Simulations Plus Reports First Quarter Fiscal 2022 Financial Results
Simulations Plus, a leading modeling and simulation software provider, reported a 16% increase in total revenue for Q1 FY2022, reaching $12.4 million. Software revenue grew 19% to $7.4 million, constituting 59% of total revenue. Net income rose 22% to $3.0 million, with diluted EPS increasing to $0.15. The company announced a quarterly dividend of $0.06 per share, payable on February 7, 2022. CEO Shawn O’Connor expressed confidence in achieving 10-15% revenue growth guidance for the fiscal year, driven by an organic growth strategy and enhancements in software offerings.
- Total revenue increased 16% to $12.4 million.
- Software revenue increased 19% to $7.4 million, contributing 59% to total revenue.
- Net income grew 22% to $3.0 million, with diluted EPS rising to $0.15.
- Adjusted EBITDA reached $5.3 million, representing 42% of total revenue.
- The company maintains a revenue growth guidance of 10-15% for fiscal 2022.
- None.
Total revenue growth of
Board of Directors announces quarterly dividend of
Shawn O’Connor, chief executive officer of
First Quarter Fiscal 2022 Financial Highlights (compared with the corresponding period last fiscal year):
-
Total revenue increased
16% to$12.4 million -
Software revenue increased
19% to$7.4 million 59% of total revenue; -
Services revenue increased
13% to$5.0 million 41% of total revenue; -
Gross profit increased
17% to$9.7 million 78% ; -
Net income and diluted EPS of
$3.0 million $0.15 $2.5 million $0.12 -
Adjusted EBITDA of
$5.3 million 42% of total revenue.
Mr. O’Connor concluded, “Looking forward, we remain focused on our organic growth strategy driven by key initiatives, including investing in our sales and marketing function, cross-selling products and services, and continuing to enhance our industry leading software offerings with new and improved functionality and incremental capabilities. With a software business that continues to generate consistently high growth rates, and a consulting services business that’s growing its pipeline and backlog, we remain confident in achieving our 10
Quarterly Dividend
The company’s Board of Directors declared a cash dividend of
Environmental, Social, and Governance (ESG)
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 ESG Report.
Webcast and Conference Call Details
Shawn O’Connor, chief executive officer, and
Non-GAAP Definition
Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, and any acquisition or financial transaction-related expenses. 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
About
Serving clients worldwide for 25 years,
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 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 and filed with the
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||
| (Unaudited) | |||||||||
Three months ended |
|||||||||
| (in thousands, except per common share amounts) | 2021 |
2020 |
|||||||
| Revenue | |||||||||
| Software | $ |
7,362 |
|
$ |
6,212 |
|
|||
| Services |
|
5,055 |
|
|
4,489 |
|
|||
| Total revenue |
|
12,417 |
|
|
10,701 |
|
|||
| Cost of revenue | |||||||||
| Software |
|
735 |
|
|
812 |
|
|||
| Services |
|
2,021 |
|
|
1,621 |
|
|||
| Total cost of revenue |
|
2,756 |
|
|
2,433 |
|
|||
| Gross profit |
|
9,661 |
|
|
8,268 |
|
|||
| Operating expenses | |||||||||
| Research and development |
|
882 |
|
|
809 |
|
|||
| Selling, general and administrative |
|
4,988 |
|
|
4,408 |
|
|||
| Total operating expenses |
|
5,870 |
|
|
5,217 |
|
|||
| Income from operations |
|
3,791 |
|
|
3,051 |
|
|||
| Other income (expense) | |||||||||
| Interest income |
|
64 |
|
|
61 |
|
|||
| Change in value of contingent consideration |
|
(121 |
) |
|
(121 |
) |
|||
| Gain on sale of assets |
|
1 |
|
|
- |
|
|||
| Gain on currency exchange |
|
121 |
|
|
5 |
|
|||
| Total other income (expense), net |
|
65 |
|
|
(55 |
) |
|||
| Income before income taxes |
|
3,856 |
|
|
2,996 |
|
|||
| Provision for income taxes |
|
(830 |
) |
|
(517 |
) |
|||
| Net Income | $ |
3,026 |
|
$ |
2,479 |
|
|||
| Earnings per share | |||||||||
| Basic | $ |
0.15 |
|
$ |
0.12 |
|
|||
| Diluted | $ |
0.15 |
|
$ |
0.12 |
|
|||
| Weighted-average common shares outstanding | |||||||||
| Basic |
|
20,150 |
|
|
19,930 |
|
|||
| Diluted |
|
20,746 |
|
|
20,799 |
|
|||
| Other comprehensive income (loss), net of tax | |||||||||
| Foreign currency translation adjustments |
|
(237 |
) |
|
- |
|
|||
| Comprehensive income | $ |
2,789 |
|
$ |
2,479 |
||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | (Audited) | |||||||
| (In thousands, except share and per share amounts) | 2021 |
2021 |
||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
41,680 |
|
$ |
36,984 |
|
||
| Accounts receivable, net of allowance for doubtful accounts of |
|
11,823 |
|
|
9,851 |
|
||
| Revenue in excess of billings |
|
1,483 |
|
|
3,150 |
|
||
| Prepaid income taxes |
|
584 |
|
|
1,012 |
|
||
| Prepaid expenses and other current assets |
|
1,676 |
|
|
1,696 |
|
||
| Short-term investments |
|
82,660 |
|
|
86,620 |
|
||
| Total current assets |
|
139,906 |
|
|
139,313 |
|
||
| Long-term assets | ||||||||
| Capitalized computer software development costs, net of accumulated amortization of |
|
8,189 |
|
|
7,646 |
|
||
| Property and equipment, net |
|
2,339 |
|
|
1,838 |
|
||
| Operating lease right of use asset |
|
1,146 |
|
|
1,276 |
|
||
| Intellectual property, net of accumulated amortization of |
|
10,112 |
|
|
10,469 |
|
||
| Other intangible assets, net of accumulated amortization of |
|
6,331 |
|
|
6,464 |
|
||
|
12,921 |
|
|
12,921 |
|
|||
| Other assets |
|
50 |
|
|
51 |
|
||
| Total assets | $ |
180,994 |
|
$ |
179,978 |
|
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
19 |
|
$ |
387 |
|
||
| Accrued payroll and other expenses |
|
3,967 |
|
|
5,604 |
|
||
| Contracts payable - current portion |
|
4,671 |
|
|
4,550 |
|
||
| Billings in excess of revenue |
|
52 |
|
|
117 |
|
||
| Operating lease liability, current portion |
|
338 |
|
|
382 |
|
||
| Deferred revenue |
|
568 |
|
|
534 |
|
||
| Total current liabilities |
|
9,615 |
|
|
11,574 |
|
||
| Long-term liabilities | ||||||||
| Deferred income taxes, net |
|
2,113 |
|
|
1,726 |
|
||
| Operating lease liability |
|
810 |
|
|
896 |
|
||
| Total liabilities |
|
12,538 |
|
|
14,196 |
|
||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Preferred stock, |
|
- |
|
|
- |
|
||
| Common stock, |
|
134,512 |
|
|
133,418 |
|
||
| Retained earnings |
|
34,224 |
|
|
32,407 |
|
||
| Accumulated other comprehensive loss |
|
(280 |
) |
|
(43 |
) |
||
| Total shareholders' equity |
|
168,456 |
|
|
165,782 |
|
||
| Total liabilities and shareholders' equity | $ |
180,994 |
|
$ |
179,978 |
|
||
| Trended Financial Information* | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||||||
| (in millions except earnings per share amounts) | Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Fiscal Year |
Fiscal YTD |
|||||||||||||||||||||
| Software revenue | ||||||||||||||||||||||||||||
| Gastroplus | $ |
3.3 |
|
$ |
4.5 |
|
$ |
5.4 |
|
$ |
3.1 |
|
$ |
4.0 |
|
$ |
16.3 |
|
$ |
4.0 |
|
|||||||
| MonolixSuite |
|
1.2 |
|
|
1.6 |
|
|
0.9 |
|
|
0.8 |
|
|
1.6 |
|
|
4.4 |
|
|
1.6 |
|
|||||||
| ADMET Predictor |
|
1.2 |
|
|
1.2 |
|
|
1.5 |
|
|
1.2 |
|
|
1.5 |
|
|
5.0 |
|
|
1.5 |
|
|||||||
| Other |
|
0.5 |
|
|
0.6 |
|
|
0.5 |
|
|
0.3 |
|
|
0.3 |
|
|
1.9 |
|
|
0.3 |
|
|||||||
| Total software revenue | $ |
6.2 |
|
$ |
7.8 |
|
$ |
8.3 |
|
$ |
5.4 |
|
$ |
7.4 |
|
$ |
27.7 |
|
$ |
7.4 |
|
|||||||
| Services revenue | ||||||||||||||||||||||||||||
| PKPD | $ |
2.2 |
|
$ |
2.6 |
|
$ |
1.9 |
|
$ |
2.3 |
|
$ |
2.3 |
|
$ |
9.1 |
|
$ |
2.3 |
|
|||||||
| QSP/QST |
|
1.1 |
|
|
1.7 |
|
|
1.2 |
|
|
1.1 |
|
|
1.5 |
|
|
5.1 |
|
|
1.5 |
|
|||||||
| PBPK |
|
0.6 |
|
|
0.9 |
|
|
0.7 |
|
|
0.7 |
|
|
0.9 |
|
|
3.0 |
|
|
0.9 |
|
|||||||
| Other |
|
0.5 |
|
|
- |
|
|
0.6 |
|
|
0.3 |
|
|
0.4 |
|
|
1.4 |
|
|
0.4 |
|
|||||||
| Total services revenue | $ |
4.5 |
|
$ |
5.3 |
|
$ |
4.4 |
|
$ |
4.4 |
|
$ |
5.1 |
|
$ |
18.8 |
|
$ |
5.1 |
|
|||||||
| Total consolidated revenue | $ |
10.7 |
|
$ |
13.1 |
|
$ |
12.8 |
|
$ |
9.8 |
|
$ |
12.4 |
|
$ |
46.5 |
|
$ |
12.4 |
|
|||||||
| Gross Margin | ||||||||||||||||||||||||||||
| Software |
|
86.9 |
% |
|
89.0 |
% |
|
90.0 |
% |
|
85.0 |
% |
|
90.0 |
% |
|
88.0 |
% |
|
90.0 |
% |
|||||||
| Services |
|
63.9 |
% |
|
61.0 |
% |
|
63.0 |
% |
|
55.0 |
% |
|
60.0 |
% |
|
61.0 |
% |
|
60.0 |
% |
|||||||
| Total |
|
77.3 |
% |
|
77.9 |
% |
|
80.7 |
% |
|
71.7 |
% |
|
77.8 |
% |
|
77.2 |
% |
|
77.8 |
% |
|||||||
| Income from operations | $ |
3.1 |
|
$ |
3.5 |
|
$ |
4.5 |
|
$ |
0.2 |
|
$ |
3.8 |
|
$ |
11.3 |
|
$ |
3.8 |
|
|||||||
| Operating Margin |
|
28.5 |
% |
|
26.6 |
% |
|
35.6 |
% |
|
1.8 |
% |
|
30.5 |
% |
|
24.2 |
% |
|
30.5 |
% |
|||||||
| Net Income | $ |
2.5 |
|
$ |
3.2 |
|
$ |
3.8 |
|
$ |
0.3 |
|
$ |
3.0 |
|
$ |
9.8 |
|
$ |
3.0 |
|
|||||||
| Diluted Earnings Per Share | $ |
0.12 |
|
$ |
0.15 |
|
$ |
0.18 |
|
$ |
0.01 |
|
$ |
0.15 |
|
$ |
0.47 |
|
$ |
0.15 |
|
|||||||
| Adjusted EBITDA | $ |
4.3 |
|
$ |
5.0 |
|
$ |
5.9 |
|
$ |
1.7 |
|
$ |
5.3 |
|
|
16.9 |
|
$ |
5.3 |
|
|||||||
| Cash Flow from Operations | $ |
5.3 |
|
$ |
1.3 |
|
$ |
4.3 |
|
$ |
8.3 |
|
$ |
3.6 |
|
|
19.2 |
|
$ |
3.6 |
|
|||||||
| Revenue Breakdown by Region | ||||||||||||||||||||||||||||
$ |
7.1 |
|
$ |
8.7 |
|
$ |
9.7 |
|
$ |
7.1 |
|
$ |
8.5 |
|
|
32.5 |
|
$ |
8.5 |
|
||||||||
| EMEA |
|
2.5 |
|
|
3.1 |
|
|
1.5 |
|
|
0.9 |
|
|
3.0 |
|
|
7.9 |
|
|
3.0 |
|
|||||||
|
1.1 |
|
|
1.4 |
|
|
1.7 |
|
|
1.8 |
|
|
0.9 |
|
|
6.0 |
|
|
0.9 |
|
||||||||
| Total consolidated revenue | $ |
10.7 |
|
$ |
13.1 |
|
$ |
12.8 |
|
$ |
9.8 |
|
$ |
12.4 |
|
$ |
46.6 |
|
$ |
12.4 |
|
|||||||
| Software Performance Metrics | ||||||||||||||||||||||||||||
| Average Revenue per Customer (in thousands) | ||||||||||||||||||||||||||||
| Commercial | $ |
74.0 |
|
$ |
84.0 |
|
$ |
98.0 |
|
$ |
65.0 |
|
$ |
71.0 |
|
|||||||||||||
| Services Performance Metrics | ||||||||||||||||||||||||||||
| Backlog | $ |
12.0 |
|
$ |
11.2 |
|
$ |
12.4 |
|
$ |
13.0 |
|
$ |
15.4 |
|
|||||||||||||
| *Numbers may not add due to rounding | ||||||||||||||||||||||||||||
| Reconciliation of Adjusted EBITDA to Net Income | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||||||||||||||||||||||
| (in millions) | Q1 | Q2 | Q3 | Q4 | Q1 | Fiscal Year | Fiscal YTD | |||||||||||||||||||||||||||||
| Net Income | $ |
2.5 |
|
$ |
3.2 |
|
$ |
3.8 |
|
$ |
0.3 |
|
$ |
3.0 |
|
$ |
9.8 |
|
$ |
3.0 |
|
|||||||||||||||
| Excluding: | ||||||||||||||||||||||||||||||||||||
| Interest income and expense, net |
|
(0.1 |
) |
|
(0.0 |
) |
|
(0.0 |
) |
|
(0.0 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
(0.1 |
) |
|||||||||||||||
| Provision for income taxes |
|
0.5 |
|
|
0.2 |
|
|
0.7 |
|
|
(0.1 |
) |
|
0.8 |
|
|
1.3 |
|
|
0.8 |
|
|||||||||||||||
| Depreciation and amortization |
|
0.9 |
|
|
0.9 |
|
|
0.9 |
|
|
1.0 |
|
|
0.8 |
|
|
3.6 |
|
|
0.8 |
|
|||||||||||||||
| Stock-based compensation |
|
0.5 |
|
|
0.7 |
|
|
0.6 |
|
|
0.6 |
|
|
0.6 |
|
|
2.4 |
|
|
0.6 |
|
|||||||||||||||
| Adjusted EBITDA | $ |
4.3 |
|
$ |
5.0 |
|
$ |
5.9 |
|
$ |
1.7 |
|
$ |
5.3 |
|
$ |
16.9 |
|
$ |
5.3 |
|
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220106005398/en/
Investor Relations Contacts:
Simulations Plus Investor Relations
661-723-7723
renee.bouche@simulations-plus.com
Hayden IR
346-396-8696
brian@haydenir.com
Source:
FAQ
What were Simulations Plus' financial results for Q1 FY2022?
What is the EPS for Simulations Plus for the first quarter of fiscal 2022?
What is the quarterly dividend declared by Simulations Plus?
What is the revenue growth guidance for Simulations Plus in fiscal 2022?
