Simulations Plus Reports Second Quarter Fiscal 2024 Financial Results

Simulations Plus Reports Second Quarter Fiscal 2024 Financial Results




Simulations Plus Reports Second Quarter Fiscal 2024 Financial Results

Total revenue of $18.3 million and diluted earnings per share (EPS) of $0.20

Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68

LANCASTER, Calif.–(BUSINESS WIRE)–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 second quarter fiscal 2024, ended February 29, 2024.


Second Quarter 2024 Financial Highlights (compared to second quarter 2023)

  • Total revenue increased 16% to $18.3 million
  • Software revenue increased 11% to $11.6 million, representing 63% of total revenue
  • Services revenue increased 27% to $6.7 million, representing 37% of total revenue
  • Gross profit increased to $13.2 million; gross margin was 72%
  • Adjusted EBITDA of $7.1 million, representing 39% of total revenue
  • Net income of $4.0 million and diluted earnings per share (EPS) of $0.20 versus net income of $4.2 million and diluted EPS of $0.20

Six Months 2024 Financial Highlights (compared to six months 2023)

  • Total revenue increased 18% to $32.8 million
  • Software revenue increased 16% to $19.2 million
  • Services revenue increased 22% to $13.6 million
  • Gross profit increased 3% to $23.1 million; gross margin was 70%
  • Adjusted EBITDA of $10.5 million, representing 32% of total revenue
  • Net income of $6.0 million and diluted EPS of $0.29 versus net income of $5.4 million and diluted EPS of $0.26

Management Commentary

“Our second quarter results reflected strong performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 16%, driven by higher software revenues in our Clinical Pharmacology & Pharmacometrics (CPP) business unit and the Cheminformatics business unit, whose ADMET Predictor® platform continued to gain adoption and added another new Artificial Intelligence (AI) biotech customer in the second quarter. Services revenue growth was primarily driven by higher revenues in our Quantitative Systems Pharmacology (QSP) and Physiologically Based Pharmacokinetics (PBPK) business units.

“Since the beginning of calendar 2024, we have seen encouraging signs in biotech funding with notable strength from biotech companies that have candidates undergoing clinical trials. Regarding large pharmaceutical companies, funding continues to vary depending on their near-term direction and business outlook, but the overall market is healthier compared to a year ago. For the balance of 2024, we remain cautiously optimistic that demand for our comprehensive suite of modeling and simulation software products and services will continue to gain momentum as the funding environment improves.

“During the quarter, we also launched our corporate development initiative to intensify our focus on strategic investments and partnerships in early-state technology companies. While strategic acquisitions to complement organic growth remain a priority, we believe there are hidden gems among early-stage companies developing high-potential technologies. We believe that our ability to identify and evaluate commercial applications for emerging technologies will complement our own R&D efforts and position Simulations Plus at the forefront of innovation.

“Our strong performance in the first half of the year, combined with market improvement, puts us on track to achieve our guidance for fiscal 2024. We entered the third quarter with a healthy pipeline and a solid balance sheet, and we are confident that Simulations Plus is firmly positioned to advance its critical role in drug development workflow. Our unwavering focus remains on delivering disciplined growth and achieving 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 May 6, 2024, to shareholders of record as of April 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 website to read our 2023 ESG update.

Webcast and Conference Call Details

Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operations 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 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. 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 www.simulations-plus.com. Follow us on LinkedIn | X | 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

 

Six Months Ended

(in thousands, except per common share amounts)

 

February 29,

2024

 

February 28,

2023

 

February 29,

2024

 

February 28,

2023

Revenues

 

 

 

 

 

 

 

 

Software

 

$

11,614

 

 

$

10,487

 

 

$

19,203

 

 

$

16,561

 

Services

 

 

6,691

 

 

 

5,263

 

 

 

13,602

 

 

 

11,153

 

Total revenues

 

 

18,305

 

 

 

15,750

 

 

 

32,805

 

 

 

27,714

 

Cost of revenues

 

 

 

 

 

 

 

 

Software

 

 

1,348

 

 

 

843

 

 

 

2,339

 

 

 

1,728

 

Services

 

 

3,736

 

 

 

1,777

 

 

 

7,397

 

 

 

3,563

 

Total cost of revenues

 

 

5,084

 

 

 

2,620

 

 

 

9,736

 

 

 

5,291

 

Gross profit

 

 

13,221

 

 

 

13,130

 

 

 

23,069

 

 

 

22,423

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development

 

 

1,312

 

 

 

1,317

 

 

 

2,529

 

 

 

2,483

 

Sales and marketing

 

 

1,949

 

 

 

1,730

 

 

 

3,938

 

 

 

3,215

 

General and administrative

 

 

5,518

 

 

 

6,049

 

 

 

11,200

 

 

 

11,813

 

Total operating expenses

 

 

8,779

 

 

 

9,096

 

 

 

17,667

 

 

 

17,511

 

Income from operations

 

 

4,442

 

 

 

4,034

 

 

 

5,402

 

 

 

4,912

 

Other income

 

 

810

 

 

 

1,034

 

 

 

2,256

 

 

 

1,774

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

5,252

 

 

 

5,068

 

 

 

7,658

 

 

 

6,686

 

Provision for income taxes

 

 

(1,223

)

 

 

(894

)

 

 

(1,684

)

 

 

(1,267

)

Net income

 

$

4,029

 

 

$

4,174

 

 

$

5,974

 

 

$

5,419

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

 

$

0.21

 

 

$

0.30

 

 

$

0.27

 

Diluted

 

$

0.20

 

 

$

0.20

 

 

$

0.29

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

19,975

 

 

 

20,112

 

 

 

19,961

 

 

 

20,200

 

Diluted

 

 

20,315

 

 

 

20,529

 

 

 

20,288

 

 

 

20,657

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(15

)

 

 

(23

)

 

 

(69

)

 

 

30

 

Comprehensive income

 

$

4,014

 

 

$

4,151

 

 

$

5,905

 

 

$

5,449

 

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

(Unaudited)

 

(Audited)

(in thousands, except share and per share amounts)

 

February 29,

2024

 

August 31,

2023

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

37,031

 

 

$

57,523

 

Accounts receivable, net of allowance for credit losses of $30 and $46

 

 

13,114

 

 

 

10,201

 

Prepaid income taxes

 

 

1,364

 

 

 

804

 

Prepaid expenses and other current assets

 

 

4,975

 

 

 

3,904

 

Short-term investments

 

 

71,473

 

 

 

57,940

 

Total current assets

 

 

127,957

 

 

 

130,372

 

Long-term assets

 

 

 

 

Capitalized computer software development costs, net of accumulated amortization of $17,962 and $17,199

 

 

12,333

 

 

 

11,335

 

Property and equipment, net

 

 

843

 

 

 

671

 

Operating lease right-of-use assets

 

 

1,062

 

 

 

1,247

 

Intellectual property, net of accumulated amortization of $10,117 and $9,301

 

 

7,873

 

 

 

8,689

 

Other intangible assets, net of accumulated amortization of $2,606 and $2,107

 

 

12,935

 

 

 

12,825

 

Goodwill

 

 

19,099

 

 

 

19,099

 

Long-term investments

 

 

9,024

 

 

 

 

Deferred tax assets

 

 

2,323

 

 

 

1,438

 

Other assets

 

 

524

 

 

 

425

 

Total assets

 

$

193,973

 

 

$

186,101

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

360

 

 

$

144

 

Accrued compensation

 

 

3,184

 

 

 

4,392

 

Accrued expenses

 

 

2,992

 

 

 

659

 

Contracts payable

 

 

5,110

 

 

 

3,250

 

Operating lease liability – current portion

 

 

425

 

 

 

442

 

Deferred revenue

 

 

2,457

 

 

 

3,100

 

Total current liabilities

 

 

14,528

 

 

 

11,987

 

Long-term liabilities

 

 

 

 

Operating lease liability

 

 

607

 

 

 

755

 

Contracts payable – net of current portion

 

 

1,800

 

 

 

3,330

 

Total liabilities

 

 

16,935

 

 

 

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; 19,983,703 and 19,937,961 shares issued and outstanding

 

 

148,472

 

 

 

144,974

 

Retained earnings

 

 

28,776

 

 

 

25,196

 

Accumulated other comprehensive loss

 

 

(210

)

 

 

(141

)

Total shareholders’ equity

 

 

177,038

 

 

 

170,029

 

Total liabilities and shareholders’ equity

 

$

193,973

 

 

$

186,101

 

SIMULATIONS PLUS, INC.

Trended Financial Information*

(Unaudited)

 

(in millions except earnings per share amounts)

 

 

 

FY 2022

 

FY 2023

 

FY 2024

 

FY

2022

 

FY

2023

 

FY

2024

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Full

Year

 

Full

Year

 

YTD

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

$

7.4

 

 

$

9.8

 

 

$

9.6

 

 

$

5.9

 

 

$

6.1

 

 

$

10.5

 

 

$

10.6

 

 

$

9.3

 

 

$

7.6

 

 

$

11.6

 

 

$

32.7

 

 

$

36.5

 

 

$

19.2

 

Services

 

 

5.0

 

 

 

5.0

 

 

 

5.3

 

 

 

5.8

 

 

 

5.9

 

 

 

5.3

 

 

 

5.6

 

 

 

6.3

 

 

 

6.9

 

 

 

6.7

 

 

 

21.2

 

 

 

23.1

 

 

 

13.6

 

Total

 

$

12.4

 

 

$

14.8

 

 

$

15.0

 

 

$

11.7

 

 

$

12.0

 

 

$

15.8

 

 

$

16.2

 

 

$

15.6

 

 

$

14.5

 

 

$

18.3

 

 

$

53.9

 

 

$

59.6

 

 

$

32.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

 

90.0

%

 

 

92.0

%

 

 

92.4

%

 

 

86.1

%

 

 

85.4

%

 

 

92.0

%

 

 

91.5

%

 

 

89.4

%

 

 

86.9

%

 

 

88.4

%

 

 

90.6

%

 

 

90.1

%

 

 

87.8

%

Services

 

 

60.0

%

 

 

59.3

%

 

 

65.6

%

 

 

68.2

%

 

 

69.7

%

 

 

66.2

%

 

 

63.4

%

 

 

62.1

%

 

 

47.0

%

 

 

44.2

%

 

 

63.5

%

 

 

65.3

%

 

 

45.6

%

Total

 

 

77.8

%

 

 

80.9

%

 

 

82.9

%

 

 

77.2

%

 

 

77.7

%

 

 

83.4

%

 

 

81.8

%

 

 

78.4

%

 

 

67.9

%

 

 

72.2

%

 

 

79.9

%

 

 

80.5

%

 

 

70.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

3.8

 

 

$

5.5

 

 

$

4.9

 

 

$

0.7

 

 

$

0.9

 

 

$

4.0

 

 

$

4.1

 

 

$

(0.3

)

 

$

1.0

 

 

$

4.4

 

 

$

14.9

 

 

$

8.7

 

 

$

5.4

 

Operating Margin

 

 

30.6

%

 

 

37.0

%

 

 

33.1

%

 

 

5.9

%

 

 

7.3

%

 

 

25.6

%

 

 

25.2

%

 

 

-1.8

%

 

 

6.6

%

 

 

24.3

%

 

 

27.7

%

 

 

14.6

%

 

 

16.5

%

Net Income

 

$

3.0

 

 

$

4.4

 

 

$

4.1

 

 

$

1.0

 

 

$

1.2

 

 

$

4.2

 

 

$

4.0

 

 

$

0.5

 

 

$

1.9

 

 

$

4.0

 

 

$

12.5

 

 

$

10.0

 

 

$

6.0

 

Diluted Earnings Per Share

 

$

0.15

 

 

$

0.21

 

 

$

0.20

 

 

$

0.05

 

 

$

0.06

 

 

$

0.20

 

 

$

0.20

 

 

$

0.03

 

 

$

0.10

 

 

$

0.20

 

 

$

0.60

 

 

$

0.49

 

 

$

0.29

 

Adjusted EBITDA

 

$

5.3

 

 

$

7.2

 

 

$

6.5

 

 

$

2.5

 

 

$

3.0

 

 

$

6.2

 

 

$

6.5

 

 

$

4.9

 

 

$

3.4

 

 

$

7.1

 

 

$

21.5

 

 

$

20.6

 

 

$

10.5

 

Adjusted Diluted EPS

 

$

0.15

 

 

$

0.21

 

 

$

0.20

 

 

$

0.06

 

 

$

0.07

 

 

$

0.21

 

 

$

0.21

 

 

$

0.18

 

 

$

0.10

 

 

$

0.20

 

 

$

0.61

 

 

$

0.67

 

 

$

0.10

 

Cash Flow from Operations

 

$

3.6

 

 

$

2.6

 

 

$

3.8

 

 

$

7.9

 

 

$

4.7

 

 

$

5.5

 

 

$

8.5

 

 

$

3.1

 

 

$

0.2

 

 

$

5.8

 

 

$

17.9

 

 

$

21.9

 

 

$

6.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Breakdown by Region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

8.5

 

 

$

9.7

 

 

$

11.2

 

 

$

8.4

 

 

$

8.5

 

 

$

10.6

 

 

$

10.8

 

 

$

11.0

 

 

$

10.9

 

 

$

12.5

 

 

$

37.7

 

 

$

40.8

 

 

$

23.4

 

EMEA

 

 

3.0

 

 

 

3.7

 

 

 

1.9

 

 

 

1.7

 

 

 

2.1

 

 

 

3.6

 

 

 

3.4

 

 

 

2.6

 

 

 

2.3

 

 

 

4.7

 

 

 

10.4

 

 

 

11.7

 

 

 

7.0

 

Asia Pacific

 

 

0.9

 

 

 

1.4

 

 

 

1.9

 

 

 

1.6

 

 

 

1.3

 

 

 

1.5

 

 

 

2.1

 

 

 

2.1

 

 

 

1.3

 

 

 

1.2

 

 

 

5.8

 

 

 

7.0

 

 

 

2.5

 

Total

 

$

12.4

 

 

$

14.8

 

 

$

15.0

 

 

$

11.7

 

 

$

12.0

 

 

$

15.8

 

 

$

16.2

 

 

$

15.6

 

 

$

14.5

 

 

$

18.3

 

 

$

53.9

 

 

$

59.6

 

 

$

32.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software Performance Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Revenue per Customer (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

$

71

 

 

$

101

 

 

$

95

 

 

$

65

 

 

$

68

 

 

$

110

 

 

$

97

 

 

$

88

 

 

$

79

 

 

$

113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services Performance Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Backlog (in millions)

 

$

15.4

 

 

$

17.0

 

 

$

16.7

 

 

$

15.9

 

 

$

15.8

 

 

$

15.4

 

 

$

15.7

 

 

$

19.5

 

 

$

18.9

 

 

$

18.0

 

 

 

 

 

 

 

 

*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

 

FY

2022

 

FY

2023

 

FY

2024

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Full

Year

 

Full

Year

 

YTD

Net Income

 

$

3.0

 

 

$

4.4

 

 

$

4.1

 

 

$

1.0

 

 

$

1.2

 

 

$

4.2

 

 

$

4.0

 

 

$

0.5

 

 

$

1.9

 

 

$

4.0

 

 

$

12.5

 

 

$

10.0

 

 

$

6.0

 

Excluding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and expense, net

 

 

(0.1

)

 

 

(0.1

)

 

 

(0.1

)

 

 

(0.4

)

 

 

(0.8

)

 

 

(1.0

)

 

 

(1.1

)

 

 

(1.3

)

 

 

(1.3

)

 

 

(1.3

)

 

 

(0.7

)

 

 

(4.1

)

 

 

(2.6

)

Provision for income taxes

 

 

0.8

 

 

 

1.1

 

 

 

0.7

 

 

 

(0.1

)

 

 

0.4

 

 

 

0.9

 

 

 

0.9

 

 

 

(0.5

)

 

 

0.5

 

 

 

1.2

 

 

 

2.6

 

 

 

1.7

 

 

 

1.7

 

Depreciation and amortization

 

 

0.8

 

 

 

1.0

 

 

 

0.9

 

 

 

0.9

 

 

 

0.9

 

 

 

0.9

 

 

 

0.9

 

 

 

1.1

 

 

 

1.1

 

 

 

1.1

 

 

 

3.6

 

 

 

3.9

 

 

 

2.2

 

Stock-based compensation

 

 

0.6

 

 

 

0.7

 

 

 

0.7

 

 

 

0.7

 

 

 

0.9

 

 

 

1.2

 

 

 

1.1

 

 

 

1.1

 

 

 

1.3

 

 

 

1.6

 

 

 

2.7

 

 

 

4.2

 

 

 

2.9

 

(Gain) loss on currency exchange

 

 

(0.1

)

 

 

(0.1

)

 

 

0.2

 

 

 

0.2

 

 

 

 

 

 

 

 

 

0.3

 

 

 

0.2

 

 

 

 

 

 

0.1

 

 

 

0.2

 

 

 

0.5

 

 

 

0.1

 

Impairment of other intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

0.5

 

 

 

 

Change in value of contingent consideration

 

 

0.1

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.7

 

 

 

(0.1

)

 

 

0.4

 

 

 

0.3

 

 

 

0.7

 

 

 

0.3

 

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

 

 

$

7.1

 

 

$

21.5

 

 

$

20.6

 

 

$

10.5

 

 

*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

 

FY

2022

 

FY

2023

 

FY

2024

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Full

Year

 

Full

Year

 

YTD

Net Income (GAAP)

 

$

3.0

 

$

4.4

 

$

4.1

 

$

1.0

 

 

$

1.2

 

 

$

4.2

 

$

4.0

 

 

$

0.5

 

 

$

1.9

 

$

4.0

 

$

12.5

 

 

$

10.0

 

 

$

6.0

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

 

 

$

4.0

 

 

$

12.8

 

 

$

13.8

 

 

$

6.0

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

20.7

 

 

 

20.7

 

 

 

20.8

 

 

 

20.9

 

 

 

20.8

 

 

 

20.5

 

 

 

20.4

 

 

 

20.4

 

 

 

20.3

 

 

 

20.3

 

 

 

20.7

 

 

 

20.5

 

 

 

20.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS (GAAP)

 

$

0.15

 

 

$

0.21

 

 

$

0.20

 

 

$

0.05

 

 

$

0.06

 

 

$

0.20

 

 

$

0.20

 

 

$

0.03

 

 

$

0.10

 

 

$

0.20

 

 

$

0.60

 

 

$

0.49

 

 

$

0.29

 

Adjusted Diluted EPS (Non-GAAP)

 

$

0.15

 

 

$

0.21

 

 

$

0.20

 

 

$

0.06

 

 

$

0.07

 

 

$

0.21

 

 

$

0.21

 

 

$

0.18

 

 

$

0.10

 

 

$

0.20

 

 

$

0.61

 

 

$

0.67

 

 

$

0.29

 

 

*Numbers may not add due to rounding

 

Contacts

Investor Relations Contacts:

Lisa Fortuna

Financial Profiles

310-622-8251

slp@finprofiles.com

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

renee.bouche@simulations-plus.com