Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q3 FY2018 Earnings Presentation
33 slides from Simulations Plus's earnings presentation, Jul 11, 2018
Slide 1: Investor Conference Call July 10, 2018
(NASDAQ:SLP) Investor Conference Call July 10, 2018
Slide 2: Safe Harbor Statement
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 . Factors that could cause or contribute t
Slide 3: Highlights
3 Highlights Walter S. Woltosz, Chairman Shawn O’Connor, CEO
Slide 4: Overview: Introduction of Newly Hired CEO
4 • Introduction of Newly Hired CEO - Shawn O’Connor • Walt Woltosz to remain as Chairman Overview
Slide 5: Overview: 3QFY18 and 9MoFY18 Highlights
5 • 3QFY18 • Revenues up $1.8 million (26.7%) to $8.6 million • Income from operations up $323,000 (10.4%) to $3.4 million • Net income up $327,000 (15.7%) to $2.4 million • Diluted earnings per share increased to 13¢ per share up 1¢ • Software renewal rates: 90% (accounts); 97% (fees) • 20 new soft
Slide 6: Financial Overview
6 Financial Overview John Kneisel Chief Financial Officer
Slide 7: Income Statement: 3QFY18 Versus 3QFY17
7 Income Statement: 3QFY18 Versus 3QFY17 (in millions) Lancaster Buffalo North Carolina (ACQ. 6/01/17) 3QFY18 3QFY17 Diff % chg Net sales $ 5.7 $ 1.9 $ 1.0 $ 8.6 $ 6.7 $ 1.8 26.7% Gross profit 4.9 1.1 0.5 6.5 5.3 1.2 23.1% Gross profit margin 86.6% 57.5% 54.2% 76.3% 78.6% - 2.2% - 2.9% SG&A $ 1.5 $
Slide 8: Income Statement: 9MoFY18 Vs. 9MoFY17
8 Income Statement: 9MoFY18 Vs. 9MoFY17 (in millions) Lancaster Buffalo North Carolina (ACQ. 6/01/17) 9mo FY18 9mo FY17 Diff % chg Net sales $ 14.2 $ 5.7 $ 3.0 $ 23.0 $ 17.9 $ 5.1 28.6% Gross profit 11.9 3.3 1.8 17.1 13.5 3.6 26.4% Gross profit margin 82.0% 58.4% 64.2% 73.3% 74.0% - 0.7% - 1.0% SG&A
Slide 9: Consolidated Revenues: Fiscal Quarter
9 Consolidated Revenues: Fiscal Quarter ( in millions) $4.0 $4.6 $5.9 $3.7 $4.8 $5.2 $6.0 $4.0 $5.4 $5.7 $6.8 $6.3 $7.1 $7.4 $8.6 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 10: Consolidated Income from Operations by Fiscal Quarter
10 Consolidated Income from Operations by Fiscal Quarter (in millions) $0.7 $1.5 $2.9 $0.8 $1.7 $1.7 $2.8 $1.0 $1.9 $1.8 $3.1 $1.4 $2.6 $2.4 $3.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 Note: 2Q18 $0.08 tax benefit of deferred tax adjustment
Slide 11: Consolidated Net Income: Fiscal Quarter
$0.5 $1.0 $1.9 $0.5 $1.1 $1.2 $1.9 $0.8 $1.4 $1.2 $2.1 $1.2 $1.7 $3.5 $2.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 $2.0 11 Note: 2Q18 $1.5M tax benefit of deferred tax adjustment Consolidated Net Income: Fiscal Quarter (in millions)
Slide 12: Consolidated Diluted Earnings Per Share
12 Consolidated Diluted Earnings Per Share $0.03 $0.06 $0.11 $0.03 $0.06 $0.07 $0.11 $0.05 $0.08 $0.07 $0.12 $0.06 $0.10 $0.19 $0.13 $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 Q1 Q2 Q3 Q4 FY15 FY16 FY17 FY18 $0.11 Note: 2Q18 $0.08 tax benefit of deferred tax adjustment
Slide 13: Consolidated EBITDA: Fiscal Quarter
13 Consolidated EBITDA: Fiscal Quarter (in millions) $1.2 $2.0 $3.3 $1.2 $2.2 $2.2 $3.3 $1.5 $2.5 $2.3 $3.6 $2.0 $3.2 $3.1 $4.1 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 14: Cash Position Remains Excellent
14 Cash Position Remains Excellent (in millions) Over $25 million cash paid out over last four FYs $0.8 $0.8 $0.8 $0.8 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $1.0 $1.0 $1.0 $2.5 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $11.0 $7.8 $8.6 $5.8 $6.1 $6.4 $8.6 $7.2 $7.1 $8.8 $8.0 $8.8 $7.4 $8.2 $6.2
Slide 15: Selected Consolidated Balance Sheet Items
15 Selected Consolidated Balance Sheet Items (in millions, except where indicated) May 31, 2018 August 31, 2017 Cash and cash equivalents $ 7.2* $ 6.2* Cash per share ( in Dollars ) $ 0.42 $ 0.36 Total current assets 17.3 12.6 Total assets 42.9 38.5 Total current liabilities 5.2 2.0 Total liabilitie
Slide 16: Lancaster Division
16 Lancaster Division Walt Woltosz Chairman
Slide 17: Software Product News – Lancaster Division
17 • Version 9.6 released in May 2018 ‒ New special population physiology models – enhancement to optional add - on module ‒ Improvements to all mechanistic absorption models – enhancement to optional add - on module • Version 9.0 released in June 2018 ‒ Updates to HTPK Simulation Module – new optio
Slide 18: 3QFY18 Sales Review – Lancaster Division
3QFY18 Sales Review – Lancaster Division • Revenue +14.3% vs. 3QFY17 • Highlights: – Software revenue +13% • 90% renewal rate (accounts) • 97% renewal rate (fees) • 14% increase in license units • 11 new commercial companies – Continued penetration in the generic drug and non - pharma (chemicals, co
Slide 19: 9MoFY18 Sales Review – Lancaster Division
9MoFY18 Sales Review – Lancaster Division • Revenue +12.3% vs. 9MoFY17 • Highlights: – Software revenue +8% • 87% renewal rate (accounts) • 93% renewal rate (fees) • 9% increase in license units • 30 new commercial companies • 26 new nonprofit groups – Expansion of licenses at the US and China FDA –
Slide 20: 9MoFY18 Revenue – by Region
9MoFY18 Revenue – by Region Europe 29% North America 43% Asia 27% South America <1% Japan = 60% India = 20% China = 16% Korea = <1% 20
Slide 21: 3QFY18 Marketing Activities
3QFY18 Marketing Activities Website Content • Increased production of video content for promotional/branding purposes • Increased focus on SEO performance • Continued migration of content from different division sites to main Simulations Plus domain Workshops and Conferences • PBPK workshops held in
Slide 22: Earnings Call Update
22 Earnings Call Update July 10, 2018 Walter S. Woltosz, Chairman
Slide 23: Cognigen Status Report
23 Cognigen Status Report Pharmacometric Services • In FY2018 relationships with 26 companies on 43 drugs, 72 projects – 3 new companies in FY2018 – 34 new projects in FY2018 – 27 projects expanded scope in FY2018 – 4 projects with reduced scope – 41 outstanding proposals with 28 different companies
Slide 24: Cognigen Summary
24 • Increased Marketing and Sales activities • Ongoing recruitment of new scientific talent • Pharmacometric services continue to expand ‒ Healthy pipeline of new projects, including global health initiative projects ‒ Bridging global regulatory filings ‒ Embedded client partner opportunities from
Slide 25: Drug-Induced Liver Injury and Liver Diseases
25 Drug - Induced Liver Injury and Liver Diseases Brett A. Howell, President DILIsym Services, Research Triangle Park, NC
Slide 26: DILIsym Services, Inc. – Our Vision
DILIsym Services, Inc. – Our Vision 26 • DILIsym Services, Inc. offers comprehensive program services: – DILIsym software licensing, training, development (DILI - sim Initiative) – DILIsym and NAFLDsym simulation consulting projects – Consulting and data interpretation – in vitro assay experimental
Slide 27: DILIsym Services Fiscal 2018 Q3 Sales Review
DILIsym Services Fiscal 2018 Q3 Sales Review • DILIsym software consulting projects – 13 active DILIsym consulting projects during fiscal Q3 – DILIsym software is focused on helping companies predict drug - induced liver injury probability for drugs and drug candidates – Involve data management and
Slide 28: DILIsym Services Software Product News
DILIsym Services Software Product News • DILIsym version 8A now in development; due out in January of 2019 • Voting ballot has been sent to DILI - sim consortium members for their input on future DILIsym development items (1 vote per member company) • DILIsym refactoring (recoding) in progress for i
Slide 29: DILIsym Services Marketing and Event Updates
DILIsym Services Marketing and Event Updates • DILIsym Services was a key sponsor of the NASH Summit in Boston in April of 2018 – showcased NAFLDsym capabilities • Abstracts submitted to multiple Fall 2018 scientific meetings – American Conference on Pharmacometrics in October ( ACoP ) – The Liver M
Slide 30: DILIsym Services Summary
DILIsym Services Summary • Active development across multiple products for expanded applications, including possible kidney injury product • Looking for growth in the NAFLD/NASH area due to large upgrades to NAFLDsym platform due to be completed by end of 2018 • Continuing to work with Simulations P
Slide 31: Final Summary
31 Final Summary Walter S. Woltosz, Chairman Shawn O’Connor, CEO
Slide 32: Final Summary
32 • New CEO - Shawn O’Connor • Walt Woltosz to remain as Chairman • 3QFY18 • Revenues up $1.8 million (26.7%) to $8.6 million • Income from operations up $323,000 (10.4%) to $3.4 million • Net income up $327,000 (15.7%) to $2.4 million • 9MoFY18 • Revenues up $5.1 million (28.6%) to $23.0 million •
Slide 33: Thank you!
33 Thank you! http://www.simulations - plus.com https://www.linkedin.com/company/95827/ https://www.linkedin.com/company/46152/