Kaiser Group Holdings, Inc Reports Results For The First Quarter Of 2010

July 20, 2010

Kaiser Group Holdings, Inc (Pink Sheets: KGHI – $27.50*) has released financial statements for the period ended March 31, 2010. The Company does not have any direct operations so it reported no revenues for the first quarter of 2010 and this compares to no revenues for the same period in 2009. The net loss for the first quarter of 2010 was $837 thousand or ($.59) per share compared to a net loss of $388 thousand or ($.24) per share for the same period in 2009.

The balance sheet remains strong with nearly $40 million in current assets and only $1.31 million in total liabilities.

Activities during the first quarter were limited. The company already held a 10% equity interest in Bally Total Fitness Holding Corporation that it acquired in June 2009 through the purchase at a discount of secured term loans made to Bally Total Fitness Holding Corporation for $11.7 million and a subsequent conversion to equity in September 2009. In March of 2010, pursuant to a settlement agreement between the Trustees for the Bally Senior and Subordinated Notes, the Company purchased additional shares and warrants from Bally Senior Noteholders increasing the Company’s cost basis in Bally to $12.3 million.

Also, as of March 31, 2010, the Company’s 50% joint venture in Kaiser-Hill has withheld approximately $3.3 million from distribution until the closure of certain issues. The Company expects to receive its 50% share of any remaining distribution.

Kaiser Group Holdings, Inc. is a holding company with it primary assets being 100% ownership of Kaiser Group International which in turn owns 50% of Kaiser-Hill Company, LLC and 100% of Monument Select Insurance Company (Monument Select Insurance Company is not currently issuing policies). Kaiser also owns approximately 10% of Bally’s Total Fitness Holding Corporation.

Disclosure: The author holds a long position in KGHI at the time of this article.

*Price per share at the time the article was published or the price of the last trade.

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