| | • | In connection with the termination of the FGL Merger Agreement, on April 17, 2017, FGL’s Board of Directors announced that it was continuing to evaluate strategic alternatives to maximize shareholder value and had received interest from a number of parties (the “FGL Strategic Evaluation Process”). |
Key financial highlights
| | • | Basic and diluted net loss from continuing operations attributable to common stockholders for the Fiscal 2017 Quarter was $0.11 per basic and diluted common share attributable to controlling interest, compared to basic and diluted net income from continuing operations attributable to common stockholders of $0.12 per basic and diluted common share attributable to controlling interest in the Fiscal 2016 Quarter. The decrease in net income per share was primarily due to higher effective income tax rate, partially offset by lower interest expenses as a result of the refinancing activities at Spectrum Brands. |
| | • | We ended the quarter with corporate cash and investments of approximately $139.5 million (primarily held at HRG and HGI Funding). |
| | • | Our Consumer Products segment’s operating income for the Fiscal 2017 Quarter decreased $4.3 million, or 2.9%, to $144.2 million from $148.5 million for the Fiscal 2016 Quarter. Our Consumer Products segment’s adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA,” see additional discussion included in the “Non-GAAP Measurements” section below) decreased by $9.4 million, or 4.1%, to $220.2 million versus the Fiscal 2016 Quarter. The decrease in operating income and Adjusted EBITDA was impacted by delayed inventory intake by all major U.S. retailers of seasonal home and garden and global auto care products. Adjusted EBITDA margin represented 18.8% of sales as compared to 19.0% in the Fiscal 2016 Quarter. |
| | • | Our Insurance segment’s operating loss for the Fiscal 2017 Quarter was $4.1 million compared to $1.4 million for the Fiscal 2016 Quarter primarily driven by a mismatch between the changes in the fair value of the insurance liabilities and the fair value of the assets backing such liabilities due to market conditions and changes in risk-free and discount rates. |
| | • | During the Fiscal 2017 Six Months, we received cash dividends of $33.6 million from our subsidiaries, including $27.5 million and $6.1 million from Spectrum Brands and FGL, respectively. |
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