Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q3 FY2020 Earnings Presentation
21 slides from Simulations Plus's earnings presentation, Jul 13, 2020
Slide 1: Q3FY2020 Investor Conference Call
Q3FY2020 Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO July 9, 2020 (NASDAQ:SLP)
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: Steady and Consistent Revenue Growth
Steady and Consistent Revenue Growth 3 Organic Revenue Growth has accelerated to new 15 - 20% range $11.2 $12.0 $13.5 $14.7 $16.8 $4.8 $5.9 $9.4 $11.2 $15.2 $16.0 $17.9 $22.9 $25.9 $32.0 2016 2017 2018 2019 2020 9 Months Revenue $ in millions Software Consulting Key Highlights • Q3 FY2020 Financial
Slide 4: COVID-Impact
COVID - 19 Impact • Operational Impact - Minimal – Operational transition achieved without disruption – Offices are re - opening on a voluntary basis but anticipate continued highly remote workforce into the future • Financial Impact – Minimal – Recurring revenues • 85% of software revenue this quar
Slide 5: Simulations Plus Division (Lancaster)
Simulations Plus Division (Lancaster) 5 The genesis of the company… providing software, training and consulting services $11.1 $11.9 $12.8 $13.8 $15.5 $0.7 $0.8 $1.4 $1.6 $2.1 $11.8 $12.7 $14.2 $15.4 $17.6 2016 2017 2018 2019 2020 9 Months Revenue $ in millions Software Consulting Simulations Plus r
Slide 6: Cognigen Division (Buffalo)
Key Highlights • Q3 FY2020 Financial Highlights – Revenue up 20% for the quarter – 64 active projects in 3QFY20 across 31 companies – 33 contracts signed in 3QFY20, including 18 new projects • Operational Highlights – 28 proposals across 24 different companies, outstanding at the start of 4QFY20 – C
Slide 7: DILIsym Division (RTP)
$0.6 $0.7 $0.6 $2.4 $2.9 $5.1 $3.0 $3.7 $5.7 2018 2019 2020 9 Months Revenue $ in millions Software Consulting DILIsym Division (RTP) 7 A leading provider of software products and services in QST and QSP Key Highlights • Q3 FY2020 Financial Highlights – Revenue up 39% for the quarter – Revenue break
Slide 8: Lixoft (Paris Division)
Lixoft (Paris Division) 8 A leading provider of software products and services in QST and QSP Key Highlights • Q3 FY2020 Financial Highlights (Two months 4/1/20 - 5/31/20) • Revenue – Revenue growth 15% vs Q3FY19 – 98% of revenue is software related • Key highlights: – 52 customers – increase of 10
Slide 9: Financial Results
Financial Results
Slide 10: Income Statement: 3QFY20 Versus 3QFY19
10 Income Statement: 3QFY20 Versus 3QFY19 (in millions) Note : Some numbers may not foot or crossfoot due to rounding . 3Q20 SG &A includes $1.1M of acquisition related costs. 3QFY20 3QFY19 Diff % chg Net sales $ 12.3 $ 9.9 $ 2.4 23.8% Gross profit 9.6 7.6 2.0 26.5% Gross profit margin 78.3% 76.6% 1
Slide 11: Income Statement: 9MoFY20 Versus 9MoFY19
11 Income Statement: 9MoFY20 Versus 9MoFY19 (in millions) 9MoFY20 9MoFY19 Diff % chg Net sales $ 32.0 $ 25.9 $ 6.1 23.5% Gross profit 24.1 19.2 4.9 25.3% Gross profit margin 75.1% 74.0% 1.1% 1.5% SG&A $ 12.6 8.6 $ 4.0 46.8% R&D 2.0 1.9 0.1 6.8% Total operating expenses 14.7 10.5 4.2 39.6% Income fro
Slide 12: Consolidated Revenues: Fiscal Quarter
12 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 $12.3 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020
Slide 13: Consolidated Income from Operations: Fiscal Quarter
13 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 $2.7 $3.9 $2.0 $2.7 $2.8 $3.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020
Slide 14: Consolidated Net Income: Fiscal Quarter
$1.1 $1.2 $1.9 $0.8 $1.4 $1.2 $2.1 $1.2 $1.7 $3.5 $2.4 $1.3 $1.5 $2.1 $2.9 $2.1 $2.1 $2.2 $2.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 $2.0 14 Note: 2Q18 $1.5M tax benefit of deferred tax adjustment Consolidated Net Income: Fiscal Quarter (in millions)
Slide 15: Consolidated Diluted Earnings Per Share: Fiscal Quarter
15 Consolidated Diluted Earnings Per Share: Fiscal Quarter $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 $0.12 $0.16 $0.11 $0.11 $0.12 $0.16 $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 FY16 FY17 FY18 FY19 FY20 $0.11 Note: 2Q18 $0.08 t
Slide 16: Consolidated EBITDA: Fiscal Quarter
16 Consolidated EBITDA: Fiscal Quarter (in millions) $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 $3.4 $4.6 $2.7 $3.4 $3.5 $4.6 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020
Slide 17: Revenue by Region – YTD 2020
Revenue by Region – YTD 2020 Europe 16 % Americas 69 % Asia 15 % Japan = 50% China = 21% India = 16% Korea = 12% 17 A global and diversified base of revenue
Slide 18: Cash Position Excellent
18 Cash Position Excellent (in millions) Accumulating Cash while funding Acquisitions and Dividends $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 $1.1 $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 $7.4 $9.6 17.1 17.2 1
Slide 19: Selected Consolidated Balance Sheet Items
19 Selected Consolidated Balance Sheet Items (in millions, except where indicated) May 31, 2020 August 31, 2019 Cash and cash equivalents $ 7.4* $ 11.4 Cash per share ( in Dollars ) $ 0.41 $ 0.65 Total current assets 22.2 21.2 Total assets 61.6 45.2 Total current liabilities 7.8 4.8 Total liabilitie
Slide 20: Products & Services, Consistent Financial Results
1 Dividend ratio for FY2019; No assurances of future cash dividends can be made as the BOD makes its decision on a quarterly ba si s based on current financial condition and strategic plans. Products & Services Software Portfolio • Modeling & simulation platform for drug R&D • Predictive software fo
Slide 21: Thank you!
21 Thank you! https://www.linkedin.com/company/simulations - plus https://www.linkedin.com/company/cognigen https://www.linkedin.com/company/dilisym https://www.linkedin.com/company/lixoft/