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Forward Reports Fiscal 2015 Third Quarter Results

20:00 EDT 10 Aug 2015 | Globe Newswire

WEST PALM BEACH, Fla., Aug. 11, 2015 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its third fiscal quarter ended June 30, 2015.

Third Quarter 2015 Financial Highlights

  • Revenues were $7.2 Million.   
     
  • Gross profit percentage increased to 18.6% from 18.3% in the third quarter of 2014.
     
  • Income from Operations was $494 thousand up from $32 thousand from the third quarter of 2014.
     
  • Net Income was $496 thousand up from $20 thousand from the third quarter of 2014.
     
  • Earnings per share were $0.06 per share compared to $0.00 per share for the third quarter of 2014.
     
  • Cash and cash equivalents totaled $4.3 million at June 30, 2015.


Terry Wise, Chief Executive Officer of Forward Industries, stated, “Over the last two quarters we've cleaned up all the legacy legal issues, right sized the company and are clearly focused on rebuilding the business to success.  While we experienced a decline in revenues, we are encouraged that we were able to increase our gross profit margin in an industry that sees significant cost pressure daily.  Our cash balance increased $1.5 million during the quarter, which reflects the impact of our right sizing of the company and strict cash controls.  Going forward, our focus is now to expand our customer base and broaden our product offering to both new and existing customers."

The tables below are derived from the Company’s unaudited condensed consolidated financial statements included in its Quarterly Report on Form 10-Q filed today with the Securities and Exchange Commission. Please refer to the Form 10-K for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal years ended September 30, 2014 and 2013. Please also refer to the Form 10-K for a discussion of risk factors applicable to the Company and its business.

Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect Forward’s current expectations and projections about its future results, performance, prospects and opportunities.  Forward has tried to identify these forward-looking statements by using words such as “may,” “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions.  These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities in the 2015 quarter and beyond to differ materially from those expressed in, or implied by, these forward-looking statements.  No assurance can be given that the actual results will be consistent with the forward-looking statements.  Investors should read carefully the factors described in the “Risk Factors” section of the Company’s filings with the SEC, including the Company’s Form 10-K for the year ended September 30, 2014 for information regarding risk factors that could affect the Company’s results.  Except as otherwise required by Federal securities laws, Forward undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

About Forward Industries
Incorporated in 1962, and headquartered West Palm Beach, Florida, Forward Industries is a global designer and distributor of mobile device cases and accessories. Forward’s products can be viewed online at www.forwardindustries.com.


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES   
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME   
(UNAUDITED)   
         
  Three Months Ended June 30,   Nine Months Ended June 30,    
  2015   2014   2015   2014    
           
Net sales$  7,230,953  $  9,065,568  $  22,422,152  $  24,180,926    
Cost of goods sold   5,883,174     7,399,430     18,160,131     19,265,957    
Gross profit   1,347,779     1,666,138     4,262,021     4,914,969    
           
Operating expenses:          
Sales and marketing   497,961     708,793     1,876,046     2,050,740    
General and administrative   355,661     925,659     4,163,344     2,594,382    
Total operating expenses   853,622     1,634,452     6,039,390     4,645,122    
           
Income (loss) from operations   494,157     31,686     (1,777,369)    269,847    
           
Other (income) expense:          
Interest income   -      (8,037)    (3,022)    (25,767)   
(Gain) loss on marketable securities, net   -      (8,904)    110,001     30,528    
Loss on change in fair value of warrant liability   -      -      -      136,258    
Other (income) expense, net   (953)    7,401     8,994     23,403    
Total other (income) expense, net   (953)    (9,540)    115,973     164,422    
           
Income (loss) from continuing operations   495,110     41,226     (1,893,342)    105,425    
Income (loss) from discontinued operations, net   -      (21,317)    198,963     (35,103)   
Net income (loss)   495,110     19,909     (1,694,379)    70,322    
Preferred stock dividends and accretion   -      (48,100)    (475,580)    (144,571)   
Net income (loss) applicable to common equity $  495,110  $  (28,191) $  (2,169,959) $  (74,249)   
           
Net income (loss)$  495,110  $  19,909  $  (1,694,379) $  70,322    
Other comprehensive income (loss):          
Translation adjustments   1,091     111     (615)    1,144    
Comprehensive income (loss)$  496,201  $  20,020  $  (1,694,994) $  71,466    
           
Net income (loss) per basic common share:          
Income (loss) from continuing operations$  0.06  $  (0.00) $  (0.28) $  (0.01)   
Income (loss) from discontinued operations   0.00     (0.00)    0.02     (0.00)   
Net income (loss) per basic common share$  0.06  $  (0.00) $  (0.26) $  (0.01)   
           
Net income (loss) per diluted common share:          
Income (loss) from continuing operations$  0.06  $  (0.00) $  (0.28) $  (0.01)   
Income (loss) from discontinued operations   0.00     (0.00)    0.02     (0.00)   
Net income (loss) per diluted common share$  0.06  $  (0.00) $  (0.26) $  (0.01)   
           
Weighted average number of common and          
 common equivalent shares outstanding:          
Basic   8,364,247     8,195,808     8,329,950     8,183,933    
Diluted    8,373,336     8,195,808     8,329,950     8,183,933    
           

 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEETS 
     
  June 30,   September 30,  
  2015   2014  
 (Unaudited)   
Assets    
     
Current assets:    
Cash and cash equivalents$  4,287,166  $  6,477,132  
Marketable securities   -      1,051,230  
Accounts receivable   5,327,398     6,124,871  
Inventories   2,883,835     2,374,837  
Prepaid expenses and other current assets   369,210     401,549  
     
Total current assets   12,867,609     16,429,619  
     
Property and equipment, net   90,284     98,990  
Other assets   40,962     40,962  
     
Total assets$  12,998,855  $  16,569,571  
     
Liabilities and shareholders' equity    
     
Current liabilities:    
Accounts payable, accrued expenses and other current liabilities$  1,365,977  $  1,218,541  
Due to Forward China   4,506,660     5,215,768  
Total current liabilities   5,872,637     6,434,309  
     
Other liabilities   119,231     115,202  
     
Total liabilities   5,991,868     6,549,511  
     
6% Senior Convertible Preferred Stock, par value $0.01 per share;     
1,500,000 shares authorized; 851,154 shares available; 0 and 648,846 shares    
 issued and outstanding; aggregate liquidation value of $0 and $1,275,000;    
 as of June 30, 2015 and  September 30, 2014, respectively   -      833,365  
     
Commitments and contingencies    
     
Shareholders' equity:    
Preferred stock, par value $0.01 per share; 4,000,000 shares authorized;    
2,400,000 undesignated at June 30, 2015 and September 30, 2014    
     
Series A Participating Preferred stock, par value $0.01; 100,000 shares     
authorized; no shares issued and outstanding   -      -   
     
Common stock, par value $0.01 per share; 40,000,000 shares authorized;    
8,606,755 and 9,159,796 shares issued;    
8,606,755 and 8,453,386 shares outstanding;    
at June 30, 2015 and September 30, 2014, respectively   86,068     91,598  
Additional paid-in capital   17,483,710     18,747,371  
Treasury stock, 0 and 706,410 shares at cost at June 30, 2015 and    
September 30, 2014, respectively   -      (1,260,057) 
Accumulated deficit   (10,541,765)    (8,371,806) 
Accumulated other comprehensive loss   (21,026)    (20,411) 
     
Total shareholders' equity   7,006,987     9,186,695  
     
Total liabilities and shareholders' equity$  12,998,855  $  16,569,571  
     

 


 

Contact:                                                
Forward Industries, Inc.                                         
Michael Matte, CFO                                               
(561) 465-0031

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