Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results
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 26(th). 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
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Supplemental Schedule of Non-Cash Financing and Investing Activities
Cash payments made for taxes $ - $ -
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Cash payments made for interest $ - $ -
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SOURCE Rafael Holdings, Inc.
