- Consumer Products segment sales growth of 3% (or 6% excluding negative foreign exchange impact) led by strong increases from pet supplies and home and garden products.
- Consumer Products segment operating income grew 21% and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) grew 4% (or 12% excluding negative foreign exchange impact) on higher sales, synergy benefits and cost reduction initiatives. Adjusted EBITDA margin represented 16% of net sales.
- Insurance fixed indexed annuities (“FIA”) product sales surged 225% year on year to $461 million on market share gains by Prosperity Elite SM indexed annuities, maintaining FGL as a top 10 writer of FIAs, and bringing total FIA sales in the first half of calendar 2012 to over $1 billion.
- Underlying value of Insurance segment reflected in net U.S. GAAP book value was $845 million (including accumulated other comprehensive income (“AOCI”) of $280 million) as of July 1, 2012, and net unrealized gains on investments were $696 million on a U.S. GAAP basis ($923 million on a statutory basis). FGL’s investment portfolio continues to be conservatively positioned, as it holds cash in excess of $1.5 billion, has shortened portfolio duration, and remains well matched against its liability profile.
- HGI stock price appreciation of 50% from $5.18 to $7.79 per share during the quarter resulted in a $125 million liability increase related to the fair value of the preferred stock equity conversion feature, which represents a non-cash charge to HGI’s bottom-line.
- Net loss attributable to HGI common and participating preferred stockholders was ($149 million) or ($1.07) per common share compared to net income of $211 million or $1.16 per common share in third quarter of Fiscal 2011, largely driven by the increase in liability of the preferred stock conversion feature.
- HGI’s corporate cash and short-term investments position of approximately $404 million supports the company’s business strategy and growth of existing businesses.
Harbinger Group Inc. Reports $1 Billion In Revenues For Third Quarter Fiscal 2012 On Continued Progress At Operating Subsidiaries
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