Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2018 Earnings Presentation
32 slides from Simulations Plus's earnings presentation, Apr 10, 2018
Slide 1: Investor Conference Call April 9, 2018
(NASDAQ:SLP) Investor Conference Call April 9, 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: Highlights
3 Highlights Walter S. Woltosz CEO and Chairman
Slide 4: Overview
4 • 2QFY18 • Revenues up $1.7 million (28.9%) to $7.4 million • Income from operations up $622,000 (34.7%) to $2.4 million • Net income up $2.3 million (190.6%) to $3.5 million, includes one time, non - cash $1.5M deferred tax adjustment • Diluted earnings per share increased to 19¢ per share up 13¢
Slide 5: Financial Overview
5 Financial Overview John Kneisel Chief Financial Officer
Slide 6: Income Statement: 2QFY18 Versus 2QFY17
6 Income Statement: 2QFY18 Versus 2QFY17 (in millions) Lancaster Buffalo North Carolina (ACQ. 6/01/17) 2QFY18 2QFY17 Diff % chg Net sales $ 4.6 $ 1.9 $ 0.9 $ 7.4 $ 5.7 $ 1.7 29.0% Gross profit 3.7 1.0 0.5 5.2 4.2 1.1 26.3% Gross profit margin 81.7% 53.5% 55.9% 71.2% 72.8% - 1.5% - 2.1% SG&A $ 1.4 $
Slide 7: Income Statement: 6MoFY18 Vs. 6MoFY17
7 Income Statement: 6MoFY18 Vs. 6MoFY17 (in millions) Lancaster Buffalo North Carolina (ACQ. 6/01/17) 6mo FY18 6mo FY17 Diff % chg Net sales $ 8.6 $ 3.8 $ 2.1 $ 14.4 $ 11.1 $ 3.3 29.7% Gross profit 7.0 2.2 1.3 10.6 8.2 2.3 28.4% Gross profit margin 82.0% 58.4% 64.2% 73.3% 74.0% - 0.7% - 1.0% SG&A $
Slide 8: Consolidated Revenues: Fiscal Quarter
8 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 $0 $1 $2 $3 $4 $5 $6 $7 $8 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 9: Consolidated Income from Operations by Fiscal Quarter
9 Consolidated Income from Operations by 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 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 Note: 2Q18 $0.08 tax benefit of deferred tax adjustment
Slide 10: Consolidated Net Income: Fiscal Quarter
10 $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 $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 Consolidated Net Income: Fiscal Quarter (in millions) Note: 2Q18 $1.5M tax benefit of deferred tax adjustment
Slide 11: Consolidated Diluted Earnings Per Share
11 Consolidated Diluted Earnings Per Share $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 $0.00 $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 tax adjustment
Slide 12: Consolidated EBITDA: Fiscal Quarter
12 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 $0 $1 $2 $3 $4 Q1 Q2 Q3 Q4 2015 2016 2017 2018
Slide 13: Cash Position Remains Excellent
13 Cash Position Remains Excellent (in millions) Over $24 million cash paid out over last three FYs $0.6 $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 $2.5 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $10.6 $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.
Slide 14: Selected Consolidated Balance Sheet Items
14 Selected Consolidated Balance Sheet Items (in millions, except where indicated) February 28, 2018 August 31, 2017 Cash and cash equivalents $ 6.9* $ 6.2* Cash per share ( in Dollars ) $ 0.40 $ 0.36 Total current assets 15.3 12.6 Total assets 41.0 38.5 Total current liabilities 5.5 2.0 Total liabi
Slide 15: Lancaster Division
15 Lancaster Division Walt Woltosz CEO and Chairman
Slide 16: Software Product News – Lancaster Division
16 • Version 9.6 scheduled for April 2018 ‒ New special population physiology models – enhancement to optional add - on module ‒ Improvements to all mechanistic absorption models – enhancement to optional add - on module • Version 9.0 scheduled for May 2018 ‒ Updates to HTPK Simulation Module – new
Slide 17: 2QFY18 Sales Review – Lancaster Division
2QFY18 Sales Review – Lancaster Division • Revenue +12.6% vs. 2QFY17 • Highlights: – Software revenue +7% • 89% renewal rate (accounts) • 94% renewal rate (fees) • 8% increase in license units • 8 new commercial companies • 7 new nonprofit groups – Consulting & training revenue +83% • Projects with
Slide 18: 6MoFY18 Sales Review – Lancaster Division
6MoFY18 Sales Review – Lancaster Division • Revenue +11% vs. 6MoFY17 • Highlights: – Software revenue +5% • 85% renewal rate (accounts) • 91% renewal rate (fees) • 6% increase in license units • 19 new commercial companies • 17 new nonprofit groups – Consulting & training revenue +74% • Projects wit
Slide 19: 6MoFY18 Software Revenue – by Region
6MoFY18 Software Revenue – by Region Europe 33% North America 41% Asia 26% South America <1% Japan = 55% China = 24% India = 21% Korea = <1% 19
Slide 20: 2QFY18 Marketing Activities
2QFY18 Marketing Activities Website Content • Increased production of video content for promotional/branding purposes • Increased focus on SEO performance • Continued migration of content from different division sites to main Simulations Plus domain Workshops and Conferences • PBPK workshop held at
Slide 21: Earnings Call Update – Cognigen
21 Earnings Call Update April 9 th , 2018 Ted Grasela, PharmD , Ph.D. President, Cognigen
Slide 22: Cognigen Status Report
22 Cognigen Status Report Pharmacometric Services • In FY2018 relationships with 25 companies on 38 drugs, 62 projects – 2 new companies in FY2018 – 19 new projects in FY2018 – 11 projects expanded scope in FY2018 – 3 projects with reduced scope – 41 outstanding proposals with 28 different companies
Slide 23: Cognigen Summary
23 • Increased Marketing and Sales activities • Ongoing recruitment of new scientific talent • Pharmacometric services continue to expand ‒ Healthy pipeline of new projects, including global health initiative projects ‒ Bridging global regulatory filings ‒ Embedded client partner opportunities from
Slide 24: Drug-Induced Liver Injury and Liver Diseases
24 Drug - Induced Liver Injury and Liver Diseases Brett A. Howell, President DILIsym Services, Research Triangle Park, NC
Slide 25: DILIsym Services, Inc. – Our Vision
DILIsym Services, Inc. – Our Vision 25 • DILIsym Services, Inc. offers comprehensive program services: – DILIsym software licensing, training, development (DILI - sim Initiative) – DILIsym and NAFLDsym simulation consulting projects – Consulting and data interpretation – in vitro assay experimental
Slide 26: DILIsym Services Fiscal Q2 Sales Review
DILIsym Services Fiscal Q2 Sales Review • DILIsym software consulting projects – 18 active DILIsym consulting projects during fiscal Q2 – DILIsym software is focused on helping companies predict drug - induced liver injury probability for drugs and drug candidates – Involve data management and analy
Slide 27: DILIsym Services Software Product News
DILIsym Services Software Product News • DILIsym version 7A is running smoothly by all accounts – Includes large number of expanded features and exemplar drugs – Version 8A development is well underway – release in early 2019 • DILIsym refactoring (recoding) in progress for improved use and tight in
Slide 28: DILIsym Services Marketing and Event Updates
DILIsym Services Marketing and Event Updates • Successfully completed first 3 day DILIsym training workshop in San Diego in March • Great interest in DILIsym software use at March 2018 professional meetings including the annual Society of Toxicology meeting in San Antonio – Conducted a co - marketin
Slide 29: DILIsym Services Summary
DILIsym Services Summary • Latest version of DILIsym is working well • Active development across multiple products for expanded applications, including possible kidney injury product • Continuing to work with Simulations Plus Lancaster and Cognigen on integrative marketing and other synergies • Numb
Slide 30: Final Summary
30 Final Summary Walter S. Woltosz CEO and Chairman
Slide 31: Final Summary
31 • 2QFY18 • Revenues up $1.7 million (28.9%) to $7.4 million • Income from operations up $622,000 (34.7%) to $2.4 million • Net income up $2.3 million (190.6%) to $3.5 million, includes one time, non - cash $1.5M deferred tax adjustment • 6MoFY18 • Revenues up $3.3 million (29.7%) to $14.4 million
Slide 32: Thank you!
32 Thank you! http://www.simulations - plus.com https://www.linkedin.com/company/95827/ https://www.linkedin.com/company/46152/