SEC Filings
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| 10-Q | |
| HRG GROUP, INC. filed this Form 10-Q on 08/09/2016 | |
| Entire Document | |
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paid for income taxes of $9.3 million; and (v) a decrease in cash paid for restructuring and related charges of $5.2 million; offset by an increase in cash paid for acquisition and integration costs of $16.6 million. The $27.9 million increase in cash used by the Energy segment was primarily due to lower cash earnings as a result of the decline in the average sales price for oil, natural gas and natural gas liquids during the Fiscal 2016 Nine Months. The $8.2 million increase in cash used by the Asset Management segment was primarily due to the use of cash for working capital driven by lower accounts payable and other liabilities. The $6.8 million increase in cash used by the Corporate and Other segment was primarily due to cash receipts of $61.6 million in the Fiscal 2015 Nine Months from OMGUK for the settlement of a purchase price adjustment in connection with HRG’s acquisition of FGL’s subsidiaries, coupled with higher interest payments due to higher debt levels during the Fiscal 2016 Nine Months, partially offset by severance costs associated with the departure of the Company’s former CEO during the Fiscal 2015 Nine Months, as well as lower acquisition and integration costs, and legal expenses for the Fiscal 2016 Nine Months when compared to the Fiscal 2015 Nine Months. Investing Activities Cash provided by investing activities was $313.1 million for the Fiscal 2016 Nine Months and was primarily related to (i) net repayment of asset-based loans of $175.6 million; (ii) $153.4 million proceeds from the Compass Asset Sale; and (iii) $49.1 million of cash provided from sales, maturities and repayments, net of purchases, of fixed maturity securities and other investments. Partially offsetting these inflows were capital expenditures of $64.0 million. Cash used in investing activities was $1,045.2 million for the Fiscal 2015 Nine Months and was primarily related to (i) $1,322.1 million of cash used in the acquisition of the approximately 25.5% interest in Compass, Spectrum Brands’ acquisitions of European IAMS and Eukanuba and Tell Manufacturing, Inc. and Front Street’s acquisition of Ability Reinsurance (Bermuda) Limited; and (ii) capital expenditures of $65.8 million. Partially offsetting these outflows was (i) $241.4 million of cash provided from the net repayment of asset-based loans; (ii) $81.0 million of cash provided from sales, maturities and repayments, net of purchases, of fixed maturity securities and other investments; and (iii) $19.2 million of cash provided from the sale of certain oil and natural gas properties in Northern Louisiana. Financing Activities Cash used in financing activities was $618.0 million for the Fiscal 2016 Nine Months and was primarily related to (i) debt repayment by Spectrum Brands of $270.2 million, inclusive of discretionary payments on term loans of $250.7 million; (ii) repayment of $202.0 million of the Compass Credit Agreement; (iii) debt repayment at Salus of $137.6 million; (iv) cash used for payment of contractholder account withdrawals, net of account deposits of $104.5 million; (v) purchases of Spectrum Brands stock of $50.1 million; (vi) share-based award tax withholding payments of $28.0 million; and (vii) dividend paid by Spectrum Brands to noncontrolling interests of $27.9 million, partially offset by borrowing under the Spectrum Brands’ Revolver Facility of $198.5 million. Cash provided by financing activities was $1,225.0 million for the Fiscal 2015 Nine Months and was primarily provided from (i) proceeds from issuance of debt, net of financing costs of $3,646.0 million; (ii) $281.1 million from the issuance of Spectrum Brands’ stock in relation to the funding of the AAG acquisition, net of issuance costs and $281.8 million of the issuance taken up by the Company; and (iii) $47.5 million from borrowing under Spectrum Brands’ ABL revolving credit facility. Partially offsetting these cash inflows was cash used for (i) repayment of debt of $2,641.6 million; (ii) purchases of Spectrum Brands stock of $36.8 million; (iii) cash used for the payment of contractholder account withdrawals net of contractholder account deposits of $26.4 million; (iv) dividend paid by Spectrum Brands to noncontrolling interests of $22.5 million; (v) HRG’s common stock repurchases of $22.2 million; and (vi) share-based award tax withholding payments of $20.3 million. Debt Financing Activities At June 30, 2016, HRG and its subsidiaries were in compliance with their respective covenants under their senior credit agreements and senior indentures. See Note 9, Debt, to our Condensed Consolidated Financial Statements included in Part I - Item 1. Financial Statements for additional information regarding the Company and its subsidiaries’ debt activities during the Fiscal 2016 Nine Months. 65 | |
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