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Forward Reports Fiscal 2015 Third Quarter Results

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

Source:Forward Industries, Inc.