Rafael Holdings Reports Fourth Quarter and Full Fiscal Year 2018 Results

NEWARK, N.J., Oct. 15, 2018 /PRNewswire/ -- Rafael Holdings, Inc., (NYSE American: RFL), reported revenue of $1.2 million and a loss per share of $0.05 for the fourth quarter of its 2018 fiscal year. For the full fiscal year 2018, revenue was $4.4 million and the loss per share was $0.93.

Financial and Operational Highlights
(4Q18 results are compared to 4Q17 and FY 2018 results are compared to FY 2017)

    --  On September 7(th), Rafael Holdings' CS Pharma subsidiary exercised a
        warrant for $10 million to purchase 8 million shares of Rafael
        Pharmaceuticals representing 13.5% of the shares currently outstanding.
        Rafael Holdings holds an effective 45% interest in CS Pharma;
    --  4Q18 revenue of $1.2 million compared to $1.6 million; FY 2018 revenue
        of $4.4 million compared to $5.6 million;
    --  4Q18 loss from operations of $1.2 million compared to income from
        operations of $100 thousand.  FY 2018 loss from operations of $3.8
        million compared to income from operations of $221 thousand;
    --  4Q18 loss per share of $0.05 compared to a loss of $0.01.  FY 2018 loss
        per share of $0.93 compared to income per share of $0.01.

Remarks by Howard Jonas, Chairman and CEO of Rafael Holdings
"Rafael Holdings, through our CS Pharma subsidiary purchased an equity stake in Rafael Pharmaceuticals following the quarter close by exercise of warrants. The investment reflects our continued excitement in the potential of Rafael Pharmaceuticals and our interest in ensuring that Rafael Pharmaceuticals has adequate resources to execute on its clinical trial programs, including its global, randomized, pivotal Phase III trials for patients with Stage IV metastatic pancreatic cancer and relapsed/refractory AML.

"LipoMedix continues to make progress on pre-clinical and clinical trial programs of Promitil, its flagship prodrug.

"On the real estate side of our business, we are working to optimize the value of our assets including our 20-story commercial property and associated garage in Newark, New Jersey."

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


                                      
            
               (in thousands)





       July 31,                                                            2018                  2017

    ---


       
              Assets



       Current assets:



       Cash and cash equivalents                                                   $
         15,803      $
         11,756


        Trade accounts receivable, net of allowance for
         doubtful accounts of $82 at July 31, 2018 and 2017                                   287                264



       Marketable securities                                                              24,701



       Due from Rafael Pharmaceuticals                                                     3,300



       Prepaid expenses and other current assets                                             421                147




       Total current assets                                                               44,512             12,167



       Property and equipment, net                                                        50,113             51,160



       Investments - Rafael Pharmaceuticals                                               13,300             11,700



       Investments - Other Pharmaceuticals                                                 2,000              1,778



       Investments - Hedge Funds                                                           4,218



       Deferred income tax assets, net                                                                       8,859



       Patents                                                                               324



       In-process research and development                                                 1,327



       Other assets                                                                        1,126                540




       Total assets                                                               $
         116,920      $
         86,204






       
              Liabilities and equity



              Current liabilities:



       Trade accounts payable                                                         $
         367         $
         115



       Accrued expenses                                                                      500                213



       Other current liabilities                                                              24                 35




       Total current liabilities                                                             892                363



       Due to related parties                                                                276             23,693



       Other liabilities                                                                     188                 70




       Total liabilities                                                                   1,355             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 - 50,000,000; 787,163 and nil shares issued
         and outstanding as of July 31, 2018 and 2017,
         respectively                                                                           8


        Class B common stock, $0.01 par value; authorized
         shares  - 200,000,000; 11,762,346 and nil shares
         issued and outstanding as of July 31, 2018 and,
         2017, respectively                                                                   118



       Additional paid in capital                                                        103,636



       Accumulated deficit                                                                -1,108



       Accumulated other comprehensive income                                              4,043              2,316



        Total Rafael Holdings, Inc. stockholders'/members'
         equity                                                                           106,697             52,743



       Noncontrolling interests                                                            8,868              9,335




       Total equity                                                                      115,565             62,078




       Total liabilities and equity                                               $
         116,920      $
         86,204


                                                                                                 
        
                RAFAEL HOLDINGS, INC.


                                                                                       
           
         CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS


                                                                                             
         
           (in thousands, except per share data)





       Fiscal Years ended July 31,                                                                                      2018                           2017             2016

    ---


       Revenues:



       Rental - Third Party                                                                                                       $
              1,275           $
        989        $
        746



       Rental - Related Party                                                                                                                 2,223               3,705            3,729



       Parking                                                                                                                                  873                 924            1,114




       Total revenues                                                                                                                         4,371               5,618            5,589



       Costs and expenses:



       Selling, general and administrative                                                                                                    5,519               3,728            2,754



       Research & development                                                                                                                   995



       Depreciation and amortization                                                                                                          1,698               1,669            1,643




       (Loss) income from operations                                                                                                        (3.841)                221            1,192



       Interest income                                                                                                                         (16)               (10)              20



       Net (gains) losses resulting from foreign exchange transactions                                                                         (32)               (86)              13



       Net gains on sales of marketable securities                                                                                             (12)



       Net loss on equity investments                                                                                                           104



       Gain on disposal of bonus shares                                                                                                       (246)



       Other expenses, net                                                                                                                                         113




       (Loss) income before income taxes                                                                                                    (3,639)                204            1,159



       Provision for income taxes                                                                                                             8,437                  66              449




       Net (loss) income                                                                                                                   (12,076)                138              710



       Net loss attributable to noncontrolling interests                                                                                      (427)




       Net (loss) income attributable to Rafael Holdings, Inc.                                                                 $
              (11,649)          $
        138        $
        710






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



       Basic                                                                                                                     $
              (0.93)         $
        0.01       $
        0.06




       Diluted                                                                                                                   $
              (0.93)         $
        0.01       $
        0.06






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



       Basic                                                                                                                                 12,485              12,485           12,485




       Diluted                                                                                                                               12,485              12,485           12,485

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SOURCE Rafael Holdings, Inc.