Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
Entire Document
 << Previous Page | Next Page >>

Home and garden control products organic net sales grew $42.2 million for Fiscal 2015 compared to Fiscal 2014 attributable to increases in repellent products of $16.2 million, lawn and garden control products of $13.1 million, and household insect control products of $12.8 million. The sales increase for all categories within home and garden was a result of distribution gains, strong point of sale activity driving replenishment orders at existing customer and market share gains on certain brands.
Personal care products organic net sales increased $35.5 million for Fiscal 2015 compared to Fiscal 2014 mainly driven by increased sales in North America, Europe and Latin America of $11.6 million, $16.6 million and $5.3 million, respectively. The North American sales increase was primarily a result of product display location changes at a major customer, promotional activity and continued growth through the e-commerce channel. The European sales increase was due to a combination of sales from new products and continued expansion into Eastern European markets. The Latin American sales increase was primarily attributable to growth in Mexico, new customers and effective promotional sales within the region.
Hardware and home improvement products organic net sales increased $20.7 million for Fiscal 2015 compared to Fiscal 2014 driven by an increase in North America as a result of higher domestic security and plumbing sales from retailers due to customer gains and from non-retailers through pricing and market growth. The increase was partially offset by a $14.2 million decrease in sales in the Asia-Pacific region driven by the exit of lower margin products and the expiration of a customer tolling agreement.
Global pet supplies organic net sales decreased $15.8 million for Fiscal 2015 compared to Fiscal 2014 primarily due to decreases in aquatic sales of $12.8 million.
Consumer batteries organic net sales decreased $42.8 million for Fiscal 2015 compared to Fiscal 2014 primarily driven by a $75.8 million decrease in sales in North America due to lower alkaline batteries sales of $54.6 million from continued competitor discounting coupled with a large retail customer’s bankruptcy, and a decrease in specialty batteries and lights from distribution loss to a competitor at a major retailer and timing of holiday sales; partially offset by an increase in Europe sales of $29.4 million from increased alkaline batteries sales of $24.4 million from increased volumes with new and existing retailers and private label customers, increased volumes in specialty and hearing aid batteries, plus increased lights from new products and promotional activity.
Consolidated net sales by product line for each of those respective periods are as follows (in millions):
 
 
Fiscal
 
Increase (Decrease)
Product line net sales
 
2016
 
2015
 
2014
 
2016 compared to 2015
 
2015 compared to 2014
Hardware and home improvement products
 
$
1,241.0

 
$
1,205.5

 
$
1,166.0

 
$
35.5

 
$
39.5

Consumer batteries
 
840.7

 
829.5

 
957.8

 
11.2

 
(128.3
)
Global pet supplies
 
825.7

 
758.2

 
600.5

 
67.5

 
157.7

Small appliances
 
656.0

 
734.6

 
730.8

 
(78.6
)
 
3.8

Personal care products
 
513.6

 
528.1

 
542.1

 
(14.5
)
 
(14.0
)
Home and garden control products
 
509.0

 
474.0

 
431.9

 
35.0

 
42.1

Global auto care
 
453.7

 
160.5

 
—

 
293.2

 
160.5

Total net sales to external customers
 
$
5,039.7

 
$
4,690.4

 
$
4,429.1

 
$
349.3

 
$
261.3

Cost of consumer products and other goods sold / Consumer products segment gross profit. Consumer products segment gross profit, representing net consumer products sales minus consumer products cost of goods sold, for Fiscal 2016 was $1,919.9 million compared to $1,670.4 million for Fiscal 2015. Gross profit margin for Fiscal 2016 increased to 38.1% from 35.6% in Fiscal 2015 primarily driven by the AAG Acquisition, and a shift towards higher margin product sales and continuing cost improvements across segments.
Consumer products segment gross profit for Fiscal 2015 was $1,670.4 million compared to $1,568.8 million for Fiscal 2014. The increase in gross profit was primarily attributable to higher margin sales and continuing cost improvements. Gross profit margin for Fiscal 2015 increased to 35.6% from 35.4% in Fiscal 2014. The increase in gross profit margin was due to a shift towards higher margin product sales and cost improvement initiatives.
Selling, acquisition, operating and general expenses. Selling, acquisition, operating and general expenses increased by $56.5 million, or 5.1%, to $1,165.0 million for Fiscal 2016, from $1,108.5 million for Fiscal 2015 primarily attributable to an increase of $83.3 million due to increased net sales, prior year acquisitions, increased share based compensation of $16.8 million and increased research and development costs of $7.4 million; partially offset by a decrease in acquisition and integration related charges of $22.1 million and decreased restructuring and related charges of $11.9 million.
Selling, acquisition, operating and general expenses increased by $103.3 million, or 10.3%, to $1,108.5 million for Fiscal 2015 from $1,005.2 million for Fiscal 2014 primarily attributable to an increase of $53.6 million in selling and general and administrative expenses as a result of acquisition activity and increased net sales, increased acquisition and integration costs of $38.7 million and increased restructuring and related charges of $7.4 million for new and continuing restructuring initiatives.
Acquisition and integration related charges include, but are not limited to, transaction costs such as banking, legal and accounting professional fees directly related to acquisitions, termination and related costs for transitional and certain other employees,

89
 << Previous Page | Next Page >>