LANCASTER, Calif.--(BUSINESS WIRE)--Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its second quarter of fiscal year 2013 ended February 28, 2013 (2QFY13).
2QFY13 highlights compared with 2QFY12:
- Net sales increased 11.8% to new record for any quarter of $3.118 million from $2.789 million
- This was the Company’s 22nd consecutive profitable quarter, and the 44th of the last 46 quarters
- Gross profit increased 9.5% to $2.619 million from $2.393 million
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SG&A decreased 10.6% to $0.855 million from $0.956 million
- As a percent of revenues, SG&A decreased to 27.4% from 34.3%
- R&D expense decreased 6.4% to $248,000 from $265,000
- Income before taxes from continuing operations increased 24.8% to $1.572 million from $1.260 million
- Provision for income taxes increased 21.3% to $0.511 million from $0.421 million
- Net income from continuing operations increased 26.6% to $1.062 million from $0.839 million
- Diluted earnings per share increased to $0.06 from $0.05 in 2QFY12
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Cash at the end of the second fiscal quarter was $9.75 million after
dividend distributions
- Approximately $796,000 was distributed in November 2012
- Approximately $2,243,000 was distributed in December 2012
- Cash as of April 5 was $10.4 million
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Shareholders’ equity at the end of the quarter was $13.921 million
- This is a decrease of $1.505 million from the end of 2QFY12
- This decrease was after dividend distributions of approximately $5.4 million during calendar 2012
For the first six months of fiscal year 2013 (6moFY13) compared to the first six months of FY2012 (6moFY12):
- Net sales increased 7.4% to a new midyear record $5.408 million from $5.037 million
- Gross profit increased 5.5% to $4.523 million from $4.288 million
- SG&A increased 7.8% to $1.786 million from $1.656 million
- As a percent of revenues, SG&A increased to 33.0% from 32.9%
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R&D expenditures decreased 17.2% to $428,000 from $517,000
- Completion of the Company's malaria NCE project reduced R&D expenditures in the current year
- Income before taxes increased 6.2% to $2.468 million from $2.323 million
- Provision for income taxes increased 12.3% to $0.819 million from $0.729 million
- Net income from continuing operations increased 3.4% to $1.649 million from $1.594 million
- For 6moFY13, earnings per share from continuing operations was the same at $0.10 per share.
- Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, net income for 6moFY12 was $1.810 million
- Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, total diluted earnings per share for 6moFY12 was $0.11
Ms. Momoko Beran, chief financial officer of Simulations Plus, said: “We continued to exhibit the strong leverage in our business model as each dollar of incremental revenues added approximately $0.80 to operating profit. Record revenue up nearly 12% for the quarter delivered a 26.5% improvement in net income despite an increase in tax rates. After distributing cash dividends of over $5 million to our shareholders during calendar 2012, our cash position remains strong, and we continue to have no debt.”
Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “The second quarter continues our trend of new quarterly records each fiscal quarter, and this quarter is also a record for any quarter. We added 18 new customers, had 93% renewals, and increased our collaboration funding by over $111,000, while consulting revenues decreased by 27%. Results from two recent GastroPlus™ simulation contract studies were submitted to U.S. and European regulatory agencies in support of our customers, making a total of four such submittals in recent months. The acceptance of simulation results in support of regulatory applications has been increasing and we believe is a leading indicator for increased use of simulation and modeling software in the pharmaceutical industry to reduce the time and cost of unnecessary clinical trials.”
The Company has announced an investor conference call that will be webcast live at 1:30 PDT/4:30 PM EDT today, Wednesday, April 10, 2013, which may be accessed by registering here. 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 646-307-1720, and enter access code 951-402-096.
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software, which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. We also provide a productivity tool called Abbreviate! for PCs. Simulations Plus, Inc., is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol “SLP.” For more information, visit our Web site 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 as filed with the Securities and Exchange Commission.
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SIMULATIONS PLUS, INC. CONDENSED BALANCE SHEETS |
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at February 28, 2013 (Unaudited) and August 31, 2012 (Audited) |
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| ASSETS | ||||||
| February 28, | August 31, | |||||
| 2013 | 2012 | |||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 9,754,861 | $ | 12,701,075 | ||
| Income tax refund receivable | 2,650 | 153,896 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $0 | 2,535,816 | 1,451,864 | ||||
| Contracts receivable | 86,995 | 18,893 | ||||
| Prepaid expenses and other current assets | 168,351 | 150,856 | ||||
| Deferred income taxes | 210,456 | 193,712 | ||||
| Total current assets | 12,759,129 | 14,670,296 | ||||
| Long-term assets | ||||||
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Capitalized computer software development costs, net of accumulated amortization of $5,443,703 and $5,084,691 |
2,702,535 | 2,479,468 | ||||
| Property and equipment, net | 94,091 | 107,410 | ||||
| Intellectual property, net of accumulated amortization of $7,500 and $3,750 | 67,500 | 71,250 | ||||
| Other assets | 18,445 | 18,445 | ||||
| Total assets | $ | 15,641,700 | $ | 17,346,869 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 254,737 | $ | 177,509 | ||
| Accrued payroll and other expenses | 308,592 | 312,912 | ||||
| Accrued bonuses to officer | 30,000 | 60,000 | ||||
| Accrued income taxes | 27,859 | 733,233 | ||||
| Deferred revenue | 222,735 | 131,782 | ||||
| Total current liabilities | 843,923 | 1,415,436 | ||||
| Long-term liabilities | ||||||
| Deferred income taxes | 876,968 | 788,857 | ||||
| Total liabilities | 1,720,891 | 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 | ||||||
| 16,021,309 and 15,923,019 shares issued and outstanding | 4,493 | 4,399 | ||||
| Additional paid-in capital | 4,797,317 | 4,628,366 | ||||
| Retained earnings | 9,118,999 | 10,509,811 | ||||
| Total shareholders' equity | 13,920,809 | 15,142,576 | ||||
| Total liabilities and shareholders' equity | $ | 15,641,700 | $ | 17,346,869 | ||
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SIMULATIONS PLUS, INC. |
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CONDENSED STATEMENTS OF OPERATIONS |
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For the three and six months ended February 28 and 29, |
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(Unaudited) |
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| Three months ended | Six months ended | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net sales | $ | 3,118,121 | $ | 2,789,226 | $ | 5,408,215 | $ | 5,037,182 | ||||||||
| Cost of sales | 498,778 | 396,566 | 885,648 | 748,936 | ||||||||||||
| Gross profit | 2,619,343 | 2,392,660 | 4,522,567 | 4,288,246 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general, and administrative | 854,983 | 956,325 | 1,786,043 | 1,656,438 | ||||||||||||
| Research and development | 247,522 | 264,581 | 427,857 | 516,516 | ||||||||||||
| Total operating expenses | 1,102,505 | 1,220,906 | 2,213,900 | 2,172,954 | ||||||||||||
| Income from operations | 1,516,838 | 1,171,754 | 2,308,667 | 2,115,292 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 17,074 | 25,083 | 30,802 | 46,956 | ||||||||||||
| Interest expense | - | - | - | (3 | ) | |||||||||||
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Miscellaneous income |
15,390 | 22,656 | 30,794 | 22,656 | ||||||||||||
| Gain on currency exchange | 22,988 | 40,502 | 97,642 | 138,888 | ||||||||||||
| Gain (loss) from sale of assets | - | (433 | ) | - | (433 | ) | ||||||||||
| Total other income (expense) | 55,452 | 87,808 | 159,238 | 208,064 | ||||||||||||
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Income from continuing operations before provision for income taxes |
1,572,290 | 1,259,562 | 2,467,905 | 2,323,356 | ||||||||||||
| Provision for income taxes | (510,715 | ) | (420,985 | ) | (819,344 | ) | (729,680 | ) | ||||||||
| Income from continuing operations | 1,061,575 | 838,577 | 1,648,561 | 1,593,676 | ||||||||||||
| 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 | $ | 1,061,575 | $ | 838,577 | $ | 1,648,561 | $ | 1,809,598 | ||||||||
| Basic earnings per share: | ||||||||||||||||
| Continuing operations | $ | 0.07 | $ | 0.05 | $ | 0.10 | $ | 0.10 | ||||||||
| Discontinued operations | - | - | - | 0.01 | ||||||||||||
| Net basic earning per share | $ | 0.07 | $ | 0.05 | $ | 0.10 | $ | 0.11 | ||||||||
| Diluted earnings per share | ||||||||||||||||
| Continuing operations | $ | 0.06 | $ | 0.05 | $ | 0.10 | $ | 0.10 | ||||||||
| Discontinued operations | - | - | - | 0.01 | ||||||||||||
| Net basic earning per share | $ | 0.06 | $ | 0.05 | $ | 0.10 | $ | 0.11 | ||||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Basic | 16,004,397 | 15,635,898 | 15,965,890 | 15,604,420 | ||||||||||||
| Diluted | 16,336,353 | 15,995,226 | 16,305,235 | 15,957,657 | ||||||||||||
