Exhibit 99.1
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:
January 9, 2018
Simulations Plus Reports First Quarter FY2018 Financial Results
Consolidated net income up 26.0%; diluted earnings per share increased 22.8%
LANCASTER, CA, January 9, 2018 – Simulations Plus, Inc. (NASDAQ: SLP), the premier provider of simulation and modeling software and consulting services for all stages of pharmaceutical discovery and development from the earliest discovery through all phases of clinical trials, today reported financial results for its first quarter of fiscal year 2018, the period ended November 30, 2017 (1QFY18).
1QFY18 highlights compared with 1QFY17:
| · | Net revenues increased 30.5%, or $1.7 million, to a new first quarter record $7.1 million vs. $5.4 million |
| · | Gross profit increased 30.6%, or $1.3 million, to $5.3 million from $4.1 million |
| · | SG&A was $2.4 million, an increase of 29.2%, or $545,000, from $1.9 million |
| · | SG&A as a percentage of revenues decreased slightly to 34.1% from 34.4% |
| · | Income before taxes increased $550,000, or 27.9%, to $2.5 million from $2.0 million |
| · | Net income increased $354,000, or 26.0%, to $1.7 million from $1.4 million |
| · | Diluted earnings per share increased 22.8%, or $0.02, to $0.10 from $0.08 per share |
John Kneisel, chief financial officer of Simulations Plus, said, “Revenue growth in our core divisions in Lancaster and Buffalo coupled with the new revenues and profits from DILIsym Services acquired in the last quarter of our prior fiscal year produced a 26% growth in net income and a two-cent growth in EPS, resulting in a strong start to the new fiscal year.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added, “We’re very pleased to report these first quarter results for fiscal year 2018, which begins the first full fiscal year after our acquisition of DILIsym Services, Inc., in June of last year. This is yet another record quarter, setting an all-time record for revenues for any quarter at over $7 million, and record high earnings for a first fiscal quarter. We continue to push forward the cutting edge of simulation and modeling for pharmaceutical research, and it is clear that the industry continues to adopt simulation and modeling tools at a steady pace in its effort to increase productivity and decrease overall costs of bringing new medicines to market for all of us.”
Investor Conference Call
The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PST/4:15 p.m. EST on Tuesday, January 9, 2018. All interested parties are invited to join the call by registering here. On registering, you will receive a confirmation e-mail with instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial (562) 247-8321, and enter access code 336-145-278. A replay will be available on the Simulations Plus website following the call.
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About Simulations Plus, Inc.
Simulations Plus, Inc. is a premier developer of drug discovery and development software as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions and quantitative systems pharmacology models for drug-induced liver injury and nonalcoholic fatty liver disease. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical, biotechnology, and chemical agents. Our software is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, chemical, and consumer goods companies and regulatory agencies worldwide. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for physiologically based pharmacokinetic modeling and simulation. For more information, visit our website 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. 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 our new software products as well as 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, 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.
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
| (Unaudited) | (Audited) | |||||||
| November 30, | August 31, | |||||||
| 2017 | 2017 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,045,756 | $ | 6,215,718 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $0 | 5,230,824 | 4,048,725 | ||||||
| Revenues in excess of billings | 1,361,242 | 1,481,082 | ||||||
| Prepaid income taxes | – | 462,443 | ||||||
| Prepaid expenses and other current assets | 348,708 | 459,902 | ||||||
| Total current assets | 13,986,530 | 12,667,870 | ||||||
| Long-term assets | ||||||||
| Capitalized computer software development costs, net of accumulated amortization of $10,080,778 and $9,795,469 | 4,529,380 | 4,307,600 | ||||||
| Property and equipment, net | 305,634 | 291,135 | ||||||
| Intellectual property, net of accumulated amortization of $2,326,459 and $2,095,417 | 6,598,541 | 6,829,583 | ||||||
| Other intangible assets net of accumulated amortization of $584,375 and $495,000 | 3,905,625 | 3,995,000 | ||||||
| Goodwill | 10,387,198 | 10,387,198 | ||||||
| Other assets | 37,227 | 34,082 | ||||||
| Total assets | $ | 39,750,135 | $ | 38,512,468 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 141,815 | $ | 240,892 | ||||
| Accrued payroll and other expenses | 1,085,065 | 983,293 | ||||||
| Income taxes payable | 404,600 | – | ||||||
| Current portion - Contracts payable | 3,150,000 | 247,328 | ||||||
| Billings in excess of revenues | 602,233 | 216,958 | ||||||
| Deferred revenue | 270,250 | 353,962 | ||||||
| Total current liabilities | 5,653,963 | 2,042,433 | ||||||
| Long-term liabilities | ||||||||
| Deferred income taxes,net | 4,791,460 | 4,926,960 | ||||||
| Payments due under Contracts payable | 2,626,376 | 5,738,188 | ||||||
| Total liabilities | 13,071,799 | 12,707,581 | ||||||
| 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 17,287,652 and 17,277,604 shares issued and outstanding | 7,288 | 7,278 | ||||||
| Additional paid-in capital | 12,303,662 | 12,109,141 | ||||||
| Retained earnings | 14,367,386 | 13,688,468 | ||||||
| Total shareholders' equity | 26,678,336 | $ | 25,804,887 | |||||
| Total liabilities and shareholders' equity | $ | 39,750,135 | $ | 38,512,468 | ||||
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SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended November 30,
| (Unaudited) | ||||||||
| 2017 | 2016 | |||||||
| Net Revenues | $ | 7,068,782 | $ | 5,417,933 | ||||
| Cost of revenues | 1,735,608 | 1,335,982 | ||||||
| Gross margin | 5,333,174 | 4,081,951 | ||||||
| Operating expenses | ||||||||
| Selling, general, and administrative | 2,408,514 | 1,863,555 | ||||||
| Research and development | 360,817 | 290,299 | ||||||
| Total operating expenses | 2,769,331 | 2,153,854 | ||||||
| Income from operations | 2,563,843 | 1,928,097 | ||||||
| Other income (expense) | ||||||||
| Interest income | 4,310 | 4,455 | ||||||
| Interest expense | (38,470 | ) | – | |||||
| Gain(loss) on currency exchange | (12,678 | ) | 34,928 | |||||
| Total other income (expense) | (46,838 | ) | 39,383 | |||||
| Income before provision for income taxes | 2,517,005 | 1,967,480 | ||||||
| Provision for income taxes | (800,999 | ) | (605,915 | ) | ||||
| Net Income | $ | 1,716,006 | $ | 1,361,565 | ||||
| Earnings per share | ||||||||
| Basic | $ | 0.10 | $ | 0.08 | ||||
| Diluted | $ | 0.10 | $ | 0.08 | ||||
| Weighted-average common shares outstanding | ||||||||
| Basic | 17,282,132 | 17,226,192 | ||||||
| Diluted | 17,859,683 | 17,409,134 | ||||||
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