Harbinger Group Inc.
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SEC Filings

HRG GROUP, INC. filed this Form 8-K on 11/13/1995
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  Net cash used by investing activities of $6.0 million in fiscal 1993 compared
to the $9.1 million use of cash in 1992. Investing activities in 1993 consisted
of the cash received from the disposition of the Company's investment in
Arethusa, the cash used in the acquisitions of Cimarron and Stellar and capital
expenditures. Capital expenditures were lower in 1993 as a result of the
completion of major oil and gas production and marine protein capital projects
in 1992. Reflecting the Norex Refinancing, net cash provided by financing
activities of $1.4 million in fiscal 1993 compared favorably to the net use of
cash in fiscal 1992 of $10.7 million.
  The results of operations have been reclassified to reflect the marine
protein operations as a continuing operation.
 Fiscal 1994--1993
  Zapata's net loss of $8.3 million for fiscal 1994 compared unfavorably to the
net income of $9.4 million in fiscal 1993. The fiscal 1994 loss from
discontinued operations reflects the estimated loss on disposition of the
marine protein operations of $8.9 million. The fiscal 1994 loss also includes a
$29.2 million pretax write-down of the Company's oil and gas properties in the
Gulf of Mexico as a result of low gas prices and a revision of estimated future
costs. Sales of Tidewater common stock generated pretax gains of $37.5 million
in fiscal 1994 and $32.9 million in fiscal 1993. The fiscal 1994 gain was
partially offset by a $7.4 million expense associated with the Norex debt
prepayments; this expense was comprised of debt prepayment penalties totalling
$4.1 million and a $3.3 million write-off of previously deferred expenses
related to the origination of such indebtedness. The fiscal 1993 gain was
partially offset by a $6.4 million prepayment penalty that Zapata was required
to pay in connection with refinancing of senior indebtedness and a $5.7 million
loss from the disposal of Zapata's investment in Arethusa. Interest expense was
reduced substantially in fiscal 1994 as compared to 1993 reflecting the effects
of the restructuring of indebtedness in fiscal 1993 and overall reduction of
the Company's indebtedness in fiscal 1994.
  Revenues of $337.8 million and an operating loss of $24.7 million in fiscal
1994 compared to revenues of $265.0 million and operating income of $3.0
million in fiscal 1993. The oil and gas valuation provision in fiscal 1994 more
than offset the contribution from the newly-acquired natural gas compression
operations. The 1994 operating loss also included a $2.4 million expense
related to a reduction in staff at the Company's corporate headquarters and
write-off of leasehold improvements.
 Fiscal 1993--1992
  The Company's net income of $9.4 million for fiscal 1993 represented a
significant improvement from net income of $2.4 million for fiscal 1992. The
improvement was due to the $32.9 million pretax gain from the sale of Tidewater
common stock in June 1993.
  The Company's operating income of $3.0 million for fiscal 1993 compared
unfavorably to the fiscal 1992 operating income of $10.9 million. The shortfall
was primarily attributable to reduced receipts from Bolivian oil and gas
operations. Fiscal 1993 income included equity income of $1.1 million from
Zapata's investment in Tidewater compared to equity income of $1.5 million in
fiscal 1992.
  As a result of Zapata's decision to sell 3.5 million shares of its Tidewater
common stock, Zapata changed the method of accounting for its investment in
Tidewater from the equity to the cost method of accounting, effective January
1, 1993. Consequently, Zapata's equity interest in Tidewater's results has not
been included as equity income since December 31, 1992. Instead, Tidewater's
dividends to Zapata have been included in other income when declared.
  During 1993, revenues and expenses were significantly higher than those
reported for the corresponding 1992 period. The increase resulted from the
inclusion of the activities of Cimarron which was acquired during the first
quarter of fiscal 1993. Cimarron's natural gas liquids trading business
typically generates high

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