Record quarter as revenues grow 16%, 9MoFY19
revenues up 13% Board of Directors announces quarterly
dividend of $0.06 per share
Simulations Plus, Inc. (Nasdaq: SLP), the leading provider of
modeling and simulation solutions for the pharmaceutical,
biotechnology, chemicals, and consumer goods industries, today
reported financial results for its third quarter of fiscal year
2019 (3QFY19) and the first nine months of fiscal year 2019
(9moFY19), the period ended May 31, 2019.
3QFY19 highlights compared with 3QFY18:
- Net revenues increased 16.2% to $9.9 million, an increase of
$1.4 million over $8.6 million
- Gross profit was up 16.6% to $7.6 million, an increase of $1.1
million over $6.5 million
- SG&A was $3.1 million, an increase of 18.6% or $483,000
over $2.6 million
- Total R&D expenditures were $1,066,000, an increase of
$73,000, or 7.4% over $993,000
- In 3QFY19, $422,000 was capitalized and $643,000 was
expensed
- In 3QFY18, $485,000 was capitalized and $508,000 was
expensed
- Income before taxes increased 13.4% to $3.9 million, an
increase of $456,000 over $3.4 million
- Net income increased 20.1% to $2.9 million, an increase of
$483,000 over $2.4 million
- Diluted earnings per share increased 18.8% to $0.16 from
$0.13
9moFY19 highlights compared with 9moFY18:
- Net revenues increased 12.9% to $25.9 million, an increase of
$3.0 million over $23.0 million
- Gross profit was up 12.3% to $19.2 million, an increase of $2.1
million over $17.1 million
- SG&A was $8.6 million, an increase of $1.3 million, or
17.2%, over $7.4 million
- Total R&D expenditures were $3.3 million, an increase of
$274,000, or 9.2% over $3.0 million
- For 9moFY19, $1.4 million was capitalized and $1.9 million was
expensed
- For 9moFY18, $1.6 million was capitalized and $1.4 million was
expensed
- Income before taxes increased 3.3% to $8.6 million, an increase
of $271,000 over $8.3 million
- Net income decreased 14.1% to $6.5 million, a decrease of $1.1
million from $7.6 million; this change included the one-time
second-quarter tax benefit of $1.5 million reported in FY18.
Without the adjustment, year-to-date income would have been up
$427,000, or 7.0%
- Diluted earnings per share decreased 14.9% to $0.36 from $0.43.
In FY18, the major change in diluted earnings per share came from
the $1.5 million tax adjustment that accounted for an $0.08
increase in diluted earnings per share
Shawn O’Connor, chief executive officer of Simulations Plus,
said: “During the quarter, we continued to make significant
progress with the key initiatives we set forth at the beginning of
the year. These initiatives include investments in sales and
marketing strategies to take advantage of increasing adoption of
modeling and simulation applications in the pharmaceutical market.
In addition, we have accelerated our efforts to attract scientific
talent to increase our services capacity. We have initiated efforts
to increase our local presence in global markets. These efforts are
beginning to show returns in our increased growth rate.”
John Kneisel, chief financial officer of Simulations Plus,
added: “We continue to deliver consistent growth and profitability
and maintain a strong cash position. Consolidated cash as of May
31, 2019, was $10.3 million, and $12.9 million as of July 8, 2019.
Since the beginning of this fiscal year, we continued to invest in
and have released new versions of all our major programs. In just
the last six months, we have released new versions of GastroPlus®,
ADMET Predictor®, KIWI™, DILIsym® and NAFLDsym®. We continue to
expand our base of loyal customers.”
Quarterly Dividend Declared
The Company’s Board of Directors has declared a cash dividend of
$0.06 per share of the Company’s common stock payable on August 1,
2019, to shareholders of record as of July 25, 2019. The
declaration of any future dividends will be determined by the Board
of Directors each quarter and will depend on earnings, financial
condition, capital requirements, and other factors.
Investor Conference Call
The Company invites all interested persons to attend its
conference call at 4:15 p.m. Eastern Time on July 10, 2019. The
live webcast/teleconference will be accessible by registering here.
Please dial in five to ten minutes prior to the scheduled start
time. A live, listen-only teleconference will also be available by
dialing (914) 614-3221, and entering access code 952-038-001. A
replay of the webcast will be available at the Investors section of
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/toxicology 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 research by major pharmaceutical,
biotechnology, chemical, consumer goods companies, and regulatory
agencies worldwide. Our innovations in integrating new and existing
science in medicinal chemistry, computational chemistry, artificial
intelligence, pharmaceutical science, biology, and physiology into
our software have made us the leading software provider for
molecular property prediction from structure and 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. Words like “believe,” “expect” and “anticipate” mean
that these are our best estimates as of this writing, but that
there can be no assurances that expected or anticipated results or
events will actually take place, so 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 new software and 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,
our ability to identify and close acquisitions on terms favorable
to the Company, and a sustainable market. Further information on
our risk factors is contained in our quarterly and annual reports
and filed with the U.S. Securities and Exchange Commission.
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SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE
SHEETS As of
(Unaudited)
(Audited)
May 31,
August 31,
ASSETS
2019
2018
Current assets Cash and cash equivalents
$
10,308,125
$
9,400,701
Accounts receivable, net of allowance for doubtful accounts of $0
$
7,735,323
$
5,514,528
Revenues in excess of billings
$
2,680,788
$
1,985,596
Prepaid income taxes
$
-
$
312,593
Prepaid expenses and other current assets
$
533,772
$
610,439
Total current assets
$
21,258,008
$
17,823,857
Long-term assets Capitalized computer software development
costs, net of accumulated amortization of $12,030,641 and
$11,095,903
$
4,879,484
$
5,152,594 Property and equipment, net
$
311,841
$
335,224
Intellectual property, net of accumulated amortization of
$3,716,460 and $3,019,584
$
5,258,541
$
5,905,416
Other intangible assets net of accumulated amortization of
$1,120,625 and $852,500
$
3,369,375
$
3,637,500
Goodwill
$
10,387,198
$
10,387,198
Other assets
$
37,227
$
37,227
Total assets
$
45,501,674
$
43,279,016
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Accounts payable
$
209,085
$
351,605
Accrued payroll and other expenses
$
1,409,202
$
1,152,176
Income taxes payable
$
434,886
$
-
Current portion - Contracts payable
$
1,700,000
$
2,556,644
Billings in excess of revenues
$
498,972
$
384,603
Deferred revenue
$
822,159
$
381,928
Total current liabilities
$
5,074,304
$
4,826,956
Long-term liabilities Deferred income taxes, net
$
2,715,632
$
3,195,139
Payments due under Contracts payable
$
1,743,357
$
3,334,296
Total liabilities
$
9,533,293
$
11,356,391
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
17,527,983 and 17,416,445 shares issued and outstanding
$
7,531
$
7,417
Additional paid-in capital
$
14,813,016
$
13,453,668
Retained earnings
$
21,147,834
$
18,461,540
Total shareholders' equity
$
35,968,381
$
31,922,625
Total liabilities and shareholders' equity
$
45,501,674
$
43,279,016
SIMULATIONS PLUS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS For the three and nine
months ended May 31, 2019 and 2018 (UNAUDITED) Three
months ended Nine months ended (Unaudited)
Unaudited
2019
2018
2019
2018
Revenues
$
9,936,921
$
8,553,068
$
25,944,545
$
22,978,565
Cost of revenues
$
2,324,188
$
2,022,972
$
6,734,890
$
5,874,062
Gross margin
$
7,612,733
$
6,530,096
$
19,209,655
$
17,104,503
Operating expenses Selling, general, and administrative
$
3,087,445
$
2,604,168
$
8,613,788
$
7,352,404
Research and development
$
643,255
$
508,356
$
1,896,926
$
1,353,503
Total operating expenses
$
3,730,700
$
3,112,524
$
10,510,714
$
8,705,907
Income from operations
$
3,882,033
$
3,417,572
$
8,698,941
$
8,398,596
Other income (expense) Interest income
$
11,050
$
7,825
$
20,296
$
18,313
Interest expense
$
(32,702
)
$
(38,188
)
$
(109,078
)
$
(114,846
)
Miscellaneous income
$
-
$
-
$
-
$
-
Gain (loss) from sale of assets
$
-
$
-
$
-
Loss on currency exchange
$
(7,941
)
$
9,441
$
(40,467
)
$
(3,820
)
Total other income (expense)
$
(29,593
)
$
(20,922
)
$
(129,249
)
$
(100,353
)
Income before provision for income taxes
$
3,852,440
$
3,396,650
$
8,569,692
$
8,298,243
Provision for income taxes
$
(963,734
)
$
(990,613
)
$
(2,045,590
)
$
(701,415
)
Net Income
$
2,888,706
$
2,406,037
$
6,524,102
$
7,596,828
Earnings per share Basic
$
0.16
$
0.14
$
0.37
$
0.44
Diluted
$
0.16
$
0.13
$
0.36
$
0.43
Weighted-average common shares outstanding Basic
17,519,849
17,339,937
17,472,922
17,308,414
Diluted
18,096,195
17,904,428
18,008,336
17,850,171
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190710005816/en/
Simulations Plus Investor Relations
Ms. Renee Bouche 661-723-7723 renee@simulations-plus.com
Hayden IR Mr. Cameron Donahue
651-653-1854 cameron@haydenir.com
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