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HRG GROUP, INC. filed this Form 8-K on 11/22/2016
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HRG Group, Inc. Reports Fourth Quarter Results Achieves Full Year Consolidated Revenue Growth of 10.7% Over 2015
NEW YORK - November 22, 2016 -- HRG Group, Inc. (“HRG” or the “Company”; NYSE: HRG), a holding company that conducts its operations principally through its operating subsidiaries, today announced its consolidated results for the fourth quarter of Fiscal 2016 ended on September 30, 2016 (the “Fiscal 2016 Quarter”) as well as the results for the full fiscal year ended on September 30, 2016 (the "Fiscal 2016"). The results include HRG's two segments:
Consumer Products, which consists of Spectrum Brands Holdings, Inc. ("Spectrum Brands"; NYSE: SPB) and its subsidiaries; and
Insurance, which consists of Front Street Re (Delaware) Ltd. and its subsidiaries (“Front Street”).

“In 2016, HRG achieved record levels of revenue, with double digit growth over the previous year, as well as our highest ever operating income, with a more than $580 million increase over Fiscal 2015, while also making substantial progress in simplifying our business and holding structure and continuing to work on FGL's transaction with Anbang” said Omar Asali, President and Chief Executive Officer of HRG.

“Through the continued strong management of its leading portfolio of consumer products and the ongoing execution of its value-driven strategy, Spectrum Brands reported its 7th consecutive year of record topline and profitability results, while also achieving a half a turn reduction in leverage," continued Asali. "In Fiscal 2017, we anticipate achieving an 8th consecutive year of record performance at Spectrum, including expected growth in reported net sales and adjusted free cash flow.

“During the fourth quarter, we made substantial progress in simplifying our business and holding structure through the disposition of our interests in Compass and CorAmerica, the wind down of operations at Energy & Infrastructure Capital, and the continued wind down at Salus, where the amount of the receivables outstanding in the loan portfolio has been reduced by approximately 85% over the course of the year as we have maximized our capital recovery and collections.

"Finally, Fidelity & Guaranty Life recently announced the extension of the outside date for the completion of its merger agreement with Anbang. We are continuing to work to secure the required regulatory approvals to complete the pending merger, and we remain committed to closing the transaction, subject to the conclusion of the regulatory process."

As previously disclosed, HRG has initiated a process to explore strategic alternatives with a view to maximizing shareholder value. HRG's Board will work with the Company's management and retain financial and legal advisors to assist in the process. Strategic alternatives may include, but are not limited to, a merger, sale or other business combination involving the Company or its assets.

The Company will host a conference call to discuss its fourth quarter and Fiscal 2016 results on Tuesday, November 22, 2016. Thereafter, in light of the strategic review process, the Company has elected to discontinue hosting quarterly conference calls.

Fiscal 2016 Consolidated Highlights:
Readers are encouraged to read the section entitled "Important Notes Regarding the Presentation of our Segments" at the end of this release for certain clarifying information regarding the presentation of the Company's results as compared to previously-reported periods.

HRG recorded total Revenues of $5.2 billion for Fiscal 2016, an increase of $505.7 million, or 10.7%, from the year ended September 30, 2015 ("Fiscal 2015"), driven primarily by higher Consumer Products revenues as well as higher investment gains in the Insurance segment, which more than offset the impact of lower Corporate and Other revenues associated with the previously-announced exit of a legacy business.


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