Kaiser Group Holdings, Inc. Posts Third Quarter Results

December 26, 2011

For the first time in a long time, Kaiser Group Holdings, Inc. (OTCPink: KGHI.PK) is producing revenue.  Revenue for the company is being derived from its Kaiser Aircraft Industries, Inc. after its purchased of the assets of the bankrupt Alabama Aircraft Industries.  Kaiser reported revenues for the third quarter ended September 30, 2011 came in at $358 thousand compared to $0 during the same period in the  prior year.  For the first nine months of 2011, Kaiser posted revenue of $358 thousand versus $0 for the first nine months of 2010.

The net loss for the third quarter of 2011 increased 157% to $1.24 million or $(0.91) per share compared to $484 thousand or $(0.34) per share during the same period in 2010.  The net loss for the nine month period increased 24% to $2.76 million or $(1.98) per share versus $2.22 million or $(1.57) per share during the same period in 2010.  The larger net loss was primarily the result of higher professional fees and cost of goods sold that exceeded revenues which did not exist in 2010.  The increased expenses overall were partially offset by higher investment income.

With additional acquisitions, investments, continued losses and share repurchases, the company’s balance sheet continues to change.  Since the end of 2010, the shareholders’ equity declined 11.7% to $44.6 million.  In addition to losses, this reduction is in part due to the repurchase of approximately 93,276 share of its own stock.  The balance sheet currently reflects cash/cash equivalents of $7.9 million, current assets of $9.2 million, total assets of $46.3 million and total liabilities of only $1.7 million.

Kaiser Group Holdings, Inc. is a diversified holding company with several investments in various companies and funds which include the following:

  • The 50% interest in Kaiser-Hill Company, LLC
  • The ownership of approximately 19.38% of Bally Total Fitness Holding Corporation
  • Wholly-owned subsidiary Kaiser Aircraft Industries, Inc.
  • Wholly owned subsidiary MS Builders Insurance Company which has not issued new policies since October 1, 2000.
  • The company also has invested $13.4 million in investment partnerships which include $10 million in the Paulson Gold Fund, $1 million in the Somerset Special Opportunities Fund and $2.42 million in the Tennenbaum Opportunities Fund.

Source: Kaiser Group Holdings, Inc.

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