| | • | Consolidated Operating income of $628.0 million in Fiscal 2016 increased $582.2 million as compared to the $45.8 million in reported Operating income in Fiscal 2015, driven primarily by the impact of the increased revenues as well as a reduced impact in Fiscal 2016 from impairments and bad debt expense and lower selling, general and administrative expenses as compared to Fiscal 2015. |
| | • | Net income from continuing operations attributable to common and participating preferred stockholders was $44.6 million, or $0.23 per common share attributable to controlling interest, as compared to a net loss attributable to common and participating preferred stockholders of $313.3 million, or $1.58 per common share attributable to controlling interest, in Fiscal 2015. The improvement was primarily due to the same factors that affected Operating income. |
| | • | HRG ended Fiscal 2016 with corporate cash and investments of approximately $172.0 million, a decrease of $38.3 million from the comparable balance of $210.3 million held as of June 30, 2016 primarily due to the payment of interest on the Company's notes in July, partially offset by receipts of dividends from subsidiaries. |
| | • | In Fiscal 2016, HRG received dividends of $63.5 million from its subsidiaries, comprising of $50.9 million from Spectrum Brands, $12.2 million from Fidelity & Guaranty Life ("FGL"; NYSE: FGL), which is reported as discontinued operations, and $0.4 million from a legacy business whose results are now reflected in the Corporate and Other segment. |
Fourth Quarter Fiscal 2016 Consolidated Highlights:
| | • | HRG recorded total revenues of $1.31 billion for the Fiscal 2016 Quarter, an increase of $27.1 million, or 2.1%, as compared to the $1.28 billion recorded in the fourth quarter of fiscal 2015 (the "Fiscal 2015 Quarter"). The increase was due to Insurance's higher net investment gains in the current period, which more than offset lower Consumer Products revenues, which declined primarily due to the impacts of unfavorable foreign exchange and four fewer shipping days in the current period as compared to the Fiscal 2015 Quarter. Revenue on a currency-consistent basis, excluding the negative impact of $17.0 million of unfavorable foreign exchange, increased 3.4%. |
| | • | Consolidated operating income of $155.1 million in the Fiscal 2016 Quarter increased $113.1 million as compared to the $42.0 million of operating income reported in the Fiscal 2015 Quarter. The increase was primarily due to improved margins in the Consumer Products segment. |
| | • | Results reflect an $8.3 million increase in interest expense relative to the Fiscal 2015 Quarter, primarily due to refinancing activities at Spectrum Brands, including a non-cash write-off of debt issuance costs. |
| | • | HRG recorded a tax expense of $56.5 million, or a 120.5% effective tax rate, in the Fiscal 2016 Quarter as compared to a $16.4 million tax expense, or a (20.9)% effective tax rate, in the Fiscal 2015 Quarter. The increase in the tax expense in the current quarter was principally due to a change in the Company's expectation with respect to the timing of the completion of the FGL merger transaction (as described below in the "Important Notes" section), which resulted in the reversal of tax benefits previously recognized in the first nine months of Fiscal 2016. |
| | • | Net loss from continuing operations attributable to common stockholders was $47.1 million, or $0.24 per common share attributable to controlling interest during the Fiscal 2016 Quarter, as compared to a net loss from continuing operations attributable to common stockholders of $105.2 million, or $0.53 per common share attributable to controlling interest during the Fiscal 2015 Quarter. The reduction in loss was primarily due to the higher operating income. |
| | • | During the Fiscal 2016 Quarter, the Company recorded $45.8 million of income from discontinued operations. Over the course of Fiscal 2016, the Company recorded a $224.3 million loss from discontinued operations, driven primarily by a write-down of the asset held for sale to its fair value less cost to sell, in accordance with US GAAP. |
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