Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — LD Micro Investor Conference 2014
25 slides from Simulations Plus's conference presentation, Dec 4, 2014
Slide 1: Simulations Plus and Cognigen at LD Micro Investor Conference
Simulations Plus, Inc . and Cognigen Corp (NASDAQ:SLP) LD Micro Investor Conference Los Angeles December 3, 2014 Copyright (c) 2014 Simulations Plus, Inc. 1
Slide 2: 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 cause or contribute to su
Slide 3: 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 Three different active collaboratio
Slide 4: Simulations Plus Products & Services
N H O OH O CH 3 CH 3 CH 3 Discovery Preclinical Clinical MedChem Studio™ MedChem Designer™ GastroPlus™ DDDPlus ™ ADMET Predictor™ Simulations Plus Products & Services Consulting Services & Collaborations – Now Including Cognigen for Clinical Pharmacology MembranePlus™ 4
Slide 5: Cognigen Division: Overview
Modeling & simulation support for 30 - 40 drugs per year Total of >100 different compounds over the last 5 years Well - established quality management system and successful client audit record 44 client audits over the last 10 years; no findings Track record of successful regulatory submissions util
Slide 6: Cognigen Selected Services
6 • Data assembly and exploratory analyses • PK/PD modeling of drug concentrations and patient outcomes from Phase 1, 2 and 3 studies • Clinical trial simulations to guide study design • Briefing books for regulatory interactions • Regulatory submissions • Scientific writing • Training workshops Cog
Slide 7: Cognigen Calendar 2014 Overview
7 • Worked with 22 clients on 62 projects covering 38 different compounds • Average length of current client relationship is 6 years ranging from 1 to 14 years • 6 new clients • 6 Regulatory Submissions Cognigen Calendar 2014 Overview
Slide 8: Cognigen Therapeutic Areas
Cognigen Therapeutic Areas Copyright (c) 2014 Simulations Plus, Inc. 8
Slide 9: Cognigen Infrastructure
9 • Significant investment in IT infrastructure and workflow processes • Recently upgraded computer systems, implemented automated offsite backup storage, and installed green technology to reduce computer cooling costs • KIWI - a validated platform for model development and private cloud computing C
Slide 10: Additional Growth Opportunities
Additional Growth Opportunities • MembranePlus™ : new software product to simulate in vitro permeability experiments • Released in 1Q15 • Webinar held December 2, 2014 – nearly 100 attendees • Continued enhancement of current software products expands application space: • Dermal and improved oral ca
Slide 11: Marketing and Sales Program
Marketing and Sales Program • Conferences/Scientific Meetings continue to be primary source of leads • During FY14 we participated in 48 scientific meetings and conferences in the U.S., Europe, and Asia with 30 scientific posters and presentations. In 4Q14 , we presented at our first aerospace confe
Slide 12: FY14 Sales by Region
FY14 Sales – by Region Europe 26% North America 49% Asia 25% South America <1% Japan = 61% India = 15% China = 12% Korea = 6%
Slide 13: 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 New Customers by Quarter Copyright (c) 2014 Simulations Plus, Inc. 13 23
Slide 14: SLP FY14 Highlights
• FY14 compared to FY13: – Sales increased by $1.4 million or 13.8% to $11.5 million from $10.1 million – Cost of sales as a percentage of sales decreased 1.3% or $17,000 14.2% from 16.3% in FY13 • Decrease was attributable to a reduction in royalty expenses attributable to buying out a former royal
Slide 15: SLP FY14 Highlights (continued)
• FY14 compared to FY13 ( con’t ) – R&D expense increased 18.7% to $953,000 from $802,000 the prior year • Increase was due to an increase in life science staffing and included R&D expenditures for COX2/COX1 NCE project of approximately $50,000 – Net Income increased by $139,000 or 4.8% to $3.0 mill
Slide 16: Income Statement FY14 vs FY13
Income Statement FY14 vs FY13 ($ millions) FY14 FY13 Net sales 11.461 10.071 Gross profit 9.831 8.424 Gross profit margin 85.8% 83.7% SG&A 4.440 3.550 R&D 0.952 0.802 Total operating expenses 5.392 4.352 Income from operations 4.439 4.257 Other income .074 0.184 Income from operations before income
Slide 17: FY14 Recap: Sales Increase & Net Income
FY14 Recap Sales increase & Net income Sales Incr 1,390,000 Royalties 425,000 Software Amort - 90,000 TSRL Amort - 175,000 Net incr. from Sales/COGS 1,550,000 Increased expenses - 1,350,000 Increase in net income 225,000 Additional Expenses Labor related expense increase 304,000 Legal costs 288,000
Slide 18: Selected Balance Sheet Items
Selected Balance Sheet Items ($ millions) August 31, 2014 August 31, 2013 Cash and cash equivalents $8.614 $10.179 Cash per share 0.52 0.62 Total current assets 11.533 12.972 Total assets 20.981 16.063 Total current liabilities 1.391 0.626 Total liabilities 5.545 1.821 Current ratio 8.29 20.7 Shareh
Slide 19: Revenues by Quarter
$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 Revenues by Quarter (pro forma prior to 2012) $3.7 Copyright (c) 2014 Simulations Plus, Inc. 19 $ 3.96 preliminary
Slide 20: Gross Profit by Fiscal Quarter
$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 Gross Profit by Fiscal Quarter (pro forma prior to 2012) $3.5 Copyright (c) 2014 Simulations Plus, Inc. 20
Slide 21: 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 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 EBITDA by Fiscal Quarter $2.1 Copyright (c) 2014 Simulations Plus, Inc. 21
Slide 22: Net Income by Quarter
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 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Copyright (c) 2014 Simulations Plus, Inc. 22
Slide 23: Returning Cash to Shareholders
$1.59 $0.80 $0.80 $2.24 $0.00 $0.48 $0.48 $0.64 $0.81 $0.81 $0.82 $0.82 $1.97 $2.50 $12.66 $13.24 $12.89 $12.70 $11.38 $9.33 $9.76 $10.00 $10.18 $10.56 $10.9* $7.76 $8.8* $5.90 Q 4 F Y 1 1 Q 1 F Y 1 2 Q 2 F Y 1 2 Q 3 F Y 1 2 Q 4 F Y 1 2 Q 1 F Y 1 3 Q 2 F Y 1 3 Q 3 F Y 1 3 Q 4 F Y 1 3 Q 1 F Y 1 4 Q 2
Slide 24: Summary
Summary • For FY14: - Revenues and earnings continued six - year - plus profitable trend - Buyout of royalty agreement reduces expenses going forward - Cognigen acquisition increases revenues, expands offerings into clinical pharmacology • Continuing to Grow: - >10% staff expansion in FY14 in Simula
Slide 25: Q&A
Q&A Copyright (c) 2014 Simulations Plus, Inc. 25