Harbinger Group Inc. (“HGI”; NYSE:HRG), a diversified holding company focused on acquiring and growing businesses that are undervalued or fairly valued with attractive financial or strategic characteristics, today announced its consolidated results for the first quarter of Fiscal 2014 ended on December 31, 2013 ("Fiscal 2014 Quarter"). The results include HGI's four segments:
- Consumer Products, which consists of Spectrum Brands Holdings, Inc. (“Spectrum Brands”; NYSE: SPB);
- Insurance, which includes Fidelity & Guaranty Life (“FGL”; NYSE: FGL) and Front Street Re, Ltd. (“Front Street”);
- Energy, which includes the company's interest in an oil and gas joint venture with EXCO Resources, Inc. (the “EXCO/HGI JV”); and
- Financial Services, which includes Salus Capital Partners, LLC (“Salus”) and Five Island Asset Management, LLC (“Five Island”).
Philip Falcone, HGI Chairman and Chief Executive Officer, said, “HGI’s performance this quarter demonstrates the continued success of our diversified holding company model. We delivered strong results, including 24% growth in revenues. While the year-over-year operating income comparison was affected by significant investment portfolio gains in the Insurance segment last year, our operating profitability and cash flow were strong. At the same time, we have marked solid progress in implementing our strategy to grow our existing businesses, strengthen our capital structure, increase our investor base, and diversify the businesses in which we operate. We remain well-positioned for continued growth and value creation.”
Omar Asali, President of HGI, said, “Our results this quarter reflect positive performance in each of our operating segments. In particular, Consumer Products’ operating profit grew by 83.3% and sales by 26.5% compared to the previous year quarter, illustrating the continued benefits of the HHI acquisition and the power of Spectrum Brands’ value proposition to consumers. Our insurance segment -- anchored by FGL, which completed its successful IPO in December -- recorded annuity sales of $540.6 million, an increase of approximately 119% from the prior year period. In our Financial Services segment, Salus initiated $312.2 million of new asset-based loan commitments during the quarter. And the EXCO/HGI JV generated solid operating income and cash flow.”