Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Shareholder Meeting (February 2017)
28 slides from Simulations Plus's shareholder meeting presentation, Feb 27, 2017
Slide 1: Annual Shareholders' Meeting February 23, 2017
Simulations Plus, Inc. (NASDAQ:SLP) Annual Shareholders’ Meeting February 23, 2017
Slide 2: Agenda
• Chairman: Walt Woltosz • Welcome and Introductions • Chairman’s Remarks • Chief Financial Officer: John Kneisel • Discussion of Voting Issues • Financial presentation • Vice President, Sales and Marketing: John DiBella • Products and Services • Questions & Answers • Adjournment of Official Meeting
Slide 3: Safe Harbor Statement
Safe Harbor Statement 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 c
Slide 4: Management & Directors
Management & Directors • Board of Directors: – Thaddeus H. “Ted” Grasela, Ph.D., Director and President • Founder of Cognigen Corporation – John K. Paglia Ph.D., CFA, CPA, Director • Associate Dean; Associate Professor of Finance, Pepperdine University – David Ralph, Ph.D., Director • Chair, Departm
Slide 5: Auditors, Tax Specialists and Legal Counsel
• Registered Independent Auditors • Rose, Snyder & Jacobs llp, Encino, CA • Tax Specialists • Rose, Snyder & Jacobs, Encino, CA • Legal Counsel • Procopio, Cory, Hargreaves, & Savitch LLP Outside Counsels 5
Slide 6: Simulations Plus, Inc. Overview
• 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 generic companies • Completed 2 years since our
Slide 7: Proxy Resolutions and Results; Financial Presentation
• PROXY Resolutions and Results • Financial Presentation John Kneisel, CFO 7
Slide 8: Proxy Proposals and Voting Results
8 • 4 Proposals - t hrough this morning ~92.3% of outstanding share votes have been cast • Proposal 1: Election of Directors • Result: All elected with greater than 86+% voting for • Proposal 2: Ratify Rose, Snyder & Jacobs CPA’s as Independent Registered Public Account ant s • Result: Ratified with
Slide 9: Financial Presentation
• FY2016 ended August 31, 2016 vs. FY2015 • 1QFY2017 vs 1QFY2016 • Balance Sheet Highlights • Financial Charts FINANCIAL PRESENTATION 9
Slide 10: Income Statement FY2016 Compared to FY2015
10 Income Statement FY2016 Compared to FY2015 (in millions) Lancaster Buffalo FY2016 FY2015 Diff % chg Net sales $ 14.418 $ 5.554 $ 19.972 $ 18.314 $ 1.658 9.1% Gross profit 12.150 3.220 15.370 $ 13.922 1.448 10.4% Gross profit margin 84.27% 57.98% 76.96% 76.02% 0.94% 1.2% SG&A 4.472 2.221 6.693 $ 6
Slide 11: Income Statement 1QFY17 Compared to 1QFY16
11 Income Statement 1QFY17 Compared to 1QFY16 (in millions) Lancaster Buffalo 1QFY17 1QFY16 Diff % chg Net sales $ 3.69 $ 1.72 $ 5.42 $ 4.84 $ 0.58 12.0% Gross profit 3.01 1.05 4.08 3.76 0.33 8.7% Gross profit margin 81.5% 62.0% 75.3% 77.6% - 2.3% - 2.9% SG&A 1.25 0.62 1.86 1.68 0.19 11.2% R&D 0.28
Slide 12: Selected Balance Sheet Items
12 Selected Balance Sheet Items (in millions, except where indicated) August 31, 2016 August 31, 2015 Cash and cash equivalents $ 8.030* $ 8.551 Cash per share ( in Dollars ) $ 0.47 $ 0.50 Total current assets 12.930 11.533 Total assets 28.043 27.344 Total current liabilities 2.126 3.613 Total liabi
Slide 13: Revenues by Fiscal Year
Revenues by Fiscal Year - 10 Year History Simulations Plus, Inc. (pro forma prior to 2012) 3.2 5.7 6.1 6.3 7.62 8.74 9.45 10.07 11.46 13.08 14.42 5.23 5.55 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Lancaster Buffalo 13
Slide 14: Consolidated Revenues, by Fiscal Quarter and YTD
14 Consolidated Revenues, by Fiscal Quarter and YTD (pro forma prior to 2012; in millions) 4.01 4.57 5.94 3.71 4.84 5.16 6.01 3.96 5.42 $0 $1 $2 $3 $4 $5 $6 $7 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 15: Consolidated Net Income, by Fiscal Quarter and YTD
15 Consolidated Net Income, by Fiscal Quarter and YTD (pro forma prior to 2012; in millions) $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 $0.97 $1.85 $0.49 $1.11 $1.15 $1.91 $0.79 $1.36 $- $0.50
Slide 16: Returning Cash to Shareholders
16 Returning Cash to Shareholders (in millions) 0.8 0.8 2.2 0 0.5 0.5 0.6 0.81 0.81 0.81 0.84 0.84 0.84 0.85 0.85 0.85 0.85 0.85 0.86 12.7 11.4 9.3 9.8 10 10.1 10.6 11 7.8 8.6 5.8 6.1 6.4 8.6 7.2 7.1 8.8 8 8.8 7.5 $0 $1 $1 $2 $2 $3 $0 $2 $4 $6 $8 $10 $12 $14 Dividend Paid Cash on Hand Cash paid $2.5
Slide 17: Products & Services
Products & Services John DiBella VP, Sales and Marketing 17
Slide 18: Products and Services
Products and Services • Modeling and simulation software • Related consulting services Technology • Molecule design • QSAR • PBPK modeling • Population PK/PD analyses Markets • Pharmaceutical and biotech research (preclinical and clinical) • Chemicals • Consumer goods • [Aerospace, Healthcare ] User
Slide 19: End-to-End M&S Solutions Provider
19 End - to - end M&S Solutions Provider N H O OH O CH 3 CH 3 CH 3 ADMET Predictor™ GastroPlus ™ MedChem Studio™ MedChem Designer™ DDDPlus ™ MembranePlus™ Consulting Services and Collaborations Discovery Preclinical Clinical PKPlus™ KIWI™
Slide 20: Software Product News
20 • Version 9.5 scheduled for early 2017 ‒ Intramuscular dosing model – optional add - on model ‒ Antibody - drug conjugate (ADC) models for biologics • Version 8.1 released in January 2017 ‒ 64 - bit compatibility & minor bug fixes ‒ Rebuilt toxicity models • Version 4.0 still licensed by clients
Slide 21: Recent PBPK Modeling Trends: Regulatory Information
Recent PBPK Modeling Trends: Regulatory Information Information from: Cole et al., 2016 JPAG Meeting Parrott et al., 2015 AAPS Annual Meeting 21
Slide 22: Strong Relationships with Regulators (and Pharma Companies) Driving Applications
• FDA Center for Food Safety and Applied Nutrition (modeling of toxicity endpoints) • FDA Office of Testing and Research (mechanistic absorption and IVIVCs) • NIEHS National Toxicology Program (screening of the Tox21 database using QSAR and PBPK modeling) • FDA Office of Generic Drugs (ocular absorp
Slide 23: Buffalo Division (Cognigen) - Overview
• Provides modeling & simulation support for Pharma and Biotech companies – Primary focus on pharmacokinetic, biomarker, and outcome data from preclinical and clinical studies – 30 - 40 drugs per year; >100 different compounds over the last 5 years • Track record of successful regulatory submissions
Slide 24: FY16 Sales Review
FY16 Sales Review • Consolidated revenue +9.1% vs. FY15 • Highlights: – Software revenue +10.6% • 87% renewal rate (accounts) • 94% renewal rate (fees) • 10% increase in license units • 36 new commercial companies • 38 new nonprofit groups – Consulting revenue +5.9% • 6.6% increase in Buffalo • 1.4%
Slide 25: FY16 Software Revenue by Region
FY16 Software Revenue – by Region Europe 28% (+10% vs. FY15) North America 47% (+9% vs. FY15) Asia 25% (+14% vs. FY15) South America <1% (No change vs. FY15) Japan = 58% China = 18% India = 16% Korea = 4% 25
Slide 26: Major Marketing Activities
Major Marketing Activities • Website redesign: launched in November – Continue to update content – both written and visual • GastroPlus / popPK workshops held around the globe • Attended >40 scientific conferences; >35 scientific presentations • Hosted 11 webinars on various modeling applications •
Slide 27: Summary
27 Summary • For FY2016: - Financial performance continues our 9 - year profitable trend - Continuing to achieve record revenue and profitability - Continuing to expand our R&D team • Expanding sales team and activities - Greater staff time spent on marketing and sales activities - Looking to add di
Slide 28: Thank you for your kind attention… Questions?
28 Thank you for your kind attention… Questions?
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