Simulations Plus Reports Second Quarter and First Six Months FY2013 Financial Results

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Simulations Plus Reports Second Quarter and First Six Months FY2013 Financial Results

Second quarter net sales increase 11.8%; net income up 26.5%

LANCASTER, Calif.--(BUSINESS WIRE)-- Simulations Plus, Inc. (NAS: SLP) , a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its second quarter of fiscal year 2013 ended February 28, 2013 (2QFY13).


2QFY13 highlights compared with 2QFY12:

  • Net sales increased 11.8% to new record for any quarter of $3.118 million from $2.789 million
  • This was the Company's 22nd consecutive profitable quarter, and the 44th of the last 46 quarters
  • Gross profit increased 9.5% to $2.619 million from $2.393 million
  • SG&A decreased 10.6% to $0.855 million from $0.956 million
    • As a percent of revenues, SG&A decreased to 27.4% from 34.3%
  • R&D expense decreased 6.4% to $248,000 from $265,000
  • Income before taxes from continuing operations increased 24.8% to $1.572 million from $1.260 million
  • Provision for income taxes increased 21.3% to $0.511 million from $0.421 million
  • Net income from continuing operations increased 26.6% to $1.062 million from $0.839 million
  • Diluted earnings per share increased to $0.06 from $0.05 in 2QFY12
  • Cash at the end of the second fiscal quarter was $9.75 million after dividend distributions
    • Approximately $796,000 was distributed in November 2012
    • Approximately $2,243,000 was distributed in December 2012
    • Cash as of April 5 was $10.4 million
  • Shareholders' equity at the end of the quarter was $13.921 million
    • This is a decrease of $1.505 million from the end of 2QFY12
    • This decrease was after dividend distributions of approximately $5.4 million during calendar 2012

For the first six months of fiscal year 2013 (6moFY13) compared to the first six months of FY2012 (6moFY12):

  • Net sales increased 7.4% to a new midyear record $5.408 million from $5.037 million
  • Gross profit increased 5.5% to $4.523 million from $4.288 million
  • SG&A increased 7.8% to $1.786 million from $1.656 million
  • As a percent of revenues, SG&A increased to 33.0% from 32.9%
  • R&D expenditures decreased 17.2% to $428,000 from $517,000
    • Completion of the Company's malaria NCE project reduced R&D expenditures in the current year
  • Income before taxes increased 6.2% to $2.468 million from $2.323 million
  • Provision for income taxes increased 12.3% to $0.819 million from $0.729 million
  • Net income from continuing operations increased 3.4% to $1.649 million from $1.594 million
  • For 6moFY13, earnings per share from continuing operations was the same at $0.10 per share.
  • Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, net income for 6moFY12 was $1.810 million
  • Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, total diluted earnings per share for 6moFY12 was $0.11

Ms. Momoko Beran, chief financial officer of Simulations Plus, said: "We continued to exhibit the strong leverage in our business model as each dollar of incremental revenues added approximately $0.80 to operating profit. Record revenue up nearly 12% for the quarter delivered a 26.5% improvement in net income despite an increase in tax rates. After distributing cash dividends of over $5 million to our shareholders during calendar 2012, our cash position remains strong, and we continue to have no debt."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: "The second quarter continues our trend of new quarterly records each fiscal quarter, and this quarter is also a record for any quarter. We added 18 new customers, had 93% renewals, and increased our collaboration funding by over $111,000, while consulting revenues decreased by 27%. Results from two recent GastroPlus™ simulation contract studies were submitted to U.S. and European regulatory agencies in support of our customers, making a total of four such submittals in recent months. The acceptance of simulation results in support of regulatory applications has been increasing and we believe is a leading indicator for increased use of simulation and modeling software in the pharmaceutical industry to reduce the time and cost of unnecessary clinical trials."

The Company has announced an investor conference call that will be webcast live at 1:30 PDT/4:30 PM EDT today, Wednesday, April 10, 2013, which may be accessed by registering here. Upon registering, you will receive a confirmation e-mail with a unique link and instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial 646-307-1720, and enter access code 951-402-096.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software, which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. We also provide a productivity tool called Abbreviate! for PCs. Simulations Plus, Inc., is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol "SLP." For more information, visit our Web site at www.simulations-plus.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like "believe," "expect" and "anticipate" mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.

 

SIMULATIONS PLUS, INC. CONDENSED BALANCE SHEETS

at February 28, 2013 (Unaudited) and August 31, 2012 (Audited)

 
 
ASSETS
 February 28, August 31,
20132012
Current assets
Cash and cash equivalents$9,754,861$12,701,075
Income tax refund receivable2,650153,896
Accounts receivable, net of allowance for doubtful accounts of $02,535,8161,451,864
Contracts receivable86,99518,893
Prepaid expenses and other current assets168,351150,856
Deferred income taxes 210,456 193,712
Total current assets12,759,12914,670,296
Long-term assets

Capitalized computer software development costs, net of accumulated amortization of $5,443,703 and $5,084,691

2,702,5352,479,468
Property and equipment, net94,091107,410
Intellectual property, net of accumulated amortization of $7,500 and $3,75067,50071,250
Other assets 18,445 18,445
Total assets$15,641,700$17,346,869
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable$254,737$177,509
Accrued payroll and other expenses308,592312,912
Accrued bonuses to officer30,00060,000
Accrued income taxes27,859733,233
Deferred revenue 222,735 131,782
Total current liabilities843,9231,415,436
 
Long-term liabilities
Deferred income taxes 876,968 788,857
Total liabilities 1,720,891 2,204,293
 
Commitments and contingencies
 
Shareholders' equity
Preferred stock, $0.001 par value
10,000,000 shares authorized
no shares issued and outstanding--
Common stock, $0.001 par value
50,000,000 shares authorized
16,021,309 and 15,923,019 shares issued and outstanding4,4934,399
Additional paid-in capital4,797,3174,628,366
Retained earnings 9,118,999 10,509,811
 
Total shareholders' equity 13,920,809 15,142,576
 
Total liabilities and shareholders' equity$15,641,700$17,346,869
 
 

SIMULATIONS PLUS, INC.

CONDENSED STATEMENTS OF OPERATIONS

For the three and six months ended February 28 and 29,

(Unaudited)

 
 Three months ended Six months ended
2013 20122013 2012
 
Net sales$3,118,121$2,789,226$5,408,215$5,037,182
Cost of sales 498,778  396,566  885,648  748,936 
Gross profit 2,619,343  2,392,660  4,522,567  4,288,246 
Operating expenses
Selling, general, and administrative854,983956,3251,786,0431,656,438
Research and development 247,522  264,581  427,857  516,516 
Total operating expenses 1,102,505  1,220,906  2,213,900  2,172,954 
 
Income from operations 1,516,838  1,171,754  2,308,667  2,115,292 
 
Other income (expense)
Interest income17,07425,08330,80246,956
Interest expense---(3)

Miscellaneous income

15,39022,65630,79422,656
Gain on currency exchange22,98840,50297,642138,888
Gain (loss) from sale of assets -  (433) -  (433)
Total other income (expense) 55,452  87,808  159,238  208,064 

Income from continuing operations before provision for income taxes

1,572,2901,259,5622,467,9052,323,356
Provision for income taxes (510,715) (420,985) (819,344) (729,680)
Income from continuing operations 1,061,575  838,577  1,648,561  1,593,676 
 
Discontinued operations:
Gain (loss) from discontinued operations, net of tax---(249,898)
Gain on sale of Words+, net of tax -  -  -  465,820 
Results of discontinued operations -  -  -  215,922 
 
Net Income$1,061,575 $838,577 $1,648,561 $1,809,598 
 
Basic earnings per share:
Continuing operations$0.07$0.05$0.10$0.10
Discontinued operations -  -  -  0.01 
Net basic earning per share$0.07 $0.05 $0.10 $0.11 
Diluted earnings per share
Continuing operations$0.06$0.05$0.10$0.10
Discontinued operations -  -  -  0.01 
Net basic earning per share$0.06 $0.05 $0.10 $0.11 
 
Weighted-average common shares outstanding
Basic16,004,39715,635,89815,965,89015,604,420
Diluted16,336,35315,995,22616,305,23515,957,657
 



Simulations Plus Investor Relations
Ms. Renée Bouché, 661-723-7723
renee@simulations-plus.com
or
Hayden IR
Mr. Cameron Donahue, 651-653-1854
cameron@haydenir.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Simulations Plus Reports Second Quarter and First Six Months FY2013 Financial Results originally appeared on Fool.com.

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