Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2020 Earnings Presentation
22 slides from Simulations Plus's earnings presentation, Apr 10, 2020
Slide 1: Q2FY2020 Investor Conference Call
Q2FY2020 Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO April 9, 2020 (NASDAQ:SLP)
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
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Lixoft Acquired April 1st, 2020
Lixoft Acquired April 1 st , 2020 4 • Founded in 2011 with headquarters in Paris, France • Monolix Suite: • Datxplore: • PKanalix: • Mlxplore: • Monolix : • Simulx : PKPD Modeling functionality Exploration and visualization of data Non - compartmental and compartmental analysis Exploration and visua
Slide 5: Steady and Consistent Revenue Growth
Steady and Consistent Revenue Growth $6.7 $7.2 $8 .0 $8.9 $10.0 2 0 16 2 0 17 2 0 18 2 0 19 2 0 20 S o f t ware 6 Months Revenue • Operational Highlights $ in millions $19.8 – Software revenue: 52% of total revenue, 12% y/y growth $14.4 $16.0 – Service revenue: 48% of total revenue, 35% y/y growth $
Slide 6: COVID-19 Impact
COVID - 19 Impact 6 • Financial Stability – Operational transition has been effected smoothly; workforce is engaged in support of our clients productively and efficiently. – Strong balance sheet with ample cash – High percentage of revenues based upon software renewals for which we have seen no impa
Slide 7: Simulations Plus Division (Lancaster)
Simulations Plus Division (Lancaster) $6.6 $7.2 $7.5 $8.3 $9.5 2 0 16 2 0 17 2 0 18 2 0 19 2 0 20 S o f t ware Consulting Simulations Plus represented 57% of total revenue and 70% of EBITDA for Q2 FY2020 • GastroPlus® X (GPX) • ADMET Predictor® X (APX) • AIDD (Artificial Intelligence - driven Drug D
Slide 8: Cognigen Division (Buffalo)
Key Highlights • Q2 FY2020 Financial Highlights – Revenue up 20% for the quarter – 21 contracts signed, including 14 new projects initiated during quarter 64 active projects in 2QFY20 across 34 companies • Operational Highlights – 18 proposals outstanding with 18 companies at the start of 3QFY20 –
Slide 9: DILIsym Division (RTP)
$3.3 $2.1 $2.3 $3.8 $1.7 $0.4 $1.8 $0.5 $0 .4 2018 2019 2 0 20 Software Co n sulting DILIsym Division (RTP) Key Highlights • Q2 FY2020 Financial Highlights – Revenue up 44.8% for the quarter – Revenue breakdown: 48% DILIsym software and projects; 12% RADAsym™; 10% IPFsym™ software; 12% NAFLDsym
Slide 10: Financial Results
Financial Results @B SimulationsPlus
Slide 11: Income Statement: 2QFY20 Versus 2QFY19
11 Income Statement: 2QFY20 Versus 2QFY19 (in millions) Lancaster Buffalo North C a rolina 2Q20 2Q19 Diff % chg Net sales $ 5 .9 $ 2.8 $ 1.7 $ 1 0.3 $ 8.5 $ 1.9 22. 2 % Gross profit $ 5.1 $ 1.4 $ 1.2 $ 7 .7 $ 6.3 $ 1.4 22. 7 % Gross profit margin 85. 7 % 51. 2 % 71. 7 % 74. 2 % 73. 9 % 0. 3 % 0. 4 %
Slide 12: Income Statement: 6MoFY20 Versus 6MoFY19
Income Statement: 6MoFY20 Versus 6MoFY19 (in millions) 12 Lancaster Buffalo North Carolina FY20 FY19 Diff % chg Net sales $ 10.8 $ 5.1 $ 3.8 $ 1 9.8 $ 1 6.0 $ 3.7 23. 4 % Gross profit 9.2 2.5 2.7 14.4 1 1.6 2.8 24. 5 % Gross profit margin 85. 3 % 49. 2 % 70. 7 % 73 . 1 % 72. 5 % 0. 7 % 0. 9 % SG&A $
Slide 13: Consolidated Revenues: Fiscal Quarter
Consolidated Revenues: Fiscal Quarter ( in millions) $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 $8.0 $9.4 $10.3 $4 $3 $2 $1 $0 $5 $6 $7 $8 $9 $ 1 0 $ 1 1 Q1 Q2 Q3 Q4 201 6 2017 201 8 201 9 2020 13
Slide 14: Consolidated Income from Operations: Fiscal Quarter
Consolidated Income from Operations: Fiscal Quarter (in millions) $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 $3.9 $2.0 $2.7 $2.7 $2.8 $ 1 .0 $ 0 .5 $ 0 .0 $ 1 .5 $ 2 .0 $ 2 .5 $ 3 .0 $ 3 .5 $ 4 .0 $ 4 .5 Q1 Q4 Q 2 Q3 2016 2017 2018 2019 2020 14
Slide 15: Consolidated Net Income: Fiscal Quarter
$1.1 $1.9 $0.8 $1.4 $1.2 $1.2 $2.1 $1 .2 $1.7 $3.5 $2.4 $1.3 $1.5 $2.9 $2.1 $2.1 $2.1 $2.2 $0.5 $0.0 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q3 Q4 Q2 2 0 16 2 0 17 2 0 18 2 0 19 2 0 20 $2.0 15 Note: 2Q18 $1.5M tax benefit of deferred tax adjustment Consolidated Net Income: Fiscal Quarter (in millions)
Slide 16: Consolidated Diluted Earnings Per Share: Fiscal Quarter
16 Consolidated Diluted Earnings Per Share: Fiscal Quarter $0.06 $0 . 1 1 $0.05 $0.08 $0.07 $0.07 $0.10 $0.19 $0.13 $0.12 $0.07 $0.06 $0.09 $0.16 $0.11 $0 . 1 1 $0.12 $0.12 $ 0 .00 $ 0 .04 $ 0 .02 $ 0 .06 $ 0 .08 $ 0 .10 $ 0 . 1 2 $ 0 .14 $ 0 .16 $ 0 .18 $ 0 .20 Q1 Q4 Q2 Q3 F Y 16 F Y 17 F Y 18 F Y
Slide 17: Consolidated EBITDA: Fiscal Quarter
Consolidated EBITDA: Fiscal Quarter (in millions) $2.2 $3.3 $1.5 $2.5 $2.3 $2.2 $3.6 $2.0 $3.2 $3.1 $2.8 $4.6 $4.1 $2.6 $2.7 $3.4 $3.4 $3.5 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2 0 1 6 2 0 1 7 2 0 18 2 0 1 9 2 0 2 0 17
Slide 18: Revenue by Region – YTD 2020
Revenue by Region – YTD 2020 Europe 16 % Americas 68 % Asia 16 % Japan = 43% China = 26% Korea = 15% India = 15% A global and diversified base of revenue 18
Slide 19: Cash Position Excellent
19 Cash Position Excellent $0.9 $0.9 $0.9 $0.9 $1.0 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.1 $1.1 $1.1 17.1 17.2 1 7 .3 17.4 18.1 18.2 1 8 .3 18.4 19.1 19.2 1 9 .3 1 9 .4 20.1 20.2 4 / 6 / 2 0 2 0 $1.0 $5.0 $1.6 $1.0 $1.7 $6.0 $8.8 $7.4 $8.2 $6.2 $7.0 $7.5 $7.2 $9.4 $9.4 $9.9 $10.3 $11.4 $12.6 $12.2 $8.0
Slide 20: Selected Consolidated Balance Sheet Items
Selected Consolidated Balance Sheet Items (in millions, except where indicated) 20 February 29, 2020 August 31, 2019 Cash and cash equivalents $ 12.2* $ 1 1.4 Cash per share ( in Dollars ) $ 0.69 $ 0.65 Total current assets 24.7 21.2 Total assets 49.2 45.2 Total current liabilities 5.5 4.8 Total lia
Slide 21: Products & Services, Consistent Financial Results and Dividends
1 Dividend ratio for FY2019; No assurances of future cash dividends can be made as the BOD makes its decision on a quarterly basis based on current financial condition and strategic plans. Products & Services Software Portfolio • Modeling & simulation platform for drug R&D • Predictive software for
Slide 22: Thank you!
Thank you! 22 https://www.linkedin.com/company/simulations - plus https://ww w .li n k e d in . c o m/comp a n y /co g nig e n https://www.linkedin.com/company/dilisym https://www.linkedin.com/company/lixoft/