quarter, the Company recorded a $35.6 million loss from discontinued operations to reflect the net impact of FGL's results. This amount includes $90.9 million of deferred tax expense, the majority of which will be offset by tax benefits the Company expects to realize in the subsequent quarters of Fiscal 2016.

Detail on First Quarter Segment Results:
Consumer Products:
Note: Adjusted EBITDA-Consumer Products, as described below, is a non-U.S. GAAP measure that excludes interest, income tax expense, certain purchase accounting fair value adjustments, restructuring and related charges, acquisition and integration related charges, depreciation and amortization expenses and stock-based compensation - see "Non-U.S. GAAP Measures" and the reconciliation of Adjusted EBITDA-Consumer Products to the Consumer Product segment's net income or loss in the tables accompanying this release.

Consumer Products reported consolidated net sales of $1,218.8 million for the Fiscal 2016 Quarter, an increase of $151.0 million, or 14.1%, as compared to the $1,067.8 million reported in the Fiscal 2015 Quarter. The increase was due primarily to the impact of newly acquired businesses and organic growth in certain product categories, including consumer batteries and hardware and home improvement, which more than offset the negative impact of $61.4 million from unfavorable foreign exchange as the Euro weakened relative to the US dollar during the quarter. Excluding the net impact of foreign exchange, sales increased $212.4 million, or 19.9%, as compared to the Fiscal 2015 Quarter, with higher sales in all product categories as compared to Fiscal 2015 except small appliances, which declined due primarily to lower volumes in the product category and increased competitor discounting during the holiday season. Excluding the impacts of both foreign exchange and $144.9 million in revenue from businesses acquired in Fiscal 2015, Consumer Products revenue increased $67.5 million, or 6.3%, on an organic basis over the Fiscal 2015 Quarter.
Gross profit, representing net Consumer Products sales minus Consumer Products cost of goods sold, increased $70.5 million, or 19.0%, to $440.7 million in the Fiscal 2016 Quarter. The increase was driven by the same factors that affected revenue. Gross profit margin, representing gross profit as a percentage of Consumer Products net sales, was 36.2% in the Fiscal 2016 Quarter, an increase of 150 basis points over the Fiscal 2015 Quarter, due, in part, to a shift toward higher margin products and continuing cost improvements.
Operating income increased $26.9 million, or 23.3%, to $142.5 million in the Fiscal 2016 Quarter, as compared to $115.6 million in the Fiscal 2015 Quarter, due primarily to higher profitability in acquired businesses.
Consumer Products adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA-Consumer Products”) was $207.1 million for the Fiscal 2016 Quarter, an increase of $31.3 million, or 17.8%, as compared to the Fiscal 2015 Quarter.
After the close of the Fiscal 2016 Quarter, on January 28, 2016, Spectrum Brands announced that its Board of Directors declared a quarterly dividend of $0.38 per share on Spectrum Brands’ common stock. This is a 15.2% increase in the quarterly dividend declared as compared to the $0.33 quarterly dividend paid per share in connection with the comparable period in Fiscal 2015. Over the past three years, the quarterly dividend Spectrum Brands has paid to its common stockholders has increased 52%.


 << Previous Page | Next Page >>