Forward Reports Fiscal 2018 Third Quarter Results
August 14 2018 - 5:27PM
Forward Industries, Inc. (NASDAQ:FORD), a leading product design,
development and manufacturing sourcing company, today announced
financial results for its third fiscal quarter ended June 30, 2018.
Third Quarter 2018 Year to Date
Financial Highlights
- Revenues for the quarter were $9.5 million compared to $7.3
million for the third quarter of 2017.
- Revenues fiscal year to date were $24.9 million compared to
$18.5 million for the same period in 2017.
- Earnings per share for the quarter was $0.02 compared to $0.06
for the third quarter of 2017.
- Earnings per share fiscal year to date were $0.13 compared to
$0.05 for the same period in 2017.
- Gross profit percentage for the quarter was 20.1% compared to
17.4% in the third quarter of 2017.
- Net income for the quarter was $235 thousand (which includes a
$510 thousand non-cash benefit from change in fair value of IPS
earn-out consideration) compared to net income of $552 thousand in
the third quarter of 2017.
- Net income fiscal year to date was $1.2 million compared to
$466 thousand for the nine months ended June 30, 2017.
- Cash and cash equivalents totaled $4.3 million at June 30,
2018.
Terry Wise, Chief Executive Officer of Forward
Industries, stated, “During the quarter, we continued our focus on
leveraging the synergies and identifying operating efficiencies
post the IPS acquisition to the consolidated company and I am
pleased to report that these remain on track. We have
identified several promising cross selling and collaborative
opportunities for both entities through our extensive client
base. For our core business, we continue, as expected, to
face challenges in the diabetic sector of our business and
diversifying our product mix continues to be a priority. IPS
continues to realise strong pipeline opportunities and again
performance is in line with expectations. In short, I am
pleased at our progress and continue to look at the future with
excitement.”
The tables below are derived from the Company’s
unaudited, condensed consolidated financial statements included in
its Quarterly Report on Form 10-Q filed on August 14, 2018 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, 2017 and 2016.
Please also refer to the Form 10-K and 10-Q for the fiscal quarter
ended March 31, 2018 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 opportunities
presented from the IPS acquisition. 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, failure to take advantage of synergies between IPS
and Forward and issues integrating with IPS. 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, 2017 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 in West
Palm Beach, Florida, Forward Industries is a global designer and
distributor of mobile device cases and accessories. In January
2018, the Company acquired Intelligent Product Solutions, Inc.
adding a leading product design, development solution for our
customers.
Contact:
Forward Industries,
Inc.
Michael Matte,
CFO
(561) 465-0031
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FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
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|
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June 30, |
|
September 30, |
|
|
|
2018 |
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2017 |
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(Unaudited) |
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Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
4,341,590 |
|
|
$ |
4,622,981 |
|
|
Accounts
receivable, net |
|
9,003,310 |
|
|
|
6,218,563 |
|
|
Inventories |
|
1,360,680 |
|
|
|
2,120,971 |
|
|
Prepaid
expenses and other current assets |
|
242,421 |
|
|
|
157,930 |
|
|
|
|
|
|
|
Total current assets |
|
14,948,001 |
|
|
|
13,120,445 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
326,525 |
|
|
|
20,658 |
|
|
Intangible assets,
net |
|
1,452,245 |
|
|
|
- |
|
|
Goodwill |
|
2,182,427 |
|
|
|
- |
|
|
Other assets |
|
63,550 |
|
|
|
12,843 |
|
|
|
|
|
|
|
Total assets |
$ |
18,972,748 |
|
|
$ |
13,153,946 |
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Line of
credit |
$ |
550,000 |
|
|
$ |
- |
|
|
Accounts
payable |
|
228,745 |
|
|
|
67,351 |
|
|
Due to
Forward China |
|
3,816,791 |
|
|
|
3,736,451 |
|
|
Deferred
income |
|
126,797 |
|
|
|
169,642 |
|
|
Notes
payable - short-term portion |
|
1,823,965 |
|
|
|
- |
|
|
Capital
leases payable - short-term portion |
|
44,493 |
|
|
|
- |
|
|
Accrued
expenses and other current liabilities |
|
743,563 |
|
|
|
213,117 |
|
|
Total current liabilities |
|
7,334,354 |
|
|
|
4,186,561 |
|
|
|
|
|
|
|
Other liabilities: |
|
|
|
|
Notes
payable - long-term portion |
|
78,571 |
|
|
|
- |
|
|
Capital
leases payable - long-term portion |
|
40,113 |
|
|
|
- |
|
|
Deferred
rent |
|
43,788 |
|
|
|
36,963 |
|
|
Deferred
consideration - long-term portion |
|
538,000 |
|
|
|
- |
|
|
Total other liabilities |
|
700,472 |
|
|
|
36,963 |
|
|
|
|
|
|
|
Total liabilities |
|
8,034,826 |
|
|
|
4,223,524 |
|
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Commitments and
contingencies |
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Shareholders'
equity: |
|
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|
|
|
|
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Common
stock, par value $0.01 per share; 40,000,000 shares
authorized; |
|
|
|
|
9,533,850
and 8,920,830 shares issued and outstanding,
respectively |
|
95,338 |
|
|
|
89,208 |
|
|
Additional paid-in capital |
|
18,707,441 |
|
|
|
17,936,673 |
|
|
Accumulated deficit |
|
(7,864,857 |
) |
|
|
(9,095,459 |
) |
|
|
|
|
|
|
Total shareholders' equity |
|
10,937,922 |
|
|
|
8,930,422 |
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
18,972,748 |
|
|
$ |
13,153,946 |
|
|
|
|
|
|
|
FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(UNAUDITED) |
|
|
|
|
|
|
|
For the Three Months
Ended June 30, |
|
For the Nine Months
Ended June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net
Revenues |
$ |
9,539,539 |
|
|
$ |
7,332,722 |
|
$ |
24,888,433 |
|
|
$ |
18,456,846 |
|
Cost of Sales |
|
7,625,846 |
|
|
|
6,054,812 |
|
|
20,197,054 |
|
|
|
15,304,021 |
|
Gross
Profit |
|
1,913,693 |
|
|
|
1,277,910 |
|
|
4,691,379 |
|
|
|
3,152,825 |
|
|
|
|
|
|
|
|
|
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Operating
expenses: |
|
|
|
|
|
|
|
|
Sales
and marketing |
|
548,388 |
|
|
|
309,000 |
|
|
1,290,741 |
|
|
|
1,116,221 |
|
General
and administrative |
|
1,575,781 |
|
|
|
419,836 |
|
|
3,327,977 |
|
|
|
1,576,495 |
|
Total
operating expenses |
|
2,124,169 |
|
|
|
728,836 |
|
|
4,618,718 |
|
|
|
2,692,716 |
|
|
|
|
|
|
|
|
|
|
Income (loss)
from operations |
|
(210,476 |
) |
|
|
549,074 |
|
|
72,661 |
|
|
|
460,109 |
|
|
|
|
|
|
|
|
|
|
Change in fair value of
earn-out consideration |
|
510,000 |
|
|
|
- |
|
|
510,000 |
|
|
|
- |
|
Change in fair value of
deferred cash consideration |
|
(12,000 |
) |
|
|
- |
|
|
(12,000 |
) |
|
|
- |
|
Interest expense |
|
(46,504 |
) |
|
|
- |
|
|
(77,411 |
) |
|
|
- |
|
Other income
(expense) |
|
(5,536 |
) |
|
|
2,851 |
|
|
(9,648 |
) |
|
|
5,778 |
|
Total Other
income (expense) |
|
445,960 |
|
|
|
2,851 |
|
|
410,941 |
|
|
|
5,778 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
235,484 |
|
|
|
551,925 |
|
|
483,602 |
|
|
|
465,887 |
|
|
|
|
|
|
|
|
|
|
Benefit from income
taxes |
|
- |
|
|
|
- |
|
|
747,000 |
|
|
|
- |
|
Net
Income |
$ |
235,484 |
|
|
$ |
551,925 |
|
$ |
1,230,602 |
|
|
$ |
465,887 |
|
|
|
|
|
|
|
|
|
|
Net income per
basic common share |
$ |
0.02 |
|
|
$ |
0.06 |
|
$ |
0.13 |
|
|
$ |
0.05 |
|
Net income per
diluted common share |
$ |
0.02 |
|
|
$ |
0.06 |
|
$ |
0.13 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common and |
|
|
|
|
|
|
|
|
common equivalent shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
9,482,842 |
|
|
|
8,855,885 |
|
|
9,176,390 |
|
|
|
8,716,030 |
|
Diluted |
|
9,547,889 |
|
|
|
8,906,846 |
|
|
9,281,335 |
|
|
|
8,816,432 |
|
|
|
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