Full Fiscal Year Pharmaceutical Software and
Services Revenues Up 20.9%; Earnings per share of $0.33, up
14.9% over prior year
Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of
software for pharmaceutical discovery and development, today
reported its financial results for its 2017 fiscal year (FY17) and
fourth quarter (4Q17) ended August 31, 2017.
Results for the 2017 fiscal year (FY17):
- Revenues were $24.1 million, up 20.9%
over $20.0 million in FY16
- Gross profit was up 16.0%, or $2.46
million, to $17.83 million, from $15.37 million in FY16
- SG&A expense increased 22.5% to
$8.2 million from $6.7 million in FY16
- As a percent of sales, SG&A
increased 0.5% to 34.0% from 33.5% in FY16
- During FY2017, approximately $620,000
of one-time charges were incurred associated with an
acquisition
- R&D expenditures were $2.7 million
in FY17, up 3.0%, or $78,000, over $2.6 million in FY16
- For FY17, $1.4 million was capitalized
and $1.4 million was expensed
- For FY16, $1.2 million was capitalized
and $1.4 million was expensed
- Net income was $5.8 million, up 16.9%
from $5.0 million in FY16
- Net income from operations increased
13.9%
- Net income per fully diluted share was
$0.33, up 14.9% from $0.29 for FY16
- Cash was $6.2 million, a decrease of
$1.8 million, or 23%, from $8.0 million at the end of FY16. This
decrease was the result of nearly $10 million in cash distributions
made during the fiscal year that included: the final $1 million
payment to TSRL; approximately $5 million of DILIsym Services, Inc.
acquisition-related payments; and cash distributions totaling $3.5
million in dividends distributed to shareholders during FY2017.
Cash today is $8.2 million.
Results for the fourth quarter of FY17 (4Q17):
- Revenues were $6.3 million, up $2.3
million, or 58.3%, compared to $4.0 million in 4Q16.
- $1.24 million of these revenues came
from the DILIsym Services Acquisition on June 1, 2017
- Revenues at our Buffalo Division,
Cognigen, increased 67.4% or $851,000 over 4Q16
- Gross profit was up 48.2% to $4.3
million, an increase of $1.4 million from $2.9 million in 4Q16
- SG&A increased 50.7%, or $818,000,
to $2.4 million from $1.6 million in 4Q16
- During the quarter approximately
$323,000 was incurred for acquisition-related expenses
- 4Q17 SG&A expense of our new
subsidiary accounted for $274,000.
- R&D expenditures were $829,000, an
increase of 25.2% from $662,000 in 4Q16
- For 4Q17, $455,000 was capitalized and
$374,000 was expensed
- For 4Q16, $378,000 was capitalized and
$284,000 was expensed
- Net income was $1.15 million, up 45.9%
over $789,000 in 4Q16
- Earnings per fully diluted share were
$0.06, up $0.019, or 41.9%, over $0.05 in 4Q16
Walt Woltosz, chairman and chief executive officer of
Simulations Plus, said: “Fiscal year 2017 was another exciting year
for Simulations Plus, with record revenues, record net income up
nearly 17%, and record EPS up nearly 15%. We remain committed to
rewarding our shareholders, as evidenced by the recently announced
dividend increase to $0.06 per share per quarter from the $0.05 per
share per quarter we’ve distributed since 2012. The performance of
our Cognigen division in Buffalo, NY, was outstanding all year and
finished with an exceptional fourth quarter that had an increase in
revenues of over 67%. Our new DILIsym Services division, acquired
at the beginning of the fourth quarter, is already contributing
nicely to our growth in both revenues and earnings. And our
software offerings and consulting services in the Lancaster, CA,
division continue the more than 10-year-long trend of continuous
growth and improved offerings.”
John DiBella, president of the Lancaster division of Simulations
Plus, said: “We continued to see expansion of customers both
licensing our technology and outsourcing projects to our team of
experts in FY17. 88 new organizations, or new departments at
existing organizations, are now licensing our technology, with
significant growth realized from companies outside our core
pharmaceutical market, highlighting the utility of our tools for
various research activities. We have scaled up our consulting
services division by adding staff to meet increased demand, and our
business development representatives continue to maintain a robust
consulting project pipeline heading into 2018. Our software
development teams are working hard on the next versions of
GastroPlus™, ADMET Predictor™, and PKPlus™, and with our continued
focus on education and training, coupled with increased marketing
efforts, we believe we are in an excellent position to address the
needs set forth by regulatory agencies and to capitalize on the
increased adoption of modeling and simulation technology across
industries.”
Dr. Brett Howell, president of the DILIsym Services division,
added: “DILIsym Services has now been a part of the Simulations
Plus family for one fiscal quarter. We had a great fourth quarter
with combined revenue from consulting and licensing that
represented significant growth compared to prior periods. Most
importantly, synergies have immediately surfaced between DILIsym
Services and our sister divisions, Simulations Plus Lancaster and
Cognigen. We foresee additional synergies through combined
marketing, consulting, and software projects in the future that
will benefit all three groups.”
Investor Conference Call November 14, 2017, 4:15 p.m.
EST/1:15 p.m. PST
The Company will host a conference call to discuss the Company’s
performance on Tuesday, November 14, 2017, at 4:15 p.m. Eastern
Time. All interested parties are invited to join the call by
registering here. Upon 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 +1 (562) 247-8422, and enter access code:
189-912-336.
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.
CONSOLIDATED BALANCE SHEETS
As of August 31, ASSETS
2017
2016
Current assets Cash and cash equivalents $ 6,215,718 $
8,030,284 Accounts receivable, net of allowance for doubtful
accounts of $0 4,048,725 3,009,517 Revenues in excess of billings
1,481,082 694,131 Prepaid income taxes 462,443 555,486 Prepaid
expenses and other current assets
459,902
410,811 Total current assets 12,667,870
12,700,229
Long-term assets Capitalized computer software
development costs, net of accumulated amortization of $9,795,469
and $8,613,487 4,307,600 4,013,127 Property and equipment, net
291,135 256,381 Intellectual property, net of accumulated
amortization of $2,095,417 and $1,408,750 6,829,583 4,666,250 Other
intangible assets net of accumulated amortization of $495,000 and
$295,000 3,995,000 1,355,000 Goodwill 10,387,198 4,789,248 Other
assets
34,082 34,082
Total assets $
38,512,468 $
27,814,317 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities Accounts
payable $ 240,892 $ 108,111 Accrued payroll and other expenses
983,293 602,610 Other current liabilities - 8,274 Current portion -
Contracts payable 247,328 1,000,000 Billings in excess of revenues
216,958 230,100 Deferred revenue
353,962
176,422 Total current liabilities 2,042,433 2,125,517
Long-term liabilities Deferred income taxes,net
4,926,960 2,956,206 Payments due under Contracts payable
5,738,188 - Total liabilities
12,707,581 5,081,723
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
17,277,604 and 17,225,478 shares issued and outstanding 7,278 7,227
Additional paid-in capital 12,109,141 11,376,007 Retained earnings
13,688,468 11,349,360 Total
shareholders' equity
25,804,887 $
22,732,594 Total liabilities and
shareholders' equity $
38,512,468 $
27,814,317 - -
SIMULATIONS PLUS, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS For the years ended August 31,
2017
2016
2015
$ 24,137,913 $ 19,972,079 $ 18,314,248
Cost of
revenues 6,307,800
4,601,513 4,392,477
Gross margin 17,830,113
15,370,566 13,921,771
Operating expenses Selling, general, and
administrative 8,198,184 6,693,691 6,736,767 Research and
development
1,367,645
1,445,069 1,328,476
Total operating expenses
9,565,829
8,138,760 8,065,243
Income from operations
8,264,284 7,231,806
5,856,528 Other income
(expense) Interest income 15,857 18,014 17,935 Interest expense
(38,188 ) - -
Gain (loss) on currency exchange
(1,686 )
(13,428 ) (181,534
) Total other income (expense)
(24,017 ) 4,586
(163,599 ) Income
before provision for income taxes 8,240,267 7,236,392 5,692,929
Provision for income taxes
(2,452,670
) (2,286,256 )
(1,849,968 ) Net Income
$ 5,787,597
$ 4,950,136
$ 3,842,961
Earnings per share Basic
$ 0.34 $
0.29 $ 0.23 Diluted
$ 0.33
$ 0.29 $ 0.23
Weighted-average common shares outstanding Basic
17,239,490 17,028,566 16,864,670 Diluted
17,515,917 17,209,506 17,032,158
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171114006473/en/
Simulations Plus Investor
RelationsMs. Renee Bouche,
661-723-7723renee@simulations-plus.comorHayden IRMr. Cameron Donahue,
651-653-1854cameron@haydenir.com
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