Forward Reports Fiscal 2017 Second Quarter Results
May 12 2017 - 4:01PM
Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor
of custom carry and protective solutions, today announced financial
results for its second fiscal quarter ended March 31, 2017.
Second Quarter 2017 Financial
Highlights
- Loss from Operations was $237 thousand compared to income of
$145 thousand from the second quarter of 2016.
- Revenues were $4.5 million compared to $7 million from the
second quarter of 2016.
- Gross profit percentage declined to 15.8% compared to 17.1% in
the second quarter of 2016.
- Net loss was $238 thousand compared to net income of $144
thousand in the second quarter of 2016.
- Loss per share was $.03 per share compared to income of $.02
per share for the second quarter of 2016.
- Cash and cash equivalents totaled $3.6 million at March 31,
2017.
Terry Wise, Chief Executive Officer of Forward Industries,
stated, “This was a difficult quarter for the company as we work to
expand and transition our business from predominantly diabetic
products which are undergoing market pricing pressures. We
will continue our efforts to safeguard and grow our existing
business with our top tier Medical customers. Concurrently, we are
firmly focused and making promising progress on aggressively
seeking new business within other growing market sectors.”
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, 2016 and 2015. 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 expansion of
our existing customer base and diversifying our product
portfolio. 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 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 sales people 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, 2016 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 designer and
distributor of custom carry and protective solutions. 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) |
|
|
|
|
|
|
|
For the Three Months
Ended March 31, |
|
For the Six Months Ended
March 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenues |
$ |
4,532,876 |
|
|
$ |
7,025,453 |
|
|
$ |
11,124,124 |
|
|
$ |
14,163,336 |
|
|
Cost of goods sold |
|
3,816,790 |
|
|
|
5,824,917 |
|
|
|
9,249,209 |
|
|
|
11,440,435 |
|
|
Gross
profit |
|
716,086 |
|
|
|
1,200,536 |
|
|
|
1,874,915 |
|
|
|
2,722,901 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and
marketing |
|
389,694 |
|
|
|
432,146 |
|
|
|
807,221 |
|
|
|
865,034 |
|
|
General
and administrative |
|
563,479 |
|
|
|
623,180 |
|
|
|
1,156,659 |
|
|
|
1,464,846 |
|
|
Total
operating expenses |
|
953,173 |
|
|
|
1,055,326 |
|
|
|
1,963,880 |
|
|
|
2,329,880 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from operations |
|
(237,087 |
) |
|
|
145,210 |
|
|
|
(88,965 |
) |
|
|
393,021 |
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Other
income (expense), net |
|
(443 |
) |
|
|
(907 |
) |
|
|
2,927 |
|
|
|
(4,638 |
) |
|
Total
other income (expense), net |
|
(443 |
) |
|
|
(907 |
) |
|
|
2,927 |
|
|
|
(4,638 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(237,530 |
) |
|
$ |
144,303 |
|
|
$ |
(86,038 |
) |
|
$ |
388,383 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(237,530 |
) |
|
$ |
144,303 |
|
|
$ |
(86,038 |
) |
|
$ |
388,383 |
|
|
Other
comprehensive loss: |
|
|
|
|
|
|
|
|
Translation adjustments |
|
- |
|
|
|
(480 |
) |
|
|
- |
|
|
|
(916 |
) |
|
Comprehensive
income (loss) |
$ |
(237,530 |
) |
|
$ |
143,823 |
|
|
$ |
(86,038 |
) |
|
$ |
387,467 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per basic common share |
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.05 |
|
|
Net income
(loss) per diluted common share |
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and |
|
|
|
|
|
|
|
|
common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
8,671,240 |
|
|
|
8,503,436 |
|
|
|
8,646,103 |
|
|
|
8,445,152 |
|
|
Diluted |
|
8,671,240 |
|
|
|
8,660,114 |
|
|
|
8,646,103 |
|
|
|
8,645,395 |
|
|
|
|
|
|
|
|
|
|
|
FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
March
31, |
|
September
30, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
3,649,284 |
|
|
$ |
4,760,620 |
|
Accounts
receivable |
|
4,424,939 |
|
|
|
4,864,423 |
|
Inventories |
|
2,729,219 |
|
|
|
2,572,980 |
|
Prepaid
expenses and other current assets |
|
155,847 |
|
|
|
141,421 |
|
Total
current assets |
|
10,959,289 |
|
|
|
12,339,444 |
|
|
|
|
|
Property and equipment,
net |
|
31,576 |
|
|
|
43,030 |
|
Other assets |
|
12,843 |
|
|
|
12,843 |
|
Total
assets |
$ |
11,003,708 |
|
|
$ |
12,395,317 |
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
40,640 |
|
|
$ |
62,136 |
|
Due to
Forward China |
|
2,457,896 |
|
|
|
3,519,676 |
|
Accrued
expenses and other current liabilities |
|
292,602 |
|
|
|
587,741 |
|
Total
current liabilities |
|
2,791,138 |
|
|
|
4,169,553 |
|
|
|
|
|
Other liabilities |
|
44,872 |
|
|
|
51,486 |
|
Total
liabilities |
|
2,836,010 |
|
|
|
4,221,039 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
Shareholders'
equity: |
|
|
|
Common
stock, par value $0.01 per share; 40,000,000 shares
authorized; |
|
|
|
8,780,830
shares issued and outstanding |
|
87,808 |
|
|
|
87,808 |
|
Additional paid-in capital |
|
17,862,518 |
|
|
|
17,783,060 |
|
Accumulated deficit |
|
(9,760,843 |
) |
|
|
(9,674,805 |
) |
Accumulated other comprehensive loss |
|
(21,785 |
) |
|
|
(21,785 |
) |
|
|
|
|
Total
shareholders' equity |
|
8,167,698 |
|
|
|
8,174,278 |
|
Total
liabilities and shareholders' equity |
$ |
11,003,708 |
|
|
$ |
12,395,317 |
|
|
|
|
|
Contact:
Forward Industries, Inc.
Michael Matte, CFO
(561) 465-0031
Forward Industries (NASDAQ:FORD)
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