Forward Reports Fiscal 2013 Second Quarter Results

Forward Reports Fiscal 2013 Second Quarter Results

WEST PALM BEACH, Fla., May 13, 2013 (GLOBE NEWSWIRE) -- Forward Industries,
Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective
solutions, today announced financial results for its second fiscal quarter
ended March 31, 2013.

Fiscal 2013 Second Quarter Financial Results – Compared to the fiscal 2012
second quarter results:

  *Net sales increased $1.6 million, or 25%, to $7.8 million in the 2013
    quarter due primarily to higher sales of diabetic products, which
    increased $1.6 million. Sales of Other Products were consistent at $1.5
    million.
  *Gross profit increased $0.4 million to $1.5 million, or 20% of net sales,
    in the 2013 quarter due primarily to the higher sales level achieved and
    cost savings realized from the restructure of our Asia-based sourcing and
    quality assurance operations.
  *Sales and marketing expenses increased $0.2 million, or 54%, to $0.5
    million in the 2013 quarter due primarily to higher personnel costs
    resulting from the restructure and expansion of our sales and sales
    support teams.
  *General and administrative expenses decreased $0.5 million, or 41%, to
    $0.8 million in the 2013 quarter due primarily to lower professional fees
    and personnel costs resulting from the restructure of our executive,
    finance, and IT teams.
  *Other income, net, increased to $81 thousand in the 2013 quarter from $34
    thousand in the 2012 quarter due primarily to net realized and unrealized
    gains on investments in marketable securities.
  *Net income from continuing operations was $0.3 million, or $0.04 per basic
    and diluted share, in the 2013 quarter compared to a net loss of $0.5
    million, or $(0.07) per basic and diluted share, in the 2012 quarter.
  *Net loss from discontinued operations was $0.1 million, or $(0.02) per
    basic and diluted share, in the 2013 quarter, compared to $1.0 million, or
    $(0.12) per basic and diluted share, in the 2012 quarter.

Fiscal 2013 Six-Month Period Financial Results – Compared to the fiscal 2012
six-month results:

  *Net sales increased $2.4 million, or 19%, to $14.8 million in the 2013
    period due primarily to higher sales of diabetic products, which increased
    $2.8 million. Sales of Other Products decreased $0.3 million, or 9%, to
    $3.3 million.
  *Gross profit increased $0.7 million to $3.0 million, or 20% of net sales,
    in the 2013 period due primarily to the higher sales level achieved and
    cost savings realized from the restructure of our Asia-based sourcing and
    quality assurance operations.
  *Sales and marketing expenses increased $0.4 million, or 59%, to $1.0
    million in the 2013 period due primarily to higher personnel costs
    resulting from the restructure and expansion of our sales and sales
    support teams.
  *General and administrative expenses decreased $0.9 million, or 33%, to
    $1.8 million in the 2013 period due primarily to lower professional fees
    and personnel costs resulting from the restructure of our executive,
    finance, and IT teams.
  *Other income, net, increased to $0.3 million in the 2013 period from $62
    thousand in the 2012 period due primarily to net realized and unrealized
    gains on investments in marketable securities.
  *Net income from continuing operations was $0.5 million, or $0.06 per basic
    and diluted share, in the 2013 period compared to a net loss of $0.5
    million, or $(0.07) per basic and diluted share, in the 2012 quarter.
  *Net loss from discontinued operations was $0.1 million, or $(0.02) per
    basic and diluted share, in the 2013 quarter, compared to $1.0 million, or
    $(0.12) per basic and diluted share, in the 2012 period.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "Our
financial results for our second fiscal quarter more fully reflect the effects
of the operational restructuring plan we embarked upon in June 2012. With the
restructuring largely behind us, we have turned our full focus to growing our
top line and improving our gross margin. To that end, we have dedicated our
newly restructured and expanded sales support team to providing more proactive
and responsive support to our existing customer base, which we believe will
create efficiencies for our sales team and accelerate new account development.
We believe that the expansion of our customer base is essential to overcoming
the challenges we continue to face with respect to the volatility of our sales
levels and product mix and the impact they have on our gross margins.

"In addition to reducing customer concentration, we believe that diversifying
our supplier base is a key component to achieving our objective of restoring
our gross margins to levels consistent with those realized in fiscal 2010. Our
dedicated sourcing agent is making meaningful progress in this regard, as well
as in other areas such as quality assurance and overall operational
performance.

"While we recognize that we have a lot of work ahead of us in order to achieve
our objectives, we are pleased to have turned in a profitable quarter and
remain confident in the underlying strength of our business, as highlighted by
the 31% increase in our gross profit for the first half of fiscal 2013
compared to a year ago."

The tables below are derived from the Company's audited, consolidated
financial statements included in its Annual Report on Form 10-Q filed today
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, 2012 and 2011. 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

In addition to the historical information contained herein, this press release
contains certain "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that reflect Forward's current
expectations and projections about its future results, performance, prospects
and opportunities. 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 in the 2013 quarter, 2013 period, and beyond to differ
materially from those expressed in, or implied by, these forward-looking
statements.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, 2012 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.

FORWARD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
                                                             
                      Three Months Ended March 31, Six Months Ended March 31,
                      2013          2012           2013         2012
Net sales              $7,786,726    $6,222,812     $14,760,096  $12,385,112
Cost of goods sold     6,268,255     5,131,537      11,742,038   10,082,512
Gross profit           1,518,471     1,091,275      3,018,058    2,302,600
                                                             
Operating expenses:                                           
Sales and marketing   541,461       352,489        1,018,842    642,338
General and            770,772       1,310,046      1,844,810    2,732,959
administrative
Total operating        1,312,233     1,662,535      2,863,652    3,375,297
expenses
                                                             
Income (loss) from     206,238       (571,260)      154,406      (1,072,697)
operations
                                                             
Other income                                                  
(expense):
Interest income        (1,645)       6,928          (256)        49,055
(expense)
Gain on marketable     85,846        --             328,217      --
securities, net
Other income           (3,514)       26,696         (14,182)     12,929
(expense), net
Total other income,    80,687        33,624         313,779      61,984
net
                                                             
Income (loss) from
continuing operations  286,925       (537,636)      468,185      (1,010,713)
before income tax
expense
Income tax expense    432           1,534          507          1,315
Income (loss) from     286,493       (539,170)      467,678      (1,012,028)
continuing operations
Loss from discontinued
operations, net of tax
of $2,055 and $3,120,  (138,419)     (1,005,256)    (180,839)    (2,045,578)
and $2,975 and $4,979,
respectively
Net income (loss)     148,074       (1,544,426)    286,839      (3,057,606)
Other comprehensive                                           
income (loss):
Change in unrealized
gains on marketable    --            --             23,744       --
securities
Translation            (14,816)      (5,028)        (9,201)      (4,112)
adjustments
Comprehensive income   $133,258      $(1,549,454)   $301,382     $(3,061,718)
(loss)
                                                             
Net income (loss) per
basic and diluted                                             
common share:
Income (loss) from     $0.04         $(0.07)        $0.06        $(0.12)
continuing operations
Loss from discontinued $(0.02)       $(0.12)        $(0.02)      $(0.25)
operations
Net income (loss) per  $0.02         $(0.19)        $0.04        $(0.38)
share
                                                             
Weighted average
number of common and                                          
common equivalent
shares outstanding
Basic                 8,112,685     8,105,185      8,109,759    8,098,137
Diluted               8,127,071     8,105,185      8,124,145    8,098,137


FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
                                                               
                                                    March 31,   September 30,
                                                     2013        2012
Assets:                                              (Unaudited) 
Current assets:                                                 
Cash and cash equivalents                           $4,024,309  $4,608,246
Marketable securities                               1,122,091   420,605
Accounts receivable, net                            4,735,580   7,533,491
Inventories, net                                    2,449,337   3,380,813
Prepaid expenses and other current assets           306,922     367,552
Assets of discontinued operations                   446,373     621,879
Total current assets                                 13,084,612  16,932,586
                                                               
Property and equipment, net                         132,697     138,774
Other assets                                        40,442      40,442
Total Assets                                         $13,257,751 $17,111,802
                                                               
Liabilities and shareholders' equity                            
Current liabilities:                                            
Accounts payable                                    $2,725,251  $5,936,848
Accrued expenses and other current liabilities      617,625     1,725,185
Liabilities of discontinued operations              199,040     261,806
Total liabilities                                    3,541,916   7,923,839
                                                               
Commitments and contingencies                                   
                                                               
Shareholders' equity:                                           
Preferred stock, par value $0.01 per share;
4,000,000 shares authorized; no shares issued and    --          --
outstanding
Common stock, par value $0.01 per share; 40,000,000
shares authorized, 8,819,095 and 8,811,595 shares    88,191      88,116
issued; and 8,112,685 and 8,105,185 shares
outstanding, respectively
Capital in excess of par value                      17,247,186  17,020,771
Treasury stock, 706,410 shares at cost              (1,260,057) (1,260,057)
Accumulated deficit                                 (6,338,087) (6,624,926)
Accumulated other comprehensive loss                (21,398)    (35,941)
Total shareholders' equity                           9,715,835   9,187,963
Total liabilities and shareholders' equity           $13,257,751 $17,111,802

CONTACT: Forward Industries, Inc.
         James McKenna, CFO
         (561) 465-0070

Forward Industries, Inc.
 
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