Record quarter as revenues grow 26.7%,
9MoFY18 net income up 63.8%
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
2018 (3QFY18) and the first nine months of fiscal year 2018
(9moFY18), the period ended May 31, 2018.
3QFY18 highlights compared with 3QFY17:
- Net revenues increased 26.7% to $8.6
million, an increase of $1.8 million from $6.7 million
- Gross profit was up 23.1% to $6.5
million, an increase of $1.2 million from $5.3 million
- SG&A was $2.6 million, an increase
of 33.2% or $649,000 from $2.0 million
- R&D expenditures were $993,000 an
increase of $395,000, or 66.0% over $598,000
- In 3QFY18, $485,000 was capitalized and
$508,000 was expensed
- In 3QFY17, $344,000 was capitalized and
$254,000 was expensed
- Income before taxes increased 10.1% to
$3.4 million, an increase of $313,000 from $3.1 million
- Net income increased 15.7% to $2.4
million, an increase of $327,000 from $2.1 million
- Diluted earnings per share increased
13.7% to $0.13 from $0.12.
9moFY18 highlights compared with 9moFY17:
- Net revenues increased 28.6% to $23.0
million, an increase of $5.1 million from $17.9 million
- Gross profit was up 26.4% to $17.1
million, an increase of $3.6 million from $13.5 million
- SG&A was $7.4 million, an increase
of $1.6 million, or 27.5%, from $5.8 million
- R&D expenditures were $3.0 million,
an increase of $1.1 million, or 58.3% over $1.9 million
- For 9moFY18, $1.6 million was
capitalized and $1.4 million was expensed
- For 9moFY17, $928,000 was capitalized
and $953,000 was expensed
- Income before taxes increased 21.4% to
$8.3 million, an increase of $1.5 million from $6.8 million
- Net income increased 63.8% to $7.6
million, an increase of $3.0 million from $4.6 million; this
included the one-time second-quarter tax benefit of $1.5 million
reported last quarter. Without the adjustment, year-to-date income
would have been $6.1 million, up $1.5 million or 31.5%
- Diluted earnings per share increased
60.2% to $0.43 from $0.27, the $1.5 million tax adjustment
accounted for $0.08 of the increase in diluted earnings per
share
Walt Woltosz, chairman of the board of Simulations Plus, said:
“Simulations Plus continues to execute on its growth strategy and
deliver quantifiable value to its expanding customer base. With
more than a decade of consistent growth in revenue and earnings, we
believe we are well-positioned for continued success, especially as
in silico modeling takes on an increasing importance with our
customers. We believe simulation and modeling, and consulting
services based on them, are essential components of reducing the
cost and time required for drug discovery and development. I
believe it is an appropriate time for me to turn over the
day-to-day leadership of our strong organization to Shawn O’Connor,
our experienced new CEO.”
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, 2018, was $7.2 million, and $9.9 million as of July 9, 2018.
Our financial position has allowed us to make strategic investments
over the last several years and enabled continued investment in
research and development to bolster our strategic position in the
market. This year we have released new versions of GastroPlus™,
ADMET Predictor™, PKPlus™, KIWI™, DILIsym™ and are working on
NAFLDsym™. As the recognized leader in the space, with a growing
base of loyal customers, these product introductions will help us
capture market share and better serve the industry.”
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 2,
2018, to shareholders of record as of July 26, 2018. 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, 2018. 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
(914) 614-3221, and entering access code 637-051-430. 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 2018 2017 Current assets Cash
and cash equivalents $ 7,223,115 $ 6,215,718 Accounts receivable,
net of allowance for doubtful accounts of $0 7,701,659 4,048,725
Revenues in excess of billings 2,018,419 1,481,082 Prepaid income
taxes – 462,443 Prepaid expenses and other current assets
383,655 459,902 Total current assets 17,326,848 12,667,870
Long-term assets Capitalized computer software development
costs, net of accumulated amortization of $10,748,363 and
$9,795,469 4,986,428 4,307,600 Property and equipment, net 279,105
291,135 Intellectual property, net of accumulated amortization of
$2,788,543 and $2,095,417 6,136,458 6,829,583 Other intangible
assets net of accumulated amortization of $763,125 and $495,000
3,726,875 3,995,000 Goodwill 10,387,198 10,387,198 Other assets
37,227 34,082
Total assets $
42,880,139 $ 38,512,468 LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Accounts
payable 197,110 $ 240,892 Accrued payroll and other expenses
1,106,195 983,293 Income taxes payable 169,452 – Current portion -
Contracts payable 2,480,000 247,328 Billings in excess of revenues
434,804 216,958 Deferred revenue 821,243 353,962
Total current liabilities 5,208,804 2,042,433
Long-term
liabilities Deferred income taxes,net 3,189,761 4,926,960
Payments due under Contracts payable 3,372,752
5,738,188 Total liabilities 11,771,317 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 17,358,444 and 17,277,604 shares
issued and outstanding 7,359 7,278 Additional paid-in capital
12,933,560 12,109,141 Retained earnings 18,167,903
13,688,468 Total shareholders' equity 31,108,822
25,804,887
Total liabilities and shareholders' equity
$ 42,880,139 $ 38,512,468
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
For the three and nine months ended May
31, 2018 and May 31, 2017
Three months ended
Nine months ended (Unaudited)
(Unaudited) 2018 2017
2018 2017 Revenues
$ 8,553,068 $ 6,748,518 $ 22,978,565 $ 17,872,044
Cost of
revenues 2,022,972 1,444,764
5,874,062 4,334,699
Gross margin
6,530,096 5,303,754 17,104,503
13,537,345
Operating expenses Selling,
general, and administrative 2,604,168 1,954,871 7,352,404 5,766,563
Research and development 508,356 253,799
1,353,503 952,635 Total
operating expenses 3,112,524 2,208,670
8,705,907 6,719,198
Income
from operations 3,417,572 3,095,084
8,398,596 6,818,147
Other
income (expense) Interest income 7,825 4,663 18,313 13,548
Interest expense (38,188 ) – (114,846 ) –
Gain (loss) on currency exchange
9,441 (14,913 ) (3,820 ) 5,573
Total other income (expense) (20,922 ) (10,250
) (100,353 ) 19,121
Income before
provision for income taxes 3,396,650 3,084,834 8,298,243
6,837,268 Benefit (Provision) for income taxes (990,613 )
(1,004,805 ) (701,415 ) (2,199,914 )
Net
Income $ 2,406,037 $
2,080,029 $ 7,596,828 $
4,637,354 Earnings per share Basic
$ 0.14 $ 0.12 $ 0.44
$ 0.27 Diluted
$ 0.13 $
0.12 $ 0.43 $ 0.27
Weighted-average common shares outstanding Basic
17,339,937 17,241,891 17,308,414
17,233,470 Diluted
17,904,428 17,585,528
17,850,171 17,454,864
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version on businesswire.com: https://www.businesswire.com/news/home/20180710006002/en/
Simulations Plus Investor
RelationsMs. Renee
Bouche661-723-7723renee@simulations-plus.comorHayden IRMr. Cameron
Donahue651-653-1854cameron@haydenir.com
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