Simulations Plus Reports First Quarter FY2018 Financial Results

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Jan. 9, 2018 21:01 UTC

 

Consolidated net income up 26.0%; diluted earnings per share increased 22.8%

 

LANCASTER, Calif.--(BUSINESS WIRE)--Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all stages of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its first quarter of fiscal year 2018, the period ended November 30, 2017 (1QFY18).

1QFY18 highlights compared with 1QFY17:

  • Net revenues increased 30.5%, or $1.7 million, to a new first quarter record $7.1 million vs. $5.4 million
  • Gross profit increased 30.6%, or $1.3 million, to $5.3 million from $4.1 million
  • SG&A was $2.4 million, an increase of 29.2%, or $545,000, from $1.9 million
  • SG&A as a percentage of revenues decreased slightly to 34.1% from 34.4%
  • Income before taxes increased $550,000, or 27.9%, to $2.5 million from $2.0 million
  • Net income increased $354,000, or 26.0%, to $1.7 million from $1.4 million
  • Diluted earnings per share increased 22.8%, or $0.02, to $0.10 from $0.08 per share

John Kneisel, chief financial officer of Simulations Plus, said, “Revenue growth in our core divisions in Lancaster and Buffalo coupled with the new revenues and profits from DILIsym Services acquired in the last quarter of our prior fiscal year produced a 26% growth in net income and a two-cent growth in EPS, resulting in a strong start to the new fiscal year.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, “We’re very pleased to report these first quarter results for fiscal year 2018, which begins the first full fiscal year after our acquisition of DILIsym Services, Inc., in June of last year. This is yet another record quarter, setting an all-time record for revenues for any quarter at over $7 million, and record high earnings for a first fiscal quarter. We continue to push forward the cutting edge of simulation and modeling for pharmaceutical research, and it is clear that the industry continues to adopt simulation and modeling tools at a steady pace in its effort to increase productivity and decrease overall costs of bringing new medicines to market for all of us.”

Investor Conference Call

The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Tuesday, January 9, 2018. All interested parties are invited to join the call by registering here. On registering, you will receive a confirmation e-mail with instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial (562) 247-8321, and enter access code 336-145-278. A replay will be available on the Simulations Plus website following the call.

About Simulations Plus, Inc.

Simulations Plus, Inc. is a premier developer of drug discovery and development software as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions and quantitative systems pharmacology models for drug-induced liver injury and nonalcoholic fatty liver disease. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical, biotechnology, and chemical agents. Our software is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, chemical, and consumer goods companies and regulatory agencies worldwide. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for physiologically based pharmacokinetic modeling and simulation. For more information, visit our website at www.simulations-plus.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of our new software products as well as improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the U.S. Securities and Exchange Commission.

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of

             
      (Unaudited)     (Audited)
      November 30,     August 31,
    ASSETS        
       

2017

     

2017

Current assets        
  Cash and cash equivalents $ 7,045,756     $ 6,215,718
  Accounts receivable, net of allowance for doubtful accounts of $0   5,230,824       4,048,725
  Revenues in excess of billings   1,361,242       1,481,082
  Prepaid income taxes   -       462,443
  Prepaid expenses and other current assets   348,708       459,902
    Total current assets   13,986,530       12,667,870
Long-term assets        
  Capitalized computer software development costs,        
  net of accumulated amortization of $10,080,778 and $9,795,469   4,529,380       4,307,600
  Property and equipment, net   305,634       291,135
  Intellectual property, net of accumulated amortization of $2,326,459 and $2,095,417   6,598,541       6,829,583
  Other intangible assets net of accumulated amortization of $584,375 and $495,000   3,905,625       3,995,000
  Goodwill   10,387,198       10,387,198
  Other assets   37,227       34,082
Total assets $ 39,750,135     $ 38,512,468
             
    LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities        
  Accounts payable $ 141,815     $ 240,892
  Accrued payroll and other expenses   1,085,065       983,293
  Income taxes payable   404,600       -
  Current portion - Contracts payable   3,150,000       247,328
  Billings in excess of revenues   602,233       216,958
  Deferred revenue   270,250       353,962
    Total current liabilities   5,653,963       2,042,433
             
Long-term liabilities        
  Deferred income taxes,net   4,791,460       4,926,960
  Payments due under Contracts payable   2,626,376       5,738,188
    Total liabilities   13,071,799       12,707,581
             
Commitments and contingencies        
             
Shareholders' equity        
  Preferred stock, $0.001 par value        
    10,000,000 shares authorized        
    no shares issued and outstanding $ -     $ -
  Common stock, $0.001 par value        
    50,000,000 shares authorized        
    17,287,652 and 17,277,604 shares issued and outstanding   7,288       7,278
  Additional paid-in capital   12,303,662       12,109,141
  Retained earnings   14,367,386       13,688,468
    Total shareholders' equity

$

26,678,336     $ 25,804,887
Total liabilities and shareholders' equity $ 39,750,135     $ 38,512,468
             

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended November 30,

       
      (Unaudited)
       

2017

     

2016

 
           

Net Revenues

$ 7,068,782     $ 5,417,933  
Cost of revenues   1,735,608       1,335,982  
Gross margin   5,333,174       4,081,951  
Operating expenses      
Selling, general, and administrative   2,408,514       1,863,555  
Research and development   360,817       290,299  
Total operating expenses   2,769,331       2,153,854  
           
Income from operations   2,563,843       1,928,097  
           
Other income (expense)      
Interest income   4,310       4,455  
Interest expense   (38,470 )     -  
Gain(loss) on currency exchange   (12,678 )     34,928  
Total other income (expense)   (46,838 )     39,383  
           
Income before provision for income taxes   2,517,005       1,967,480  
Provision for income taxes   (800,999 )     (605,915 )
Net Income $ 1,716,006     $ 1,361,565  
           
Earnings per share      
Basic $ 0.10     $ 0.08  
Diluted $ 0.10     $ 0.08  
           
Weighted-average common shares outstanding      
Basic     17,282,132       17,226,192  
Diluted   17,859,683       17,409,134  

 

Contacts

Simulations Plus Investor Relations
Ms. Renee Bouche, 661-723-7723
renee@simulations-plus.com
or
Hayden IR
Mr. Cameron Donahue, 651-653-1854
cameron@haydenir.com

 

 
 

Source: Simulations Plus, Inc.

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