WEST PALM BEACH, Fla., Dec. 09, 2015 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its fourth fiscal quarter ended September 30, 2015.

Fourth Quarter 2015 Financial Highlights
  • Revenues were approximately $7.6 million compared to $9.2 million in the fourth quarter of 2014.    
  • Gross profit percentage increased by 2.3% to 20.2% from 17.9% in the fourth quarter of 2014. 
  • Income from Operations was $265 thousand up from a loss of $369 thousand in the fourth quarter of 2014. 
  • Net Income was $260 thousand up from a loss of $919 thousand in the fourth quarter of 2014. 
  • Earnings per share was $0.03 per share compared to loss of $(0.08) per share for the fourth quarter of 2014. 
  • Cash and cash equivalents totaled $4 million at September 30, 2015.

Full fiscal year 2015 Highlights
  • Total Revenue was $30 million down 10% from 2014. 
  • Gross profit percentage fell by 0.3% from 19.6% for fiscal 2014 to 19.3% for fiscal 2015. 
  • Operating loss increased to $1.5 million from $0.99 million in fiscal 2014. 
  • Net Loss was $1.6 million in fiscal 2015 compared to a loss of $0.474 million in fiscal 2014. 
  • Net loss per share $0.23 in fiscal 2015 compared to a loss of $0.12 in fiscal 2014.

Terry Wise, Chief Executive Officer of Forward Industries, stated, "Fiscal 2015 was a turbulent year for the Company driven by a very expensive proxy battle.  Now that the distractions are behind us we are resolutely focused on returning the Company to sustained profitability.  With that said, we are pleased to report a return to profitability for the second consecutive quarter reporting a growth in profitability of 172% when we compare this to the same period in the prior year.  We continue to look for efficiency savings and we believe that the result for the quarter reflects our successful efforts.  Despite a marginal drop in our revenues for the quarter, our gross profit margin in the fourth quarter increased when we compare our results with the same period in the prior year.  Going forward, having streamlined our business as a platform for growth, our focus is now to grow revenues through an expansion of our customer base, broadening of our product offering to both new and existing customers and to extend 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 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.

 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES    
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS    
     
  For the Fiscal Years Ended    
    September 30,      
    2015       2014      
           
Net sales $   30,013,891     $   33,359,918      
Cost of goods sold     24,220,698         26,805,193      
Gross profit     5,793,193         6,554,725      
           
Operating expenses          
Sales and marketing     2,362,553         2,805,643      
General and administrative     4,943,184         3,847,759      
Total operating expenses     7,305,737         6,653,402      
           
Loss from operations     (1,512,544 )       (98,677 )    
           
Other (income) expense:          
Interest income     (3,022 )       (33,916 )    
Loss on marketable securities, net     110,001         246,687      
Loss on change in fair market value of warrant liabilities     -          136,258      
Other expense, net     13,421         26,166      
Total other expense, net     120,400         375,195      
           
Loss from continuing operations before income tax expense     (1,632,944 )       (473,872 )    
Income tax expense     -          -       
Loss from continuing operations     (1,632,944 )       (473,872 )    
Income (loss) from discontinued operations,           
net of tax provision of $0 and $0, respectively     198,963         (326,034 )    
Net loss     (1,433,981 )       (799,906 )    
Preferred stock dividends, accretion and           
beneficial conversion feature     (475,580 )       (193,200 )    
Net loss applicable to common equity   $   (1,909,561 )   $   (993,106 )    
           
Net loss $   (1,433,981 )   $   (799,906 )    
Other comprehensive income (loss):          
Translation adjustments     (1,374 )       40      
Comprehensive loss $   (1,435,355 )   $   (799,866 )    
           
Net income (loss) per basic and diluted common shares:          
Loss from continuing operations $   (0.25 )   $   (0.08 )    
Income (loss) from discontinued operations     0.02         (0.04 )    
Net loss per share $   (0.23 )   $   (0.12 )    
           
Weighted average number of common and          
  common equivalent shares outstanding            
Basic and diluted      8,342,168         8,186,926      
           
 The accompanying notes are an integral part of the consolidated financial statements.        
           

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES    
CONSOLIDATED BALANCE SHEETS    
           
    September 30,      
    2015       2014      
Assets          
           
Current assets:          
Cash and cash equivalents $   4,042,124     $   6,477,132      
Marketable securities     -          1,051,230      
Accounts receivable     5,454,129         6,124,871      
Inventories     2,866,464         2,374,837      
Prepaid expenses and other current assets     296,012         401,510      
Current assets of discontinued operations     -          39      
           
Total current assets     12,658,729         16,429,619      
           
Property and equipment, net     78,733         98,990      
Other assets     40,962         40,962      
           
Total Assets $   12,778,424     $   16,569,571      
           
Liabilities and shareholders' equity          
           
Current liabilities:          
Accounts payable $   122,803     $   666,630      
Due to Forward China     4,168,021         5,215,768      
Accrued expenses and other current liabilities     1,039,085         551,911      
Total current liabilities     5,329,909         6,434,309      
           
Other liabilities     115,202         115,202      
           
Total Liabilities     5,445,111         6,549,511      
           
6% Senior convertible preferred stock, par value $0.01 per share; 1,500,000 shares          
authorized; 0 and 648,846 shares issued and outstanding; aggregate liquidation           
value of $0 and $1,275,000 as of September 30, 2015 and 2014, respectively     -          833,365      
           
Commitments and contingencies          
           
Shareholders' equity:          
Preferred stock, par value $0.01 per share; 4,000,000 shares authorized;          
2,400,000 undesignated:          
           
Series A participating preferred stock, par value $0.01; 100,000 shares           
authorized; no shares issued and outstanding     -          -       
           
Common stock, par value $0.01 per share; 40,000,000 shares authorized;          
8,641,755 and 9,159,796 shares issued;          
8,641,755 and 8,453,386 shares outstanding,          
at September 30, 2015 and 2014, respectively     86,418         91,598      
Additional paid-in capital     17,550,047         18,747,371      
Treasury stock, 706,410 shares at cost     -          (1,260,057 )    
Accumulated deficit     (10,281,367 )       (8,371,806 )    
Accumulated other comprehensive loss     (21,785 )       (20,411 )    
           
Total shareholders' equity     7,333,313         9,186,695      
           
Total liabilities and shareholders' equity $   12,778,424     $   16,569,571      
           
           
 The accompanying notes are an integral part of the consolidated financial statements.          
           
Contact:                                                Forward Industries, Inc.                                         Michael Matte, CFO                                               (561) 465-0031

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