Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q3 2019 Earnings Presentation
20 slides from Simulations Plus's earnings presentation, Jul 11, 2019
Slide 1: Q3FY2019 Investor Conference Call
Q3FY2019 Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO July 10, 2019 (NASDAQ:SLP)
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
Highlights • Revenue growth tracking at high end of historical 10 - 15% annual range – 16% for the quarter and 13% YTD • Software business steady consistent growth – Q3 is highest volume renewal quarter – Tracking to historical yr / yr growth rates • Consulting business revenue growth strong – Capac
Slide 4: Steady and Consistent Revenue Growth
Steady and Consistent Revenue Growth 4 Nasdaq: SLP More than a decade of consistent revenue growth $11.2 $12.0 $13.5 $14.7 $4.8 $5.9 $9.4 $11.2 $16.0 $17.9 $22.9 $25.9 2016 2017 2018 2019 Nine Months Revenue $ in millions Software Consulting Key Highlights • Q3 FY2019 Financial Highlights – Revenue
Slide 5: Simulations Plus Division (Lancaster)
Simulations Plus Division (Lancaster) 5 Nasdaq: SLP The genesis of the company… providing software, training and consulting services $11.1 $11.9 $12.8 $13.8 $0.7 $0.8 $1.4 $1.6 $11.8 $12.7 $14.2 $15.4 2016 2017 2018 2019 Nine Months Revenue $ in millions Software Consulting Simulations Plus represen
Slide 6: Cognigen Division (Buffalo)
Cognigen Division (Buffalo) 6 Nasdaq: SLP A leading provider of population modeling and simulation services for the pharma and biotech industries $0.1 $0.1 $0.2 $0.2 $4.2 $5.1 $5.6 $6.7 $4.3 $5.2 $5.8 $6.9 2016 2017 2018 2019 Nine Months Revenue $ in millions Software Consulting Key Highlights • Q3
Slide 7: DILIsym Division (RTP)
$0.6 $0.7 $2.4 $2.9 $3.0 $3.7 2018 2019 Nine Months Revenue $ in millions Software Consulting DILIsym Division (RTP) 7 Nasdaq: SLP A leading provider of software products and services in QST and QSP Key Highlights • Q3 FY2019 Financial Highlights – Revenue up 44% yr / yr – Revenue breakdown: 53% DIL
Slide 8: Financial Results
Financial Results Nasdaq: SLP
Slide 9: Income Statement: 3QFY19 Versus 3QFY18
9 Income Statement: 3QFY19 Versus 3QFY18 (in millions) Lancaster Buffalo North Carolina FY19 FY18 Diff % chg Net sales $ 6.0 $ 2.5 $ 1.4 $ 9.9 $ 8.6 $ 1.4 16.2% Gross profit 5.2 1.3 1.1 7.6 6.5 1.1 16.6% Gross profit margin 86.6% 52.5% 77.1% 76.6% 76.3% 0.3% 0.3% SG&A $ 1.8 $ 0.9 $ 0.4 $ 3.1 $ 2.6 $
Slide 10: Income Statement: 9MoFY19 Versus 9MoFY18
10 Income Statement: 9MoFY19 Versus 9MoFY18 (in millions) Lancaster Buffalo North Carolina FY19 FY18 Diff % chg Net sales $ 15.4 $ 6.9 $ 3.7 $ 25.9 $ 23.0 $ 3.0 12.9% Gross profit 12.9 3.7 2.6 19.2 17.1 2.1 12.3% Gross profit margin 84.0% 53.2% 71.7% 74.0% 74.4% - 0.4% - 0.5% SG&A $ 5.0 $ 2.5 $ 1.1
Slide 11: Consolidated Revenues: Fiscal Quarter
11 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 $6.7 $7.5 $8.5 $9.9 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019
Slide 12: Consolidated Income from Operations: Fiscal Quarter
12 Consolidated Income from Operations: 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 $1.9 $2.1 $2.7 $3.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019
Slide 13: 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 $1.3 $1.5 $2.1 $2.9 $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 2019 $2.0 13 Note: 2Q18 $1.5M tax benefit of deferred tax adjustment Consolidated Net Income: Fiscal Quarter (in millions)
Slide 14: Consolidated Diluted Earnings Per Share: Fiscal Quarter
14 Consolidated Diluted Earnings Per Share: Fiscal Quarter $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 $0.07 $0.09 $0.12 $0.16 $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 FY19 $0.11 Note: 2Q18 $0.08 t
Slide 15: Consolidated EBITDA: Fiscal Quarter
15 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 $2.6 $2.8 $3.4 $4.6 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019
Slide 16: Revenue by Region – YTD 2019
Revenue by Region – YTD 2019 Nasdaq: SLP Europe 18 % North America 64 % Asia 18 % South America <1% Japan = 58% India = 18% China = 19% Other = 4 % 16 A global and diversified base of revenue
Slide 17: Cash Position Remains Excellent
17 Cash Position Remains Excellent (in millions) Over $30 million cash paid out over last five FYs $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 $1.1 $1.1 $1.1 $1.1 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $5.1 $1.0 $5.8 $6.1 $6.4 $8.6 $7.2 $7.1 $8.8 $8.0 $8.8 $7.4 $8.2 $6.2 $7.0 $
Slide 18: Selected Consolidated Balance Sheet Items
18 Selected Consolidated Balance Sheet Items (in millions, except where indicated) May 31, 2019 August 31, 2018 Cash and cash equivalents $ 10.3* $ 9.4* Cash per share ( in Dollars ) $ 0.59 $ 0.54 Total current assets 21.3 17.8 Total assets 45.5 43.3 Total current liabilities 5.1 4.8 Total liabiliti
Slide 19: Products & Services
Products & Services Software Portfolio • Modeling & simulation platform for drug R&D • Predictive software for >140 properties of chemical formulations • Analytical software for certain biological or disease states • Cloud - based web app for drug development lifecycle management Consulting Services
Slide 20: Thank you!
20 Thank you! https://www.linkedin.com/company/simulations - plus https://www.linkedin.com/company/cognigen https://www.linkedin.com/company/dilisym