Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/09/2016
Entire Document
 << Previous Page | Next Page >>

Consumer Products Segment
Presented below is a table that summarizes the results of operations of our Consumer Products segment and compares the amount of the change between the periods (in millions):
 
Fiscal Quarter
 
Fiscal Nine Months

2016
 
2015
 
Increase / (Decrease)
 
2016
 
2015
 
Increase / (Decrease)
Net consumer and other product sales
$
1,361.6

 
$
1,247.5

 
$
114.1

 
$
3,790.0

 
$
3,382.3

 
$
407.7

Cost of consumer products and other goods sold
830.9

 
789.5

 
41.4

 
2,355.8

 
2,179.4

 
176.4

Consumer products segment gross profit
530.7

 
458.0

 
72.7

 
1,434.2

 
1,202.9

 
231.3

Selling, acquisition, operating and general expenses
300.4

 
300.0

 
0.4

 
865.9

 
799.2

 
66.7

Amortization of intangibles
23.5

 
22.3

 
1.2

 
70.5

 
64.0

 
6.5

Operating income - Consumer Products segment
$
206.8

 
$
135.7

 
$
71.1

 
$
497.8

 
$
339.7

 
$
158.1

Net consumer and other product sales. Net consumer and other product sales for the Fiscal 2016 Quarter increased $114.1 million, or 9.1%, to $1,361.6 million from $1,247.5 million for the Fiscal 2015 Quarter. The increase in net consumer and other product sales in the Fiscal 2016 Quarter was primarily due to the impact of the acquisition of AAG that accounted for $84.1 million, as well as growth in organic net sales in hardware and home improvement, consumer batteries, global auto care and home and garden control products lines. These increases were partially offset by the negative impact of foreign exchange rates of $15.8 million and a decrease in small appliances sales, global pet supplies and personal care products lines. Organic net sales excludes the impact of foreign currency translation and acquisitions, and is considered a non-GAAP measurement (See “Non-GAAP Measures” section below for reconciliation of Net Sales to Organic Net Sales).
The following table details the principal components of the change in the Consumer Products segment net sales from the Fiscal 2015 Quarter to Fiscal 2016 Quarter (in millions):
 
 
Net Sales
Fiscal 2015 Quarter Net consumer and other product sales
 
$
1,247.5

Acquisition of AAG
 
84.1

Increase in hardware and home improvement products
 
18.3

Increase in consumer batteries
 
12.8

Increase in global auto care
 
11.7

Increase in home and garden control products
 
9.7

Decrease in personal care products
 
(0.5
)
Decrease in global pet supplies
 
(1.9
)
Decrease in small appliances
 
(4.3
)
Foreign currency impact, net
 
(15.8
)
Fiscal 2016 Quarter Net consumer and other product sales
 
$
1,361.6

Hardware and home improvement products organic net sales grew $18.3 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter mainly attributable to an increase in security products of $11.1 million from an increase in point of sale and new products with key retail customers, increases in e-commerce, and market growth with non-retail customers; an increase in plumbing products of $3.9 million from new product and promotional sales with key retail customers; and an increase in hardware products of $3.3 million in North America from an increase in volumes at existing retail customers and market growth with non-retail customers that is offset by $1.2 million from a planned exit of unprofitable business in Asia-Pacific.
The consumer batteries organic net sales improved $12.8 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter primarily driven by a $5.0 million increase in sales in North America due to an increase in alkaline battery volumes from branded and private label product; and increases in Europe of $6.5 million primarily from hearing aid and specialty batteries of $4.5 million due to higher volumes with existing and new customers coupled with an increase in alkaline battery sales of $2.5 million from promotional sales, increased e-commerce and new private label customers, and increases in Latin America of $1.2 million.
Global auto care organic sales increased $11.7 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter primarily driven by increased sales from air conditioning recharge products due to the warmer weather and introduction of private label products with a key significant customer.
Home and garden control products organic net sales grew $9.7 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter attributable to increases in repellent products of $6.8 million, lawn and garden control products of $2.0 million, and household insect control products of $0.9 million. Improvements across all products were driven by distribution gains with key retailers and increased retail demand of repellent products in response to the Zika virus.

50
 << Previous Page | Next Page >>