Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q1 FY2017 Earnings Presentation
28 slides from Simulations Plus's earnings presentation, Jan 10, 2017
Slide 1: Investor Conference Call January 9, 2017
(NASDAQ:SLP) Investor Conference Call January 9, 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 pharma R&D • Earliest drug discovery – when a chemist first draws a molecule • Preclinical development (lab and animals) through first - in - human trials • Phase 2 and 3 clinical trials • Beyond patent life to supporting generic companies •
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 1/6/2017 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 1QFY17 Compared to 1QFY16
8 Income Statement 1QFY17 Compared to 1QFY16 (in millions) Lancaster Buffalo 1QFY17 1QFY16 Diff % chg Net sales $ 3.69 $ 1.72 $ 5.42 $ 4.84 $ 0.58 12.0% Gross profit 3.01 1.05 4.08 3.76 0.33 8.7% Gross profit margin 81.5% 62.0% 75.3% 77.6% - 2.3% - 2.9% SG&A 1.25 0.62 1.86 1.68 0.19 11.2% R&D 0.28 0
Slide 9: Consolidated Revenues, by Fiscal Quarter and YTD
9 Consolidated Revenues, by Fiscal Quarter and YTD (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 $0 $1 $2 $3 $4 $5 $6 $7 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 10: Consolidated Net Income, by Fiscal Quarter and YTD
10 Consolidated Net Income, by Fiscal Quarter and YTD (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 $- $0.50
Slide 11: Consolidated Diluted Earnings Per Share
11 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 Quarterly EPS FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Slide 12: Consolidated EBITDA, by Fiscal Quarter & YTD
12 Consolidated EBITDA, by Fiscal Quarter & YTD (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 $0 $1 $2 $3 $4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 13: Returning Cash to Shareholders
13 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 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 7.7 $0 $1 $1 $2 $2 $3 $0 $2 $4 $6 $8 $10 $12 $14 Dividend Paid Cash on Hand Cash paid $2.5
Slide 14: Selected Balance Sheet Items
14 Selected Balance Sheet Items (in millions, except where indicated) November 30, 2016 August 31, 2016 Cash and cash equivalents $ 8.844* $ 8.030* Cash per share ( in Dollars ) $ 0.51 $ 0.47 Total current assets 13.611 12.700 Total assets 28.503 27.814 Total current liabilities 2.244 2.126 Total li
Slide 15: Marketing and Sales
15 Marketing and Sales John DiBella VP of Marketing and Sales
Slide 16: End-to-end M&S Solutions Provider
16 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 17: Software Product News
17 • Version 9.5 scheduled for early 2017 ‒ Intramuscular dosing model – optional add - on model ‒ Antibody - drug conjugate (ADC) models for biologics • Version 8.1 scheduled for early 2017 ‒ 64 - bit compatibility & minor bug fixes ‒ Rebuilt toxicity models • Version 4.0 still licensed by clients
Slide 18: 1QFY17 Sales Review
1QFY17 Sales Review • Consolidated revenue +12% vs. 1QFY16 • Highlights: – Software revenue +7.2% • 87% renewal rate (accounts) • 96% renewal rate (fees) • (2%) decrease in license units • 14 new commercial companies • 14 new nonprofit groups – Consulting revenue +21.1% • +19.7% in Buffalo • +28.5%
Slide 19: 1QFY17 Software Revenue – by Region
1QFY17 Software Revenue – by Region Europe 20% North America 53% Asia 27% South America <1% Japan = 50% China = 28% India = 22% Korea = <1% 19
Slide 20: 1Q17 Marketing Activities
1Q17 Marketing Activities Website Redesign • Website launched: early November – Continue to update content – both written and visual Workshops and Conferences • GastroPlus/pop PK workshops held in Bethesda in October – Full slate of workshops scheduled around the globe in 2017 • Attended 21 scientif
Slide 21: Buffalo Division Update
21 Buffalo Division Update Re - imagining the future of science - based research and development Ted Grasela President
Slide 22: Consulting Services
22 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 23: Status Report - Consulting
23 Status Report - Consulting • In FY2017 working with 26 companies on 37 drugs, 60 projects – 5 new companies in FY2017 – 19 new projects in 1QFY17 – 2 projects expanded scope in 1QFY17 – 2 projects delayed because of slow trial enrollment – 0 projects cancelled because of failed studies – 25 outst
Slide 24: Presentations of Note
24 Presentations of Note • Presentation of an application of ADMET Predictor™ and GastroPlus™ at the Japanese Society for the Study of Xenobiotics meeting in Matsumoto Japan opened up conversations about value of our products to support drug discovery • Presentation at EU SimInhale Consortium meetin
Slide 25: KIWI Update
25 • 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 26: Summary
26 Buffalo division is strong and growing • Consulting activities continuing to expand, and realizing synergies with Lancaster division for PBPK modeling in clinical pharmacology • Foundation contract to enhance the KIWI platform is a major step forward in our long - term vision for the product • Co
Slide 27: Final Summary
27 Final Summary John DiBella VP of Marketing & Sales
Slide 28: Summary
28 • 1QFY17 • Revenues up 12% to $5.42 million • Record quarterly revenues for Buffalo (Cognigen) Division • Net income up 23% to $1.36 million • Diluted EPS up 22% to $ 0.078 (8¢) per share from $0.064 (6¢) in 1QFY16 • California and Buffalo divisions both performing well • Expected synergies being