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 slp@haydenir.com

 

For Immediate Release:

November 16, 2020

 

Simulations Plus Reports FY2020 and Fourth Quarter FY2020 Financial Results

 

Full-Year Revenue Increased 22.4% to $41.6 Million;

Fourth Quarter Revenue Increased 18.9% to $9.5 Million;

Fourth Quarter Diluted EPS of $0.11 and Full-Year Diluted EPS of $0.50

 

LANCASTER, CA, November 16, 2020Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its 2020 fiscal year (FY20) and fourth quarter (4QFY20) ended August 31, 2020.

 

Full Year FY20 highlights compared with Full Year FY19:

 

·Revenues were $41.6 million, up 22.4% over $34.0 million in FY19
·Gross profit was up 24.0%, or $6.0 million, to $30.9 million, from $24.9 million in FY19
·SG&A was $16.4 million, an increase of $4.6 million, or 38.7%, over $11.8 million
·Total R&D expenditures were $5.3 million, an increase of $1.0 million, or 24.8% over $4.3 million
oFor FY20, $2.4 million was capitalized and $3.0 million was expensed
oFor FY19, $1.8 million was capitalized and $2.5 million was expensed
·Income before taxes increased 7.9% to $11.4 million, an increase of $831,000 over $10.6 million
·Net income increased 8.7% to $9.3 million, an increase of $749,000 from $8.6 million
·Diluted earnings per share increased $0.02 to $0.50 from $0.48. One-time transaction costs related to the Lixoft acquisition of $1.4 million (approx. $1.1 million net of tax) effected a $0.06 decrease in diluted earnings per share
·Cash, cash equivalents, and short-term investments were $116.0 million, compared to $11.4 million at the end of FY19 reflecting the follow-on offering completed on August 10, 2020

 

 

 

 

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4QFY20 highlights compared with 4QFY19:

 

·Revenues increased 18.9% to $9.5 million, an increase of $1.5 million over $8.0 million
·Gross profit was up 19.7% to $6.9 million, an increase of $1.1 million over $5.7 million
·SG&A was $3.7 million, an increase of 16.7%, or $531,000, over $3.2 million
·Total R&D expenditures were $1.6 million, an increase of $559,000, or 55.4%, over $1.0 million
oFor 4QFY20, $621,000 was capitalized and $948,000 was expensed
oFor 4QFY19, $406,000 was capitalized and $603,000 was expensed
·Income before taxes increased 2.6%, or $51,000, and remained at $2.0 million
·Net income increased 6.3% to $2.2 million, an increase of $129,000 over $2.1 million
·Earnings per fully diluted share remained unchanged at $0.11

 

Shawn O’Connor, chief executive officer of Simulations Plus, said: “Simulations Plus achieved its goal of accelerating organic growth to 15-20%, overcoming headwinds from the COVID-19 pandemic due to continued strong growth from both our software and consulting revenue streams. Our future growth prospects were bolstered by a significant acquisition to expand our software business, growing our European presence, and the recent introductions of new software versions as well as the launch of several important collaborations. We continue to invest in R&D, funded both internally and from leading pharmaceutical and regulatory agencies, building on our leadership position in modelling and simulation for the drug development marketplace.”

 

John Kneisel, chief financial officer of Simulations Plus, added: “During the fourth quarter, we completed a strategic offering, issuing approximately 2.1 million shares and raising net proceeds of approximately $107.7 million. This follow-on offering gives the Company resources and scale to pursue additional acquisitions to further bolster our growth rates and broaden the value we can deliver to our clients. Once again, in the fourth quarter we benefited from tax deductions from stock compensation expense as employees took advantage of the increased value of their options. Overall, we continue to generate solid profitability and free cash flow, even after paying our regular quarterly dividend.”

 

Investor Conference Call

The Company invites all interested persons to attend its conference call at 4:15 p.m. Eastern Time on November 16, 2020. The live webcast/teleconference will be accessible by registering here. Please dial in five to 10 minutes prior to the scheduled start time. A live, listen-only webcast will also be available by dialing (213) 929-4232. A replay of the webcast will be available at the Investors section of the Simulations Plus website 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.

 

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.

 

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Tables follow

 

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the three months and years ended August 31,

 

   Three months ended   Years ended 
   (Unaudited)   (Unaudited)             
   2020   2019   2020   2019   2018 
                     
Revenues  $9,540,081   $8,025,895   $41,589,084   $33,970,440   $29,666,524 
Cost of revenues   2,674,528    2,290,813    10,649,230    9,025,704    7,994,228 
Gross margin   6,865,553    5,735,082    30,939,854    24,944,736    21,672,296 
Operating expenses                         
Selling, general, and administrative   3,713,543    3,182,238    16,360,053    11,796,027    9,583,852 
Research and development   947,938    603,053    2,974,623    2,499,980    1,790,656 
Total operating expenses   4,661,481    3,785,291    19,334,676    14,296,007    11,374,508 
                          
Income from operations   2,204,072    1,949,791    11,605,178    10,648,729    10,297,788 
                          
Other income (expense)                         
Interest income   1,653    13,225    29,468    33,522    27,122 
Change in value of contingent consideration   (121,500)       (202,500)   (109,078)   (153,034)
(Loss) income on currency exchange   (46,380)   23,769    (45,097)   (16,697)   (32,934)
Total other income (expense)   (166,227)   36,993    (218,129)   (92,253)   (158,846)
                          
Income before provision for income taxes   2,037,845    1,986,784    11,387,049    10,556,476    10,138,942 
Provision for income taxes   150,287    72,443    (2,054,989)   (1,973,147)   (1,204,130)
Net Income  $2,188,132   $2,059,227   $9,332,060   $8,583,329   $8,934,812 
                          
Earnings per share                         
Basic  $0.12   $0.12   $0.52   $0.49   $0.52 
Diluted  $0.11   $0.11   $0.50   $0.48   $0.50 
                          
Weighted-average common shares outstanding                         
Basic   18,289,256    17,549,636    17,819,064    17,492,258    17,328,707 
Diluted   19,151,857    18,265,585    18,538,373    18,057,431    17,860,392 
                          
Other comprehensive Income(Loss), net of tax                         
Foreign currency translation adjustments   28,007        58,467         
Comprehensive Income (Loss)  $2,216,139   $2,059,227   $9,390,527   $8,583,329   $8,934,812 

 

 

 

 

 3 

 

 

SIMULATIONS PLUS, INC.

CONSOLIDATED BALANCE SHEETS

 

   (Audited)   (Audited) 
   August 31,   August 31, 
   2020   2019 
ASSETS          
Current assets          
Cash and cash equivalents  $49,207,314   $11,435,499 
Accounts receivable, net of allowance for doubtful accounts of $50,000 and $0   7,421,970    5,026,558 
Revenues in excess of billings   3,093,343    3,233,659 
Prepaid income taxes   969,688    765,110 
Prepaid expenses and other current assets   1,595,447    704,316 
Short-term investments   66,803,595     
Total current assets   129,091,357    21,165,142 
Long-term assets          
Capitalized computer software development costs,          
net of accumulated amortization of  $13,581,599 and $12,356,055   6,087,378    4,959,736 
Property and equipment, net   437,787    341,145 
Operating lease right of use asset   926,600     
Intellectual property, net of accumulated amortization of  $5,087,031 and $3,948,750   11,897,970    5,026,249 
Other intangible assets net of accumulated amortization of $1,641,725 and $1,210,000   7,008,275    3,280,000 
Goodwill   12,921,185    10,387,198 
Other assets   50,965    37,227 
Total assets  $168,421,517   $45,196,697 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $349,940   $204,075 
Accrued payroll and other expenses   2,250,692    1,639,038 
Current portion -  Contracts payable   2,000,000    1,761,028 
Billings in excess of revenues   140,991    798,549 
Operating lease liability, current portion   463,465     
Deferred revenue   299,482    380,787 
Total current liabilities   5,504,570    4,783,477 
           
Long-term liabilities          
Deferred income taxes,net   2,353,857    2,731,616 
Operating Lease Liability   463,312     
Payments due under Contracts payable   4,063,833     
Other long-term liabilities        
Total liabilities   12,385,572    7,515,093 
           
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 19,923,277 and 17,591,834 shares issued and outstanding   9,926    7,595 
Additional paid-in capital   128,531,428    15,319,474 
Accumulated Other Comprehensive Income (Loss)   58,467     
Retained earnings   27,436,124    22,354,535 
Total shareholders' equity   156,035,945    37,681,604 
   $     
Total liabilities and shareholders' equity  $168,421,517    45,196,697 

 

 

 4 

 

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