Harbinger Group Inc. Reports First Quarter Fiscal 2013 Results

  Harbinger Group Inc. Reports First Quarter Fiscal 2013 Results

Revenues of $1.2 billion, Up 5% from Prior Year Period; Net Income
Attributable to Common and Participating Preferred Stockholders of $62.0
Million, an Increase of 161%; EPS $0.31 versus $0.12 from Prior Year Period

Achieves Major Business Milestones During Quarter, including Refinancing Debt,
Expanding Public Float and Shareholder Base, and Announcing Energy Business
Agreement

Business Wire

NEW YORK -- February 8, 2013

Harbinger Group Inc. ("HGI"; NYSE: HRG), a diversified holding company focused
on acquiring and growing attractive businesses, today announced its
consolidated results for the first quarter of Fiscal 2013 ended on December
30, 2012. The results include HGI's Consumer Products Business, which consists
of Spectrum Brands Holdings, Inc. (“Spectrum Brands”; NYSE: SPB), and HGI's
Insurance and Financial Services Segments, which includes HGI's Fidelity &
Guaranty Life Holdings, Inc. (“FGL”) and Salus Capital Partners, LLC (“Salus”)
operating subsidiaries.

Philip A. Falcone, HGI Chairman and Chief Executive Officer, said, "We are
very pleased with the first quarter performance, which is a testament to our
ability to identify companies that will increase in value. As we take HGI to
the next level, we remain sharply focused on building value for shareholders
and executing on our strategy of acquiring and growing attractive businesses
over the long term."

Omar Asali, President of HGI, said, “The last several months have been a
watershed period in the continued growth and development of HGI. We achieved
several major milestones, including refinancing our 10.625% senior secured
notes at a significantly lower interest rate and on more attractive terms,
giving us a strong capital structure to support growth. We completed the
secondary offering of 23 million shares by our majority shareholder,
increasing our public float and broadening our shareholder base with the
addition of new, high-quality institutional investors. We significantly
enhanced our Consumer Products business through Spectrum Brands' acquisition
of HHI, adding top-level positions in North American markets for key
residential hardware and home improvement products. And we announced a third
operating business in Energy through a financially and strategically important
joint venture with EXCO."

First Quarter Fiscal 2013 Business Highlights:

  *Refinanced $500 million aggregate principal amount 10.625% senior secured
    notes through issuance of $700 million aggregate principal amount of new
    7.875% senior secured notes, lowering HGI's cost of capital and extending
    debt maturities. Remaining proceeds from debt issuance to be used for
    working capital and general corporate purposes.
  *Commenced registered secondary public offering of 23 million shares of HGI
    common stock by majority shareholder, increasing HGI's public float and
    broadening its shareholder base. Announced pricing of 20 million shares on
    December 13, 2012, with remaining 3 million shares purchased by
    underwriters in January of 2013.
  *Completed Spectrum Brands acquisition of Stanley Black & Decker, Inc.'s
    Hardware & Home Improvement Group (“HHI”), expected to enhance Spectrum
    Brands' top-line growth, margins and free cash flow profile, while
    providing added scale, greater product diversity and attractive
    cross-selling opportunities.
  *HGI announced an agreement to acquire a new Energy Operating Business
    through a joint venture with EXCO Resources, Inc., creating a private
    partnership holding long-life, low geological-risk conventional oil and
    gas assets that generate steady production and reliable cash flows.
    Transaction is expected to close in the second quarter of Fiscal 2013.
  *Received approval for inaugural $1.5 billion reinsurance treaty between
    Front Street Re and Fidelity & Guaranty Life, establishing HGI's
    reinsurance platform while also supporting continued growth of Fidelity &
    Guaranty Life.

Quarterly Results Highlights:

  *HGI recorded total revenues of $1.2 billion for the first quarter of
    Fiscal 2013, an increase of $56.3 million, or 4.8%.
  *Net income attributable to common and participating preferred stockholders
    increased to $62.0 million, or $0.31 per common share attributable to
    controlling interest ($0.03 diluted), compared to $23.8 million, or $0.12
    per common share attributable to controlling interest ($0.06 diluted), in
    the Fiscal 2012 Quarter.
  *HGI's Fiscal 2013 first quarter results include $87.9 million of costs
    incurred by HGI and Spectrum Brands related to the extinguishment of HGI's
    10.625% notes, and the financing of the HHI acquisition, respectively.
    Partially offsetting these expenses, HGI's stock price depreciation of
    11.0% from $8.43 to $7.50 per share during the Fiscal 2013 Quarter
    resulted in a $68.9 million liability decrease related to the fair value
    of the preferred stock equity conversion feature, which represents a
    non-cash gain to net income. In addition, HGI realized $125.7 million of
    investment gains in its Insurance Segment.
  *During the quarter, HGI received dividends from FGL of $20 million. HGI
    received total dividends for the Trailing 12 Months Ended December 30,
    2012, of $71 million, including dividends from FGL, Spectrum Brands and
    Salus.
  *HGI ended the quarter with corporate cash and short-term investments of
    approximately $489.2 million (primarily held at HGI and HGI Funding LLC),
    which supports HGI's business strategy and growth of existing businesses.

Quarterly Segment Highlights:

  *For the first quarter of Fiscal 2013, HGI's Consumer Products segment had
    record net sales of $870.3 million, a $21.5 million, or 2.5%, increase
    from $848.8 million for the Fiscal 2012 Quarter; excluding negative
    foreign exchange impact, net sales grew 3.2% versus the prior quarter.
  *Consumer Products segment operating income was $68.2 million compared to
    $83.7 million in the first quarter of Fiscal 2012. The decrease reflects
    acquisition and integration costs primarily related to the HHI
    acquisition. Consumer Products segment adjusted earnings before interest,
    taxes, depreciation and amortization (“Adjusted EBITDA”) increased by $5.6
    million, or 4.5%, to $130.7 million versus the prior year quarter on
    higher sales, synergy benefits and cost reduction initiatives. Adjusted
    EBITDA margin represented 15.0% of sales compared to 14.7% in the first
    quarter of Fiscal 2012.
  *Insurance segment product sales for the first quarter of Fiscal 2013 were
    $254.9 million, compared to $372.5 million in the comparable period of
    Fiscal 2012, reflecting product and pricing changes to maintain target
    profitability.
  *As of December 30, 2012, the Insurance segment had a net US GAAP book
    value of $1.3 billion (including accumulated other comprehensive income
    (“AOCI”) of $422.9 million), up from $1.2 billion as of September 30,
    2012. Net unrealized gains on available for sale investments were $1.0
    billion on a U.S. GAAP basis.
  *Salus originated $175.0 million of new asset-based loan commitments in the
    first quarter of Fiscal 2013 Quarter. Salus had $207.4 million of loans
    outstanding as of December30, 2012, and contributed approximately $5.1
    million to HGI's consolidated earnings for the Fiscal 2013 first quarter.

Mr. Asali said, “Our Consumer Products and Insurance and Financial Services
businesses performed well during the quarter and continued to successfully
execute on strategic plans to drive long-term growth and profitability. HGI's
Insurance segment ended the quarter with a net U.S. GAAP book value of $1.3
billion, up from $1.2 billion as of September 30, 2012, as we continued to
build the value of this business. While first quarter results for the Consumer
Products segment were affected by costs related to the HHI acquisition,
Spectrum Brands delivered another record for first quarter net sales and
adjusted EBITDA, and is well positioned for continued strong performance given
the value proposition of its products and the addition of renowned,
market-leading brands gained through the HHI acquisition."

Detail on First Quarter Fiscal 2013 Results:

HGI's consolidated revenues for the first quarter of Fiscal 2013 were $1.22
billion, compared to $1.17 billion for the first quarter of Fiscal 2012.
Revenues for Consumer Products, which reflect the Spectrum Brands business,
were $870.3 million in first quarter of Fiscal 2013 compared to $848.8 million
in the year-ago period, an increase of 2.5% (or 3.2% excluding negative
foreign exchange impact). The Insurance and Financial Services Segments
contributed $352.0 million to HGI's revenues in the quarter compared to $317.2
million in the first quarter of Fiscal 2012.

HGI's consolidated operating income was $215.4 million for the first quarter
of Fiscal 2013 compared to operating income of $111.8 million in the
comparable period in Fiscal 2012. HGI reported consolidated net income
attributable to common and participating preferred stockholders of $62.0
million, or $0.31 per common share attributable to controlling interest ($0.03
diluted), compared to $23.8 million, or $0.12 per common share attributable to
controlling interest ($0.06 diluted), in the Fiscal 2012 first quarter.

Fiscal 2013 first quarter consolidated net income attributable to common and
participating preferred stockholders was affected by an $87.2 million increase
in interest expense from the first quarter of Fiscal 2012. First quarter
Fiscal 2013 interest expense was $143.1 million compared to $55.9 million in
the year-ago period. The increase in quarterly interest expense was
principally due to $58.9 million of fees incurred by HGI related to the
extinguishment of the 10.625% Notes, and $29.0 million of costs incurred by
Spectrum Brands associated with the financing of the HHI acquisition.

HGI's first quarter Fiscal 2013 results were also affected by a $68.9 million
liability decrease in the fair market value of the equity conversion feature
of HGI's preferred stock, which results in a non-cash gain to earnings, in
addition to realizing $125.7 million of investment gains in our Insurance
Segment.

Consumer Products:

Consumer Products net sales increased $21.5 million, or 2.5%, to $870.3
millionin the first quarter of Fiscal 2013 from $848.8 million in the first
quarter of Fiscal 2012. Excluding negative foreign exchange impacts of $6.0
million, net sales increased 3.2%. Consumer batteries, pet supplies, and home
and garden control products all reported higher revenues compared to the first
quarter of Fiscal 2012. In addition, the new hardware and home improvement
(HHI) business added $34.0 million in sales. Small appliance sales declined by
9.5% primarily reflecting the planned and continued elimination of low margin
promotions. Sales of electric shaving and grooming products declined slightly,
while electric personal care sales were flat.

Gross profit, representing net consumer products sales minus consumer products
cost of goods sold, for the Fiscal 2013 Quarter was $288.2 million compared to
$284.1 million for the Fiscal 2012 Quarter, representing a $4.1million
increase. Gross profit margin, representing gross profit as a percentage of
consumer products net sales, for the quarter was 33.1% compared to 33.5% in
Fiscal 2012 first quarter. The slight decrease in gross profit margin was
driven by increased cost of goods sold due to the sale of inventory, which was
revalued in connection with the HHI acquisition, which more than offset gross
profit improvement resulting from the planned and previously announced exit of
low margin products in the small appliances category of nearly $20 million.

Consumer Products operating income was $68.2 million in the first quarter of
Fiscal 2013 from $83.7 million in the first quarter of Fiscal 2012, as higher
sales were offset by acquisition and integration costs primarily related to
the HHI acquisition.

Adjusted earnings before interest, taxes, depreciation and amortization
(“Adjusted EBITDA”) increased by $5.6 million, or 4.5%, to $130.7 million
versus the first quarter of Fiscal 2012. First quarter Fiscal 2013 Adjusted
EBITDA included $3.2 million from HHI and $3.0 million from the FURminator®
acquisition completed on December 22, 2011. Adjusted EBITDA is a non-U.S. GAAP
measure that excludes interest, income tax expense, restructuring and related
charges, acquisition and integration related charges, intangible asset
impairment and depreciation and amortization expenses - see “Non-U.S. GAAP
Measures” and a reconciliation of Adjusted EBITDA to the Consumer Product
segment's operating income below.

In December 2012, Spectrum Brands issued $520.0 million aggregate principal
amount of 6.375% Senior Notes due 2020 and $570.0 million aggregate principal
amount of 6.625% Senior Notes due 2022. The proceeds from the offerings were
used to fund a portion of the HHI acquisition. Spectrum Brands financed the
remaining portion of the HHI acquisition with a new $800.0 million term loan
facility. A portion of the term loan proceeds were also used to extinguish the
former term loan facility, which had an aggregate amount outstanding of $370.2
million prior to extinguishment.

For more information on HGI's Consumer Products segment, interested parties
should read Spectrum Brands' announcements and public filings, including
Spectrum Brands' first quarter earnings announcement, by reviewing Spectrum
Brands' filings with the Securities & Exchange Commission at www.sec.gov.

Insurance and Financial Services:

First quarter Fiscal 2013 insurance total product sales were $254.9 million
compared to $372.5 million in the first quarter of Fiscal 2012. The decrease
reflects product and pricing changes made by FGL to the core fixed index
annuity portfolio to maintain target profitability. Due to these product
revisions during calendar year 2012, fixed indexed annuities (“FIA”) product
sales declined 29% to $243.1 million compared to the first quarter of Fiscal
2012. Total product sales increased 69% in the twelve months ended on December
30, 2012 to $1.6 billion compared to $929.3 million for the twelve months
prior to the end of first quarter of Fiscal 2012. FGL continues to maintain
its position in the top-ten industry ranking for FIA sales withtotal FIA
sales in the last twelve months of more than $1.5 billion compared with $781.1
million for the twelve months prior to the end of first quarter Fiscal 2012,
driven by the success of FGL's flagship product Prosperity Elite^SM.

FGL has approximately $17.7 billion of cash and invested assets under
management as of December 30, 2012, compared to $17.8 billion as of September
30, 2012. Estimated risk-based capital (RBC) ratio at December 30, 2012
remained well in excess of 350%.

The Insurance segment reported operating income of $165.3 million for the
first quarter of Fiscal 2013, an increase of $128.9 million, from $36.4
million for the first quarter of Fiscal 2012.

First quarter 2013 results included realized investment gains of $125.7
million, net of related intangibles amortization, compared to $18.2 million of
net realized investment gains in the comparable period of Fiscal 2012. The
increase in net realized investment gains was the result of strategic
portfolio repositioning to shorten the overall portfolio duration combined
with the realization of certain tax-advantaged built-in-gains.

Adjusted operating income was $33.0 million (pre-tax) for the first quarter of
Fiscal 2013, reflecting solid business performance, as FGL continues to
execute on its business strategy. Adjusted operating income is a non-U.S. GAAP
insurance industry measure that eliminates the impact of realized investment
gains (losses), the effect of interest rate changes on the FIA embedded
derivative liability, and the effects of acquisition-related reinsurance
transactions - see “Non-U.S. GAAP Measures” and a reconciliation of adjusted
operating income to the Insurance segment's operating income below.

As of December 30, 2012, HGI's Insurance segment had a net U.S. GAAP book
value of $1.3 billion (including AOCI of $422.9 million), up from $1.2 billion
as of September 30, 2012. As of December 30, 2012, the Insurance segment's
available for sale investment portfolio had $1.0 billion in net unrealized
gains on a U.S. GAAP basis. FGL's investment portfolio continues to be
conservatively positioned, has shortened the portfolio duration over the past
twelve months, and remains well matched against its liability profile.

On December 17, 2012, HGI announced that FGL had received approval from the
Maryland Insurance Administration to enter into a reinsurance treaty with
Front Street Re (Cayman) Ltd., also a wholly-owned subsidiary of HGI. Under
the terms of the reinsurance treaty, Fidelity & Guaranty Life ceded
approximately 10%, or approximately $1.5 billion of liabilities, of its
annuity business to Front Street Re. The transaction was effective December
31, 2012, for which the effects will be eliminated in consolidation.

About Harbinger Group Inc.

Harbinger Group Inc. (“HGI”; NYSE: HRG) is a diversified holding company.
HGI's principal operations are conducted through subsidiaries that offer life
insurance and annuity products; and branded consumer products, such as
batteries, personal care products, small household appliances, pet supplies,
and home and garden pest control products. HGI is principally focused on
acquiring controlling and other equity stakes in businesses across a
diversified range of industries and growing its existing businesses. In
addition to HGI's intention to acquire controlling equity interests, HGI may
also from time to time make investments in debt instruments and acquire
minority equity interests in companies. Harbinger Group Inc. is headquartered
in New York and traded on the New York Stock Exchange under the symbol HRG.
For more information on HGI, visit: www.harbingergroupinc.com.

Forward Looking Statements

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of
1995: This document contains, and certain oral statements made by our
representatives from time to time may contain, forward-looking statements,
including those statements related to the transactions with regards to the
joint venture with EXCO Resources, Inc (the "Partnership"). Such statements
are subject to risks and uncertainties that could cause actual results, events
and developments to differ materially from those set forth in or implied by
such statements. These statements are based on the beliefs and assumptions of
HGI's management and the management of HGI's subsidiaries (including target
businesses). Generally, forward-looking statements include information
concerning possible or assumed future actions, events, results, strategies and
expectations and are generally identifiable by use of the words “believes,”
“expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,”
“projects,” “may,” “will” “could,” “might,” or “continues” or similar
expressions. Factors that could cause actual results, events and developments
to differ include, without limitation: the risk that closing of the
transactions with regards to the Partnership will not occur, will be delayed
or will close on terms materially different than expected, including, in the
case of the Partnership transaction, as a result of title and environmental
diligence of properties to be acquired, commodity price risks, drilling and
production risks, related financing plans, reserve estimates and values,
statements about the Partnership's properties and potential reserves and
production levels. Other factors could cause actual results, events and
developments to differ include, without limitation: the ability of HGI's
subsidiaries (including, target businesses following their acquisition) to
generate sufficient net income and cash flows to make upstream cash
distributions, capital market conditions, HGI and its subsidiaries ability to
identifying any suitable future acquisition opportunities, efficiencies/cost
avoidance, cost savings, income and margins, growth, economies of scale,
combined operations, future economic performance, conditions to, and the
timetable for, completing the integration of financial reporting of acquired
or target businesses with HGI or HGI subsidiaries, completing future
acquisitions and dispositions, litigation, potential and contingent
liabilities, management's plans, changes in regulations, taxes and the those
forward looking statements included under the caption “Risk Factors” in HGI's
most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. All
forward-looking statements described herein are qualified by these cautionary
statements and there can be no assurance that the actual results, events or
developments referenced herein will occur or be realized. HGI does not
undertake any obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to future operation results.

Non-U.S. GAAP Measures

Management believes that certain non-U.S. GAAP financial measures may be
useful in certain instances to provide additional meaningful comparisons
between current results and results in prior operating periods.
Reconciliations of such measures to the most comparable U.S. GAAP measures are
included herein.

Our Consumer Products Segment uses adjusted earnings before interest, taxes,
depreciation and amortization (“Adjusted EBITDA”), a non-U.S. GAAP financial
measure. Management believes that Adjusted EBITDA is significant to gaining an
understanding of Spectrum Brands' results as it is frequently used by the
financial community to provide insight into an organization's operating trends
and facilitates comparisons between peer companies, since interest, taxes,
depreciation and amortization can differ greatly between organizations as a
result of differing capital structures and tax strategies. Adjusted EBITDA
also can be a useful measure of our Consumer Product Segment's ability to
service debt and is one of the measures used for determining Spectrum Brand's
debt covenant compliance. Adjusted EBITDA excludes certain items that are
unusual in nature or not comparable from period to period.

Our Insurance Segment uses Adjusted Operating Income, a non-U.S. GAAP
financial measure frequently used throughout the insurance industry. Adjusted
Operating Income net investment gains, excluding gains and losses on
derivatives and including net other-than-temporary impairment losses
recognized in operations, the effect of changes in the rates used to discount
the FIA embedded derivative liability and the effects of acquisition-related
reinsurance transactions. While these adjustments are an integral part of the
overall performance of our Insurance Segment, market conditions impacting
these items can overshadow the underlying performance of the business.
Accordingly, we believe using a measure which excludes their impact is
effective in analyzing the trends of our Insurance Segment's operations.

While management believes that non-U.S. GAAP measurements are useful
supplemental information, such adjusted results are not intended to replace
U.S. GAAP financial results and should be read in conjunction with those U.S.
GAAP results.

                               (Tables Follow)

                                                       
                                                                 
HARBINGER GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)
                                                                 
                                              December 30,       September 30,
                                              2012               2012
                                              (Unaudited)
ASSETS
Investments:
Fixed maturities                              $ 16,476.6         $  16,088.9
Equity securities                             312.1              394.9
Derivative investments                        156.4              200.7
Asset-backed loans                            204.8              180.1
Other invested assets                         66.6              53.8        
Total investments                             17,216.5           16,918.4
Cash and cash equivalents                     1,103.7            1,470.7
Receivables, net                              566.7              414.4
Inventories, net                              679.2              452.6
Accrued investment income                     153.0              191.6
Reinsurance recoverable                       2,378.5            2,363.1
Deferred tax assets                           189.0              312.7
Properties, net                               328.0              221.6
Goodwill                                      1,421.3            694.2
Intangibles, including DAC and                2,475.7            1,988.5
VOBA, net
Other assets                                  347.2             172.6       
Total assets                                  $ 26,858.8        $  25,200.4 
                                                                 
LIABILITIES AND EQUITY
                                                                 
Insurance reserves:
Contractholder funds                          $ 15,349.0         $  15,290.4
Future policy benefits                        3,592.3            3,614.8
Liability for policy and contract             99.7              91.1        
claims
Total insurance reserves                      19,041.0           18,996.3
Debt                                          3,917.8            2,167.0
Accounts payable and other                    736.2              754.2
current liabilities
Equity conversion feature of                  163.1              232.0
preferred stock
Employee benefit obligations                  100.2              95.1
Deferred tax liabilities                      492.3              382.4
Other liabilities                             416.8             655.3       
Total liabilities                             24,867.4          23,282.3    
                                                                 
Commitments and contingencies
                                                                 
Temporary equity:
Redeemable preferred stock                    323.0             319.2       
                                                                 
Harbinger Group Inc.
stockholders' equity:
Common stock                                  1.4                1.4
Additional paid-in capital                    848.3              861.2
Accumulated deficit                           (36.4      )       (98.2       )
Accumulated other comprehensive               403.3             413.2       
income
Total Harbinger Group Inc.                    1,216.6            1,177.6
stockholders' equity
Noncontrolling interest                       451.8             421.3       
Total permanent equity                        1,668.4           1,598.9     
Total liabilities and equity                  $ 26,858.8        $  25,200.4 
                                                                             
                                                                             

                                         
                                                
HARBINGER GROUP INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)
                                                
                                                Three months ended
                                                December 30,    January 1,
                                                2012               2012
                                                (Unaudited)
Revenues:
Net consumer product sales                      $870.3           $ 848.8
Insurance premiums                              13.8                 16.8
Net investment income                           178.0                186.8
Net investment gains                            146.5                103.9
Insurance and investment product                13.7               9.7     
fees and other
Total revenues                                  1,222.3            1,166.0 
Operating costs and expenses:
Consumer products cost of goods                 582.1                564.7
sold
Benefits and other changes in                   83.6                 176.9
policy reserves
Selling, acquisition, operating and             254.6                255.9
general expenses
Amortization of intangibles                     86.6               56.7    
Total operating costs and expenses              1,006.9            1,054.2 
Operating income                                215.4                111.8
Interest expense                                (143.1    )          (55.9   )
Gain from the change in the fair
value of the equity conversion                  68.9                 27.9
feature of preferred stock
Other (expense) income, net                     (8.7      )         1.2     
Income from continuing operations               132.5                85.0
before income taxes
Income tax expense                              64.4               39.5    
Net income                                      68.1                 45.5
Less: Net (loss) income
attributable to noncontrolling                  (6.0      )         6.0     
interest
Net income attributable to                      74.1                 39.5
controlling interest
Less: Preferred stock dividends and             12.1               15.7    
accretion
Net income attributable to common
and participating preferred                     $62.0           $ 23.8    
stockholders
                                                                   
Net income per common share
attributable to controlling
interest:
                                                                   
Basic                                           $0.31           $ 0.12    
Diluted                                         $0.03           $ 0.06    
                                                                             
                                                                             

                                                       
                                                                           
HARBINGER GROUP INC. AND SUBSIDIARIES

ADJUSTED EBITDA AND ADJUSTED OPERATING INCOME RECONCILIATIONS

(In millions)
                                                                           
The table below shows the adjustments made to the reported operating income of
the consumer products segment to calculate its Adjusted EBITDA:
                                                                           
                                    Three months ended
                                    December 30,               January 1,
                                    2012                       2012
                                    (Unaudited)
Reconciliation to
reported Consumer
Product Segment
operating income:
Reported operating
income - Consumer                $  68.2                       $   83.7
Products Segment
Add: Other expense not              (1.6     )                 (2.2        )
included above
Add back:
Net loss attributable to            0.5                        —
non-controlling interest
HHI Business inventory              5.2                        —
fair value adjustment
Restructuring and                   6.6                        7.7
related charges
Acquisition and
integration related                 20.8                      7.6         
charges
Adjusted EBIT - consumer            99.7                       96.8
products segment
Depreciation and
amortization, net of
accelerated depreciation
Depreciation of                     10.7                       9.3
properties
Amortization of                     17.1                       14.6
intangibles
Stock-based compensation            3.2                       4.4         
Adjusted EBITDA -
Consumer Products                $  130.7                     $   125.1   
Segment
                                                                           
                                                                           

                                       
                                       
The table below shows the adjustments made to the reported operating income
(loss) of the insurance segment to calculate its pretax adjusted operating
income:
                                       
                                 Three months ended
                                 December 30,                January 1,
                                 2012                           2012
                                 (Unaudited)
Reconciliation to reported
operating income:
Reported operating income -      $     165.3                    $   36.4
insurance segment
Effect of investment gains, net  (125.7         )               (18.2      )
of offsets
Effect of change in FIA embedded
derivative discount rate, net of (6.6           )               2.8
offsets
Effects of transaction-related   —                             3.1        
reinsurance
Adjusted operating income        $33.0                         $   24.1   

Contact:

For investor inquiries:
Harbinger Group Inc.
Investor Relations
Tara Glenn, 212-906-8560
investorrelations@harbingergroupinc.com
or
For media inquires:
Sard Verbinnen & Co
Jamie Tully or Michael Henson, 212-687-8080
 
Press spacebar to pause and continue. Press esc to stop.