Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 12/21/1995
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<PAGE>
 
  The major segments of Energy Industries' natural gas compression revenues and
operating results for the twelve-month period ended September 30, 1995 and the
eleven-month period ended September 30, 1994, in thousands, are identified
below.
 

<TABLE>
<CAPTION>
                                  REVENUES                OPERATING RESULTS
                         --------------------------- ---------------------------
                         TWELVE MONTHS ELEVEN MONTHS TWELVE MONTHS ELEVEN MONTHS
                             ENDED         ENDED         ENDED         ENDED
                         SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
                             1995          1994          1995          1994
                         ------------- ------------- ------------- -------------
<S>                      <C>           <C>           <C>           <C>
Compressor Rental.......    $17,706       $16,252       $4,858        $4,866
Fabrication and Sales...     24,358        27,560        2,095         5,384
Parts and Service.......     19,805        19,608        3,853         3,958
Other...................      4,766         9,102          732         1,492
Selling &
 Administrative.........         --            --       (5,521)       (7,730)
                            -------       -------       ------        ------
                            $66,635       $72,522       $6,017        $7,970
                            =======       =======       ======        ======
</TABLE>

 
  Natural gas compressor package rental utilization is affected by the number
and age of producing oil and gas wells, the volume of natural gas consumed and
natural gas prices. Rental rates are determined by the demand for compressor
packages and vary by size and horsepower of a compressor package. Utilization
of the Company's rental units improved during fiscal 1995 and 1994 due
primarily to a greater emphasis being placed on rental operations and to the
changes in the size of the compressor packages in the rental fleet. Rental
rates declined in fiscal 1995 as a result of lower prices for U.S. natural gas.
For the same reason, revenues and operating results from compressor package
sales declined in fiscal 1995 as compared to fiscal 1994. Energy Industries'
utilization, rental rates and fleet size as of September 30, 1995 and 1994 are
set forth in the following table.

<TABLE>
<CAPTION>
                                                                SEPTEMBER 30,
                                                               ----------------
                                                                1995     1994
                                                               -------  -------
      <S>                                                      <C>      <C>
      Fleet utilization:
        Horsepower............................................    83.5%    82.6%
      Monthly rental rate, based on:
        Horsepower............................................ $ 15.40  $ 16.61
      Fleet size:
        Number of units.......................................     785      706
        Horsepower............................................ 131,382  113,786
</TABLE>

 
  Energy Industry disposed of its heat exchanger manufacturing operation in
fiscal 1995. The sale of the heat exchanger operation did not have a material
impact on Energy Industries' results of operations or financial position.
 
DISCONTINUED OPERATIONS--NATURAL GAS SERVICES OPERATIONS--GATHERING, PROCESSING
AND MARKETING
 
  In late 1994 and early 1995, the Company began to develop a strategic plan
that called for the divesture of most of the Company's remaining energy
operations, including the Company's natural gas gathering, processing and
marketing operations. Although a sales price has not been determined, the
Company estimates that, based on preliminary indications of interest from
potential purchasers, the minimum sales price for these operations should be at
least equal to book value. The Company expects to complete the sale in fiscal
1996. As a result of the Company's decision to sell, these operations are
reported as a discontinued operation.
 
                                       21

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