EX-99.1 2 f8k061118ex99-1_rafael.htm PRESS RELEASE, DATED JUNE 11, 2018, REPORTING THE RESULTS OF OPERATIONS FOR THE QUARTER ENDED APRIL 30, 2018

Exhibit 99.1

 

 

 

Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results

 

NEWARK, 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.

 

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.

 

Contact:
Rafael Holdings

David Polinsky

Chief Financial Officer

P: (212) 658-1450

E: invest@rafaelholdings.com

 

 

 

 

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.

 

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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. 

 

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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   $—   $— 

 

 See accompanying notes to consolidated and combined financial statements. 

 

 

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