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Nov 16, 2020
  |  Press Release

Simulations Plus Reports Fourth Quarter FY2020 Financial Results

LANCASTER, Calif.–(BUSINESS WIRE)– Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its 2020 fiscal year (FY20) and fourth quarter (4QFY20) ended August 31, 2020.

Full Year FY20 highlights compared with Full Year FY19:

  • Revenues were $41.6 million, up 22.4% over $34.0 million in FY19
  • Gross profit was up 24.0%, or $6.0 million, to $30.9 million, from $24.9 million in FY19
  • SG&A was $16.4 million, an increase of $4.6 million, or 38.7%, over $11.8 million
  • Total R&D expenditures were $5.3 million, an increase of $1.0 million, or 24.8% over $4.3 million
    • For FY20, $2.4 million was capitalized and $3.0 million was expensed
    • For FY19, $1.8 million was capitalized and $2.5 million was expensed
  • Income before taxes increased 7.9% to $11.4 million, an increase of $831,000 over $10.6 million
  • Net income increased 8.7% to $9.3 million, an increase of $749,000 from $8.6 million
  • Diluted earnings per share increased $0.02 to $0.50 from $0.48. One-time transaction costs related to the Lixoft acquisition of $1.4 million (approx. $1.1 million net of tax) effected a $0.06 decrease in diluted earnings per share
  • Cash, cash equivalents, and short-term investments were $116.0 million, compared to $11.4 million at the end of FY19 reflecting the follow-on offering completed on August 10, 2020

4QFY20 highlights compared with 4QFY19:

  • Revenues increased 18.9% to $9.5 million, an increase of $1.5 million over $8.0 million
  • Gross profit was up 19.7% to $6.9 million, an increase of $1.1 million over $5.7 million
  • SG&A was $3.7 million, an increase of 16.7%, or $531,000, over $3.2 million
  • Total R&D expenditures were $1.6 million, an increase of $559,000, or 55.4%, over $1.0 million
    • For 4QFY20, $621,000 was capitalized and $948,000 was expensed
    • For 4QFY19, $406,000 was capitalized and $603,000 was expensed
  • Income before taxes increased 2.6%, or $51,000, and remained at $2.0 million
  • Net income increased 6.3% to $2.2 million, an increase of $129,000 over $2.1 million
  • Earnings per fully diluted share remained unchanged at $0.11

Shawn O’Connor, chief executive officer of Simulations Plus, said: “Simulations Plus achieved its goal of accelerating organic growth to 15-20%, overcoming headwinds from the COVID-19 pandemic due to continued strong growth from both our software and consulting revenue streams. Our future growth prospects were bolstered by a significant acquisition to expand our software business, growing our European presence, and the recent introductions of new software versions as well as the launch of several important collaborations. We continue to invest in R&D, funded both internally and from leading pharmaceutical and regulatory agencies, building on our leadership position in modelling and simulation for the drug development marketplace.”

John Kneisel, chief financial officer of Simulations Plus, added: “During the fourth quarter, we completed a strategic offering, issuing approximately 2.1 million shares and raising net proceeds of approximately $107.7 million. This follow-on offering gives the Company resources and scale to pursue additional acquisitions to further bolster our growth rates and broaden the value we can deliver to our clients. Once again, in the fourth quarter we benefited from tax deductions from stock compensation expense as employees took advantage of the increased value of their options. Overall, we continue to generate solid profitability and free cash flow, even after paying our regular quarterly dividend.”

For a condensed consolidated statement of operations & consildated balance sheets table visit businesswire.com

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