Rafael Holdings Reports Third Quarter Fiscal Year 2018 Results

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months EndedApril 30,

Nine Months EndedApril 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

RAFAEL HOLDINGS, INC.

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months EndedApril 30,

2018

2017

(in thousands)

Operating activities

Net (loss) income

$         (10,403)

$                 225

Adjustments to reconcile net (loss) income to netcash 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

$                   —

$                —