Quarterly Revenues Up 15%; 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 second quarter of fiscal year
2019, the period ended February 28, 2019 (2QFY19).
2QFY19 highlights compared with 2QFY18:
- Net revenues increased 15%, or $1.1
million, to $8.5 million from $7.4 million
- Gross profit was $6.3 million, up $1.0
million, or 19.5%, from $5.2 million
- SG&A was $2.8 million, up $470,000,
or 20%, from $2.3 million
- SG&A as a percentage of revenues
increased to 33.2% from 31.8%
- R&D expense increased 49.5%, or
$240,000, to $724,000 from $484,000
- Income before taxes increased 13.0%, or
$311,000, to $2.7 million from $2.4 million
- Net income decreased $1.4 million, or
39.6%, to $2.1 million from $3.5 million
- This decrease is mainly due to the
Company recording in the prior year (2QFY18) a $1.5 million
one-time adjustment to deferred taxes based on the Tax Cuts and
Jobs Act passed in the prior fiscal year
- Diluted earnings per share decreased
$0.07, to $0.12 from $0.19 per share; without the effect of the tax
adjustment, the change would have been an increase of $0.01 per
share as the prior years’ tax benefit effected diluted earnings per
share by approximately $0.08 per share
6moFY19 highlights compared with 6moFY18:
- Net revenues increased 11%, or $1.6
million, to $16.0 million from $14.4 million
- Gross profit was $11.6 million, up $1.0
million, or 9.7%, from $10.6 million
- SG&A was $5.5 million, an increase
of $782,000, or 16.5%, from $4.7 million
- R&D expenditures were $1.3 million,
an increase of $409,000, or 48.3%, over $845,000
- Income before taxes decreased 3.8%, or
$184,000, to $4.7 million from $4.9 million
- Net income decreased $1.6 million, or
30.0%, to $3.6 million from $5.2 million
- This decrease is mainly due to the
Company recording in the prior year (2QFY18) a $1.5 million
one-time adjustment to deferred taxes based on the Tax Cuts and
Jobs Act in 2018
- Diluted earnings per share decreased
$0.09, to $0.20 from $0.29 per share; approximately $0.08 per share
of the decrease is associated with the prior years’ tax benefit
recorded in 2QFY18. Without the effect of the tax adjustment, the
change would have been a decrease of $0.01 per share as the prior
years’ tax benefit effected diluted earnings per share by
approximately $0.08 per share
Shawn O’Connor, chief executive officer of Simulations Plus,
said: “As expected, our revenue growth accelerated in the second
quarter, in line with historical seasonality and benefiting from
double-digit growth in consulting services. This progress
reinforced our confidence in our full-year revenue growth outlook
of 10-15%, and this does not yet benefit from the ongoing
investments in sales and marketing initiatives designed to drive
future growth. In particular, we are adding to our consulting
services team in an effort to address the growing demand and
expanding opportunities we see in the marketplace.”
John Kneisel, chief financial officer of Simulations Plus,
added: “Second quarter pretax earnings increased 13% over the prior
year. Net income was down compared to the prior year due nearly
entirely to the non-recurring $1.5 million tax benefit recorded in
the prior year, which boosted the comparable period’s net
income.”
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 May 1,
2019, to shareholders of record as of April 24, 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 has announced an investor conference call that will
be webcast live at 1:15 p.m. PDT/4:15 p.m. EDT on Tuesday, April 9,
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 webcast will also be
available by dialing (415) 930-5321, and entering access code
271-105-468. 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 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 and filed with the
U.S. Securities and Exchange Commission.
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS As of February 28,
2019 and 2018 (Unaudited) (Audited)
February 28, August 31, ASSETS
2019
2018
Current assets Cash and cash equivalents 9,893,953 $
9,400,701 Accounts receivable, net of allowance for doubtful
accounts of $0 6,227,555 5,514,528 Revenues in excess of billings
2,264,518 1,985,596 Prepaid income taxes - 312,593 Prepaid expenses
and other current assets
518,512
610,439 Total current assets 18,904,538 17,823,857
Long-term assets Capitalized computer software development
costs, net of accumulated amortization of $11,708,089 and
$11,095,903 4,779,575 5,152,594 Property and equipment, net 302,977
335,224 Intellectual property, net of accumulated amortization of
$3,484,168 and $3,019,584 5,490,833 5,905,416 Other intangible
assets net of accumulated amortization of $1,031,250 and $852,500
3,458,750 3,637,500 Goodwill 10,387,198 10,387,198 Other assets
37,227 37,227 Total
assets $ 43,361,098
$ 43,279,016
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Accounts payable 289,762 $ 351,605 Accrued payroll
and other expenses 1,135,579 1,152,176 Income taxes payable 106,845
- Current portion - Contracts payable 1,750,000 2,556,644 Billings
in excess of revenues 958,948 384,603 Deferred revenue
891,650 381,928 Total current
liabilities 5,132,784 4,826,956
Long-term liabilities
Deferred income taxes,net 2,814,535 3,195,139 Payments due under
Contracts payable
1,660,672
3,334,296 Total liabilities 9,607,991 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
17,499,958 and 17,416,445 shares issued and outstanding 7,501 7,417
Additional paid-in capital 14,435,574 13,453,668 Retained earnings
19,310,032 18,461,540 Total
shareholders' equity
33,753,107 $
31,922,625
Total liabilities and shareholders' equity
$ 43,361,098
$ 43,279,016
SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS For the three and six months ended
February 28, 2019 and 2018 Three months
ended Six months ended (Unaudited)
(Unaudited)
2019
2018
2019
2018
Revenues $ 8,471,720 $ 7,356,714 $ 16,007,623 $
14,425,496
Cost of revenues 2,207,831
2,115,483
4,406,952 3,851,090
Gross margin 6,263,889
5,241,231 11,600,671
10,574,406 Operating expenses
Selling, general, and administrative 2,809,691 2,339,721 5,530,093
4,748,237 Research and development
724,034
484,329
1,253,670 845,146
Total operating expenses
3,533,725
2,824,050 6,783,763
5,593,383 Income from
operations 2,730,164
2,417,181 4,816,908
4,981,023 Other income
(expense) Interest income 5,573 6,180 9,245 10,489 Interest
expense (38,188 ) (38,188 ) (76,376 ) (76,658 ) Miscellanous income
- - - - Gain (loss) from sale of assets - - - - Loss on currency
exchange
(1,916 )
(585 ) (32,526
) (13,262 ) Total
other income (expense)
(34,531 )
(32,593 )
(99,657 ) (79,431
) Income before provision for income
taxes 2,695,633 2,384,588 4,717,251 4,901,592 Provision for
income taxes
(596,184 )
1,090,198 (1,081,855
) 289,198 Net Income
$ 2,099,449
$ 3,474,786
$ 3,635,396
$ 5,190,790
Earnings per share Basic
$ 0.12 $
0.20 $ 0.21 $ 0.30 Diluted
$ 0.12 $ 0.19 $ 0.20
$ 0.29 Weighted-average common shares
outstanding Basic
17,476,603 17,302,763
17,449,069 17,292,391 Diluted
18,002,741
17,855,351 17,984,078 17,843,345
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version on businesswire.com: https://www.businesswire.com/news/home/20190409005373/en/
Simulations Plus Investor
RelationsMs. Renee Bouche,
661-723-7723renee@simulations-plus.com
Hayden IRMr. Cameron
Donahue651-653-1854cameron@haydenir.com
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