Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Simulations Plus Reports Fourth Quarter and Fiscal 2023 Financial Results By: Simulations Plus, Inc. via Business Wire October 25, 2023 at 16:06 PM EDT Fiscal 2023 revenue increased 11% year-over-year to $59.6 million Provides Fiscal 2024 revenue guidance of $66 - $69 million (+10-15%) and EPS guidance of $0.66 - $0.68 Simulations Plus to host its Investor Day on November 14, 2023 Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical drug discovery and development, today reported financial results for its fourth quarter and fiscal 2023, ended August 31, 2023. Fourth Quarter Financial Highlights Total revenue increased 33% to $15.6 million Software revenue increased 59% to $9.3 million, representing 60% of total revenue Services revenue increased 8% to $6.3 million, representing 40% of total revenue Gross profit increased 35% to $12.3 million; gross margin was 78% Adjusted EBITDA of $4.9 million, representing 31% of total revenue Adjusted EPS of $0.18 Net income of $0.5 million and diluted earnings per share (EPS) of $0.03, compared to net income of $1.0 million and diluted EPS of $0.05 in the fourth quarter of 2022 Full Year Financial Highlights Total revenue increased 11% to $59.6 million Software revenue increased 12% to $36.5 million, representing 61% of total revenue Services revenue increased 8% to $23.1 million, representing 39% of total revenue Gross profit increased 11% to $47.9 million; gross margin was 80% Adjusted EBITDA of $20.6 million, representing 35% of total revenue Adjusted EPS of $0.67 Net income of $10.0 million and diluted EPS of $0.49, compared to net income of $12.5 million and diluted EPS of $0.60 in fiscal 2022 Management Commentary “We delivered strong revenue and earnings results for fiscal 2023, marked by our team’s impressive execution on building strong customer relationships,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our ability to drive growth while navigating a challenging environment demonstrates the strength of our customer-centric business model and the effort and dedication of our colleagues throughout the year.” “Fourth quarter revenue increased 33% year-over-year, driven by strong contribution across our software segment offerings, with notable performance by GastroPlus, and solid performance in our services offering, especially in our quantitative systems pharmacology (QSP) business unit, which benefitted from our Immunetrics acquisition in the quarter. Gross margins for the fourth quarter remained strong at 78%, reflecting a favorable mix of higher margin software sales and our ability to pass along price increases. We achieved our fiscal 2023 guidance for both revenue and adjusted diluted EPS.” “Our renewal harmonization initiative to simplify and align contract renewals played out as expected and is essentially complete. We achieved our goal of gaining greater visibility into our revenues, and with contract harmonization now embedded in the normal course of our business processes, we expect that both Simulations Plus and our customers will see the benefits going forward.” “The integration of Immunetrics is going well. Immunetrics brings its strong reputation in the immunology and oncology markets and has a healthy pipeline, including new accounts sourced from our Simulations Plus customer base.” “We believe that we enter fiscal 2024 well-positioned for continued growth. The underlying fundamentals of our market are resilient, our pipeline is healthy, our profitability is strong, and our balance sheet is sound. Our team remains committed to innovative and 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 November 6, 2023, to shareholders of record as of October 30, 2023. 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 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. Investor Day Simulations Plus will host a virtual Investor Day on Tuesday, November 14, 2023. Presentations will be made by CEO Shawn O’Connor, CFO Will Frederick and business unit leaders. The presentations will provide an in-depth overview of Simulations Plus’ paths to win through stronger customer alignment, its growth strategy, and financial outlook. Attendance is by invitation only to institutional investors and analysts. Presentations are expected to begin at 1:00 p.m. ET, and the event is expected to conclude at 3:00 p.m. ET. Dial-in information will be available at a later date, and a more detailed agenda, presentations and a live webcast will be available on the day of the event on the Simulations Plus website at https://www.simulations-plus.com/investorscorporate-profile/conference-calls/. A replay and transcript of the webcast will be available shortly after the event. 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. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Years ended August 31, (in thousands, except per common share amounts) 2023 2022 2021 Revenues Software $ 36,517 $ 32,642 $ 27,670 Services 23,060 21,264 18,796 Total revenues 59,577 53,906 46,466 Cost of revenues Software 3,627 3,060 3,235 Services 8,003 7,762 7,365 Total cost of revenues 11,630 10,822 10,600 Gross profit 47,947 43,084 35,866 Operating expenses Research and development 4,504 3,208 4,047 Selling, general, and administrative 34,718 24,965 20,566 Total operating expenses 39,222 28,173 24,613 Income from operations 8,725 14,911 11,253 Other income (expense), net 2,970 204 (168 ) Income before income taxes 11,695 15,115 11,085 Provision for income taxes (1,734 ) (2,632 ) (1,303 ) Net income $ 9,961 $ 12,483 $ 9,782 Earnings per share Basic $ 0.50 $ 0.62 $ 0.49 Diluted $ 0.49 $ 0.60 $ 0.47 Weighted-average common shares outstanding Basic 20,075 20,196 20,045 Diluted 20,465 20,749 20,743 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 167 (265 ) (101 ) Comprehensive income $ 10,128 $ 12,218 $ 9,681 SIMULATIONS PLUS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) August 31, 2023 August 31, 2022 ASSETS Current assets Cash and cash equivalents $ 57,523 $ 51,567 Accounts receivable, net of allowance for doubtful accounts of $46 and $12 10,201 13,787 Prepaid income taxes 804 1,391 Prepaid expenses and other current assets 3,904 3,377 Short-term investments 57,940 76,668 Total current assets 130,372 146,790 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,199 and $15,672 11,335 9,563 Property and equipment, net 671 632 Operating lease right-of-use assets 1,247 1,420 Intellectual property, net of accumulated amortization of $9,301 and $7,928 8,689 9,057 Other intangible assets, net of accumulated amortization of $2,107 and $2,662 12,825 7,560 Goodwill 19,099 12,921 Deferred tax assets 1,438 — Other assets 425 439 Total assets $ 186,101 $ 188,382 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 144 $ 225 Accrued compensation 4,392 3,254 Accrued expenses 659 931 Contracts payable 3,250 — Operating lease liability - current portion 442 461 Deferred revenue 3,100 2,864 Total current liabilities 11,987 7,735 Long-term liabilities Deferred income taxes, net — 1,456 Operating lease liability 755 943 Contracts payable – net of current portion 3,330 — Total liabilities 16,072 10,134 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 20,260,070 shares issued and outstanding 144,974 138,512 Retained earnings 25,196 40,044 Accumulated other comprehensive loss (141 ) (308 ) Total shareholders' equity 170,029 178,248 Total liabilities and shareholders' equity $ 186,101 $ 188,382 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 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 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in 000s) Commercial $ 71.0 $ 101.0 $ 95.0 $ 65.0 $ 68.0 $ 110.0 $ 97.0 $ 88.0 Services Performance Metrics Backlog $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (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 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 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 0.3 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 $ 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 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 $ 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 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 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 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20231025046790/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 Fourth Quarter and Fiscal 2023 Financial Results By: Simulations Plus, Inc. via Business Wire October 25, 2023 at 16:06 PM EDT Fiscal 2023 revenue increased 11% year-over-year to $59.6 million Provides Fiscal 2024 revenue guidance of $66 - $69 million (+10-15%) and EPS guidance of $0.66 - $0.68 Simulations Plus to host its Investor Day on November 14, 2023 Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical drug discovery and development, today reported financial results for its fourth quarter and fiscal 2023, ended August 31, 2023. Fourth Quarter Financial Highlights Total revenue increased 33% to $15.6 million Software revenue increased 59% to $9.3 million, representing 60% of total revenue Services revenue increased 8% to $6.3 million, representing 40% of total revenue Gross profit increased 35% to $12.3 million; gross margin was 78% Adjusted EBITDA of $4.9 million, representing 31% of total revenue Adjusted EPS of $0.18 Net income of $0.5 million and diluted earnings per share (EPS) of $0.03, compared to net income of $1.0 million and diluted EPS of $0.05 in the fourth quarter of 2022 Full Year Financial Highlights Total revenue increased 11% to $59.6 million Software revenue increased 12% to $36.5 million, representing 61% of total revenue Services revenue increased 8% to $23.1 million, representing 39% of total revenue Gross profit increased 11% to $47.9 million; gross margin was 80% Adjusted EBITDA of $20.6 million, representing 35% of total revenue Adjusted EPS of $0.67 Net income of $10.0 million and diluted EPS of $0.49, compared to net income of $12.5 million and diluted EPS of $0.60 in fiscal 2022 Management Commentary “We delivered strong revenue and earnings results for fiscal 2023, marked by our team’s impressive execution on building strong customer relationships,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our ability to drive growth while navigating a challenging environment demonstrates the strength of our customer-centric business model and the effort and dedication of our colleagues throughout the year.” “Fourth quarter revenue increased 33% year-over-year, driven by strong contribution across our software segment offerings, with notable performance by GastroPlus, and solid performance in our services offering, especially in our quantitative systems pharmacology (QSP) business unit, which benefitted from our Immunetrics acquisition in the quarter. Gross margins for the fourth quarter remained strong at 78%, reflecting a favorable mix of higher margin software sales and our ability to pass along price increases. We achieved our fiscal 2023 guidance for both revenue and adjusted diluted EPS.” “Our renewal harmonization initiative to simplify and align contract renewals played out as expected and is essentially complete. We achieved our goal of gaining greater visibility into our revenues, and with contract harmonization now embedded in the normal course of our business processes, we expect that both Simulations Plus and our customers will see the benefits going forward.” “The integration of Immunetrics is going well. Immunetrics brings its strong reputation in the immunology and oncology markets and has a healthy pipeline, including new accounts sourced from our Simulations Plus customer base.” “We believe that we enter fiscal 2024 well-positioned for continued growth. The underlying fundamentals of our market are resilient, our pipeline is healthy, our profitability is strong, and our balance sheet is sound. Our team remains committed to innovative and 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 November 6, 2023, to shareholders of record as of October 30, 2023. 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 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. Investor Day Simulations Plus will host a virtual Investor Day on Tuesday, November 14, 2023. Presentations will be made by CEO Shawn O’Connor, CFO Will Frederick and business unit leaders. The presentations will provide an in-depth overview of Simulations Plus’ paths to win through stronger customer alignment, its growth strategy, and financial outlook. Attendance is by invitation only to institutional investors and analysts. Presentations are expected to begin at 1:00 p.m. ET, and the event is expected to conclude at 3:00 p.m. ET. Dial-in information will be available at a later date, and a more detailed agenda, presentations and a live webcast will be available on the day of the event on the Simulations Plus website at https://www.simulations-plus.com/investorscorporate-profile/conference-calls/. A replay and transcript of the webcast will be available shortly after the event. 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. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Years ended August 31, (in thousands, except per common share amounts) 2023 2022 2021 Revenues Software $ 36,517 $ 32,642 $ 27,670 Services 23,060 21,264 18,796 Total revenues 59,577 53,906 46,466 Cost of revenues Software 3,627 3,060 3,235 Services 8,003 7,762 7,365 Total cost of revenues 11,630 10,822 10,600 Gross profit 47,947 43,084 35,866 Operating expenses Research and development 4,504 3,208 4,047 Selling, general, and administrative 34,718 24,965 20,566 Total operating expenses 39,222 28,173 24,613 Income from operations 8,725 14,911 11,253 Other income (expense), net 2,970 204 (168 ) Income before income taxes 11,695 15,115 11,085 Provision for income taxes (1,734 ) (2,632 ) (1,303 ) Net income $ 9,961 $ 12,483 $ 9,782 Earnings per share Basic $ 0.50 $ 0.62 $ 0.49 Diluted $ 0.49 $ 0.60 $ 0.47 Weighted-average common shares outstanding Basic 20,075 20,196 20,045 Diluted 20,465 20,749 20,743 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 167 (265 ) (101 ) Comprehensive income $ 10,128 $ 12,218 $ 9,681 SIMULATIONS PLUS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) August 31, 2023 August 31, 2022 ASSETS Current assets Cash and cash equivalents $ 57,523 $ 51,567 Accounts receivable, net of allowance for doubtful accounts of $46 and $12 10,201 13,787 Prepaid income taxes 804 1,391 Prepaid expenses and other current assets 3,904 3,377 Short-term investments 57,940 76,668 Total current assets 130,372 146,790 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,199 and $15,672 11,335 9,563 Property and equipment, net 671 632 Operating lease right-of-use assets 1,247 1,420 Intellectual property, net of accumulated amortization of $9,301 and $7,928 8,689 9,057 Other intangible assets, net of accumulated amortization of $2,107 and $2,662 12,825 7,560 Goodwill 19,099 12,921 Deferred tax assets 1,438 — Other assets 425 439 Total assets $ 186,101 $ 188,382 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 144 $ 225 Accrued compensation 4,392 3,254 Accrued expenses 659 931 Contracts payable 3,250 — Operating lease liability - current portion 442 461 Deferred revenue 3,100 2,864 Total current liabilities 11,987 7,735 Long-term liabilities Deferred income taxes, net — 1,456 Operating lease liability 755 943 Contracts payable – net of current portion 3,330 — Total liabilities 16,072 10,134 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 20,260,070 shares issued and outstanding 144,974 138,512 Retained earnings 25,196 40,044 Accumulated other comprehensive loss (141 ) (308 ) Total shareholders' equity 170,029 178,248 Total liabilities and shareholders' equity $ 186,101 $ 188,382 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 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 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in 000s) Commercial $ 71.0 $ 101.0 $ 95.0 $ 65.0 $ 68.0 $ 110.0 $ 97.0 $ 88.0 Services Performance Metrics Backlog $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (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 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 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 0.3 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 $ 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 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 $ 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 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 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 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20231025046790/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
Fiscal 2023 revenue increased 11% year-over-year to $59.6 million Provides Fiscal 2024 revenue guidance of $66 - $69 million (+10-15%) and EPS guidance of $0.66 - $0.68 Simulations Plus to host its Investor Day on November 14, 2023
Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical drug discovery and development, today reported financial results for its fourth quarter and fiscal 2023, ended August 31, 2023. Fourth Quarter Financial Highlights Total revenue increased 33% to $15.6 million Software revenue increased 59% to $9.3 million, representing 60% of total revenue Services revenue increased 8% to $6.3 million, representing 40% of total revenue Gross profit increased 35% to $12.3 million; gross margin was 78% Adjusted EBITDA of $4.9 million, representing 31% of total revenue Adjusted EPS of $0.18 Net income of $0.5 million and diluted earnings per share (EPS) of $0.03, compared to net income of $1.0 million and diluted EPS of $0.05 in the fourth quarter of 2022 Full Year Financial Highlights Total revenue increased 11% to $59.6 million Software revenue increased 12% to $36.5 million, representing 61% of total revenue Services revenue increased 8% to $23.1 million, representing 39% of total revenue Gross profit increased 11% to $47.9 million; gross margin was 80% Adjusted EBITDA of $20.6 million, representing 35% of total revenue Adjusted EPS of $0.67 Net income of $10.0 million and diluted EPS of $0.49, compared to net income of $12.5 million and diluted EPS of $0.60 in fiscal 2022 Management Commentary “We delivered strong revenue and earnings results for fiscal 2023, marked by our team’s impressive execution on building strong customer relationships,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our ability to drive growth while navigating a challenging environment demonstrates the strength of our customer-centric business model and the effort and dedication of our colleagues throughout the year.” “Fourth quarter revenue increased 33% year-over-year, driven by strong contribution across our software segment offerings, with notable performance by GastroPlus, and solid performance in our services offering, especially in our quantitative systems pharmacology (QSP) business unit, which benefitted from our Immunetrics acquisition in the quarter. Gross margins for the fourth quarter remained strong at 78%, reflecting a favorable mix of higher margin software sales and our ability to pass along price increases. We achieved our fiscal 2023 guidance for both revenue and adjusted diluted EPS.” “Our renewal harmonization initiative to simplify and align contract renewals played out as expected and is essentially complete. We achieved our goal of gaining greater visibility into our revenues, and with contract harmonization now embedded in the normal course of our business processes, we expect that both Simulations Plus and our customers will see the benefits going forward.” “The integration of Immunetrics is going well. Immunetrics brings its strong reputation in the immunology and oncology markets and has a healthy pipeline, including new accounts sourced from our Simulations Plus customer base.” “We believe that we enter fiscal 2024 well-positioned for continued growth. The underlying fundamentals of our market are resilient, our pipeline is healthy, our profitability is strong, and our balance sheet is sound. Our team remains committed to innovative and 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 November 6, 2023, to shareholders of record as of October 30, 2023. 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 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. Investor Day Simulations Plus will host a virtual Investor Day on Tuesday, November 14, 2023. Presentations will be made by CEO Shawn O’Connor, CFO Will Frederick and business unit leaders. The presentations will provide an in-depth overview of Simulations Plus’ paths to win through stronger customer alignment, its growth strategy, and financial outlook. Attendance is by invitation only to institutional investors and analysts. Presentations are expected to begin at 1:00 p.m. ET, and the event is expected to conclude at 3:00 p.m. ET. Dial-in information will be available at a later date, and a more detailed agenda, presentations and a live webcast will be available on the day of the event on the Simulations Plus website at https://www.simulations-plus.com/investorscorporate-profile/conference-calls/. A replay and transcript of the webcast will be available shortly after the event. 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. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Years ended August 31, (in thousands, except per common share amounts) 2023 2022 2021 Revenues Software $ 36,517 $ 32,642 $ 27,670 Services 23,060 21,264 18,796 Total revenues 59,577 53,906 46,466 Cost of revenues Software 3,627 3,060 3,235 Services 8,003 7,762 7,365 Total cost of revenues 11,630 10,822 10,600 Gross profit 47,947 43,084 35,866 Operating expenses Research and development 4,504 3,208 4,047 Selling, general, and administrative 34,718 24,965 20,566 Total operating expenses 39,222 28,173 24,613 Income from operations 8,725 14,911 11,253 Other income (expense), net 2,970 204 (168 ) Income before income taxes 11,695 15,115 11,085 Provision for income taxes (1,734 ) (2,632 ) (1,303 ) Net income $ 9,961 $ 12,483 $ 9,782 Earnings per share Basic $ 0.50 $ 0.62 $ 0.49 Diluted $ 0.49 $ 0.60 $ 0.47 Weighted-average common shares outstanding Basic 20,075 20,196 20,045 Diluted 20,465 20,749 20,743 Other comprehensive income (loss), net of tax Foreign currency translation adjustments 167 (265 ) (101 ) Comprehensive income $ 10,128 $ 12,218 $ 9,681 SIMULATIONS PLUS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) August 31, 2023 August 31, 2022 ASSETS Current assets Cash and cash equivalents $ 57,523 $ 51,567 Accounts receivable, net of allowance for doubtful accounts of $46 and $12 10,201 13,787 Prepaid income taxes 804 1,391 Prepaid expenses and other current assets 3,904 3,377 Short-term investments 57,940 76,668 Total current assets 130,372 146,790 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,199 and $15,672 11,335 9,563 Property and equipment, net 671 632 Operating lease right-of-use assets 1,247 1,420 Intellectual property, net of accumulated amortization of $9,301 and $7,928 8,689 9,057 Other intangible assets, net of accumulated amortization of $2,107 and $2,662 12,825 7,560 Goodwill 19,099 12,921 Deferred tax assets 1,438 — Other assets 425 439 Total assets $ 186,101 $ 188,382 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 144 $ 225 Accrued compensation 4,392 3,254 Accrued expenses 659 931 Contracts payable 3,250 — Operating lease liability - current portion 442 461 Deferred revenue 3,100 2,864 Total current liabilities 11,987 7,735 Long-term liabilities Deferred income taxes, net — 1,456 Operating lease liability 755 943 Contracts payable – net of current portion 3,330 — Total liabilities 16,072 10,134 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 20,260,070 shares issued and outstanding 144,974 138,512 Retained earnings 25,196 40,044 Accumulated other comprehensive loss (141 ) (308 ) Total shareholders' equity 170,029 178,248 Total liabilities and shareholders' equity $ 186,101 $ 188,382 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 32.7 $ 36.5 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 21.2 23.1 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 90.6 % 90.1 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 63.5 % 65.3 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 79.9 % 80.5 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 14.9 $ 8.7 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 27.7 % 14.6 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 12.5 $ 10.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.60 $ 0.49 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 21.5 $ 20.6 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.61 $ 0.67 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 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 $ 37.7 $ 40.8 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 10.4 11.7 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 5.8 7.0 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 53.9 $ 59.6 Software Performance Metrics Average Revenue per Customer (in 000s) Commercial $ 71.0 $ 101.0 $ 95.0 $ 65.0 $ 68.0 $ 110.0 $ 97.0 $ 88.0 Services Performance Metrics Backlog $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 ) (0.7 ) (4.1 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (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 3.6 3.9 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 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 0.3 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 $ 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 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 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 $ 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 20.7 20.5 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 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 $ 0.61 $ 0.67 *Numbers may not add due to rounding View source version on businesswire.com: https://www.businesswire.com/news/home/20231025046790/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
