Slide 1: Third Quarter Fiscal Year 2014 Conference Call and Webinar
Simulations Plus, Inc. (NASDAQ:SLP) Third Quarter Fiscal Year 2014 Conference Call and Webinar July 8 , 2014
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: SLP 3Q14 Highlights
• 3 Q14 compared to 3Q13: – 27 th consecutive profitable quarter – Sales were $3.741 million, a 20.9% increase ($646K) from $3.095 million • Increase included $300K of revenues from a major customer that moved the timing of part of their global renewal order to our third fiscal quarter to synchroniz
Slide 4: TSRL Agreement
– Settled a dispute with respect to royalties on optional modules – Stops the growth of royalty expense assuming GastroPlus TM sales continue to grow – Fixes the amount of future expense as the original agreement had no termination date – Consideration under the Agreement was $6.0 Million • On signi
Slide 5: Income Statement QFY14 vs QFY13
Income Statement 3 QFY14 vs 3 QFY13 ($ millions) 3Q14 3Q13 Net sales 3.741 3.095 Gross profit 3.513 2.643 Gross profit margin 93.9% 85.4% SG&A 1.204 0.904 R&D 0.235 0.206 Total operating expenses 1.439 1.110 Income from operations 2.074 1.533 Other income 0.015 0.013 Income from operations before in
Slide 6: Nine months FY14 compared to FY13
• 9 moFY14 compared to 9moFY13: – Sales increased by $960,000 or 11.3% to $9.463 million from $8.503 million – Cost of sales decreased $170,000 or 12.7% to $1.168 from $1.338 • Decreased due to no royalty expense in last quarter of the nine month period – Gross profit increased 15.8% to $8.295 milli
Slide 7: Income Statement 9moFY14 vs 9moFY13
Income Statement 9 moFY14 vs 9 moFY13 ($ millions) 9moFY14 9moFY13 Net sales 9.463 8.503 Gross profit 8.295 7.165 Gross profit margin 87.6% 84.3% SG&A 3.380 2.690 R&D 0.750 .634 Total operating expenses 4.130 3.324 Income from continuing operations 4.165 3.841 Other income .061 0.172 Income from ope
Slide 8: 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 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Revenues by Quarter (pro forma prior to 2012) $3.7
Slide 9: 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 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Gross Profit by Fiscal Quarter (pro forma prior to 2012) $3.5
Slide 10: 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 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 EBITDA by Fiscal Quarter $2.1
Slide 11: 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 $1.31 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014
Slide 12: New Customers by Quarter
10 11 9 9 14 17 12 14 15 21 13 10 18 18 16 9 15 22 20 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 New Customers by Quarter
Slide 13: Selected Balance Sheet Items
Selected Balance Sheet Items ($ millions) May 31, 2014 August 31, 2013 Cash and cash equivalents $7.758 $10.179 Cash per share 0.47 0.62 Total current assets 12.385 12.972 Total assets 21.899 16.063 Total current liabilities 1.621 0.626 Total liabilities 5.934 1.821 Current ratio 14.1 20.7 Sharehold
Slide 14: Returning Cash to Shareholders
$1.59 $0.80 $0.80 $2.24 $0.00 $0.48 $0.48 $0.64 $0.81 $0.81 $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* Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 $ Millions Dividend Paid Proceeds from Sale of Subsidiar
Slide 15: 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 MembranePlus ™
Slide 16: Product News
Product News • Version 8.6 set for release in July • Populations simulations linked with Drug - Drug Interaction (DDI) predictions • New animal PBPK models • Tighter integration with ADMET Predictor™ 7.1models • Version 7.0 released in March 2014, Version 7.1 released in July • Significantly enhance
Slide 17: Marketing and Sales Program
Marketing and Sales Program • Conferences /Scientific Meetings continue to be primary source of leads • During Q3 we participated in 19 scientific meetings and conferences in the U.S., Europe, and Asia with 9 scientific posters and presentations. In early Q4, we attended and presented at our first a
Slide 18: FDA Collaborations
FDA Collaborations • Center for Food Safety and Nutrition (CFSAN) • Nearly through the third year of a 5 - year renewable Research Collaboration Agreement (RCA) with CFSAN to provide model - building capabilities for a large number (>70,000) of substances that can be in foods as additives or contami
Slide 19: NCE (New Chemical Entity) Project
NCE (New Chemical Entity) Project • COX - 2 selected as target (Celebrex® target) for our second NCE project (first was malaria) • COX - 1 also needs to be inhibited, but at a lesser level (Aspirin target) • Designing single molecules that bind to two different targets is more challenging than hitti
Slide 20: Numerous Growth Opportunities
Numerous Growth Opportunities • MembranePlus™ - new software product to simulate in vitro permeability experiments • Similar concept to DDDPlus ™ - unique capability in the industry – final validation in progress • A new scientist took over the program after the previous scientist went on maternity
Slide 21: Growth Opportunities – AEROModeler
Growth Opportunities – AEROModeler ™ • Aerodynamic forces are modeled using force and moment coefficients • The most accurate way to calculate these coefficients is computational fluid dynamics (CFD), but CFD simulations require intensive computing power and are slow • Working with Auburn University
Slide 22: Growth Opportunities – Aerospace
Growth Opportunities – Aerospace • Several other potential applications have been identified for which our artificial neural network ensemble technology may hold promise, and for which expressions of interest have been received: • Rapid missile identification from tracking and other data • Store sep
Slide 23: Growth Opportunities – MRIModeler
Growth Opportunities – MRIModeler ™ • Functional magnetic resonance imaging (fMRI) has been used to map the activity in the brains of healthy subjects and patients with various forms of autism (ADHD, PDD, Asberger’s disease) • Published results using artificial neural networks to classify subjects a
Slide 24: Summary
Summary • For 3 QFY14: - Revenues and earnings continued six - year - plus profitable trend - Highest revenues and earnings ever - Negotiated agreement that is expected to reduce royalty costs going forward • Continuing to Grow: - Three new Ph.D.s added in FY13, another in April 2014 - New aerospace
Slide 25: Q&A
Q&A