EX-99.1 2 slp_8k-ex9901.htm PRESS RELEASE

Exhibit 99.1

 

Simulations Plus

Integrating Science and Software

 

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:

November 19, 2013

 

Simulations Plus Reports FY2013 and Fourth Quarter FY2013 Financial Results

 

Fiscal Year Pharmaceutical Software and Services Up 6.6%

 

LANCASTER, CA, November 19, 2013 – Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2013 fiscal year (FY13) and fourth quarter (4Q13) ended August 31, 2013. The Company’s former Words+ subsidiary was sold on November 30, 2011, therefore results provided in this press release and in our annual report treat Words+ as discontinued operations and are based on the performance of the ongoing pharmaceutical software and services business.

 

Results for the 2013 fiscal year (FY13):

·Revenues were $10.07 million, representing an increase of 6.6% over $9.45 million in FY12
·SG&A expense increased 5.05% to $3.55 million from $3.38 million in FY12
oAs a percent of sales, SG&A decreased to 35.3% from 35.8% in FY12
·R&D expense was $0.802 million, a decrease of 15% from $0.947 million in FY12
oDuring FY12, approximately $150,000 in outside expenses for chemical synthesis and laboratory work were incurred for the NCE (New Chemical Entity) molecule design project, while no such expenses were incurred in FY13
·Net income was $2.89 million, representing a decrease of 4.7% from $3.03 million in FY12
oNet income from continuing operations increased 2.7%, also impacted by the increase in income tax rate from approximately 29% to approximately 32%
oThis was due to $216,000 recognized from the sale of the Company’s former Words+ subsidiary in FY12, as well as an increase in income taxes of 19.9%
·Net income per fully diluted share was $0.177, representing a decrease of 5.6% from $0.187 for FY12
·Cash decreased to $10.2 million, representing a decrease of 19.9% from $12.7 million at the end of FY12
oThis was due to the dividend distributions to shareholders made in FY13
·Shareholders’ equity decreased to $14.2 million, representing a decrease of 5.9% from $15.1 million at the end of FY12
oThis was also due to the dividend distributions to shareholders in FY13

 

 

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Results for the fourth quarter FY13 (4Q13):

·         Revenues were $1.58 million, representing a decrease of 4.4% over $1.64 million in 4Q12

·         SG&A increased 3.4% to $0.860 million from $0.831 million in 4Q12

·         R&D expense was $0.168 million, a decrease of 17.1% from $0.203 million in 4Q12

oNote that total R&D expenditures for our products actually increased; however, costs associated with our NCE project in FY12 were not duplicated in FY13, offsetting the product development R&D increases

·         Net income was $0.245 million, representing a decrease of 29.8 % over $0.349 million in 4Q12

·         Earnings per fully diluted share were $0.015, representing a decrease of 28.6% over $0.021 in 4Q12

 

Ms. Momoko Beran, chief financial officer for Simulations Plus, said: “We completed another record fiscal year. Gross Revenues increased 6.6% and Income from Continuing Operations increased 2.7%. R&D Expenses increased due to expanded scientific staff as well as salary increases for existing staff. SG&A increased 5.0% primarily due to increased commission expenses to our dealers in Japan and China whose sales increased, and an increase in insurance expenses as we increased the number of employees, as well as an overall increase in insurance premiums for health coverage.”

 

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Our continued growth is a tribute to our marketing and sales staff and our scientific team, whose ongoing efforts to keep us out in front of the technologies in which we specialize have enabled us to hold onto our leadership position in a competitive market. The new developments now underway are expected to continue this trend, and we believe our continued aggressive marketing and sales program and training workshops have been bolstering our pipeline for continued growth.”

 

John DiBella, vice president for marketing and sales for Simulations Plus, said: “As was mentioned in the earlier press release announcing preliminary revenues for Q4FY13, a large upgrade order was delayed due to new contract proceedings initiated by the client. This order has since been received and will be recognized in Q1FY14. Revenue from new licenses comprised 14% of total revenue in Q4FY13, and consulting service revenue saw an increase of $65,000 compared to Q4FY12, as several new contracts were started.

 

“For FY13, revenue from new licenses comprised 13% of total revenue, with 60 new companies, or new departments at existing companies, now utilizing our technology. Included among these new licenses were orders from the U.S. FDA, the U.S. EPA, and the Chinese SFDA. After the ‘perfect storm’ of site closures and reorganizations in Q1FY13, resulting in $450,000 in lost revenue, we experienced a 94% renewal rate over the last three quarters. And increased adoption of modeling & simulation in Asian territories resulted in a 27% increase versus FY12.

 

“Without the external factors impacting results in Q1FY13 and Q4FY13, our top-line growth of 10-15% would have continued. We believe there is significant momentum in the use of modeling & simulation technology across several industries, both here and abroad, and we are in a good position to capitalize from this going forward.”

 

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Investor Conference Call November 19, 2013, 4:15 PM EST/1:15 PM PST

 

A conference call will be webcast live and may be accessed by first registering at the following website: https://www2.gotomeeting.com/register/241490146. Upon registering, you will receive a confirmation e-mail with a unique link and 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 (646) 307-1721, and enter access code 663-671-374.

 

About Simulations Plus, Inc.

 

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. We also provide consulting expertise to pharmaceutical and chemical companies worldwide. For more information, visit our Web site at www.simulations-plus.com.

 

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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 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, 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 to follow

 

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SIMULATIONS PLUS, INC.

BALANCE SHEETS

As of

 

 

   August 31, 
ASSETS        
   2013   2012 
Current assets          
Cash and cash equivalents  $10,179,298   $12,701,075 
Prepaid income taxes   301,573    153,896 
Accounts receivable, net of allowance for doubtful accounts of $0   1,910,615    1,451,864 
Contracts receivable   203,913    18,893 
Prepaid expenses and other current assets   192,173    150,856 
Deferred income taxes   184,258    193,712 
Total current assets   12,971,830    14,670,296 
Long-term assets          
Capitalized computer software development costs, net of accumulated amortization of $5,801,578 and $5,084,690   2,891,169    2,479,468 
Property and equipment, net   117,987    107,410 
Intellectual property, net of accumulated amortization of $11,250 and $3,750   63,750    71,250 
Other assets   18,445    18,445 
Total assets  $16,063,181   $17,346,869 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
Current liabilities          
Accounts payable  $146,011   $177,509 
Accrued payroll and other expenses   311,209    312,912 
Accrued bonuses to officer   60,000    60,000 
Accrued income taxes   –    733,233 
Other current liabilities   19,859    – 
Deferred revenue   89,227    131,782 
Total current liabilities   626,306    1,415,436 
           
Long-term liabilities          
Deferred income taxes   1,146,389    788,857 
Other long-term liabilities   47,993    – 
Total liabilities   1,820,688    2,204,293 
           
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 16,030,894 and 15,927,806 shares issued and outstanding   4,502    4,399 
Additional paid-in capital   4,842,794    4,628,366 
Retained earnings   9,395,197    10,509,811 
Total shareholders' equity   14,242,493    15,142,576 
           
Total liabilities and shareholders' equity  $16,063,181   $17,346,869 

 

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SIMULATIONS PLUS, INC.

STATEMENTS OF OPERATIONS

For the years ended

 

 

   August 31, 
   2013   2012 
         
Net sales  $10,070,770   $9,448,608 
Cost of sales   1,646,530    1,510,148 
Gross profit   8,424,240    7,938,460 
Operating expenses          
Selling, general, and administrative   3,549,495    3,379,017 
Research and development   802,374    947,556 
Total operating expenses   4,351,869    4,326,573 
           
Income from operations   4,072,371    3,611,887 
           
Other income (expense)          
Interest income   49,492    89,265 
Miscellaneous income   35,488    76,149 
Gain on currency exchange   99,429    177,790 
Gain on sale of assets   –    (433)
Interest expense   –    (3)
Total other income (expense)   184,409    342,768 
           
Income from continuing operations before provision for income taxes   4,256,780    3,954,655 
           
Provision for income taxes   (1,370,182)   (1,142,693)
Income from continuing operations  $2,886,598   $2,811,962 
           
Discontinued operations:          
Gain (loss) from discontinued operations, net of tax   –    (249,898)
Gain on sale of Words+, net of tax   –    465,820 
Results of discontinued operations   –    215,922 
           
Net Income  $2,886,598   $3,027,884 
           
Basic earnings per share:          
Continuing operations  $0.18   $0.18 
Discontinued operations   –    0.01 
Net basic earnings per share  $0.18   $0.19 
Diluted earnings per share          
Continuing operations  $0.18   $0.18 
Discontinued operations   –    0.01 
Net diluted earnings per share  $0.18   $0.19 
           
Weighted-average common shares outstanding          
Basic   15,996,432    15,763,674 
Diluted   16,319,983    16,151,873 

 

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