Second quarter revenue of $13.1 million,
reflecting 27% year-over-year growth
Board of Directors announces quarterly
dividend of $0.06 per share
Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of
modeling and simulation solutions for the pharmaceutical,
biotechnology, chemical, and consumer goods industries, today
reported financial results for its second quarter of fiscal 2021,
ending February 28, 2021.
Q2 Financial highlights compared with the corresponding period
last fiscal year:
- Revenue increased 27% to $13.1 million
- Gross profit increased 33% to $10.2 million
- Gross margin was 78%, up from 74%
- Net income increased 49% to $3.2 million
- Diluted earnings per share increased 25% to $0.15 per
share
YTD Financial highlights compared with the corresponding period
last fiscal year:
- Revenue increased 21% to $23.8 million
- Gross profit increased 28% to $18.5 million
- Gross margin was 78%, up from 73%
- Net income increased 35% to $5.7 million
- Diluted earnings per share increased 17% to $0.27 per
share
Shawn O’Connor, chief executive officer of Simulations Plus,
said: “We delivered excellent 27% overall revenue growth, outpacing
our annual targets. During the quarter, we also successfully
completed our first sponsored conference, the MIDD+ Scientific
Conference, a two-day event focused on delivering customized
modeling and simulation content specifically for pharmaceutical
scientists and their organizations, which was widely attended. We
also won several funded collaboration projects and released new
versions of GastroPlus® and Monolix Suite™. In summary, this was a
productive quarter for Simulations Plus and an encouraging first
six months of the fiscal year.”
“While we expect growth to normalize in the second-half of our
fiscal year, and are maintaining our full-year growth targets of
15-20%, this first-half performance underscores the strength and
diversification of our business model,” continued Mr. O’Connor. “We
have built a global organization selling an expanding portfolio of
software and services to pharma and regulatory customers, and our
growth is increasingly facilitating cross-selling as we leverage
our industry leadership. This growth is largely dropping to our
bottom line, increasing profitability and bolstering our ability to
make additional strategic acquisitions.”
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 3,
2021, to shareholders of record as of April 26, 2021. 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 Monday, April 12,
2021. The live webcast/teleconference will be accessible by
registering here or by calling 1-201-389-0879. Please join five to
ten minutes before the scheduled start time. The call will be
simulcast live on the Internet, and the webcast will be available
on the Investors page of the Simulations Plus website under
Conference Calls & Presentations. A replay of the webcast will
be available on the website approximately one hour following the
call.
About Simulations Plus, Inc.
Simulations Plus, Inc. is a leading provider of modeling and
simulation software and consulting services supporting drug
discovery, development research, and regulatory submissions. With
our subsidiaries Cognigen, DILIsym Services, and Lixoft, we offer
solutions which bridge machine learning, physiologically based
pharmacokinetics, quantitative systems pharmacology/toxicology, and
population PK/PD modeling approaches. Our technology is licensed
and applied by major pharmaceutical, biotechnology, chemical,
consumer goods companies, and regulatory agencies worldwide. For
more information, visit our website at www.simulations-plus.com.
Follow us on Twitter | Read our Environmental, Social, and
Governance (ESG) Report.
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.
--Tables follow--
SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the
three and six months ended February 28, 2021 and February 29,
2020 Three months ended
Six months ended
(Unaudited)
(Unaudited)
(in thousands, except per common share amounts)
2021
2020
2021
2020
Revenues
$
13,147
$
10,350
$
23,848
$
19,751
Cost of revenues
2,911
2,666
5,344
5,309
Gross margin
10,236
7,684
18,504
14,442
Operating expenses Selling, general, and
administrative
5,458
4,110
9,866
7,623
Research and development
1,292
748
2,101
1,274
Total operating expenses
6,750
4,858
11,967
8,897
Income from operations
3,486
2,826
6,537
5,545
Other income (expense) Interest income
58
12
119
22
Interest expense
(22
)
—
(22
)
—
Change in value of contingent consideration
(122
)
—
(243
)
—
Income (Loss) on currency exchange
23
(2
)
28
2
Total other income (expense)
(63
)
10
(118
)
24
Income before provision for income taxes
3,423
2,836
6,419
5,569
Provision for income taxes
(212
)
(686
)
(729
)
(1,361
)
Net income
$
3,211
$
2,150
$
5,690
$
4,208
Earnings per share Basic
$
0.16
$
0.12
$
0.28
$
0.24
Diluted
$
0.15
$
0.12
$
0.27
$
0.23
Weighted-average common shares outstanding
Basic
20,006
17,638
19,968
17,624
Diluted
20,842
18,316
20,786
18,306
Other Comprehensive Income (Loss), net of tax
Foreign currency translation adjustments
(4
)
—
(4
)
—
Comprehensive Income
$
3,207
$
2,150
$
5,686
$
4,208
SIMULATIONS PLUS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited) (in thousands, except
share and per share amounts)
February 28, August
31, ASSETS
2021
2020
Current assets Cash and cash equivalents
$
42,385
$
49,207
Accounts receivable, net of allowance for doubtful accounts of $100
and $50
11,306
7,422
Revenues in excess of billings
3,837
3,093
Prepaid income taxes
1,250
970
Prepaid expenses and other current assets
1,408
1,596
Short-term investments
75,367
66,804
Total current assets
135,553
129,092
Long-term assets Capitalized computer software
development costs, net of accumulated amortization of
$14,271 and $13,582
6,871
6,087
Property and equipment, net
924
438
Operating lease right of use assets
1,532
927
Intellectual property, net of accumulated amortization of $5,801
and $5,087
11,184
11,898
Other intangible assets, net of accumulated amortization of $1,917
and $1,642
6,733
7,008
Goodwill
12,921
12,921
Other assets
51
51
Total assets
$
175,769
$
168,422
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities Accounts payable
$
400
$
351
Accrued payroll and other expenses
2,891
2,251
Current portion - contracts payable
2,000
2,000
Billings in excess of revenues
258
141
Operating lease liability, current portion
469
463
Deferred revenue
523
300
Total current liabilities
6,541
5,506
Long-term liabilities Deferred income
taxes, net
2,360
2,354
Operating lease liability
1,064
463
Payments due under contracts payable
4,307
4,064
Total liabilities
14,272
12,387
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 and additional paid in capital —
50,000,000 shares authorized, 20,059,528 and 19,923,277
shares issued and outstanding
130,713
128,541
Retained earnings
30,730
27,436
Accumulated other comprehensive income
54
58
Total shareholders' equity
161,497
156,035
Total liabilities and shareholders' equity
$
175,769
$
168,422
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210412005207/en/
Simulations Plus Investor Relations
Ms. Renee Bouche 661-723-7723 renee@simulations-plus.com
Hayden IR Mr. Cameron Donahue
651-653-1854 slp@haydenir.com
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