Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q4 2018 Earnings Presentation
22 slides from Simulations Plus's earnings presentation, Nov 15, 2018
Slide 1: Investor Conference Call
(NASDAQ:SLP) Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO November 14, 2018
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: Call Agenda
Call Agenda • CEO Introduction • Fourth Quarter and FY2018 Highlights • Financial Results 3
Slide 4: Introduction
Introduction • My background • Evolution of modeling and simulation in the pharmaceutical drug development world • Simulations Plus – “Gold standard” GastroPlus application provides foundation for portfolio of software applications supporting modeling applications across the drug development continu
Slide 5: Steady and Consistent Revenue Growth
Steady and Consistent Revenue Growth 5 Nasdaq: SLP More than a decade of consistent revenue growth $11.0 $12.5 $13.8 $14.9 $16.8 $0.4 $5.8 $6.1 $9.2 $12.9 $11.4 $18.3 $19.9 $24.1 $29.7 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Annual Revenue Software Consulting Key Highlights • Record $29.7M of revenu
Slide 6: Simulations Plus Division (Lancaster)
Simulations Plus Division (Lancaster) 6 Nasdaq: SLP The genesis of the company… providing software, training and consulting services $11.0 $12.3 $13.7 $14.5 $15.7 $0.4 $0.7 $0.8 $1.1 $1.8 $11.4 $13.0 $14.5 $15.6 $17.5 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Annual Revenue Software Consulting $ in mi
Slide 7: Cognigen Division (Buffalo)
Cognigen Division (Buffalo) 7 Nasdaq: SLP A leading provider of population modeling and simulation services for the pharma and biotech industries $0.2 $0.2 $0.2 $0.2 $5.1 $5.4 $7.1 $7.7 $5.3 $5.6 $7.3 $7.9 FY 2015 FY 2016 FY 2017 FY 2018 Annual Revenue Software Consulting Key Highlights • Market Dri
Slide 8: DILIsym Division (RTP)
$0.2 $0.9 $1.0 $3.4 $1.2 $4.3 FY 2017 FY 2018 Annual Revenue Software Consulting DILIsym Division (RTP) 8 Nasdaq: SLP A leading provider of software products and services in QST and QSP Key Highlights • Acquired in June 2017 • Market Drivers – Accelerated adoption of QST and QSP mechanistic modeling
Slide 9: Growth Strategy
Growth Strategy Nasdaq: SLP 9 ‒ Continue to deliver timely upgrades of existing software products to drive high renewal rates and create new module revenue opportunities ‒ Invest in new software product development to broaden our portfolio of tools our clients require ‒ Attract and hire scientific t
Slide 10: Financial Results
Financial Results Nasdaq: SLP
Slide 11: Income Statement: 4QFY18 Versus 4QFY17
11 Income Statement: 4QFY18 Versus 4QFY17 (in millions) Lancaster Buffalo RTP ( ACQ. 6/01/17) 4QFY18 4QFY17 Diff % chg Net sales $ 3.3 $ 2.1 $ 1.2 $ 6.7 $ 6.3 $ 0.4 6.7% Gross profit $ 2.6 $ 1.3 $ 0.7 $ 4.6 $ 4.3 $ 0.3 6.4% Gross profit margin 77.4% 61.2% 56.2% 68.3% 68.5% - 0.2% - 0.4% SG&A $ 1.3 $
Slide 12: Income Statement: FY18 Vs. FY17
12 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 13: Consolidated Revenues: Fiscal Quarter
13 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 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 14: Consolidated Income from Operations: Fiscal Quarter
14 Consolidated Income from Operations: Fiscal Quarter (in millions) $0.7 $1.5 $2.9 $0.8 $1.7 $1.7 $2.8 $1.0 $1.9 $1.8 $3.1 $1.4 $2.6 $2.4 $3.4 $1.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 Note: 2Q18 $0.08 tax benefit of deferred tax adjustment
Slide 15: Consolidated Net Income: Fiscal Quarter
$0.5 $1.0 $1.9 $0.5 $1.1 $1.2 $1.9 $0.8 $1.4 $1.2 $2.1 $1.2 $1.7 $3.5 $2.4 $1.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 $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 $0.03 $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 $0.00 $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 $0.11 Note: 2Q18 $0.08 tax benefit of deferred
Slide 17: Consolidated EBITDA: Fiscal Quarter
17 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 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 18: Revenue by Region – FY2018
Revenue by Region – FY2018 Nasdaq: SLP Europe 18% North America 63% Asia 18% South America <1% Japan = 68% India = 16% China = 11% Korea = 1% 18 A global and diversified base of revenue
Slide 19: Cash Position Remains Excellent
19 Cash Position Remains Excellent (in millions) Over $30 million cash paid out over last five FYs $0.8 $0.8 $0.8 $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 $1.5 $2.5 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $11.0 $7.8 $8.6 $5.8 $6.1 $6.4 $8.6 $7.2 $7.1 $8.8 $8.0 $8.8 $7.4 $8.2
Slide 20: Selected Consolidated Balance Sheet Items
20 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 21: 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 22: Thank you!
22 Thank you! http://www.simulations - plus.com https://www.linkedin.com/company/95827/ https://www.linkedin.com/company/46152/