Forward Reports Fiscal 2018 First Quarter Results

WEST PALM BEACH, Fla., Feb. 14, 2018 (GLOBE NEWSWIRE) — Forward Industries, Inc. (NASDAQ:FORD), a designer and manufacturing sourcer, today announced financial results for its first fiscal quarter ended December 31, 2017.

First Quarter 2018 Financial Highlights

  • Income from Operations was $51 thousand compared to income from operations of $148 thousand from the first quarter of 2017. 
     
  • Revenues were $6.3 million vs $6.6 million when compared to the first quarter of 2017.
     
  • Gross profit percentage declined to 15.8% in the first quarter of 2018 compared to 17.6% in the first quarter of 2017.
     
  • Net income was $47 thousand compared to net income of $151 thousand in the first quarter of 2017.
     
  • Earnings per share were $.01 per share compared to $.02 per share for the first quarter of 2017.             

Terry Wise, Chief Executive Officer of Forward Industries, stated, “In this first quarter, I am pleased that we continued to generate a positive net income and concluded our acquisition of Intelligent Product Solutions.  This material strategic acquisition for Forward has created noteworthy cross selling opportunities for the combined companies.  The Forward/IPS combination provides clients, both big and small, a true, authentic ‘one-stop-shop’ for product design, development, manufacturing, and distribution.  We are extremely excited about the potential for the future.” 

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-Q for complete financial statements and further information regarding the Company’s results of operations December 31, 2017. 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 and potential for the Company’s future.  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 and integration 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 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.

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

 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
   
   For the Three Months Ended December 31, 
  2017   2016
       
Net revenues $   6,336,467     $   6,591,248
Cost of goods sold     5,333,871         5,432,419
Gross profit     1,002,596         1,158,829
       
Operating expenses:      
Sales and marketing     278,062         417,527
General and administrative     673,461         593,180
       Total operating expenses     951,523         1,010,707
       
Operating income     51,073         148,122
       
Other income (expense), net     (4,422 )       3,370
       
Income before income taxes     46,651         151,492
       
Provision for income taxes     –          – 
       
Net income $   46,651     $   151,492
       
Net income $   46,651     $   151,492
Other comprehensive income:      
Translation adjustments     600         – 
Comprehensive income $   47,251     $   151,492
       
Earnings per share:      
Basic $   0.01     $   0.02
Diluted  $   0.01     $   0.02
       
Weighted average number of common and      
common equivalent shares outstanding:      
Basic     8,706,047         8,621,513
Diluted      8,840,673         8,757,728
       

 

 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
       
  December 31,   September 30,
  2017   2017
  (Unaudited)    
Assets      
       
Current assets:      
Cash $   5,904,425     $   4,622,981  
Accounts receivable     5,599,751         6,218,563  
Inventories     2,061,052         2,120,971  
Prepaid expenses and other current assets     106,273         157,930  
       
      Total current assets     13,671,501         13,120,445  
       
Property and equipment, net     33,458         20,658  
Other assets     12,843         12,843  
       
Total assets $   13,717,802     $   13,153,946  
       
Liabilities and shareholders’ equity      
       
Current liabilities:      
Accounts payable $   120,903     $   67,351  
Due to Forward China     4,418,200         3,736,451  
Accrued expenses and other current liabilities     172,556         382,759  
        Total current liabilities     4,711,659         4,186,561  
       
Other liabilities     33,008         36,963  
       
Total liabilities     4,744,667         4,223,524  
       
Commitments and contingencies      
       
Shareholders’ equity:      
       
Common stock, par value $0.01 per share; 40,000,000 shares authorized;      
       8,850,830 and 8,920,830 shares, issued and outstanding, respectively     88,508         89,208  
Additional paid-in capital     17,932,835         17,936,673  
Accumulated deficit     (9,048,808 )       (9,095,459 )
Accumulated other comprehensive income     600         –   
      Total shareholders’ equity     8,973,135         8,930,422  
      Total liabilities and shareholders’ equity $   13,717,802     $   13,153,946