Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Shareholder Meeting (February 2019)
28 slides from Simulations Plus's shareholder meeting presentation, Feb 26, 2019
Slide 1: Annual Shareholders' Meeting February 22, 2019
(NASDAQ:SLP) Annual Shareholders’ Meeting February 22, 2019
Slide 2: Agenda
• Chairman: Walt Woltosz • Welcome and Introductions • Chief Executive Officer: Shawn O’Connor • Company Overview • Chief Financial Officer: John Kneisel • Discussion of Voting Issues • Financial Overview • Questions & Answers • Adjournment of Official Meeting Agenda 2
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: – Walter S. Woltosz , M.S., M.A.S., Chairman • Co - founder, Simulations Plus, Inc. – Thaddeus H. “Ted” Grasela, Pharm D., Ph.D., Director and President • Founder, Cognigen Corporation – John K. Paglia Ph.D., CFA, CPA, Director • Senior Associate Dean; Pr
Slide 5: Outside Counsels and Auditors
• Registered Independent Auditors • Rose, Snyder, & Jacobs LLP, Encino, CA • Tax Specialists • Rose, Snyder, & Jacobs LLP, Encino, CA • Legal Counsel • Procopio, Cory, Hargreaves, & Savitch LLP Outside Counsels 5
Slide 6: Company Overview
Company Overview Shawn O’Connor Chief Executive Officer 6
Slide 7: Products & Services
Products & Services Software Product Portfolio • Physiologically - based 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 lifecycl
Slide 8: Serving All Stages of the Development Process
Serving All Stages of the Development Process Nasdaq: SLP 8 Our products and services span the entire drug development process from discovery to approval Software Product Portfolio • Physiologically - based pharmacokinetic (PBPK) modeling platform simulates a number of responses in humans and animal
Slide 9: FY2018 Highlights
• Financial Success – Continued > 10 years of Profitable Growth – Continued quarterly dividend returning > $4MM to shareholders • Organizational Achievements – CEO transition – Successfully assimilated FY17 acquisition of DiliSym – Closed fiscal year with 95 employees up 11% over prior year • Client
Slide 10: FY2018 Highlights: Grants, Awards and Product Enhancements
• Significant Grants / Awards – $1.7 million Fast - Track SBIR grant to fund the development of software for predicting drug - induced kidney injury – European consortium funded development of the Transdermal Compartmental Absorption and Transit (TCAT) module in GastroPlus – FDA funded integration o
Slide 11: Proxy Resolutions and Results; Financial Overview
PROXY Resolutions and Results Financial Overview John Kneisel Chief Financial Officer 11
Slide 12: Voting Issues/Proxy Proposals
12 • Three Proposals - through this morning , 94+% of outstanding share votes have been cast – Proposal 1 : Election of Directors • Result: All elected – Proposal 2 : Ratify Rose, Snyder, & Jacobs LLP as Independent Registered Public Accountants • Result: Ratified with 98+% voted for – Proposal 3 :
Slide 13: Financial Overview
• FY2018 vs. FY2017 • 1QFY2019 vs 1QFY2018 • Balance Sheet Highlights • Financial Metrics Financial Overview 13
Slide 14: Revenues by Fiscal Year
Revenues by Fiscal Year - 10 Year History Simulations Plus, Inc. (pro forma prior to 2012) 6.3 7.62 8.74 9.45 10.07 11.46 13.08 14.42 15.6 17.5 5.23 5.55 7.3 7.9 1.24 4.3 19.97 24.14 29.7 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Lancaster Buffalo No Carolina 14 ▪ Cognigen(Buffalo) acquired
Slide 15: Fiscal Year Revenues by Company
15 Fiscal Year Revenues by Company (in millions) 11.4 0 0 11.4 13.1 5.2 0 18.3 14.4 5.5 0 19.9 15.6 7.3 1.2 24.1 17.5 7.9 4.3 29.7 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 $23 $24 $25 $26 $27 $28 $29 $30 $31 $32 SLP(Lancaster) Cognigen(Buffalo) DILIsym(No. Ca
Slide 16: Revenue by Region – FY 2018
Revenue by Region – FY 2018 Nasdaq: SLP Europe 18% North America 61% Asia 20% South America <1% Japan = 70% India = 16% China = 12% Korea = 2% 16 A global and diversified base of revenue SO10
Slide 17: Income Statement: FY18 vs. FY17
17 Income Statement: FY18 Vs. FY17 (in millions) Lancaster Buffalo RTP ( ACQ. 6/01/17) FY18 FY17 Diff % chg Net sales $ 17.6 $ 7.9 $ 4.3 $ 29.7 $ 24.1 $ 5.5 22.9% Gross profit 14.5 4.6 2.5 21.7 17.8 3.8 21.5% Gross profit margin 82.6% 58.9% 59.6% 73.1% 73.9% - 0.8% - 1.1% SG&A $ 5.6 $ 2.6 $ 1.3 $ 9.
Slide 18: Fiscal Year Net Income by Company
18 Fiscal Year Net Income by Company (in millions) 3.0 0 0 3.0 3.1 0.7 0 3.8 4.3 0.6 0 4.9 4.4 1.1 0.2 5.7 6.9 1.4 0.6 8.9 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 SLP Cognigen DILIsym Consolidated 2014 2015 2016 2017 2018 ▪ Cognigen(Buffalo) acquired Sept. 2014 (1 st Qtr. 2015) ▪ DILIsym (No Carolina) acq
Slide 19: Consolidated Diluted Earnings Per Share
19 Consolidated Diluted Earnings Per Share $0.18 $0.23 $0.29 $0.33 $0.50 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 FY14 FY15 FY16 FY17 FY18 ▪ FY18 Includes $1.5M one time Deferred tax befefit due to tax law change, appox $0.08 per share $0.44
Slide 20: Consolidated Annual EBITDA
20 Consolidated Annual EBITDA (in Millions) $5.6 $7.7 $9.2 $10.4 $13.00 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 FY14 FY15 FY16 FY17 FY18
Slide 21: Selected Consolidated Balance Sheet Items
21 Selected Consolidated Balance Sheet Items (in millions, except where indicated) August 31, 2018 August 31, 2017 Cash and cash equivalents $ 9.4* $ 6.2* Cash per share ( in Dollars ) $ 0.54 $ 0.36 Total current assets 17.8 12.6 Total assets 43.3 38.5 Total current liabilities 4.8 2.0 Total liabili
Slide 22: Cash Position Remains Excellent
22 Cash Position Remains Excellent (in millions) Over $25 million cash utilized over last four 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 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $1.5 $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 $7.5 $7.2 $9.4 $
Slide 23: Income Statement: 1QFY19 Versus 1QFY18
23 Income Statement : 1QFY19 Versus 1QFY18 ( in millions) Lancaster Buffalo North Carolina FY19 FY18 Diff % chg Net sales $ 4.4 $ 2.1 $ 1.1 $ 7.5 $ 7.1 $ 0.5 6.6% Gross profit 3.5 1.1 0.7 5.3 5.3 0.0 0.0% Gross profit margin 81.1% 53.1% 63.5% 70.8% 75.4% - 4.6% - 6.1% SG&A $ 1.6 $ 0.8 $ 0.4 $ 2.7 $
Slide 24: Consolidated Revenues: Fiscal Quarter
24 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 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019
Slide 25: Consolidated Diluted Earnings Per Share: Fiscal Quarter
25 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 $0.00 $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 tax benefit o
Slide 26: Consolidated EBITDA: Fiscal Quarter
26 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 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019
Slide 27: Summary & Wrap-up
Summary & Wrap-up 7 5 SimulationsPlus
Slide 28: Thank you for your kind attention… Questions?
28 Thank you for your kind attention… Questions?
Simulations Plus — Shareholder Meeting (February 2019) on 6ix