Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/14/1995
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<PAGE>
 

<TABLE>
<CAPTION>
                                          JUNE 30,   SEPTEMBER 30,
                                            1995         1994
                                          --------   ------------
<S>                                       <C>       <C>
Financial Position
 Current assets                           $ 36,598       $ 30,696
 Other assets                               20,016         19,434
 Property and equipment, net                59,497         52,496
                                          --------       --------
                                           116,111        102,626
                                          --------       --------
 Debt                                       27,992         15,200
 Other liabilities                           8,480          6,739
                                          --------       --------
                                            36,472         21,939
                                          --------       --------
 Net assets of discontinued operations    $ 79,639       $ 80,687
                                          ========       ========
---------
</TABLE>


*  Net income includes allocations of interest expense on general corporate debt
of $1.2 million in 1995 and $2.7 million in 1994.  Interest expense was
allocated to discontinued operations based on a ratio of net assets to be sold
to the sum of total net assets of the Company plus general corporate debt.

NOTE 3.  DISCONTINUED MARINE PROTEIN OPERATIONS SUBSEQUENTLY RETAINED

          Zapata has decided to retain the marine protein operations which had
previously been reported as a discontinued operation.  In April 1995, the
Company announced the cancellation of the sale of the marine protein division.
Zapata had previously announced that an agreement to sell its marine protein
operations had been reached.  However, the acquisition group failed to close the
transaction.

          The Company has concluded that the value of its marine protein
operations could be more effectively realized by retaining these operations as
part of Zapata's ongoing operations, rather than pursuing another sale
transaction.  As a result, marine protein's net assets and results of operations
for all periods have been reclassified from discontinued operations to
continuing operations.  Marine protein's results of operations from October 1994
through March 1995 had previously been offset against an after-tax reserve of
$8.9 million established in the fourth quarter of fiscal 1994 for the estimated
loss on disposition. As a result of the Company's decision to retain the marine
protein operations, the $8.9 million reserve has been reversed in the current
quarter. Marine protein revenues of $39.6 million and operating income of $1.8
million for the first six months of fiscal 1995 have been reclassified to
continuing operations. Also, marine, protein assets and liabilities of $80.7 
million and $24.9 million, respectively, as of June 30, 1995 and assets and 
liabilities of $100.2 million and $32.6 million, respectively, as of
September 30, 1994 have been reclassified to continuing operations.

          As a result of adopting SFAS 121, Zapata recorded a $12.6 million
pretax provision for asset impairment to reduce its marine protein assets.  The
provision was based on the estimated fair market value of the marine protein
assets.

NOTE 4.  RESTATED FISCAL 1995 RESULTS OF OPERATIONS

          Zapata's first and second quarter income statements for fiscal 1995
have been restated as follows to reflect the natural gas compression operations
as a discontinued operation and to reclassify the marine protein operating
results to continuing operations, amounts in thousands.

                                       9

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