Slide 1: Fiscal Year 2014 and 4th Quarter FY14 Conference Call and Webinar
Simulations Plus, Inc. (NASDAQ:SLP) Fiscal Year 2014 and 4 th Quarter FY14 Conference Call and Webinar November 25, 2014 Copyright (c) 2014 Simulations Plus, Inc. 1
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 su
Slide 3: SLP 4Q14 Highlights
• 4Q14 compared to 4Q13 : – 28 th consecutive profitable quarter, and a new record 4 th quarter – Revenues were $1.997 million, a 27.4% increase ($430K) from $1.568 million • $190,000 of revenues were recognized in this quarter the result of a final annual review of deferred revenues on multiyear sa
Slide 4: SLP 4Q14 Highlights (continued)
• 4Q14 compared to 4Q13 :( con’t ) – Operating income increased $45,000 or 18.3% to $288,000 in 4Q14 – Income taxes increased $67,000 in 4Q14, • 4Q13 income taxes were a credit of $2,000 based on 4Q13 year end tax adjustments. – Net Income decreased 8.9% to $223,000 from $245,000 in 4Q13 – Diluted e
Slide 5: Income Statement 4Q14 vs 4Q13
Income Statement 4Q14 vs 4Q13 ($ millions) 4Q14 4Q13 Net sales 1.997 1.568 Gross profit 1.537 1.259 Gross profit margin 76.9% 80.3% SG&A 1.061 0.860 R&D 0.202 0.168 Total operating expenses 1.263 1.028 Income from operations 0.274 0.231 Other income 0.013 0.013 Income from operations before income t
Slide 6: SLP FY14 Highlights
• FY14 compared to FY13: – Sales increased by $1.4 million or 13.8% to $11.5 million from $10.1 million to set a new fiscal year record – Cost of sales as a percentage of sales decreased 1.3% or $ 17,000 to 14.2% from 16.3% in FY13 • Decrease was attributable to a reduction in royalty expenses attri
Slide 7: SLP FY14 Highlights (continued)
• FY14 compared to FY13 ( con’t ) – R&D expense increased 18.7% to $953,000 from $802,000 the prior year • Increase was due to an increase in life science staffing and included R&D expenditures for COX2/COX1 NCE project of approximately $50,000 – Net Income increased by $139,000 or 4.8% to $3.0 mill
Slide 8: Income Statement FY14 vs FY13
Income Statement FY14 vs FY13 ($ millions) FY14 FY13 Net sales 11.461 10.071 Gross profit 9.831 8.424 Gross profit margin 85.8% 83.7% SG&A 4.440 3.550 R&D 0.952 0.802 Total operating expenses 5.392 4.352 Income from operations 4.439 4.257 Other income .074 0.184 Income from operations before income
Slide 9: Revenues by Quarter
$1.4 $1.8 $2.0 $1.1 $1.7 $2.2 $2.3 $1.3 $2.1 $2.6 $2.6 $1.4 $2.2 $2.8 $2.8 $1.6 $2.3 $3.1 $3.1 $1.6 $2.6 $3.1 $3.7 $2.0 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Revenues by Quarter (pro forma prior to 2012) Copyright (c) 2014 Simulations Plus, Inc. 9
Slide 10: Gross Profit by Fiscal Quarter
$1.24 $1.53 $1.75 $0.71 $1.45 $1.93 $1.97 $1.07 $1.70 $2.21 $2.21 $1.12 $1.90 $2.39 $2.33 $1.32 $1.90 $2.62 $2.64 $1.26 $2.19 $2.59 $3.51 $1.54 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Gross Profit by Fiscal Quarter (pro forma prior to 2012) Copyright (c) 2014 Simulations Plus, Inc. 10
Slide 11: EBITDA by Fiscal Quarter
$0.55 $0.73 $0.93 $0.20 $0.73 $1.28 $1.23 $0.36 $1.00 $1.48 $1.48 $0.27 $1.23 $1.38 $1.48 $0.58 $1.09 $1.76 $1.73 $0.44 $1.20 $1.35 $2.10 $0.67 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 EBITDA by Fiscal Quarter Copyright (c) 2014 Simulations Plus, Inc. 11
Slide 12: Net Income by Quarter
Net Income by Quarter (pro forma prior to 2012) $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 Q1 Q2 Q3 Q4 $ Millions 2009 2010 2011 2012 2013 2014 Copyright (c) 2014 Simulations Plus, Inc. 12
Slide 13: New Customers by Quarter
10 11 9 9 14 17 12 14 15 21 13 10 18 18 16 9 15 22 20 18 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 New Customers by Quarter Copyright (c) 2014 Simulations Plus, Inc. 13
Slide 14: Selected Balance Sheet Items
Selected Balance Sheet Items ($ millions) August 31, 2014 August 31, 2013 Cash and cash equivalents $8.614 $10.179 Cash per share 0.52 0.62 Total current assets 11.533 12.972 Total assets 20.981 16.063 Total current liabilities 1.391 0.626 Total liabilities 5.545 1.821 Current ratio 8.29 20.7 Shareh
Slide 15: Returning Cash to Shareholders
$1.59 $0.80 $0.80 $2.24 $0.00 $0.48 $0.48 $0.64 $0.81 $0.81 $0.82 $0.82 $1.97 $2.50 $12.66 $13.24 $12.89 $12.70 $11.38 $9.33 $9.76 $10.00 $10.18 $10.56 $10.9* $7.76 $8.8* $5.90 Q 4 F Y 1 1 Q 1 F Y 1 2 Q 2 F Y 1 2 Q 3 F Y 1 2 Q 4 F Y 1 2 Q 1 F Y 1 3 Q 2 F Y 1 3 Q 3 F Y 1 3 Q 4 F Y 1 3 Q 1 F Y 1 4 Q 2
Slide 16: Simulations Plus Products & Services
N H O OH O CH 3 CH 3 CH 3 Discovery Preclinical Clinical MedChem Studio™ MedChem Designer™ GastroPlus™ DDDPlus™ ADMET Predictor™ Simulations Plus Products & Services Consulting Services & Collaborations – Now Including Cognigen for Clinical Pharmacology MembranePlus™ Copyright (c) 2014 Simulations P
Slide 17: Simulations Plus Software Product News
Simulations Plus Software Product News • Version 8.6 was released in • Populations simulations linked with Drug - Drug Interaction (DDI) predictions • New animal PBPK models • Tighter integration with ADMET Predictor™ 7.1models • Version 7.0 released in March 2014, Version 7.1 released in July • Sig
Slide 18: Cognigen Corporation: History
Incorporated in 1992 in Buffalo, NY First contract research organization to offer PK/PD modeling and simulation services to Pharma 35 employees: ~1/3 scientists, ~1/3 data programmers, ~1/3 administrative support Cognigen Corporation: History Copyright (c) 2014 Simulations Plus, Inc. 18
Slide 19: Cognigen Corporation: Overview
Modeling & simulation support for 30 - 40 drugs per year Total of >100 different compounds over the last 5 years Experience in all phases of development Pre - clinical through commercialization, Phase 1 – Phase 4 Well - established quality management system and successful client audit record 44 clie
Slide 20: Cognigen Corporation: Therapeutic Areas
Cognigen Corporation: Therapeutic Areas Copyright (c) 2014 Simulations Plus, Inc. 20
Slide 21: Cognigen Corporation: KIWI Software Product
Cognigen Corporation: KIWI Software Product Copyright (c) 2014 Simulations Plus, Inc. 21
Slide 22: Marketing and Sales Program
Marketing and Sales Program • Conferences/Scientific Meetings continue to be primary source of leads • During FY14 we participated in 48 scientific meetings and conferences in the U.S., Europe, and Asia with 30 scientific posters and presentations. In 1Q14, we presented at our first aerospace confer
Slide 23: Additional Growth Opportunities
Additional Growth Opportunities • MembranePlus™: new software product to simulate in vitro permeability experiments • Released in 1Q15 after the end of this reporting period • Continued enhancement of current software products are expected to expand coverage into new areas: • Dermal and improved ora
Slide 24: Summary
Summary • For FY14: - Revenues and earnings continued six - year - plus profitable trend - Record revenues and earnings - Buyout of royalty agreement that is expected to reduce expenses going forward • Continuing to Grow: - Staff expansions continued in FY14 in Simulations Plus, then 35 new staff ad
Slide 25: Q&A
Q&A Copyright (c) 2014 Simulations Plus, Inc. 25