Full Press Release Details
Holdings Reports Third Quarter Fiscal Year 2018 Results
NJ - June 11, 2018: 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.
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 |
by Howard Jonas, Chairman and CEO of Rafael Holdings
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.
a successful spin-off in our rear-view mirror, we are focused on both of our operating segments to maximize value for our stockholders.
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.
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."
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."
Rafael Holdings, Inc.:
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.
AND COMBINED BALANCE SHEETS
| April 30, 2018 | July 31, 2017 | |||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,605 | $ | 11,756 | ||||
| Trade accounts receivable, net of allowance for doubtful accounts of $82 at April 30, 2018 and July 31, 2017 | 406 | 264 | ||||||
| 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 - 50,000,000; 787,163 and nil shares issued and outstanding as of April 30, 2018 and July 31, 2017, respectively | 8 | - | ||||||
| Class B common stock, $0.01 par value; authorized shares - 200,000,000; 11,754,835 and nil shares issued and outstanding as of April 30, 2018 and July 31, 2017, respectively | 118 | - | ||||||
| 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 |
accompanying notes to consolidated and combined financial statements.
AND COMBINED STATEMENTS OF OPERATIONS
| Three Months Ended April 30, | Nine Months Ended 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 |
accompanying notes to consolidated and combined financial statements.
AND COMBINED STATEMENTS OF CASH FLOWS
| 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 | $ | - | $ | - |
accompanying notes to consolidated and combined financial statements.