Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Simulations Plus Reports First Quarter Fiscal 2024 Financial Results By: Simulations Plus, Inc. via Business Wire January 03, 2024 at 16:06 PM EST Total revenue of $14.5 million and diluted earnings per share (EPS) of $0.10 Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68 Simulations Plus, Inc. (NASDAQ: SLP) (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its first quarter fiscal 2024, ended November 30, 2023. First Quarter Financial Highlights Total revenue increased 21% to $14.5 million Software revenue increased 25% to $7.6 million, representing 52% of total revenue Services revenue increased 17% to $6.9 million, representing 48% of total revenue Gross profit increased 6% to $9.8 million; gross margin was 68% Adjusted EBITDA of $3.4 million, representing 23% of total revenue Net income of $1.9 million and diluted earnings per share (EPS) of $0.10, compared to net income of $1.2 million and diluted EPS of $0.06 in the first quarter of 2023 Management Commentary “Our first quarter performance marked a successful start to the year and was in line with our expectations,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “With these strong results, we are maintaining our guidance for the full year. Even though client funding and budget cycles remain softer than historical levels, we are cautiously optimistic that our market may be on the path to improvement. “First quarter revenue increased 21% year-over-year, driven by higher software revenues in our Quantitative Systems Pharmacology (QSP) oncology modeling platform and our Physiologically Based Pharmacokinetics (PBPK) business unit that had a strong contribution from GastroPlus. I am proud of what our team accomplished this quarter to deliver a 67% increase in EPS. “Today we announced in a separate press release four key strategic leadership appointments that will advance our objective to seamlessly and organically align with our clients’ needs. These appointments reflect our commitment to providing our organization with the leadership that best positions us for our next stage of growth. “We entered the second quarter with a healthy pipeline, strong profitability, and a sound balance sheet. The underlying fundamentals of our market remain resilient as demand for modeling and simulation tools continues to play a greater role in drug development workflow. We remain focused on continuing to produce disciplined growth that delivers long-term returns for our shareholders.” Fiscal 2024 Guidance Fiscal 2024 Guidance Annual Increase Revenue $66M - $69M 10 - 15% Software mix 55 - 60% — Services mix 40 - 45% — Diluted earnings per share $0.66 - $0.68 35 - 39% Quarterly Dividend The Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock, payable on February 5, 2024, to shareholders of record as of January 29, 2024. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors. Environmental, Social, and Governance We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our ESG website. Webcast and Conference Call Details Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operating officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 or 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call. Non-GAAP Definitions Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The Company’s Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Adjusted Diluted EPS Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts. About Simulations Plus Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge artificial intelligence (AI)/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, and regulatory agencies worldwide. For more information, visit our website at https://www.simulations-plus.com/. Follow us on LinkedIn | Twitter | YouTube. Forward-Looking Statements Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but 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 successfully integrate the Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended November 30, (in thousands, except per common share amounts) 2023 2022 Revenues Software $ 7,589 $ 6,074 Services 6,911 5,890 Total revenues 14,500 11,964 Cost of revenues Software 991 885 Services 3,661 1,786 Total cost of revenues 4,652 2,671 Gross profit 9,848 9,293 Operating expenses Research and development 1,217 1,166 Selling and marketing 1,989 1,485 General and administrative 5,682 5,764 Total operating expenses 8,888 8,415 Income from operations 960 878 Other income 1,446 740 Income before income taxes 2,406 1,618 Provision for income taxes (461 ) (373 ) Net income $ 1,945 $ 1,245 Earnings per share Basic $ 0.10 $ 0.06 Diluted $ 0.10 $ 0.06 Weighted-average common shares outstanding Basic 19,947 20,286 Diluted 20,279 20,825 Other comprehensive income, net of tax Foreign currency translation adjustments (54 ) 53 Comprehensive income $ 1,891 $ 1,298 SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) (in thousands, except share and per share amounts) November 30, 2023 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 39,789 $ 57,523 Accounts receivable, net of allowance for credit losses of $37 and $46 10,346 10,201 Prepaid income taxes 37 804 Prepaid expenses and other current assets 5,414 3,904 Short-term investments 74,101 57,940 Total current assets 129,687 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,580 and $17,199 11,896 11,335 Property and equipment, net 487 671 Operating lease right-of-use assets 1,118 1,247 Intellectual property, net of accumulated amortization of $9,709 and $9,301 8,281 8,689 Other intangible assets, net of accumulated amortization of $2,351 and $2,107 12,954 12,825 Goodwill 19,099 19,099 Deferred tax assets 1,826 1,438 Other assets 430 425 Total assets $ 185,778 $ 186,101 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 317 $ 144 Accrued compensation 2,170 4,392 Accrued expenses 731 659 Contracts payable 2,290 3,250 Operating lease liability - current portion 420 442 Deferred revenue 2,660 3,100 Total current liabilities 8,588 11,987 Long-term liabilities Operating lease liability 669 755 Contracts payable – net of current portion 4,180 3,330 Total liabilities 13,437 16,072 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 and additional paid-in capital —50,000,000 shares authorized; 19,937,961 and 19,937,961 shares issued and outstanding 146,591 144,974 Retained earnings 25,945 25,196 Accumulated other comprehensive loss (195 ) (141 ) Total shareholders' equity 172,341 170,029 Total liabilities and shareholders' equity $ 185,778 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 6.9 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 17.9 $ 21.9 Revenue Breakdown by Region Americas $ 8.5 $ 9.7 $ 11.2 $ 8.4 $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 2.3 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 1.3 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 71 $ 101 $ 95 $ 65 $ 68 $ 110 $ 97 $ 88 $ 79 Services Performance Metrics Backlog (in millions) $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Interest income and expense, net (0.1 ) (0.1 ) (0.1 ) (0.4 ) (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (0.5 ) 0.5 2.6 1.7 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 2.7 4.2 (Gain) loss on currency exchange (0.1 ) (0.1 ) 0.2 0.2 — — 0.3 0.2 — 0.2 0.5 Impairment of other intangibles — — — — — — — 0.5 — — 0.5 Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1 ) 0.3 0.7 Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 2.5 — 0.3 3.3 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 — 0.3 1.7 Immunetrics transaction costs — — — — — — — 2.3 — — 2.3 Cognigen trade name write-off — — — — — — — 0.5 — — 0.5 Tax effect on above adjustments — — — (0.1 ) (0.1 ) — (0.1 ) (0.5 ) — (0.1 ) (0.7 ) Adjusted Net income (Non-GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.2 $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.9 $ 12.8 $ 13.8 Weighted-average common shares outstanding: Diluted 20.7 20.7 20.8 20.9 20.8 20.5 20.4 20.4 20.3 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted Diluted EPS (Non-GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20240103770015/en/Contacts Investor Relations Contacts: Tamara Gonzalez Financial Profiles 310-622-8234 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Simulations Plus Reports First Quarter Fiscal 2024 Financial Results By: Simulations Plus, Inc. via Business Wire January 03, 2024 at 16:06 PM EST Total revenue of $14.5 million and diluted earnings per share (EPS) of $0.10 Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68 Simulations Plus, Inc. (NASDAQ: SLP) (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its first quarter fiscal 2024, ended November 30, 2023. First Quarter Financial Highlights Total revenue increased 21% to $14.5 million Software revenue increased 25% to $7.6 million, representing 52% of total revenue Services revenue increased 17% to $6.9 million, representing 48% of total revenue Gross profit increased 6% to $9.8 million; gross margin was 68% Adjusted EBITDA of $3.4 million, representing 23% of total revenue Net income of $1.9 million and diluted earnings per share (EPS) of $0.10, compared to net income of $1.2 million and diluted EPS of $0.06 in the first quarter of 2023 Management Commentary “Our first quarter performance marked a successful start to the year and was in line with our expectations,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “With these strong results, we are maintaining our guidance for the full year. Even though client funding and budget cycles remain softer than historical levels, we are cautiously optimistic that our market may be on the path to improvement. “First quarter revenue increased 21% year-over-year, driven by higher software revenues in our Quantitative Systems Pharmacology (QSP) oncology modeling platform and our Physiologically Based Pharmacokinetics (PBPK) business unit that had a strong contribution from GastroPlus. I am proud of what our team accomplished this quarter to deliver a 67% increase in EPS. “Today we announced in a separate press release four key strategic leadership appointments that will advance our objective to seamlessly and organically align with our clients’ needs. These appointments reflect our commitment to providing our organization with the leadership that best positions us for our next stage of growth. “We entered the second quarter with a healthy pipeline, strong profitability, and a sound balance sheet. The underlying fundamentals of our market remain resilient as demand for modeling and simulation tools continues to play a greater role in drug development workflow. We remain focused on continuing to produce disciplined growth that delivers long-term returns for our shareholders.” Fiscal 2024 Guidance Fiscal 2024 Guidance Annual Increase Revenue $66M - $69M 10 - 15% Software mix 55 - 60% — Services mix 40 - 45% — Diluted earnings per share $0.66 - $0.68 35 - 39% Quarterly Dividend The Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock, payable on February 5, 2024, to shareholders of record as of January 29, 2024. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors. Environmental, Social, and Governance We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our ESG website. Webcast and Conference Call Details Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operating officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 or 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call. Non-GAAP Definitions Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The Company’s Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Adjusted Diluted EPS Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts. About Simulations Plus Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge artificial intelligence (AI)/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, and regulatory agencies worldwide. For more information, visit our website at https://www.simulations-plus.com/. Follow us on LinkedIn | Twitter | YouTube. Forward-Looking Statements Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but 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 successfully integrate the Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended November 30, (in thousands, except per common share amounts) 2023 2022 Revenues Software $ 7,589 $ 6,074 Services 6,911 5,890 Total revenues 14,500 11,964 Cost of revenues Software 991 885 Services 3,661 1,786 Total cost of revenues 4,652 2,671 Gross profit 9,848 9,293 Operating expenses Research and development 1,217 1,166 Selling and marketing 1,989 1,485 General and administrative 5,682 5,764 Total operating expenses 8,888 8,415 Income from operations 960 878 Other income 1,446 740 Income before income taxes 2,406 1,618 Provision for income taxes (461 ) (373 ) Net income $ 1,945 $ 1,245 Earnings per share Basic $ 0.10 $ 0.06 Diluted $ 0.10 $ 0.06 Weighted-average common shares outstanding Basic 19,947 20,286 Diluted 20,279 20,825 Other comprehensive income, net of tax Foreign currency translation adjustments (54 ) 53 Comprehensive income $ 1,891 $ 1,298 SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) (in thousands, except share and per share amounts) November 30, 2023 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 39,789 $ 57,523 Accounts receivable, net of allowance for credit losses of $37 and $46 10,346 10,201 Prepaid income taxes 37 804 Prepaid expenses and other current assets 5,414 3,904 Short-term investments 74,101 57,940 Total current assets 129,687 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,580 and $17,199 11,896 11,335 Property and equipment, net 487 671 Operating lease right-of-use assets 1,118 1,247 Intellectual property, net of accumulated amortization of $9,709 and $9,301 8,281 8,689 Other intangible assets, net of accumulated amortization of $2,351 and $2,107 12,954 12,825 Goodwill 19,099 19,099 Deferred tax assets 1,826 1,438 Other assets 430 425 Total assets $ 185,778 $ 186,101 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 317 $ 144 Accrued compensation 2,170 4,392 Accrued expenses 731 659 Contracts payable 2,290 3,250 Operating lease liability - current portion 420 442 Deferred revenue 2,660 3,100 Total current liabilities 8,588 11,987 Long-term liabilities Operating lease liability 669 755 Contracts payable – net of current portion 4,180 3,330 Total liabilities 13,437 16,072 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 and additional paid-in capital —50,000,000 shares authorized; 19,937,961 and 19,937,961 shares issued and outstanding 146,591 144,974 Retained earnings 25,945 25,196 Accumulated other comprehensive loss (195 ) (141 ) Total shareholders' equity 172,341 170,029 Total liabilities and shareholders' equity $ 185,778 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 6.9 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 17.9 $ 21.9 Revenue Breakdown by Region Americas $ 8.5 $ 9.7 $ 11.2 $ 8.4 $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 2.3 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 1.3 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 71 $ 101 $ 95 $ 65 $ 68 $ 110 $ 97 $ 88 $ 79 Services Performance Metrics Backlog (in millions) $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Interest income and expense, net (0.1 ) (0.1 ) (0.1 ) (0.4 ) (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (0.5 ) 0.5 2.6 1.7 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 2.7 4.2 (Gain) loss on currency exchange (0.1 ) (0.1 ) 0.2 0.2 — — 0.3 0.2 — 0.2 0.5 Impairment of other intangibles — — — — — — — 0.5 — — 0.5 Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1 ) 0.3 0.7 Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 2.5 — 0.3 3.3 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 — 0.3 1.7 Immunetrics transaction costs — — — — — — — 2.3 — — 2.3 Cognigen trade name write-off — — — — — — — 0.5 — — 0.5 Tax effect on above adjustments — — — (0.1 ) (0.1 ) — (0.1 ) (0.5 ) — (0.1 ) (0.7 ) Adjusted Net income (Non-GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.2 $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.9 $ 12.8 $ 13.8 Weighted-average common shares outstanding: Diluted 20.7 20.7 20.8 20.9 20.8 20.5 20.4 20.4 20.3 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted Diluted EPS (Non-GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20240103770015/en/Contacts Investor Relations Contacts: Tamara Gonzalez Financial Profiles 310-622-8234 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com
Total revenue of $14.5 million and diluted earnings per share (EPS) of $0.10 Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68
Simulations Plus, Inc. (NASDAQ: SLP) (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its first quarter fiscal 2024, ended November 30, 2023. First Quarter Financial Highlights Total revenue increased 21% to $14.5 million Software revenue increased 25% to $7.6 million, representing 52% of total revenue Services revenue increased 17% to $6.9 million, representing 48% of total revenue Gross profit increased 6% to $9.8 million; gross margin was 68% Adjusted EBITDA of $3.4 million, representing 23% of total revenue Net income of $1.9 million and diluted earnings per share (EPS) of $0.10, compared to net income of $1.2 million and diluted EPS of $0.06 in the first quarter of 2023 Management Commentary “Our first quarter performance marked a successful start to the year and was in line with our expectations,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “With these strong results, we are maintaining our guidance for the full year. Even though client funding and budget cycles remain softer than historical levels, we are cautiously optimistic that our market may be on the path to improvement. “First quarter revenue increased 21% year-over-year, driven by higher software revenues in our Quantitative Systems Pharmacology (QSP) oncology modeling platform and our Physiologically Based Pharmacokinetics (PBPK) business unit that had a strong contribution from GastroPlus. I am proud of what our team accomplished this quarter to deliver a 67% increase in EPS. “Today we announced in a separate press release four key strategic leadership appointments that will advance our objective to seamlessly and organically align with our clients’ needs. These appointments reflect our commitment to providing our organization with the leadership that best positions us for our next stage of growth. “We entered the second quarter with a healthy pipeline, strong profitability, and a sound balance sheet. The underlying fundamentals of our market remain resilient as demand for modeling and simulation tools continues to play a greater role in drug development workflow. We remain focused on continuing to produce disciplined growth that delivers long-term returns for our shareholders.” Fiscal 2024 Guidance Fiscal 2024 Guidance Annual Increase Revenue $66M - $69M 10 - 15% Software mix 55 - 60% — Services mix 40 - 45% — Diluted earnings per share $0.66 - $0.68 35 - 39% Quarterly Dividend The Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock, payable on February 5, 2024, to shareholders of record as of January 29, 2024. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors. Environmental, Social, and Governance We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our ESG website. Webcast and Conference Call Details Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operating officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 or 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call. Non-GAAP Definitions Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The Company’s Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Adjusted Diluted EPS Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts. About Simulations Plus Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge artificial intelligence (AI)/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, and regulatory agencies worldwide. For more information, visit our website at https://www.simulations-plus.com/. Follow us on LinkedIn | Twitter | YouTube. Forward-Looking Statements Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but 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 successfully integrate the Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended November 30, (in thousands, except per common share amounts) 2023 2022 Revenues Software $ 7,589 $ 6,074 Services 6,911 5,890 Total revenues 14,500 11,964 Cost of revenues Software 991 885 Services 3,661 1,786 Total cost of revenues 4,652 2,671 Gross profit 9,848 9,293 Operating expenses Research and development 1,217 1,166 Selling and marketing 1,989 1,485 General and administrative 5,682 5,764 Total operating expenses 8,888 8,415 Income from operations 960 878 Other income 1,446 740 Income before income taxes 2,406 1,618 Provision for income taxes (461 ) (373 ) Net income $ 1,945 $ 1,245 Earnings per share Basic $ 0.10 $ 0.06 Diluted $ 0.10 $ 0.06 Weighted-average common shares outstanding Basic 19,947 20,286 Diluted 20,279 20,825 Other comprehensive income, net of tax Foreign currency translation adjustments (54 ) 53 Comprehensive income $ 1,891 $ 1,298 SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) (in thousands, except share and per share amounts) November 30, 2023 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 39,789 $ 57,523 Accounts receivable, net of allowance for credit losses of $37 and $46 10,346 10,201 Prepaid income taxes 37 804 Prepaid expenses and other current assets 5,414 3,904 Short-term investments 74,101 57,940 Total current assets 129,687 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,580 and $17,199 11,896 11,335 Property and equipment, net 487 671 Operating lease right-of-use assets 1,118 1,247 Intellectual property, net of accumulated amortization of $9,709 and $9,301 8,281 8,689 Other intangible assets, net of accumulated amortization of $2,351 and $2,107 12,954 12,825 Goodwill 19,099 19,099 Deferred tax assets 1,826 1,438 Other assets 430 425 Total assets $ 185,778 $ 186,101 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 317 $ 144 Accrued compensation 2,170 4,392 Accrued expenses 731 659 Contracts payable 2,290 3,250 Operating lease liability - current portion 420 442 Deferred revenue 2,660 3,100 Total current liabilities 8,588 11,987 Long-term liabilities Operating lease liability 669 755 Contracts payable – net of current portion 4,180 3,330 Total liabilities 13,437 16,072 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 and additional paid-in capital —50,000,000 shares authorized; 19,937,961 and 19,937,961 shares issued and outstanding 146,591 144,974 Retained earnings 25,945 25,196 Accumulated other comprehensive loss (195 ) (141 ) Total shareholders' equity 172,341 170,029 Total liabilities and shareholders' equity $ 185,778 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 6.9 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 17.9 $ 21.9 Revenue Breakdown by Region Americas $ 8.5 $ 9.7 $ 11.2 $ 8.4 $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 2.3 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 1.3 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 71 $ 101 $ 95 $ 65 $ 68 $ 110 $ 97 $ 88 $ 79 Services Performance Metrics Backlog (in millions) $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Interest income and expense, net (0.1 ) (0.1 ) (0.1 ) (0.4 ) (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (0.5 ) 0.5 2.6 1.7 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 2.7 4.2 (Gain) loss on currency exchange (0.1 ) (0.1 ) 0.2 0.2 — — 0.3 0.2 — 0.2 0.5 Impairment of other intangibles — — — — — — — 0.5 — — 0.5 Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1 ) 0.3 0.7 Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 2.5 — 0.3 3.3 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 21.5 $ 20.6 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 12.5 $ 10.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 — 0.3 1.7 Immunetrics transaction costs — — — — — — — 2.3 — — 2.3 Cognigen trade name write-off — — — — — — — 0.5 — — 0.5 Tax effect on above adjustments — — — (0.1 ) (0.1 ) — (0.1 ) (0.5 ) — (0.1 ) (0.7 ) Adjusted Net income (Non-GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.2 $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.9 $ 12.8 $ 13.8 Weighted-average common shares outstanding: Diluted 20.7 20.7 20.8 20.9 20.8 20.5 20.4 20.4 20.3 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.60 $ 0.49 Adjusted Diluted EPS (Non-GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20240103770015/en/
Investor Relations Contacts: Tamara Gonzalez Financial Profiles 310-622-8234 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com