Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 05/05/2017
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Selling, acquisition, operating and general expenses. Selling, acquisition, operating and general expenses of the Insurance segment remained flat for the Fiscal 2017 Quarter as compared to the Fiscal 2016 Quarter and for the Fiscal 2017 Six Months as compared to the Fiscal 2016 Six Months.

Corporate and Other Segment
Presented below is a table that summarizes the results of operations of our Corporate and Other segment and compares the amount of the change between the fiscal periods (in millions):
 
Fiscal Quarter
 
Fiscal Six Months
 
2017
 
2016
 
Increase / (Decrease)
 
2017
 
2016
 
Increase / (Decrease)
Corporate and Other segment revenues
$
0.7

 
$
1.6

 
$
(0.9
)
 
$
1.0

 
$
7.6

 
$
(6.6
)
Selling, acquisition, operating and general expenses
10.8

 
19.0

 
(8.2
)
 
31.3

 
48.7

 
(17.4
)
Operating loss - Corporate and Other segment
$
(10.1
)
 
$
(17.4
)
 
$
7.3

 
$
(30.3
)
 
$
(41.1
)
 
$
10.8

Corporate and Other segment revenues. Corporate and Other segment revenues decreased $0.9 million to $0.7 million for the Fiscal 2017 Quarter from $1.6 million for the Fiscal 2016 Quarter. Corporate and Other segment revenues decreased $6.6 million to $1.0 million for the Fiscal 2017 Six Months from $7.6 million for the Fiscal 2016 Six Months. These decreases were primarily driven by lower revenue generated by Salus as a result of the continued run-off of the remaining outstanding amount of Salus loans primarily attributable to paydowns on existing loans and a lack of new loan originations by Salus, coupled with the effect of the Company’s sale of its ownership interest in CorAmerica Capital, LLC (“CorAmerica”) and the wind-down of the operations of Energy & Infrastructure Capital, LLC (“EIC”).
Selling, acquisition, operating and general expenses. Presented below is a table that summarizes the Selling, acquisition, operating and general expenses of our Corporate and Other segment by product line, and compares the amount of the change between the fiscal periods (in millions):
 
Fiscal Quarter
 
Fiscal Six Months
Selling, acquisition, operating and general expenses
2017
 
2016
 
Increase / (Decrease)
 
2017
 
2016
 
Increase / (Decrease)
Corporate
$
10.0

 
$
8.2

 
$
1.8

 
$
25.5

 
$
22.8

 
$
2.7

Asset management operating and general expenses
0.8

 
10.8

 
(10.0
)
 
5.8

 
25.9

 
(20.1
)
Selling, acquisition, operating and general expenses - Corporate and Other segment
$
10.8

 
$
19.0

 
$
(8.2
)
 
$
31.3

 
$
48.7

 
$
(17.4
)
Corporate
Selling, acquisition, operating and general expenses increased $1.8 million to $10.0 million for the Fiscal 2017 Quarter from $8.2 million for the Fiscal 2016 Quarter. Selling, acquisition, operating and general expenses increased $2.7 million to $25.5 million for the Fiscal 2017 Six Months from $22.8 million for the Fiscal 2016 Six Months. These increases were primarily due to severance costs related to headcount reduction and an increase in legal expense related to the exploration and evaluation of strategic alternatives available to the Company with a view toward enhancing shareholder value. These increases were partially offset by a decrease in stock-based compensation.
Asset Management Operating and General Expenses
Selling, acquisition, operating and general expenses decreased $10.0 million to $0.8 million for the Fiscal 2017 Quarter from $10.8 million for the Fiscal 2016 Quarter. Selling, acquisition, operating and general expenses decreased $20.1 million to $5.8 million for the Fiscal 2017 Six Months from $25.9 million for the Fiscal 2016 Six Months. These decreases in selling, acquisition, operating and general expenses reflect lower impairments and loan loss provision expenses on the asset-based loan portfolio, coupled with the effects of the continued run-off of the Salus portfolio, the Company’s sale of its ownership interest in CorAmerica, and the wind-down of operations of EIC.


48

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