Forward Reports Fiscal 2016 and Fourth Quarter Results
December 12 2016 - 9:00AM
December 12, 2016 – Forward Industries, Inc. (NASDAQ:FORD), a
designer and distributor of custom carry and protective solutions,
today announced financial results for its fiscal year ended
September 30, 2016.
Full Fiscal Year 2016
Highlights
- Net income was $607 thousand in Fiscal 2016 compared to a net
loss of $1.4 million in Fiscal 2015.
- Earnings per share was $0.07 per share for Fiscal 2016 compared
to a loss per share of $0.23 per share for Fiscal 2015.
- Total Revenues were $27.5 million in Fiscal 2016, down 8% from
Fiscal 2015.
- Gross profit percentage decreased by 0.8% to 18.5% in Fiscal
2016 from 19.3% in Fiscal 2015.
Fourth Quarter 2016 Financial
Highlights
- Net income was $140 thousand, which is down from $260 thousand
in the fourth quarter of 2015.
- Earnings per share was $0.02 per share compared to $0.03 per
share for the fourth quarter of 2015.
- Revenues were $6.7 million compared to $7.6 million in the
fourth quarter of 2015.
- Gross profit percentage decreased by 1.0% to 19.2% from 20.2%
in the fourth quarter of 2015.
- Cash and cash equivalents totaled $4.8 million at September 30,
2016, up from $4.0 million at September 30, 2015.
Terry Wise, Chief Executive Officer of Forward
Industries, stated: “For the first time in a decade, I am delighted
to report that the company has earned positive net income for the
full fiscal year 2016. This is a watershed in the Company’s history
and marks the start of a significant turnaround for the Company. In
a challenging environment, we have streamlined our business as a
platform for growth whilst successfully renewing major contracts
with our blue-chip pharmaceutical customers. These extensions are a
resounding endorsement of the quality of our products and
reliability of our supply capability. Going forward, our focus is
to grow revenues through an expansion of our customer base,
broadening our product offering to both new and existing customers
and extending our relationships with our existing customers through
long-term sourcing agreements.”
Cautionary Note Regarding
Forward-Looking Statements This press release contains
forward-looking statements including statements regarding
profitability, growth in revenues, and expansion of customer base.
The words “believe,” “may,” “estimate,” “continue,” “anticipate,”
“intend,” “should,” “plan,” “could,” “target,” “potential,” “is
likely,” “will,” “expect” and similar expressions, as they relate
to us, are intended to identify forward-looking statements. We have
based these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our financial condition, results
of operations, business strategy and financial needs. Important
factors that could cause actual results to differ from those in the
forward-looking statements include unexpected issues with Forward
China and our customers going directly to our sourcing agents for
their products. Further information on our risk factors is
contained in our filings with the SEC, including our Form
10-K. Any forward-looking statement made by us herein speaks
only as of the date on which it is made. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by law.
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 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) |
|
|
For the Fiscal Years Ended |
|
|
September 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
Net
revenues |
$ |
27,479,896 |
|
|
$ |
30,013,891 |
|
|
Cost of goods sold |
|
22,399,734 |
|
|
|
24,220,698 |
|
|
Gross
profit |
|
5,080,162 |
|
|
|
5,793,193 |
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Sales and
marketing |
|
1,891,409 |
|
|
|
2,362,553 |
|
|
General
and administrative |
|
2,571,799 |
|
|
|
4,943,184 |
|
|
Total
operating expenses |
|
4,463,208 |
|
|
|
7,305,737 |
|
|
|
|
|
|
|
Income (loss)
from operations |
|
616,954 |
|
|
|
(1,512,544 |
) |
|
|
|
|
|
|
Other (income)
expense: |
|
|
|
|
Interest
income |
|
- |
|
|
|
(3,022 |
) |
|
Loss on
marketable securities, net |
|
- |
|
|
|
110,001 |
|
|
Other
expense, net |
|
10,392 |
|
|
|
13,421 |
|
|
Total
other (income) expense, net |
|
10,392 |
|
|
|
120,400 |
|
|
|
|
|
|
|
Income (loss)
from continuing operations |
|
606,562 |
|
|
|
(1,632,944 |
) |
|
Income from
discontinued operations, net of tax provision of $0 |
|
- |
|
|
|
198,963 |
|
|
Net income
(loss) |
|
606,562 |
|
|
|
(1,433,981 |
) |
|
Preferred
stock dividends, accretion and beneficial conversion
feature |
|
- |
|
|
|
(475,580 |
) |
|
Net income
(loss) applicable to common equity |
$ |
606,562 |
|
|
$ |
(1,909,561 |
) |
|
|
|
|
|
|
Net income
(loss) |
$ |
606,562 |
|
|
$ |
(1,433,981 |
) |
|
Other
comprehensive loss: |
|
|
|
|
Translation adjustments |
|
- |
|
|
|
(1,374 |
) |
|
Comprehensive
income (loss) |
$ |
606,562 |
|
|
$ |
(1,435,355 |
) |
|
|
|
|
|
|
Net income
(loss) per basic common share: |
|
|
|
|
Income (loss) from
continuing operations |
$ |
0.07 |
|
|
$ |
(0.25 |
) |
|
Income from
discontinued operations |
|
0.00 |
|
|
|
0.02 |
|
|
Net income
(loss) per basic common share |
$ |
0.07 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
Net income
(loss) per diluted common share: |
|
|
|
|
Income (loss) from
continuing operations |
$ |
0.07 |
|
|
$ |
(0.25 |
) |
|
Income from
discontinued operations |
|
0.00 |
|
|
|
0.02 |
|
|
Net income
(loss) per diluted common share |
$ |
0.07 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
Weighted
average number of common and |
|
|
|
|
common equivalent shares outstanding: |
|
|
|
|
Basic |
|
8,521,188 |
|
|
|
8,342,168 |
|
|
Diluted |
|
8,675,583 |
|
|
|
8,342,168 |
|
|
|
|
|
|
|
FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
September 30, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
4,760,620 |
|
|
$ |
4,042,124 |
|
Accounts
receivable |
|
4,864,423 |
|
|
|
5,454,129 |
|
Inventories |
|
2,572,980 |
|
|
|
2,866,464 |
|
Prepaid
expenses and other current assets |
|
141,421 |
|
|
|
296,012 |
|
|
|
|
|
Total
current assets |
|
12,339,444 |
|
|
|
12,658,729 |
|
|
|
|
|
Property and equipment,
net |
|
43,030 |
|
|
|
78,733 |
|
Other assets |
|
12,843 |
|
|
|
40,962 |
|
|
|
|
|
Total
assets |
$ |
12,395,317 |
|
|
$ |
12,778,424 |
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
62,136 |
|
|
$ |
122,803 |
|
Due to
Forward China |
|
3,519,676 |
|
|
|
4,168,021 |
|
Accrued
expenses and other current liabilities |
|
587,741 |
|
|
|
1,039,085 |
|
Total
current liabilities |
|
4,169,553 |
|
|
|
5,329,909 |
|
|
|
|
|
Other liabilities |
|
51,486 |
|
|
|
115,202 |
|
|
|
|
|
Total
liabilities |
|
4,221,039 |
|
|
|
5,445,111 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
Common
stock, par value $0.01 per share; 40,000,000 shares
authorized; |
|
|
|
8,780,830
and 8,641,755 shares issued and outstanding |
|
|
|
at
September 30, 2016 and 2015, respectively |
|
87,808 |
|
|
|
86,418 |
|
Additional paid-in capital |
|
17,783,060 |
|
|
|
17,550,047 |
|
Accumulated deficit |
|
(9,674,805 |
) |
|
|
(10,281,367 |
) |
Accumulated other comprehensive loss |
|
(21,785 |
) |
|
|
(21,785 |
) |
|
|
|
|
Total
shareholders' equity |
|
8,174,278 |
|
|
|
7,333,313 |
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
12,395,317 |
|
|
$ |
12,778,424 |
|
|
|
|
|
Contact:
Forward Industries, Inc.
Michael Matte, CFO
(561) 465-0031
Forward Industries (NASDAQ:FORD)
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