Simulations Plus Reports FY2020 and Fourth Quarter FY2020 Financial Results
11/16/2020 - 04:05 PM
LANCASTER, Calif.--(BUSINESS WIRE
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
For FY20, $2.4 million was capitalized and $3.0 million was expensed
For 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 t o $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
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
For 4QFY20, $621,000 was capitalized and $948,000 was expensed
For 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.
Follow us on Twitter | LinkedIn | YouTube
Tables follow
SIMULATIONS PLUS, INC.
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
SIMULATIONS PLUS, INC.
CONSOLIDATED BALANCE SHEETS
(Audited) (Audited)
August 31, August 31,
ASSETS
2020
2019
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
