EX-99.1 2 f8k101518ex99-1_rafaelhold.htm PRESS RELEASE, DATED OCTOBER 15, 2018, REPORTING THE RESULTS OF OPERATIONS FOR THE FISCAL QUARTER AND FISCAL YEAR ENDED JULY 31, 2018

Exhibit 99.1

 

 

Rafael Holdings Reports Fourth Quarter and Full Fiscal Year 2018 Results

 

NEWARK, NJ – October 15, 2018: 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 7th, 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.

 

Contact:
Rafael Holdings

David Polinsky

Chief Financial Officer

P: (212) 658-1450

E: invest@rafaelholdings.com

 

 

 

 

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 

 

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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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