Slide 1: Simulations Plus, Inc. and Cognigen Corp. Conference Call and Webinar
Copyright (c) 2015 Simulations Plus, Inc. 1 Simulations Plus, Inc. and Cognigen Corp. (NASDAQ:SLP ) Conference Call and Webinar January 14, 2015
Slide 2: Safe Harbor Statement
Copyright (c) 2015 Simulations Plus, Inc. 2 With the exception of historical information, the matters discussed in this presentation are forward - looking statements that involve a number of risks and uncertainties. The actual results of the Company could differ significantly from those statements.
Slide 3: Simulations Plus, Inc. Overview
Copyright (c) 2015 Simulations Plus, Inc. 3 • Major software provider for pharmaceutical research and development • Consulting services for problem drugs and formulations • Expertise and software tools span from earliest drug discovery through clinical trials and beyond patent life to supporting gen
Slide 4: Overview of Products and Services
Copyright (c) 2015 Simulations Plus, Inc. 4 Simulations Plus, Inc. Overview of Products and Services 4 N H O OH O CH 3 CH 3 CH 3 ADMET Predictor ™ GastroPlus ™ Population PK/PD Modeling & Simulations Regulatory Submission MedChem Studio ™ MedChem Designer™ DDDPlus ™ MembranePlus ™ Consulting Service
Slide 5: FQY15.1 Highlights Fiscal Quarter Ended 11/30/14
Copyright (c) 2015 Simulations Plus, Inc. 5 • FQY15.1 compared to FQY14.1 • Sales increased by $ 1.45 million to $4.1 million from $2.6 million ‒ Cognigen revenues were $ 1.135 million ‒ Simulations Plus revenue increased $310,000 or 11.7% • Cost of revenues increased by $537,000. ‒ $521,000 of this
Slide 6: FQY15.1 Highlights (Cont'd)
Copyright (c) 2015 Simulations Plus, Inc. 6 • FQY15.1 compared to FQY14.1(Cont’d) • Consolidated Gross margin decreased to 75.6% from 82.5% ‒ Cognigen gross margin for the quarter was 53% ‒ Simulations Plus margin for the quarter was 84.3% up from 82.5% the prior year • SG&A increased $1.0 million t
Slide 7: FQY15.1 Highlights (Cont'd)
Copyright (c) 2015 Simulations Plus, Inc. 7 • FQY15.1 compared to FQY14.1(Cont’d) • R&D expense increased 60% to $260,000 from $162,000 ‒ This increase resulted from a higher mix of expensed R&D in the current quarter • Other income decreased by $ 36,000 as the result of foreign currency rate fluctu
Slide 8: FQY15.1 Highlights (Cont'd)
Copyright (c) 2015 Simulations Plus, Inc. 8 • FQY15.1 compared to FQY14.1(Cont’d) • Diluted earnings per share was $ 0.03 a decrease of $ 0.01 from $ 0.04 • Without one - time charges, diluted earnings per share would have been approximately 58% higher at $0.045 per share • Cash dividends totaling $
Slide 9: FY15.1 Sales By Region
Copyright (c) 2015 Simulations Plus, Inc. 9 FY15.1 Sales By Region Europe 19% North America 56% Asia 25% South America <1% Japan = 50% India = 15% China = 28% Korea = 7%
Slide 10: New Customers By Quarter
Copyright (c) 2015 Simulations Plus, Inc. 10 New Customers By Quarter 10 11 9 9 14 17 12 14 15 21 13 10 18 18 16 9 15 22 20 18 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 2015 23
Slide 11: Consolidated Income Statement FQY15.1 Versus FQY14.1
Copyright (c) 2015 Simulations Plus, Inc. 11 Consolidated Income Statement FQY15.1 Versus FQY14.1 ($ millions) FQY15.1 FQY14.1 Net sales 4.086 2.641 Gross profit 3.088 2.193 Gross profit margin 75.6% 83.0% SG&A 2.079 1.071 R&D 0.260 0.162 Total operating expenses 2.339 1.233 Income from operations 0
Slide 12: Consolidating Income Statement FQY15.1
Copyright (c) 2015 Simulations Plus, Inc. 12 Consolidating Income Statement FQY15.1 ($ millions) SLP Cognigen Eliminations FQY15.1 Net sales 2.951 1.135 0.00 4.086 Gross profit 2.488 0.600 0.00 3.088 Gross profit margin 84.3% 52.9% 0.00 75.6% SG&A 1.541 0.537 0.00 2.079 R&D 0.260 0.000 0.00 0.260 To
Slide 13: Selected Balance Sheet Items
Copyright (c) 2015 Simulations Plus, Inc. 13 Selected Balance Sheet Items ($ millions) November 30, 2014 November 30, 2013 Cash and cash equivalents* $5.791 $10.555 Cash per share 0.34 0.64 Total current assets 10.686 13.136 Total assets 27.108 16.405 Total current liabilities 1.784 0.791 Total liab
Slide 14: Revenues by Quarter
Copyright (c) 2015 Simulations Plus, Inc. 14 Revenues by Quarter (pro forma prior to 2012) $1.4 $1.8 $2.0 $1.1 $1.7 $2.2 $2.3 $1.3 $2.1 $2.6 $2.6 $1.4 $2.2 $2.8 $2.8 $1.6 $2.3 $3.1 $3.1 $1.6 $2.6 $3.1 $2.0 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 $3.7 $4.01 Included $1.135 million from Cognige
Slide 15: Gross Profit by Fiscal Quarter
Copyright (c) 2015 Simulations Plus, Inc. 15 $1.24 $1.53 $1.75 $0.71 $1.45 $1.93 $1.97 $1.07 $1.70 $2.21 $2.21 $1.12 $1.90 $2.39 $2.33 $1.32 $1.90 $2.62 $2.64 $1.26 $2.19 $2.59 $1.54 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 Gross Profit by Fiscal Quarter (pro forma prior to 2012 ) $3.5 $3.09
Slide 16: EBITDA by Fiscal Quarter
Copyright (c) 2015 Simulations Plus, Inc. 16 EBITDA by Fiscal Quarter $0.55 $0.73 $0.93 $0.20 $0.73 $1.28 $1.23 $0.36 $1.00 $1.48 $1.48 $0.27 $1.23 $1.38 $1.48 $0.58 $1.09 $1.76 $1.73 $0.44 $1.20 $1.35 $0.67 1.45 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 $2.1
Slide 17: Net Income by Quarter
Copyright (c) 2015 Simulations Plus, Inc. 17 Net Income by Quarter (pro forma prior to 2012) $ 0.33 $ 0.47 $ 0.53 $ 0.17 $ 0.44 $ 0.85 $ 0.74 $ 0.21 $ 0.56 $ 0.91 $ 1.05 $ 0.17 $ 0.76 $ 0.84 $ 0.87 $ 0.35 $ 0.59 $ 1.06 $ 0.99 $ 0.24 $ 0.69 $ 0.81 $ 1.31 $ 0.22 $ 0.53 Q1 Q2 Q3 Q4 2009 2010 2011 2012
Slide 18: $13.24 $12.66 $12.89 $12.70 $11.38 $10.9 yn $10.56 11372015 g0.76 $10.00810-18 9.33 Cash paid
$13.24 $12.66 $12.89 $12.70 $11.38 5 $10.9 yn $10.56 11372015 g0.76 $10.00810-18 9.33 Cash paid S2.5MTSRL mm TSRL $2.50 Cash paid $2.1M for Cognigen oe <8 ah ee eo SESS are we 2 @ FFP MF HFS KX Simulations Plus: ~COGNIGEN* Copyright c} 2015 Simulations Plus, Inc. Snes, Sofie Suess 18
Slide 19: Additional Growth Opportunities
Copyright (c) 2015 Simulations Plus, Inc. 19 • Cognigen • Penetration of clinical pharmacology departments to provide more detailed mechanistic modeling for clinical trial data analysis – regulatory agencies want this • Expand marketing effort for KIWI ™ • Expand marketing effort for modeling & simu
Slide 20: Additional Growth Opportunities, cont'd.
Copyright (c) 2015 Simulations Plus, Inc. 20 • Of 2,500 companies registered with FDA, both foreign and domestic, we have ~10% penetration with Simulations Plus products • http://www.fda.gov/Drugs/NewsEvents/ucm339912.htm • Continued enhancement of current software products to expand application spa
Slide 21: Additional Growth Opportunities, cont'd.
Copyright (c) 2015 Simulations Plus, Inc. 21 • AEROModeler ™ • Application of our artificial neural network ensemble (ANNE) technology to predict aerodynamic force coefficients for missiles at arbitrary Mach number and angle of attack - much faster than conventional methods ‒ Presented at our first
Slide 22: Marketing and Sales Program
Copyright (c) 2015 Simulations Plus, Inc. 22 • Conferences/scientific meetings continue to be primary source of leads • During FY14, we participated in 48 scientific meetings and conferences in the US, Europe, and Asia with 30 scientific posters and presentations • In 4Q14, we presented at our first
Slide 23: Marketing and Sales Program
Copyright (c) 2015 Simulations Plus, Inc. 23 • Strategic digital marketing initiatives • Hosted 7 webinars on our new software updates and applications - over 1100 registrations • Active updates of LinkedIn, Facebook, and Twitter accounts help with outreach programs • We believe fundamental industry
Slide 24: Summary
Copyright (c) 2015 Simulations Plus, Inc. 24 • For FQY15.1 - Revenues and earnings continued seven - year - plus profitable trend - Cognigen acquisition increases revenues, expands offerings into clinical pharmacology - Earnings for quarter lower due to one - time charges associated with the Cognige
Slide 25: Q&A
Copyright (c) 2015 Simulations Plus, Inc. 25 Q&A