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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.

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 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. 

 

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.

Oct 15, 2018