This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Harbinger Group Inc. Reports $1 Billion In Revenues For Third Quarter Fiscal 2012 On Continued Progress At Operating Subsidiaries

As of July 1, 2012, the Insurance segment’s investment portfolio had net unrealized gains on a U.S. GAAP basis of $696 million compared to net unrealized gains of $923 million on a statutory basis. FGL maintained a defensive position with its investment portfolio, and remains well matched against its liability profile. FGL continued repositioning its investment portfolio, emphasizing shorter-dated and floating rate assets in its investment mix, and found opportunities to reduce some of its excess cash levels. Statutory unrealized gains differ substantially from U.S. GAAP because the amortized cost of FGL’s invested assets was adjusted to fair value as of the date HGI completed its acquisition of FGL under U.S. GAAP, while it was not adjusted for statutory reporting. FGL’s investment portfolio is reported at fair value under U.S. GAAP compared to amortized cost generally for statutory reporting. Because the investment portfolio is in an unrealized gain position for U.S. GAAP reporting, the reported value of assets available for meeting policyholder benefits is higher than reported in the statutory balance sheet where investments are reported at amortized cost.

HGI’s consolidated operating income was $81 million in the third quarter of Fiscal 2012 compared to operating income of $121 million in the same period of Fiscal 2011. The decrease was primarily a result of the $51 million decline in the Insurance segment and increased corporate compensation expenses in line with the growth of the business, partially offset by the $16 million improvement in the Consumer Products segment.

HGI reported a consolidated net loss attributable to common and participating preferred stockholders of ($149 million) or ($1.07) per common share compared to consolidated net income attributable to common and participating preferred stockholders of $211 million or $1.16 per common share in the same period of Fiscal 2011. HGI’s results for the Fiscal 2012 Quarter reflect primarily a non-cash charge of $125 million related to an increase in the fair value of the preferred stock equity conversion feature based on the strong rise in the market price of HGI’s common stock from $5.18 to $7.79 per share. In addition, HGI’s Fiscal 2011 results benefited from the $158 million one-time bargain purchase gain on the acquisition of FGL.

5 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,493.37 -69.93 -0.42%
S&P 500 1,925.15 -5.52 -0.29%
NASDAQ 4,352.6390 -17.1340 -0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs