Market Overview

Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results

Share:

Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results

PR Newswire

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

www.rafaelholdings.com (PRNewsfoto/Rafael Holdings, Inc.)" alt="Rafael Holdings holds commercial real estate assets and interests in two clinical stage pharmaceutical companies. 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. For more information, visit www.rafaelholdings.com (PRNewsfoto/Rafael Holdings, Inc.)">

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,
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




See accompanying notes to consolidated and combined financial statements.

 

 

RAFAEL HOLDINGS, INC.

 

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

(Unaudited)




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
















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

$                   —


$                —





 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/rafael-holdings-reports-third-quarter-fiscal-year-2018-results-300663845.html

SOURCE Rafael Holdings, Inc.

View Comments and Join the Discussion!