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Forward Reports Fiscal 2016 Third Quarter Results

WEST PALM BEACH, Fla., Aug. 12, 2016 (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, 2016.

Third Quarter 2016 Financial Highlights

  • Income from Operations was $85 thousand compared to income of $494 thousand from the third quarter of 2015.
  • Revenues were $6.7 million vs $7.2 million when compared to the third quarter of 2015.
  • Gross profit percentage declined to 16.2% in the third quarter of 2016 compared to 18.6% in the third quarter of 2015.
  • Net income was $78 thousand compared to income of $495 thousand in the third quarter of 2015.
  • Earnings per share were $.01 per share compared to $.06 per share for the third quarter of 2015.
  • Cash and cash equivalents totaled $5.2 million at June 30, 2016.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “This is the fifth consecutive quarter the company has had positive income from continuing operations and Net Income. Despite a drop in our revenues for the 2016 quarter vs 2015, we will continue to focus our efforts on growing our existing business with our top tier Medical customers and continue to look for new business in diversified industries. To that end, I am extremely pleased to announce that we have enhanced our sales force by recruiting two senior sales professionals – one based in the UK and one based in the USA. Both will be focused on building new accounts. I am confident that having streamlined our business as a platform for growth, the enhancement of our sales force will significantly augment our capability to grow revenues through an expansion of our existing customer base. At the same time, we continue to successfully extend our relationships with our existing customers through long term sourcing agreements.”

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, 2015 and 2014. 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
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expectations for growth in revenues and profitability, expansion of our existing customer base, and results from new salespeople. 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 2016 quarter and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include the inability to expand our customer base, pricing pressures, lack of success of new salespeople and unanticipated issues with our affiliated sourcing agent. 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, 2015 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 INCOME (LOSS)
(UNAUDITED)
Three Months Ended June 30, Nine Months Ended June 30,
2016 2015 2016 2015
Net revenues$ 6,664,700 $ 7,230,953 $ 20,828,036 $ 22,422,152
Cost of goods sold 5,586,460 5,883,174 17,026,895 18,160,131
Gross profit 1,078,240 1,347,779 3,801,141 4,262,021
Operating expenses:
Sales and marketing 452,691 497,961 1,317,725 1,876,046
General and administrative 540,631 355,661 2,005,477 4,163,344
Total operating expenses 993,322 853,622 3,323,202 6,039,390
Income (loss) from operations 84,918 494,157 477,939 (1,777,369)
Other (income) expense:
Interest income - - - (3,022)
Loss on marketable securities, net - - - 110,001
Other (income) expense, net 6,962 (953) 11,600 8,994
Total other (income) expense, net 6,962 (953) 11,600 115,973
Income (loss) from continuing operations 77,956 495,110 466,339 (1,893,342)
Income from discontinued operations, net - - - 198,963
Net income (loss) 77,956 495,110 466,339 (1,694,379)
Preferred stock dividends and accretion - - - (475,580)
Net income (loss) applicable to common equity $ 77,956 $ 495,110 $ 466,339 $ (2,169,959)
Net income (loss)$ 77,956 $ 495,110 $ 466,339 $ (1,694,379)
Other comprehensive loss:
Translation adjustments 918 1,091 2 (615)
Comprehensive income (loss)$ 78,874 $ 496,201 $ 466,341 $ (1,694,994)
Net income (loss) per basic common share:
Income (loss) from continuing operations$ 0.01 $ 0.06 $ 0.05 $ (0.28)
Income from discontinued operations 0.00 0.00 0.00 0.02
Net income (loss) per basic common share$ 0.01 $ 0.06 $ 0.05 $ (0.26)
Net income (loss) per diluted common share:
Income (loss) from continuing operations$ 0.01 $ 0.06 $ 0.05 $ (0.28)
Income from discontinued operations 0.00 0.00 0.00 0.02
Net income (loss) per diluted common share$ 0.01 $ 0.06 $ 0.05 $ (0.26)
Weighted average number of common and
common equivalent shares outstanding:
Basic 8,586,879 8,364,247 8,492,222 8,329,950
Diluted 8,679,619 8,373,336 8,661,542 8,329,950
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, September 30,
2016 2015
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$ 5,235,202 $ 4,042,124
Accounts receivable 4,729,192 5,454,129
Inventories 2,658,548 2,866,464
Prepaid expenses and other current assets 290,218 296,012
Total current assets 12,913,160 12,658,729
Property and equipment, net 81,740 78,733
Other assets 12,843 40,962
Total assets$ 13,007,743 $ 12,778,424
Liabilities and shareholders' equity
Current liabilities:
Accounts payable$ 143,286 $ 122,803
Due to Forward China 4,119,591 4,168,021
Accrued expenses and other current liabilities 707,097 1,039,085
Total current liabilities 4,969,974 5,329,909
Other liabilities 54,793 115,202
Total liabilities 5,024,767 5,445,111
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized;
8,782,496 and 8,641,755 shares issued and outstanding
at June 30, 2016 and September 30, 2015, respectively 87,825 86,418
Additional paid-in capital 17,731,962 17,550,047
Accumulated deficit (9,815,028) (10,281,367)
Accumulated other comprehensive loss (21,783) (21,785)
Total shareholders' equity 7,982,976 7,333,313
Total liabilities and shareholders' equity$ 13,007,743 $ 12,778,424
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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

Source:Forward Industries, Inc.