Forward Reports Fiscal 2019 Results

Nachrichtenquelle: globenewswire
27.12.2019, 22:01  |  119   |   |   

Revenues of $37.4 million and operating loss of $3.1 million for the year

WEST PALM BEACH, Fla., Dec. 27, 2019 (GLOBE NEWSWIRE) -- 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 the year ended September 30, 2019. 

Included in the 2019 financial results are the results of our consolidated entity, Intelligent Product Solutions (IPS), our design and development business, which we acquired on January 18, 2018. 

Full Fiscal Year 2019 Financial Highlights 

  • Revenues were $37.4 million compared to $34.5 million for 2018. An increase of 8.4%.
     
  • Loss from Operations was $3.1 million compared to income of $261 thousand in 2018. 
     
  • Gross profit percentage decreased to 17.6% compared to 19% in 2018.
     
  • Net loss was $3.6 million compared to net income of $632 thousand in 2018 (inclusive of a 510 thousand credit for a change in fair value of the IPS earnout consideration in 2018).
     
  • Net loss per share was $(0.38) compared to Net income per share of $0.15 for 2018.
     
  • Cash and cash equivalents totaled $3.1 million at September 30, 2019.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “The fiscal year results have been disappointing. However, they are largely due to one off non-recurring issues and additionally, relate to isolated customers within our design division. Our underlying business remains positive. During this first quarter, we have made strong progress in establishing profitable and growth oriented new business lines. Our range of smart enabled retail products is particularly encouraging. The Mooni lighting product was featured in the Good Morning America Holiday show and we have started to make notable progress with US retailers with our new product offerings.  I therefore look to the new fiscal year with confidence for Forward’s future.”

The tables below are derived from the Company’s consolidated financial statements included in its Form 10-K filed on December 27, 2019 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, 2019 and 2018. 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 progress from retail and establishing profitable growing sectors 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, 2019 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
CONSOLIDATED BALANCE SHEETS
       
  September 30,
    2019       2018  
       
Assets      
       
Current assets:      
Cash $ 3,092,813     $ 4,369,866  
Accounts receivable, net   6,695,120       9,024,518  
Inventories   1,608,827       1,568,914  
Prepaid expenses and other current assets   441,502       248,434  
       
Total current assets   11,838,262       15,211,732  
       
Property and equipment, net   243,002       358,975  
Intangible assets, net   1,248,712       1,411,182  
Goodwill   2,182,427       2,182,427  
Investment   326,941       -  
Other assets   255,008       63,550  
       
Total assets $ 16,094,352     $ 19,227,866  
       
Liabilities and shareholders' equity      
       
Current liabilities:      
Line of credit $ 1,300,000     $ 350,000  
Accounts payable   315,444       329,967  
Due to Forward China   3,236,693       4,197,435  
Deferred income   219,831       125,013  
Notes payable - short-term portion   1,654,799       1,770,112  
Capital leases payable - short-term portion   39,941       56,876  
Deferred consideration - short-term portion   834,000       200,000  
Accrued expenses and other current liabilities   694,972       594,887  
Total current liabilities   8,295,680       7,624,290  
       
Other liabilities:      
Notes payable - long-term portion   -       54,335  
Capital leases payable - long-term portion   26,438       64,041  
Deferred rent   60,935       47,605  
Deferred consideration - long-term portion   -       338,000  
Total other liabilities   87,373       503,981  
       
Total liabilities   8,383,053       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   18,936,130       18,720,396  
Accumulated deficit   (11,320,169 )     (7,716,139 )
       
Total shareholders' equity   7,711,299       11,099,595  
       
Total liabilities and shareholders' equity $ 16,094,352     $ 19,227,866  
       


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
  For the Fiscal Years Ended
September 30,
    2019       2018  
       
       
Net Revenues $ 37,409,030     $ 34,499,503  
Cost of sales   30,828,148       27,931,427  
Gross profit   6,580,882       6,568,076  
       
Operating expenses:      
Sales and marketing   1,965,230       1,782,138  
General and administrative   7,713,035       4,525,286  
Total operating expenses   9,678,265       6,307,424  
       
Income (loss) from operations   (3,097,383 )     260,652  
       
Other income (expenses):      
Fair value adjustment of earn-out consideration   (260,000 )     510,000  
Fair value adjustment of deferred cash consideration   (36,000 )     (12,000 )
Interest expense   (201,004 )     (115,447 )
Other expense   (13,805 )     (10,885 )
Total other income (expense)   (510,809 )     371,668  
       
Income (loss) before income taxes   ( 3,608,192 )     632,320  
       
Benefit from income taxes   4,162       747,000  
       
Net income (loss) $ (3,604,030 )   $ 1,379,320  
       
Earnings (loss) per share:      
Basic $ (0.38 )   $ 0.15  
Diluted $ (0.38 )   $ 0.15  
       
Weighted average number of common and      
common equivalent shares outstanding:      
Basic   9,532,034       9,264,670  
Diluted   9,532,034       9,354,669  
       
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