Second quarter revenue of $13.1 million, reflecting 27% year-over-year growth
Board of Directors announces quarterly dividend of $0.06 per share
Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemical, and consumer goods industries, today reported financial results for its second quarter of fiscal 2021, ending February 28, 2021.
Q2 Financial highlights compared with the corresponding period last fiscal year:
Revenue increased 27% to $13.1 million
Gross profit increased 33% to $10.2 million
Gross margin was 78%, up from 74%
Net income increased 49% to $3.2 million
Diluted earnings per share increased 25% to $0.15 per share
YTD Financial highlights compared with the corresponding period last fiscal year:
Revenue increased 21% to $23.8 million
Gross profit increased 28% to $18.5 million
Gross margin was 78%, up from 73%
Net income increased 35% to $5.7 million
Diluted earnings per share increased 17% to $0.27 per share
Shawn O’Connor, chief executive officer of Simulations Plus, said: "We delivered excellent 27% overall revenue growth, outpacing our annual targets. During the quarter, we also successfully completed our first sponsored conference, the MIDD+ Scientific Conference, a two-day event focused on delivering customized modeling and simulation content specifically for pharmaceutical scientists and their organizations, which was widely attended. We also won several funded collaboration projects and released new versions of GastroPlus® and Monolix Suite™. In summary, this was a productive quarter for Simulations Plus and an encouraging first six months of the fiscal year."
"While we expect growth to normalize in the second-half of our fiscal year, and are maintaining our full-year growth targets of 15-20%, this first-half performance underscores the strength and diversification of our business model," continued Mr. O’Connor. "We have built a global organization selling an expanding portfolio of software and services to pharma and regulatory customers, and our growth is increasingly facilitating cross-selling as we leverage our industry leadership. This growth is largely dropping to our bottom line, increasing profitability and bolstering our ability to make additional strategic acquisitions."
Quarterly Dividend Declared
The Company’s Board of Directors has declared a cash dividend of $0.06 per share of the Company’s common stock payable on May 3, 2021, to shareholders of record as of April 26, 2021. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.
Investor Conference Call
The Company has announced an investor conference call that will be webcast live at 1:15 p.m. PDT/4:15 p.m. EDT on Monday, April 12, 2021. The live webcast/teleconference will be accessible by registering here or by calling 1-201-389-0879. Please join five to ten minutes before the scheduled start time. The call will be simulcast live on the Internet, and the webcast will be available on the Investors page of the Simulations Plus website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.
About Simulations Plus, Inc.
Simulations Plus, Inc. is a leading provider of modeling and simulation software and consulting services supporting drug discovery, development research, and regulatory submissions. With our subsidiaries Cognigen, DILIsym Services, and Lixoft, we offer solutions which bridge machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. Our technology is licensed and applied by major pharmaceutical, biotechnology, chemical, consumer goods companies, and regulatory agencies worldwide. For more information, visit our website at www.simulations-plus.com. Follow us on Twitter | Read our Environmental, Social, and Governance (ESG) Report.
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 and filed with the U.S. Securities and Exchange Commission.
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three and six months ended February 28, 2021 and February 29, 2020
Three months ended
Six months ended
(in thousands, except per common share amounts)
Cost of revenues
Selling, general, and administrative
Research and development
Total operating expenses
Income from operations
Other income (expense)
Change in value of contingent consideration
Income (Loss) on currency exchange
Total other income (expense)
Income before provision for income taxes
Provision for income taxes
Earnings per share
Weighted-average common shares outstanding
Other Comprehensive Income (Loss), net of tax
Foreign currency translation adjustments
SIMULATIONS PLUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts of $100 and $50
Revenues in excess of billings
Prepaid income taxes
Prepaid expenses and other current assets
Total current assets
Capitalized computer software development costs,
net of accumulated amortization of $14,271 and $13,582
Property and equipment, net
Operating lease right of use assets
Intellectual property, net of accumulated amortization of $5,801 and $5,087
Other intangible assets, net of accumulated amortization of $1,917 and $1,642
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued payroll and other expenses
Current portion - contracts payable
Billings in excess of revenues
Operating lease liability, current portion
Total current liabilities
Deferred income taxes, net
Operating lease liability
Payments due under contracts payable
Commitments and contingencies
Preferred stock, $0.001 par value 10,000,000 shares authorized,
no shares issued and outstanding
Common stock, $0.001 par value and additional paid in capital — 50,000,000
shares authorized, 20,059,528 and 19,923,277 shares issued and outstanding
Accumulated other comprehensive income
Total shareholders' equity
Total liabilities and shareholders' equity
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Simulations Plus Investor Relations
Ms. Renee Bouche
Mr. Cameron Donahue