Forward Reports Fiscal 2013 Results

Forward Reports Fiscal 2013 Results

WEST PALM BEACH, Fla., Jan. 14, 2014 (GLOBE NEWSWIRE) -- Forward Industries,
Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective
solutions, today announced financial results for its third fiscal year ended
September 30, 2013.

Forward generated operating income of $0.7 million in fiscal 2013 compared to
an operating loss of $(3.3) million in fiscal 2012 primarily due to increased
gross profit and decreased general and administrative expenses. Other key
financial results for fiscal 2013, compared to fiscal 2012 results, are as
follows:

Fiscal 2013 Financial Results – Compared to the fiscal 2012 results:

  *Net sales increased $1.5 million, or 5%, to $30.9 million in fiscal 2013
    due primarily to higher sales of diabetic products, which increased $2.6
    million. Sales of Other Products decreased $1.0 million to $6.7 million in
    fiscal 2013.
  *Gross profit increased $2.5 million to $6.4 million, or 21% of net sales,
    in fiscal 2013 due primarily to the higher sales level achieved and cost
    savings realized from the restructuring of our Asia-based sourcing and
    quality assurance operations and improvements to our quality control
    systems.
  *Sales and marketing expenses increased $0.6 million, or 37%, to $2.2
    million in fiscal 2013 due primarily to higher personnel costs resulting
    from the restructuring and expansion of our sales and sales support teams.
  *General and administrative expenses decreased $2.1 million, or 37%, to
    $3.5 million in fiscal 2013 due primarily to lower personnel costs and
    professional fees resulting from the restructuring of our executive,
    finance, and IT teams.
  *Other expense, net, increased to $0.7 million of expense in fiscal 2013
    from $34 thousand of expense in fiscal 2012, due primarily to net realized
    and unrealized losses on investments in marketable securities.
  *Net income (loss) from continuing operations was $5 thousand of income, or
    ($0.07) per basic and diluted share, in fiscal 2013 compared to ($3.3)
    million, or $(0.41) per basic and diluted share, in fiscal 2012.
  *Net loss from discontinued operations was ($0.2) million, or $(0.02) per
    basic and diluted share, fiscal 2013, compared to ($6.3) million, or
    $(0.78) per basic and diluted share, in fiscal 2012.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "With our
restructuring behind us, we have turned our focus to developing long term
sales and gross profit growth strategies. We believe the recent investments we
have made in strengthening our design and sales support teams have improved
the productivity of our sales force and expanded our ability to provide
innovative and differentiated solutions to our existing and prospective
customers. As an example, the diabetic products sector seems to be undergoing
significant changes that, we believe, present us with meaningful opportunities
if managed proactively.

"In addition to our organic growth and diversification efforts, we are
beginning an active search process to identify potential acquisition targets
that would be complementary to our existing business and allow us to further
leverage our operating infrastructure. We anticipate that this search process
will be ongoing with the goal of identifying prospective target companies
that, if acquired, would be accretive to our organic results.

"We remain challenged with respect to our customer and product concentrations,
which impose on us a heightened sensitivity to fluctuations in sales demand
and downward pricing pressure. However, we believe we can continue to overcome
these challenges if we successfully execute our organic and strategic growth
initiatives."

The tables below are derived from the Company's audited, consolidated
financial statements included in its Annual Report on Form 10-K 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, 2013 and 2012. 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, 2013 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 in 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 LOSS
                                                   
                                                   For the Fiscal Years Ended
                                                    September 30,
                                                   2013         2012
Net sales                                           $30,910,506  $29,403,004
Cost of goods sold                                  24,533,154   25,512,846
Gross profit                                        6,377,352    3,890,158
                                                               
Operating expenses:                                             
Sales and marketing                                 2,187,315    1,591,930
General and administrative                          3,484,222    5,562,019
Total operating expenses                            5,671,537    7,153,949
                                                               
Income (loss) from operations                       705,815      (3,263,791)
                                                               
Other (income) expense:                                         
Interest income                                     (4,626)      (61,882)
Loss on marketable securities, net                  722,347      --
Other (income) expense, net                         (17,848)     96,069
Total other expense, net                            699,873      34,187
                                                               
Income (loss) from continuing operations before     5,942        (3,297,978)
income tax expense
Income tax expense                                  507          15,110
Income (loss) from continuing operations            5,435        (3,313,088)
Loss from discontinued operations, net of tax       (212,321)    (6,320,968)
benefit of $(6,002) and $0, respectively
Net loss                                            (206,886)    (9,634,056)
Preferred stock dividends, accretion and beneficial (546,888)    --
conversion feature
Net loss applicable to common equity                $(753,774)   $(9,634,056)
                                                               
Net loss                                            $(206,886)   $(9,634,056)
Other comprehensive income (loss):                              
Change in unrealized gains on marketable securities 23,744       (23,744)
Translation adjustments                             (8,254)      (12,197)
Total other comprehensive income (loss)             15,490       (35,941)
Comprehensive loss                                  $(191,396)   $(9,669,997)
                                                               
Net loss per basic and diluted common share:                    
Loss from continuing operations                     $(0.07)      $(0.41)
Loss from discontinued operations                   (0.02)       (0.78)
Net loss per share                                  $(0.09)     $(1.19)
                                                               
Weighted average number of common and common                    
equivalent shares outstanding
Basic and diluted                                   8,111,226    8,101,661



FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
                                                               
                                                               
                                                  September 30, September 30,
                                                   2013          2012
Assets                                                          
Current assets:                                                 
Cash and cash equivalents                          $6,616,995    $4,608,246
Marketable securities                              1,080,747     420,605
Accounts receivable, net                           4,382,406     7,533,491
Inventories, net                                   2,050,710     3,380,813
Prepaid expenses and other current assets          390,153       367,552
Current assets of discontinued operations          339,382       621,879
Total current assets                               14,860,393    16,932,586
                                                               
Property and equipment, net                        129,987       138,774
Other assets                                       40,493        40,442
Total Assets                                       $15,030,873   $17,111,802
                                                               
Liabilities and shareholders' equity                            
Current liabilities:                                            
Accounts payable                                   $3,541,193    $5,936,848
Accrued expenses and other current liabilities     1,270,457     1,725,185
Current liabilities of discontinued operations     25,438        261,806
Total current liabilities                          4,837,088     7,923,839
                                                               
Other liabilities                                  82,811        --
Total Liabilities                                  4,919,899     7,923,839
                                                               
6% Senior convertible preferred stock, par value
$0.01 per share; 1,500,000 shares authorized;      716,664       --
648,846 shares issued and outstanding (aggregate
liquidation value of $1,274,988)
                                                               
Commitments and contingencies                                   
                                                               
Shareholders' equity:                                           
Preferred stock, par value $0.01 per share;                     
4,000,000 shares authorized; 2,400,000             --            --
undesignated; no shares issued and outstanding
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, 8,819,095 and                     
8,811,595 shares issued; and                                    
8,112,685 and 8,105,185 shares outstanding,        88,191        88,116
respectively
Additional paid-in capital                         17,965,327    17,020,771
Treasury stock, 706,410 shares at cost             (1,260,057)   (1,260,057)
Accumulated deficit                                (7,378,700)   (6,624,926)
Accumulated other comprehensive loss               (20,451)      (35,941)
Total shareholders' equity                         9,394,310     9,187,963
Total liabilities and shareholders' equity         $15,030,873   $17,111,802

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

Forward Industries, Inc.