Full Fiscal Year Pharmaceutical Software and Services Up 59.8%; Earnings per share $0.23 cents up $0.05 cents (22.4%) over prior year

LANCASTER, Calif.--(BUSINESS WIRE)-- Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2015 fiscal year (FY15) and fourth quarter (4Q15) ended August 31, 2015.

Results for the 2015 fiscal year (FY15):

• Revenues were $18.31 million, representing an increase of 59.8% over $11.46 million in FY14
• Gross profit was up 42.4% to $14.0 million, an increase of $4.17 million from $9.83 million in FY14
• SG&A expense increased 53.5% to $6.81 million from $4.44 million in FY14
  • As a percent of sales, SG&A decreased to 37.2% from 38.7% in FY14
• R&D expenditures were $2.50 million in FY15, an increase of 7.5% or $180,000, over $2.32 million in FY14
  • For FY15, $1.17 million was capitalized and $1.33 million was expensed
  • For FY14, $1.37 million was capitalized and $953,000 was expensed
• Net income was $3.84 million, representing an increase of 27.0% from $3.03 million in FY14
• Net income from operations increased 31.9%
• Net income per fully diluted share was $0.226, representing an increase of 22.4% from $0.184 for FY14
• Cash decreased slightly to $8.55 million, a decrease of $60,000 or 0.01%, from $8.6 million at the end of FY14 after distributing approximately $3.4 million in dividends to shareholders, and using $2.1 million for the Cognigen acquisition

Results for the fourth quarter FY15 (4Q15):

• Revenues were $3.71 million, representing an increase of 85.8% over $2.0 million in 4Q14
• Gross profit was up 71.4% to $2.64 million, an increase of $1.1 million from $1.54 million
• SG&A increased 42.3% to $1.51 million from $1.06 million in 4Q14
• R&D expenditures were $539,000, an increase of 3.9% from $519,000 in 4Q14
  • For 4Q15, $193,000 was capitalized and $346,000 was expensed
  • For 4Q14, $317,000 was capitalized and $202,000 was expensed
• Net income was $491,000, representing an increase of 120.2% over $223,000 in 4Q14
• Earnings per fully diluted share were $0.029, representing an increase of 114.2% over $0.013 in 4Q14

John Kneisel, chief financial officer for Simulations Plus, said: “Fiscal year 2015 was a banner year for Simulations Plus. The successful acquisition of Cognigen brought an additional $5.2 million of consulting revenues. Coupled with another strong year of organic growth of our flagship software products, we have completed another record financial year. 2015 diluted earnings per share were $0.23, a record year for the company. Cash balances of $8.55 million are substantially the same as the prior year, even after distributing $3.4 million in dividends, and using $2.1 million for the Cognigen acquisition.”

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 expanded 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. New developments now underway are expected to continue this trend, and we believe our aggressive marketing and sales program and training workshops will continue to bolster our pipeline for continued growth.”

Mr. Woltosz continued, “With the strategic acquisition of our Buffalo division (Cognigen), we believe we are leading the way to the integration of mechanistic physiologically based pharmacokinetics (PBPK) modeling as a critical support tool for clinical pharmacology. This has been an exciting step forward for the combined companies, more than doubling the Simulations Plus workforce and adding synergistic capabilities to our traditional offerings.”

Dr. Ted Grasela, president of Simulations Plus and Cognigen, added, “The creative applications of our software to address challenges in pharmaceutical research and development are especially evident within the discipline of clinical pharmacology. Simulations Plus now has combined strengths in PBPK and in clinical pharmacology, which is a combination that is being encouraged by regulatory agencies worldwide.”

John DiBella, vice president for marketing and sales for Simulations Plus, said: “4Q15 was strong for both software sales and consulting services. Revenue from new licenses comprised 13% of total revenue, renewal rates exceeded 90%, and consulting service revenue comprised 42% of the total revenue. For FY15, 86 new organizations, or new departments at existing organizations, are now utilizing our technology, growing our installed base. Included among these new licenses were orders from major regulatory agencies in the US and Asia, along with companies outside our core pharmaceutical market. We also experienced a robust 91% account, and 95% revenue, renewal rate for the year. The consulting services division, which continues to maintain a robust project pipeline heading into 2016, had revenue that comprised 32% of total revenue in FY15. With our continued focus on education and training, increased marketing efforts, and the upcoming release of the standalone PKPlus™ application along with upgrades to several existing products, we believe we’re in an excellent position to address the needs set forth by regulatory agencies and capitalize on the increased adoption of modeling & simulation technology across industries.”

Investor Conference Call November 18, 2015, 4:15 p.m. EST/1:15 p.m. PST

The Company will hold an investor conference call on Wednesday November 18, 2015, at 1:15 p.m. PST/4:15 p.m. EST. The conference call will be webcast live and may be joined by registering at https://attendee.gotowebinar.com/register/8292239990300836609. Upon registering, you will receive a confirmation e-mail with 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 235-661-318.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of drug discovery and development software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical and biotechnology agents. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for physiologically based pharmacokinetic modeling and simulation as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions. For more information, visit our website at www.simulations-plus.com.

Follow Us on Twitter

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 our new software products as well as 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.

SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of August 31, 2015 and 2014
		ASSETS
				2015			2014
Current assets
	Cash and cash equivalents		$	8,551,275		$	8,614,929
	Accounts receivable, net of allowance for doubtful accounts of $0			1,593,707			1,708,158
	Revenues in excess of billings			795,125			158,914
	Prepaid income taxes			-			748,359
	Prepaid expenses and other current assets			381,718			188,160
	Deferred income taxes			210,972			114,846
		Total current assets		11,532,797			11,533,366
Long-term assets
	Capitalized computer software development costs,
	net of accumulated amortization of $7,632,421 and $6,609,283			3,798,339			3,452,541
	Property and equipment, net			413,510			95,242
	Intellectual property, net of accumulated amortization of $801,250 and $193,750			5,273,750			5,881,250
	Other intangible assets net of accumulated amortization of $147,500			1,502,500			-
	Goodwill			4,789,248			-
	Other assets			34,082			18,445
Total assets			$	27,344,226		$	20,980,844
		LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Accounts payable		$	209,407		$	130,547
	Accrued payroll and other expenses			429,580			340,709
	Accrued bonuses to officer			121,000			120,000
	Income taxes payable			43,602			-
	Other current liabilities			19,859			19,859
	Current portion - Contracts payable			2,604,404			750,000
	Billings in excess of revenues			106,534			-
	Deferred revenue			78,945			30,370
		Total current liabilities		3,613,331			1,391,485
Long-term liabilities
	Deferred income taxes			3,190,419			2,375,874
	Payments due under Contracts payable			1,000,000			1,750,000
	Other long-term liabilities			8,274			28,134
		Total liabilities	$	7,812,024		$	5,545,493
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
		16,943,001 and 16,349,955 shares issued and outstanding		5,414			4,821
	Additional paid-in capital			9,714,290			6,085,427
	Retained earnings			9,812,498			9,345,103
		Total shareholders' equity	$	19,532,202		$	15,435,351
Total liabilities and shareholders' equity			$	27,344,226		$	20,980,844

SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the year ended August 31,
					2015				2014
Net Revenues				$	18,314,248			$	11,460,880
Cost of revenues					4,315,870				1,629,069
Gross margin					13,998,378				9,831,811
Operating expenses
Selling, general, and administrative					6,813,374				4,439,665
Research and development					1,328,476				952,774
Total operating expenses					8,141,850				5,392,439
Income from operations					5,856,528				4,439,372
Other income (expense)
Interest income					17,935				31,437
Gain(loss) on currency exchange					(181,534	)			42,488
Total other income (expense)					(163,599	)			73,925
Income from operations before
	provision for income taxes				5,692,929				4,513,297
Provision for income taxes					(1,849,968	)			(1,487,806	)
Net Income				$	3,842,961			$	3,025,491
Earnings per share
Basic				$	0.23			$	0.19
Diluted				$	0.23			$	0.18
Weighted-average common shares outstanding
Basic					16,864,670				16,173,674
Diluted					17,032,158				16,407,751

View source version on businesswire.com: http://www.businesswire.com/news/home/20151118006627/en/

Simulations Plus Investor Relations

Ms. Renee Bouche

661-723-7723

[email protected]

or

Hayden IR

Mr. Cameron Donahue

651-653-1854

[email protected]

Source: Simulations Plus, Inc.

Press Releases

Simulations Plus (SLP) Tops Q4 EPS by 1cNovember 19, 2015 9:13 AM