Attached files
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| 8-K - FORM 8-K - Simulations Plus, Inc. | simulations_8k-071315.htm |
| EX-99.3 - EMPLOYMENT AGREEMENT - Simulations Plus, Inc. | simulations_8k-ex9903.htm |
| EX-99.1 - POWERPOINT PRESENTATION - Simulations Plus, Inc. | simulations_8k-ex9901.htm |
Exhibit 99.2
For Further Information:
Simulations Plus, Inc.
42505 10th Street West
Lancaster, CA 93534-7059
CONTACT:
| Simulations Plus Investor Relations | Hayden IR |
| Ms. Renee Bouche | Mr. Cameron Donahue |
| 661-723-7723 | 651-653-1854 |
| renee@simulations-plus.com | cameron@haydenir.com |
For Immediate Release:
July 13, 2015
Simulations Plus Reports Third Quarter FY2015 Financial Results
Revenues up 58.9%, Net Income up 41.7%
Board declares dividend of $0.05/share
LANCASTER, CA, July 13, 2015 – Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all phases of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its third quarter of fiscal year 2015 ended May 31, 2015 (3QFY15), and first nine months of fiscal year 2015 (9moFY15), compared to the third quarter (3QFY14) and first nine months of fiscal year 2014 (9moFY14).
3QFY15 highlights compared with 3QFY14:
| · | Net revenues increased 58.9% to $5.94 million, an increase of $2.20 million from $3.74 million |
| · | Gross profit was up 37.4% to $4.83 million, an increase of $1.31 million from $3.51 million |
| · | SG&A was $1.62 million, an increase of 34.9% or $420,000 from $1.20 million |
| · | R&D expenditures were $594,000, an increase of $42,000 or 7.6% over $552,000 |
| o | In 3QFY15, $246,000 was capitalized and $348,000 was expensed |
| o | In 3QFY14, $317,000 was capitalized and $235,000 was expensed |
| · | Income before taxes increased 35.1% to $2.82 million, an increase of $733,000 from $2.09 million |
| · | Net income increased 41.7% to $1.85 million, an increase of $545,000 from $1.31 million |
| · | Diluted earnings per share increased 36.5% to $0.108 from $0.079 |
9moFY15 highlights compared with 9moFY14:
| · | Net revenues increased 54.3% to $14.60 million, an increase of $5.14 million from $9.46 million |
| · | Gross profit was up 37.0% to $11.36 million, an increase of $3.07 million from $8.29 million |
| · | SG&A was $5.30 million, an increase of $1.92 million or 57.0% from $3.38 million |
| · | R&D expenditures were $1.96 million, an increase of $154,000, or 8.5% over $1.8 million |
| o | For 9moFY15, $976,000 was capitalized and $982,000 was expensed |
| o | For 9moFY14, $1.05 million was capitalized and $751,000 was expensed |
| · | Income before taxes increased 18.6% to $5.01 million, an increase of $788,000 from $4.23 million |
| · | Net income increased 19.6% to $3.35 million, an increase of $549,000 from $2.80 million |
| · | Diluted earnings per share increased 14.6% to $0.196 from $0.171 |
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Mr. John Kneisel, chief financial officer of Simulations Plus, said: “The Company delivered record results aided by a strong quarter of software sales and consulting revenues. Year-to-date diluted earnings per share reached the 20¢ mark. After distributing just over $800,000 in dividends during 3QFY15, cash on May 31 was a healthy $6.4 million and is currently at $7.8 million.”
Ted Grasela, president of Simulations Plus and its wholly owned subsidiary, Cognigen Corporation, added: “Strong collaborations between our scientists have identified new and innovative ways of using modeling and simulation to bring valuable insights to our clients’ research and development programs. The strategic and synergistic benefits of the Cognigen acquisition are being realized and we look forward to finding even more synergies between the talent and technologies of the two Simulations Plus divisions.”
Walt Woltosz, chairman and CEO of Simulations Plus and Cognigen, added: “We believe the combined Simulations Plus/Cognigen team, which now spans all aspects of drug development from early discovery chemistry through clinical trials and on to generics, provides the most comprehensive offering of powerful software and consulting expertise available to the pharmaceutical industry today. We’re realizing the potential we expected from joining the predominantly preclinical and early clinical capabilities of Simulations Plus with the world-class clinical trial data analysis and reporting expertise of Cognigen, with a number of projects now using the expertise from both teams to meet customers’ needs. Scientists from both divisions are learning about the methods used by each other, which will enable them to communicate the advantages of working with our organization as they go out to scientific meetings and conferences, and to provide training at customer sites. We believe this is just the beginning, as more and more managers in drug development are recognizing the tremendous potential of model-based drug development through best-in-class software and top-notch consulting expertise.”
Dividend Announcement
The Company today announced that its board of directors has declared a quarterly cash dividend of $0.05 per share to its shareholders. This cash dividend will be distributed on Thursday, July 30, 2015, for shareholders of record as of Thursday, July 23, 2015.
Investor Conference Call
The Company will hold an investor conference call on Monday, July 13, at 1:15 p.m. PT/4:15 p.m. ET.
The conference call will be webcast live and may be joined by registering at: https://attendee.gotowebinar.com/register/7514990819733113602. After registering, you will receive a confirmation email containing information about joining the webinar. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial (415) 655-0059, and enter access code 307-841-003.
About Simulations Plus, Inc. and Cognigen Corp.
Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. Simulations Plus recently acquired Cognigen Corporation of Buffalo, NY, adding to our offerings top-quality statistical modeling and simulation using clinical trial data, as well as more than doubling our staff from 30 to over 60, adding nearly 50% to revenues, and increasing earnings in the fiscal year that began September 1, 2014. The Company is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol “SLP.” Cognigen Corp is located in Buffalo, New York. For more information, visit our Web site at www.simulations-plus.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the U.S. Securities and Exchange Commission.
--Tables follow –
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
| (Unaudited) | (Audited) | |||||||
| May 31, | August 31, | |||||||
| ASSETS | ||||||||
| 2015 | 2014 | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 6,428,596 | $ | 8,614,929 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $0 | 3,990,467 | 1,708,158 | ||||||
| Revenues in excess of billings | 924,793 | 158,914 | ||||||
| Prepaid income taxes | – | 748,359 | ||||||
| Prepaid expenses and other current assets | 269,776 | 188,160 | ||||||
| Deferred income taxes | 209,705 | 114,846 | ||||||
| Total current assets | 11,823,337 | 11,533,366 | ||||||
| Long-term assets | ||||||||
| Capitalized computer software development costs, net of accumulated amortization of $7,358,012 and $6,609,283 | 3,880,162 | 3,452,541 | ||||||
| Property and equipment, net | 420,629 | 95,242 | ||||||
| Intellectual property, net of accumulated amortization of $649,375 and $193,750 | 5,425,625 | 5,881,250 | ||||||
| Other intangible assets net of accumulated amortization of $110,625 | 1,539,375 | – | ||||||
| Goodwill | 4,789,248 | – | ||||||
| Other assets | 34,082 | 18,445 | ||||||
| Total assets | $ | 27,912,458 | $ | 20,980,844 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 133,126 | $ | 130,547 | ||||
| Accrued payroll and other expenses | 427,750 | 340,709 | ||||||
| Accrued bonuses to officer | 72,000 | 120,000 | ||||||
| Income taxes payable | 178,894 | – | ||||||
| Other current liabilities | 19,859 | 19,859 | ||||||
| Current portion - Contracts payable | 750,000 | 750,000 | ||||||
| Billings in excess of revenues | 93,122 | – | ||||||
| Deferred revenue | 42,168 | 30,370 | ||||||
| Total current liabilities | 1,716,919 | 1,391,485 | ||||||
| Long-term liabilities | ||||||||
| Deferred income taxes | 3,510,899 | 2,375,874 | ||||||
| Payments due under Contracts payable | 2,854,404 | 1,750,000 | ||||||
| Other long-term liabilities | 13,239 | 28,134 | ||||||
| Total liabilities | 8,095,461 | 5,545,493 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Preferred stock, $0.001 par value 10,000,000 shares authorized no shares issued and outstanding | – | – | ||||||
| Common stock, $0.001 par value 50,000,000 shares authorized 16,887,117 and 16,349,955 shares issued and outstanding | 5,358 | 4,821 | ||||||
| Additional paid-in capital | 9,643,394 | 6,085,427 | ||||||
| Retained earnings | 10,168,245 | 9,345,103 | ||||||
| Total shareholders' equity | 19,816,997 | 15,435,351 | ||||||
| – | – | |||||||
| Total liabilities and shareholders' equity | $ | 27,912,458 | $ | 20,980,844 | ||||
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended May 31,
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net Revenues | $ | 5,942,082 | $ | 3,740,567 | $ | 14,602,464 | $ | 9,463,059 | ||||||||
| Cost of revenues | 1,115,402 | 227,600 | 3,238,796 | 1,168,219 | ||||||||||||
| Gross margin | 4,826,680 | 3,512,967 | 11,363,668 | 8,294,840 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general, and administrative | 1,624,610 | 1,204,312 | 5,303,792 | 3,378,950 | ||||||||||||
| Research and development | 348,285 | 234,685 | 981,633 | 750,808 | ||||||||||||
| Total operating expenses | 1,972,895 | 1,438,997 | 6,285,425 | 4,129,758 | ||||||||||||
| Income from operations | 2,853,785 | 2,073,970 | 5,078,243 | 4,165,082 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 4,391 | 8,017 | 13,394 | 25,000 | ||||||||||||
| Gain(loss) on currency exchange | (35,632 | ) | 7,340 | (78,107 | ) | 35,477 | ||||||||||
| Total other income (expense) | (31,241 | ) | 15,357 | (64,713 | ) | 60,477 | ||||||||||
| Income from operations before provision for income taxes |
|
2,822,544 |
|
|
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2,089,327 |
|
|
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5,013,530 |
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|
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4,225,559 |
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| Provision for income taxes | (970,122 | ) | (781,778 | ) | (1,661,972 | ) | (1,422,991 | ) | ||||||||
| Net Income | $ | 1,852,422 | $ | 1,307,549 | $ | 3,351,558 | $ | 2,802,568 | ||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 0.11 | $ | 0.08 | $ | 0.20 | $ | 0.17 | ||||||||
| Diluted | $ | 0.11 | $ | 0.08 | $ | 0.20 | $ | 0.17 | ||||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Basic | 16,862,128 | 16,193,976 | 16,847,191 | 16,117,198 | ||||||||||||
| Diluted | 17,073,155 | 16,455,078 | 17,070,334 | 16,361,695 | ||||||||||||
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