Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2017 Earnings Presentation
31 slides from Simulations Plus's earnings presentation, Apr 11, 2017
Slide 1: Investor Conference Call April 10, 2017
(NASDAQ:SLP) Investor Conference Call April 10, 2017
Slide 2: Safe Harbor Statement
2 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 t
Slide 3: Highlights
3 Highlights John DiBella VP of Marketing & Sales
Slide 4: Overview
4 • Major provider of software and consulting services for scientific R&D • Earliest drug discovery – when a chemist first draws a molecule • Preclinical development (lab and animals) through first - in - human trials • Safety research and risk assessment • Phase 2 and 3 clinical trials • Beyond pat
Slide 5: FDA Office of Generic Drugs Funded Collaborations
5 • Now in 3 rd and final year of $200,000/year collaboration for improved ocular dosing simulations • Established consortium of leading pharmaceutical companies • The global ophthalmic drugs market was valued at $16 billion in 2012, and was expected to reach an estimated value of $21.6 billion in 2
Slide 6: Two-year stock performance compared to DOW, NASDAQ, & S&P 500
* Yahoo! Data 4/7/2017 Two - year stock performance compared to DOW, NASDAQ, & S&P 500 *
Slide 7: Financial Overview
7 Financial Overview John Kneisel Chief Financial Officer
Slide 8: Income Statement: 2QFY17 Versus 2QFY16
8 Income Statement: 2QFY17 Versus 2QFY16 (in millions) Lancaster Buffalo 2QFY17 2QFY16 Diff % chg Net sales $ 4.04 $ 1.66 $ 5.71 $ 5.16 $ 0.54 10.5% Gross profit 3.31 0.84 4.15 3.90 0.25 6.5% Gross profit margin 82.0% 50.3% 72.8% 75.5% - 2.8% - 3.7% SG&A $ 1.34 $ 0.60 $ 1.95 $ 1.72 $ 0.23 13.1% R&D
Slide 9: Income Statement: 6MoFY17 Versus 6MoFY16
9 Income Statement: 6MoFY17 Versus 6MoFY16 (in millions) Lancaster Buffalo 6MoFY17 6MoFY16 Diff % chg Net sales $ 7.74 $ 3.39 $ 11.12 $ 10.00 $ 1.12 11.2% Gross profit 6.33 1.91 8.2 7.7 $ 0.6 7.6% Gross profit margin 81.8% 56.3% 74.0% 76.5% - 2.5% - 3.3% SG&A $ 2.59 $ 1.22 $ 3.81 $ 3.40 $ 0.41 12.1%
Slide 10: Consolidated Revenues: Fiscal Quarter
10 Consolidated Revenues: Fiscal Quarter ( 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 5.71 $0 $1 $2 $3 $4 $5 $6 $7 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 11: Consolidated Net Income: Fiscal Quarter
11 Consolidated Net Income: Fiscal Quarter ( 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 $1.20 $ - $0.50 $1.
Slide 12: Consolidated Diluted Earnings Per Share
12 Consolidated Diluted Earnings Per Share 0 0.02 0.04 0.06 0.08 0.1 0.12 Q1 Q2 Q3 Q4 $0.03 $0.06 $0.11 $0.03 $0.06 $0.07 $0.11 $0.05 $0.08 $0.07 Quarterly EPS FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Slide 13: Consolidated EBITDA: Fiscal Quarter
13 Consolidated EBITDA: Fiscal Quarter ( in millions) 1.20 1.35 2.30 0.67 1.22 1.97 3.33 1.19 2.22 2.18 3.28 1.51 2.48 2.30 $0 $1 $2 $3 $4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 14: Returning Cash to Shareholders
14 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 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 7.4 8.6 $0 $1 $1 $2 $2 $3 $0 $2 $4 $6 $8 $10 $12 $14 Dividend Paid Cash on Hand Cash
Slide 15: Selected Balance Sheet Items
15 Selected Balance Sheet Items (in millions, except where indicated) February 28, 2017 August 31, 2016 Cash and cash equivalents $ 7.427* $ 8.030* Cash per share ( in Dollars ) $ 0.43 $ 0.47 Total current assets 13.989 12.700 Total assets 28.761 27.814 Total current liabilities 2.140 2.126 Total li
Slide 16: Marketing and Sales
16 Marketing and Sales John DiBella VP of Marketing and Sales
Slide 17: End-to-end M&S Solutions Provider
17 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 18: Software Product News
18 • Version 9.5 released in April 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 19: 2QFY17 Sales Review
2QFY17 Sales Review • Consolidated revenue +10.5% vs. 2QFY16 • Highlights: – Software revenue +7.4% • 89% renewal rate (accounts) • 96% renewal rate (fees) • 6% increase in license units • 9 new commercial companies • 11 new nonprofit groups – Expansion of licenses at U.S. and China FDAs – Consultin
Slide 20: 6MoFY17 Sales Review
6MoFY17 Sales Review • Consolidated revenue +11.2% vs. 6MoFY16 • Highlights: – Software revenue +7.3% • 88% renewal rate (accounts) • 96% renewal rate (fees) • 2% increase in license units • 22 new commercial companies • 21 new nonprofit groups – Expansion of licenses at U.S. EPA and CDC – Consultin
Slide 21: 2QFY17 Software Revenue by Region
2QFY17 Software Revenue – by Region Europe 33% North America 44% Asia 23% South America <1% Japan = 59% India = 22% China = 19% Korea = <1% 21
Slide 22: 2Q17 Marketing Activities
2Q17 Marketing Activities Website Content • Created video production room in Lancaster – Producing more video content for promotional/branding purposes • Increased focus on SEO performance Workshops and Conferences • GastroPlus PBPK workshops held in Orlando, Tokyo & San Diego – Full slate of worksh
Slide 23: Buffalo Division Update
23 Buffalo Division Update Re - imagining the future of science - based research and development Ted Grasela President
Slide 24: Consulting Services
24 Consulting Services • Strategic and synergistic benefits of the Buffalo (Cognigen) acquisition are being realized, as evidence by the record first quarter for Buffalo • Strong collaborations between Buffalo and Lancaster scientists have identified new and innovative ways of using modeling and sim
Slide 25: Status Report - Consulting
25 Status Report - Consulting • In FY2017 working with 25 companies on 38 drugs, 65 projects – 6 new companies in FY2017 – 33 new projects in FY17 – 15 projects expanded scope in FY17 – 3 projects with reduced scope – 32 outstanding proposals with 20 different companies • In FY2017 presented 6 poste
Slide 26: Posters of Note
26 Posters of Note • Lead Antimalarial Identification Using In Silico Prediction Methods and Simulation. – American Society for Clinical Pharmacology and Therapeutics – Morris D, Woltosz W, Lawless M, Grasela T, Clark R. • Modeling and simulation strategy to support eslicarbazepine acetate (ESL) dev
Slide 27: Scientific Community Engagement
27 • Jill Fiedler - Kelly, has been appointed as a Member - at - Large to the American Society for Clinical Pharmacology and Therapeutics (ASCPT) Board of Directors for a 3 year term • ASCPT was founded in 1900, and consists of over 2,200 professionals whose primary interest is to advance the scienc
Slide 28: KIWI Update
28 • Continued to work on $4.7 million contract with a major foundation to implement a KIWI platform for global teams engaged in model - based drug development; 5 - year term contingent on satisfactory completion of milestones • Project builds on our extensive process - related research; enables sub
Slide 29: Summary
29 Buffalo division is strong and growing • Consulting activities continuing to expand, and realizing synergies with Lancaster division for PBPK modeling in clinical pharmacology • Successful recruiting and on - boarding of software engineers and scientists to sustain growth patterns • Foundation co
Slide 30: Final Summary
30 Final Summary John DiBella VP of Marketing & Sales
Slide 31: Summary
31 • 2QFY17 • Revenues up 10.5% to $5.71 million • Net income up by 4.4%, to $1.20 million or 7¢ per share, compared to $1.15 million, or 7¢ per share in 2QFY16 • 6MoFY17 • Revenues up 11.2% or $1.12 million to $11.12 million • Net income up 13.6% to $2.56 million, d iluted earnings per share up 15¢