Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results

Published: Jun 11, 2018

 

NEWARK, N.J., June 11, 2018 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.1 million and a loss per share of $0.04 for the third quarter of its 2018 fiscal year.

Financial Highlights
(Results are for 3Q FY2018 compared to 3Q FY2017)

  • Revenue of $1.1 million compared to $1.3 million
  • Loss from operations of $731 thousand compared to $164 thousand
  • Loss attributable to Rafael Holdings of $531 thousand compared to $65 thousand
  • Loss per share of $0.04 compared to $0.01

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"We are pleased to report Rafael Holding's first quarterly results as an independent public company following completion of our spin-off from IDT Corporation on March 26th. Financial results for the third quarter were in line with our expectations and reflected the added expense of being a public company. Our balance sheet remains very strong, with $44.0 million in working capital - current assets less current liabilities -- and no debt.

"With a successful spin-off in our rear-view mirror, we are focused on both of our operating segments to maximize value for our stockholders.

"On the real estate side, we are working to optimize our property portfolio. In Newark, New Jersey, where we hold a 20-story commercial property and an associated garage property, we are seeking experienced real estate development partners to take full advantage of the buoyant local market.

"On the pharma side of our business, we are encouraged by Rafael Pharmaceuticals' recently reported results from its Phase II clinical trial of its lead drug, CPI-613 in Acute Myeloid leukemia (AML) and look forward to its planned launch of its global, randomized Phase III trials of CPI-613 for patients with Stage IV metastatic pancreatic cancer and relapsed/refractory AML."

"LipoMedix is making good progress on the development and study of its flagship prodrug, Promitil and was recently awarded a patent for the use of Promitil in conjunction with radiotherapy."

About Rafael Holdings, Inc.:
Rafael Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies. The real estate holdings include properties in Newark and Piscataway, New Jersey and Jerusalem, Israel. The pharmaceutical holdings consist of interests in Rafael Pharmaceuticals, Inc. and a majority stake in Lipomedix Pharmaceuticals Ltd., both of which are focused on development and commercialization of drugs in the oncology space.

 

 

 

                                                                        RAFAEL HOLDINGS, INC.


                                                              CONSOLIDATED AND COMBINED BALANCE SHEETS


                                                                                                         April 30,             July 31,
                                                                                                                          2018        2017
                                                                                                                          ----        ----

                                                                                                        (Unaudited)

                                                                                                       (in thousands)

    Assets

    Current assets:

    Cash and cash equivalents                                                                                          $10,605     $11,756

    Trade accounts receivable, net of allowance for                                                                        406         264
     doubtful accounts of $82 at April 30, 2018
         and July 31, 2017

    Marketable securities                                                                                               30,942           -

    Due from Rafael Pharmaceuticals                                                                                      1,600           -

    Prepaid expenses and other current assets                                                                              645         147
                                                                                                                           ---         ---


    Total current assets                                                                                                44,198      12,167

    Property and equipment, net                                                                                         50,554      51,160

    Investments - Rafael Pharmaceuticals                                                                                11,700      13,478

    Investments - Other                                                                                                  5,949           -

    Deferred income tax assets, net                                                                                          8       8,859

    Patents                                                                                                                180           -

    In-process research and development                                                                                  1,575           -

    Other assets                                                                                                           920         540
                                                                                                                           ---         ---

    Total assets                                                                                                      $115,084     $86,204
                                                                                                                      ========     =======


    Liabilities and equity

    Current liabilities:

    Trade accounts payable                                                                                                $362        $115

    Accrued expenses                                                                                                       296         213

    Other current liabilities                                                                                               27          35
                                                                                                                           ---         ---

    Total current liabilities                                                                                              685         363

    (Due from) due to related parties                                                                                    (621)     23,693

    Other liabilities                                                                                                       70          70
                                                                                                                           ---         ---

    Total liabilities                                                                                                      134      24,126


    Commitments and contingencies

    Equity:

    Rafael Holdings, Inc. stockholders'/members' equity:

    Group equity                                                                                                             -     50,427

    Class A common stock, $0.01 par value; authorized shares                                                                 8           -
    - 50,000,000; 787,163 and nil shares
         issued and outstanding as of April 30, 2018 and
    July 31, 2017, respectively

    Class B common stock, $0.01 par value; authorized shares                                                               118           -
      - 200,000,000; 11,754,835 and nil shares
         issued and outstanding as of April 30, 2018 and
    July 31, 2017, respectively

    Additional paid in capital                                                                                         103,509           -

    Accumulated deficit                                                                                                  (192)          -

    Accumulated other comprehensive income                                                                               1,998       2,316
                                                                                                                         -----       -----

    Total Rafael Holdings, Inc. stockholders'/members' equity                                                          105,441      52,743

    Noncontrolling interests                                                                                             9,509       9,335
                                                                                                                         -----       -----

    Total equity                                                                                                       114,950      62,078
                                                                                                                       -------      ------

    Total liabilities and equity                                                                                      $115,084     $86,204
                                                                                                                      ========     =======

See accompanying notes to consolidated and combined financial statements.

 

 



                                                                                                       RAFAEL HOLDINGS, INC.



                                                                                         CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

                                                                                                            (Unaudited)


                                                                                                Three Months Ended                             Nine Months Ended
                                                                                                    April 30,                                      April 30,
                                                                                                    ---------                                      ---------

                                                                                                              2018                                  2017              2018 2017
                                                                                                              ----                                  ----              ---- ----

                                                                                                             (in thousands, except per share data)

    Revenues:

    Rental - Third Party                                                                                                               $400                          $219            $1,085     $661

    Rental - Related Party                                                                                                              447                           854             1,442    2,680

    Parking                                                                                                                             246                           209               630      677
                                                                                                                                        ---                           ---               ---      ---

    Total revenues                                                                                                                    1,093                         1,282             3,157    4,018

    Costs and expenses:

    Selling, general and administrative                                                                                               1,402                         1,035             4,481    2,667

    Depreciation and amortization                                                                                                       422                           411             1,276    1,233
                                                                                                                                        ---                           ---             -----    -----

    (Loss) income from operations                                                                                                     (731)                        (164)          (2,600)     118

    Interest income                                                                                                                    (71)                          (1)             (75)     (8)

    Net losses (gains) resulting from foreign exchange transactions                                                                      28                         (136)             (90)   (167)

    Net gains on sales of marketable securities                                                                                        (24)                            -             (24)   (167)

    Net loss on equity investments                                                                                                        -                            -              104        -

    Gain on disposal of bonus shares                                                                                                      -                            -            (246)       -
                                                                                                                                        ---                          ---             ----      ---

    (Loss) income before income taxes                                                                                                 (664)                         (27)          (2,269)     293

    (Benefit from) provision for income taxes                                                                                           (5)                           38             8,438       68
                                                                                                                                        ---                           ---             -----      ---

    Net (loss) income                                                                                                                 (659)                         (65)         (10,707)     225

    Net loss attributable to noncontrolling interests                                                                                   128                             -              304        -
                                                                                                                                        ---                           ---              ---      ---

    Net (loss) income attributable to Rafael Holdings, Inc                                                                           $(531)                        $(65)        $(10,403)    $225
                                                                                                                                      =====                          ====          ========     ====


    (Loss) earnings per share attributable to Rafael Holdings, Inc. common stockholders:

       Basic                                                                                                                        $(0.04)                      $(0.01)          $(0.83)   $0.02
                                                                                                                                     ------                        ------            ------    -----

       Diluted                                                                                                                      $(0.04)                      $(0.01)          $(0.83)   $0.02
                                                                                                                                     ------                        ------            ------    -----


    Weighted average number of shares used in calculation of (loss) earnings per share:

       Basic                                                                                                                         12,542                        12,542            12,542   12,542
                                                                                                                                     ------                        ------            ------   ------

       Diluted                                                                                                                       12,542                        12,542            12,542   12,542
                                                                                                                                     ------                        ------            ------   ------

See accompanying notes to consolidated and combined financial statements.

 

 

                                                                        RAFAEL HOLDINGS, INC.



                                                          CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
                                                                             (Unaudited)


                                                                                                                     Nine Months Ended
                                                                                                                         April 30,

                                                                                                                              2018                    2017
                                                                                                                              ----                    ----

                                                                                                                      (in thousands)

    Operating activities

    Net (loss) income                                                                                                    $(10,403)                   $225

    Adjustments to reconcile net (loss) income to net
    cash used in operating activities:

    Depreciation and amortization                                                                                            1,276                   1,256

    Deferred income taxes                                                                                                    8,851                    (72)

    Realized gain on disposal of bonus shares                                                                                (246)                      -

    Realized gain on marketable securities                                                                                    (24)                      -

    Non-cash compensation                                                                                                      616                       -

    Interest in the equity of investments                                                                                     (80)                      -

    Change in assets and liabilities:

    Accounts and rents receivable                                                                                            (142)                   (40)

    Other current assets and prepaid expenses                                                                                (392)                  (117)

    Other assets                                                                                                             (355)                  (298)

    Accounts payable and accrued expenses                                                                                      223                     155

    Other current liabilities                                                                                                  (8)                    (7)

    Due from related parties                                                                                                 (386)                (1,758)

    Other liabilities                                                                                                            -                    178
                                                                                                                               ---                    ---


    Net cash used in operating activities                                                                                  (1,070)                  (478)


    Investing activities

    Purchases of property and equipment                                                                                      (572)                (1,590)

    Proceeds from sale and maturity of marketable securities                                                                   436                       -

    Purchase of investments                                                                                                      -                (8,300)
                                                                                                                               ---                 ------


    Net cash used in investing activities                                                                                    (136)                (9,890)


    Financing activities

    Proceeds from sale of member interests in CS Pharma Holdings, LLC                                                            -                 10,000

    Cash advances from related parties, net of repayments                                                                        -                  9,767
                                                                                                                               ---                  -----


    Net cash used in financing activities                                                                                        -                 19,767

    Effect of exchange rate changes on cash and cash equivalents                                                                55                     (9)
                                                                                                                               ---                     ---


    Net (decrease) increase in cash and cash equivalents                                                                   (1,151)                  9,390

    Cash and cash equivalents at beginning of period                                                                        11,756                   2,339
                                                                                                                            ------                   -----


    Cash and cash equivalents at end of period                                                                             $10,605                 $11,729
                                                                                                                           =======                 =======


    Supplemental Schedule of Non-Cash Financing and Investing Activities

    Cash payments made for taxes                                                                             $                   -     $                -
                                                                                                             =====================     ==================


    Cash payments made for interest                                                                          $                   -     $                -
                                                                                                             =====================     ==================

 

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SOURCE Rafael Holdings, Inc.

 
 
Company Codes: AMEX:RFL
 

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