Forward Reports Fiscal 2016 Third Quarter Results
August 12 2016 - 4:30PM
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
StatementsThis 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
IndustriesIncorporated 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
Forward Industries (NASDAQ:FORD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Forward Industries (NASDAQ:FORD)
Historical Stock Chart
From Sep 2023 to Sep 2024