FOR IMMEDIATE RELEASE

 

FORWARD REPORTS FISCAL 2019 THIRD QUARTER RESULTS

Revenues of $9.9 million and operating loss of $50 thousand for the quarter

 

 

West Palm Beach, FL - August  14, 2019 - Forward Industries, Inc. (NASDAQ:FORD), a single source solution provider for the full spectrum of hardware and software product design and engineering services as well as a designer and distributer of carry and protective solutions, today announced financial results for its third fiscal quarter ended June 30, 2019. 

 

Included in the 2019 financial results is a full fiscal quarter of our consolidated entities including Intelligent Product Solutions (IPS), our design and development business, which we acquired on January 18, 2018. 

 

Third Quarter 2019 Financial Highlights 

 

  • Revenues were $9.9 million compared to $9.5 million from the third quarter of 2018. An increase of 4.2%.
     

  • Loss from Operations was $50 thousand compared to a loss of $210 thousand in the third quarter of 2018. 
     

  • Gross profit percentage decreased to 19.1% compared to 20.1% in the third quarter of 2018.
     

  • Net loss was $104 thousand compared to net income of $235 thousand in the third quarter of 2018 (inclusive of a 510 thousand credit for a change in fair value of the earnout consideration).
     

  • Net loss per share was $(0.01) compared to Net income per share of $0.02 for the third quarter of 2018.
     

  • Cash and cash equivalents totaled $2.7 million at June 30, 2019.

 


Terry Wise, Chief Executive Officer of Forward Industries, stated, 

 

"This has been an encouraging quarter. As anticipated, the diabetic distribution business continues to decline but by virtue of our collaboration with Mooni AB International we have made strong progress in establishing US and Canada retail distribution capability for our portfolio of smart enabled products. Additionally, we have continued to invest in the business to ensure we have the internal resilience to establish ourselves as the one-stop shop for product development, manufacture and distribution. 

In light of these developments, I remain confident and excited about the future of the company."

 

 The tables below are derived from the Company's condensed consolidated financial statements included in its Form 10-Q filed on August 14, 2019 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 and financial condition relating to the Year to date and fiscal quarter ended June 30, 2019 and 2018. Please also refer to the Company's 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 opportunities from new developments.  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 our sales people, failure to develop products at a profit, unanticipated issues with Mooni and their relationship with retail outlets in the U.S., failure to commercialize products that we develop 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, 2018 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

Forward is a fully integrated design, development and manufacturing solution to top tier medical and technology customers worldwide. Through its acquisition of Intelligent Product Solutions ("IPS"), the Company has expanded its ability to design and develop solutions for our existing multinational client base and expand beyond the diabetic product line in to a variety of industries with a full spectrum of hardware and software product design and engineering services. In addition to our existing designs and distribution of carry and protective solutions, primarily for hand held electronic devices, the company now provides one stop shopping for the design development and manufacturing opportunities from a variety of sources.

 

Contact:

Forward Industries, Inc.

Michael Matte, CFO

(561) 465-0031

 

 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

Assets

 

June 30,
2019

   

September 30,
2018

 

(Unaudited)

   

(Note 1)

Current assets:

Cash

$

 2,709,526 

  $

4,369,866 

Accounts receivable, net

 

8,464,963 

   

9,024,518 

Inventories

 

1,304,364 

   

1,568,914 

Prepaid expenses and other current assets

 

530,871 

   

248,434 

Total current assets

 

13,009,724 

   

15,211,732 

Property and equipment, net

 

275,284 

   

358,975 

Intangible assets, net

 

1,289,776 

   

1,411,182 

Goodwill

 

2,182,427 

   

2,182,427 

Investment

 

326,941 

   

-

Other assets

 

284,068 

   

63,550 

Total assets

$

 17,368,220 

  $

19,227,866 

Liabilities and shareholders' equity

 

 

   

 

Current liabilities:

 

 

   

 

Line of credit

$

 1,100,000 

  $

350,000 

Accounts payable

 

259,226 

   

329,967 

Due to Forward China

 

3,320,976 

   

4,197,435 

Deferred income

 

147,578 

   

125,013 

Notes payable - short-term portion

 

1,679,335 

   

1,770,112 

Capital leases payable - short-term portion

 

51,360 

   

56,876 

Deferred consideration - short-term portion

 

221,000 

   

200,000 

Accrued expenses and other current liabilities

 

661,914 

   

594,887 

Total current liabilities

 

7,441,389 

   

7,624,290 

Other liabilities:

 

 

   

 

Notes payable - long-term portion

 

-

   

54,335 

Capital leases payable - long-term portion

 

35,102 

   

64,041 

Deferred rent

 

59,448 

   

47,605 

Deferred consideration - long-term portion

 

317,000 

   

338,000 

Total other liabilities

 

411,550 

   

503,981 

Total liabilities

 

7,852,939 

   

8,128,271 

Commitments and contingencies

 

 

   

 

Shareholders' equity:

 

 

   

 

Common stock, par value $0.01 per share; 40,000,000 shares authorized;
9,533,851 and 9,533,851 shares issued and outstanding, respectively

 

95,338 

   

95,338 

Additional paid-in capital

 

18,901,576 

   

18,720,396 

Accumulated deficit

 

(9,481,633)

   

(7,716,139)

Total shareholders' equity

 

9,515,281 

   

11,099,595 

Total liabilities and shareholders' equity

$

17,368,220 

    $

19,227,866 

 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

 

For the Three Months Ended June 30,

 

For the Nine Months Ended June 30,

   

2019

    

2018

    

2019

    

2018

Net Revenues $  9,909,452    $ 9,539,539    $ 28,265,202    $  24,888,433 
Cost of Sales   8,014,998      7,625,846      23,756,862      20,197,054 
      Gross Profit   1,894,454      1,913,693      4,508,340      4,691,379 
                       
Operating expenses:                      

Sales and marketing

 

539,072 

 

 

548,388 

   

1,437,047 

   

1,290,741 

General and administrative

 

1,405,249 

 

 

1,575,781 

   

4,676,748 

   

3,327,977 

      Total operating expenses

 

1,944,321 

 

 

2,124,169 

   

6,113,795 

   

4,618,718 

Income (loss) from operations

 

(49,867)

 

 

(210,476)

   

(1,605,455)

   

72,661 

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

 

(52,216)

 

 

(46,504)

   

(150,304)

   

(77,411)

Other income (expense)

 

(1,979)

 

 

(5,536)

   

(9,735)

   

(9,648)

Total Other income (expense)

 

(54,195)

 

 

445,960 

   

(160,039)

   

410,941 

Income (loss) before income taxes

 

(104,062)

 

 

235,484 

   

(1,765,494)

   

483,602 

Benefit from income taxes

 

-

 

 

-

   

-

   

747,000 

Net Income (loss)

$

(104,062)

 

$

235,484 

  $

(1,765,494)

  $

1,230,602 

Net income (loss) per basic common share

$

(0.01)

 

$

0.02 

  $

(0.19)

  $

0.13 

Net income (loss) per diluted common share

$

(0.01)

 

$

0.02 

  $

(0.19)

  $

0.13 

Weighted average number of common and
          common equivalent shares outstanding:

 

 

 

 

 

   

 

   

 

Basic

 

9,533,851 

 

 

9,482,842 

   

9,531,422 

   

9,176,390 

Diluted

 

9,533,851 

 

 

9,547,889 

   

9,531,422 

   

9,281,335 


The following information was filed by Forward Industries, Inc. (FORD) on Wednesday, August 14, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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