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.