Harbinger Group Inc.
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SEC Filings

8-K
HRG GROUP, INC. filed this Form 8-K on 11/13/1995
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<PAGE>
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 13. RELATED PARTY TRANSACTIONS--(CONTINUED)
 
  During 1994 and 1993, Zapata received $104,000 and $31,000, respectively,
from Norex associated with an administrative services arrangement pursuant to
which Zapata provided office space and certain administrative services to
Norex. See Note 6 for additional transactions with Norex.
 
NOTE 14. DISCONTINUED MARINE PROTEIN OPERATIONS SUBSEQUENTLY RETAINED
 
  On May 5, 1995, the Company decided to retain the marine protein operations
which had previously been reported as a discontinued operation. 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 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 and cash flows for all
periods have been reclassified from discontinued operations to continuing
operations.
 
  The following is a summary of certain selected financial data for the marine
protein operations for the periods in which these operations were reported as a
discontinued operation:
 
 

<TABLE>
<CAPTION>
                                                       YEARS ENDED SEPTEMBER
                                                                30,
                                                      ------------------------
                                                       1994    1993     1992
                                                      ------- -------  -------
<S>                                                   <C>     <C>      <C>
FINANCIAL RESULTS
Revenues............................................. $96,614 $58,565  $76,319
Expenses.............................................  94,273  59,151   76,621
                                                      ------- -------  -------
Income (loss) before taxes...........................   2,341    (586)    (302)
Income tax provision.................................   1,068    (150)      82
                                                      ------- -------  -------
Net income (loss) *.................................. $ 1,273 $  (436) $  (384)
                                                      ======= =======  =======
</TABLE>

 

<TABLE>
<CAPTION>
                                                                SEPTEMBER 30,
                                                               ----------------
                                                                 1994    1993
                                                               -------- -------
<S>                                                            <C>      <C>
FINANCIAL POSITION
Current assets................................................ $ 49,016 $42,775
Investments and other.........................................    8,022   5,938
Property and equipment, net...................................   30,527  44,010
                                                               -------- -------
                                                                 87,565  92,723
                                                               -------- -------
Debt..........................................................    9,749   8,392
Other liabilities and deferred income taxes...................   26,526  15,633
                                                               -------- -------
                                                                 36,275  24,025
                                                               -------- -------
Net book value................................................   51,290  68,698
                                                               ======== =======
</TABLE>

- --------
* Net income (loss) includes allocations of interest expense on general
  corporate debt of $2.5 million in 1994, $3.9 million in 1993 and $3.7 million
  in 1992. 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.
 
                                       34

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