Simulations Plus Reports Third Quarter and First Nine Months FY2013 Financial Results

Simulations Plus Reports Third Quarter and First Nine Months FY2013 Financial Results

Third quarter net sales increase 11.7%; net income up 14.3%

LANCASTER, Calif.--(BUSINESS WIRE)-- Simulations Plus, Inc. (NAS: SLP) , a leading provider of simulation and modeling software for pharmaceutical discovery and development, reported financial results for its third quarter of fiscal year 2013, the period ended May 31, 2013 (3QFY13).

3QFY13 highlights compared with 3QFY12:

• Net sales increased 11.7% to new third quarter record of $3.095 million from $2.772 million

• This was the Company's 23^rd consecutive profitable quarter, and the 45^th of the last 47 quarters

• Gross profit increased 13.2% to $2.643 million from $2.334 million

• SG&A increased 1.4% to $0.904 million from $0.891 million

  • As a percent of revenues, SG&A decreased to 29.2% from 32.2%

• R&D expense decreased 9.5% to $206,000 from $228,000

• Income before taxes from continuing operations increased 19.7% to $1.546 million from $1.292 million

• Provision for income taxes increased 30.8% to $0.553 million from $0.423 million

• Net income from continuing operations increased 14.3% to $0.993 million from $0.869 million

• Diluted earnings per share increased 14.3% to $0.061 from $0.053 in 3QFY12

• Cash at the end of the third fiscal quarter was $10.005 million after our recent dividend distributions

  • Approximately $796,000 was distributed in November 2012

  • Approximately $2,243,000 was distributed in December 2012

  • Approximately $480,000 was distributed in May 2013

  • Cash as of July 7 was $10.322 million

• Shareholders' equity at the end of the quarter was $14.461 million

  • This is a decrease of $0.944 million from $15.143 million at the end of 3QFY12

  • This decrease was after dividend distributions of approximately $5.4 million during calendar 2012 and $0.48 million in May 2013

For the first nine months of fiscal year 2013 (9moFY13) compared to the first nine months of fiscal year 2012 (9moFY12):

• Net sales increased 8.9% to a new nine-month record $8.503 million from $7.809 million

• Gross profit increased 8.2% to $7.165 million from $6.622 million

• SG&A increased 5.6% to $2.690 million from $2.548 million

  • As a percent of revenues, SG&A decreased to 31.6% from 32.6%

• R&D expense decreased 14.8% to $634,000 from $745,000

  • Completion of the Company's malaria NCE project reduced R&D expenditures in the current year

• Income before taxes increased 11.0% to $4.014 million from $3.615 million

• Provision for income taxes increased 19.1% to $1.372 million from $1.152 million

• Net income from continuing operations increased 7.3% to $2.642 million from $2.463 million

• For 9moFY13, earnings per share from continuing operations increased 5.7% to $0.162 per share from $0.153 per share

• Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, net income for 9moFY12 was $2.679 million

• Including the $0.216 million net proceeds from the sale of the former Words+ subsidiary last year, total diluted earnings per share for 9moFY12 was $0.167

Ms. Momoko Beran, chief financial officer of Simulations Plus, said: "For the third quarter of fiscal year 2013, Simulations Plus delivered revenue growth of nearly 12% and continued high gross margins, exceeding 84%. As a result, net income increased 14.3% despite a substantial increase in income tax rates and a decrease on other income of over $100,000. After distributing cash dividends of approximately $5.4 million to our shareholders during calendar 2012 and another $480,000 in May 2013, our cash position remains strong, and we continue to have no debt. Cash as of July 7 was $10.322 million."

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: "The third quarter continues our trend of setting new quarterly records each fiscal quarter. During 3QFY13, we added 16 new customers, had 94% renewals, and increased our collaboration funding by $91,250, while consulting revenues increased $73,500. We attended a total of 19 scientific meetings and conferences, conducted 8 training workshops, including training over 20 scientists at the U.S. FDA and 15 at the U.S. EPA."

Investor Conference Call

The Company has announced an investor conference call that will be webcast live at 1:15 PDT/4:15 PM EDT Thursday, July 11, 2013, which may be accessed by first 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 (702) 489-0004, and enter access code 571-860-333.

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.

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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 U.S. Securities and Exchange Commission.