Forward Reports Fiscal 2014 First Quarter Results

Forward Reports Fiscal 2014 First Quarter Results

WEST PALM BEACH, Fla., Feb. 13, 2014 (GLOBE NEWSWIRE) -- Forward Industries,
Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective
solutions, today announced financial results for its first fiscal quarter
ended December 31, 2013.

After reporting annual operating income in fiscal 2013 for the first time
since fiscal 2006, Forward continued to generate operating income of $0.4
million in the fiscal 2014 first quarter compared to an operating loss of $52
thousand in the fiscal 2013 first quarter. Other key financial results for the
fiscal 2014 first quarter, compared to the fiscal 2013 first quarter, are as
follows:

Fiscal 2014 First Quarter Financial Results – Compared to the 2013 first
quarter results:

  *Net sales increased $1.4 million, or 21%, to $8.4 million in the 2014
    quarter due primarily to higher sales of Diabetic products, which
    increased $1.2 million, and, to a lesser extent, higher sales of Other
    products, which increased $0.2 million in the 2014 quarter.
  *Gross profit increased $0.3 million to $1.8 million, or 22% of net sales,
    in the 2014 quarter, compared to $1.5 million, or 21% of net sales, in the
    2013 quarter.
  *Sales and marketing expenses increased $0.1 million, or 29%, to $0.6
    million in the 2014 quarter due primarily to higher personnel costs
    resulting from the restructuring and expansion of our sales and sales
    support departments.
  *General and administrative expenses decreased $0.2 million, or 20%, to
    $0.9 million in the 2014 quarter due primarily to higher personnel costs,
    and travel and entertainment costs, incurred in the 2013 quarter in
    connection with our restructuring. In addition, professional fees incurred
    in the 2013 quarter were higher primarily as a result of the Targus
    lawsuit.
  *Other expense (income), net, shifted to $25 thousand of expense in the
    2014 quarter from $(0.2) million of income in the 2013 quarter primarily
    as a result of net realized and unrealized losses on investments in
    marketable securities.
  *Net income from continuing operations increased to $0.3 million, or $0.04
    per basic and diluted share, in the 2014 quarter from $0.2 million, or
    $0.02 per basic and diluted share, in the 2013 quarter.
  *Net income (loss) from discontinued operations was $5 thousand, or $0.00
    per basic and diluted share, in the 2014 quarter, compared to ($42)
    thousand, or $(0.00) per basic and diluted share, in the 2013 quarter.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "After
turning in our first fiscal year with operating income since fiscal 2006, we
continue to invest carefully in fiscal 2014 to build out the capabilities of
our sales and marketing teams as we seek to both grow and diversify our
revenue streams. Our market remains highly competitive, but we continue to
believe our ability to provide innovative and differentiated solutions to our
existing and prospective customers sets us apart from our competition.

"In addition to our organic growth and diversification efforts, we have
initiated a search process to identify potential acquisition targets that
would 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 unaudited, consolidated
financial statements included in its Quarterly 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, 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 2014 quarter 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 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
                                                             
                                              Three Months Ended December 31,
                                              2013            2012
Net sales                                      $8,415,477      $6,973,370
Cost of goods sold                            6,570,277       5,473,783
Gross profit                                   1,845,200       1,499,587
                                                             
Operating expenses:                                           
Sales and marketing                           616,707         477,381
General and administrative                    856,491         1,074,038
Total operating expenses                       1,473,198       1,551,419
                                                             
Income (loss) from operations                  372,002         (51,832)
                                                             
Other expense (income):                                       
Interest income                               (8,518)         (1,820)
Loss (gain) on marketable securities, net     80,839          (242,371)
Other (income) expense, net                   (47,162)        11,099
Total other expense (income), net              25,159          (233,092)
                                                             
Income from continuing operations before       346,843         181,260
income tax expense
Income tax expense                            25              75
Income from continuing operations              346,818         181,185
Income (loss) from discontinued operations,
net of tax expense of $0 and $920,             4,609           (42,420)
respectively
Net income                                    351,427         138,765
Preferred stock dividends and accretion       (48,898)        --
Net income applicable to common equity        $302,529        $138,765
                                                             
Net income                                    $351,427        $138,765
Other comprehensive income:                                   
Change in unrealized gains on marketable       --              23,744
securities
Translation adjustments                       479             5,615
Total other comprehensive income               479             29,359
Comprehensive income                          $351,906        $168,124
                                                             
Net income (loss) per basic and diluted common                
share:
Income from continuing operations             $0.04           $0.02
Income (loss) from discontinued operations    $0.00           $(0.00)
Net income per share                          $0.04           $0.02
                                                             
Weighted average number of common and common                  
equivalent shares outstanding
Basic                                         8,160,571       8,106,897
Diluted                                       8,171,011       8,106,897


FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
                                                               
                                                   December 31, September 30,
                                                   2013         2013
                                                   (Unaudited)  (Note 1)
Assets:                                                         
Current assets:                                                 
Cash and cash equivalents                          $5,399,113   $6,616,995
Marketable securities                              1,169,743    1,080,747
Accounts receivable                                6,079,326    4,382,406
Inventories                                        2,066,411    2,050,710
Prepaid expenses and other current assets          351,490      390,153
Assets of discontinued operations                  336,263      339,382
Total current assets                               15,402,346   14,860,393
                                                               
Property and equipment, net                        122,954      129,987
Other assets                                       40,961       40,493
Total Assets                                        $15,566,261  $15,030,873
                                                               
Liabilities and shareholders' equity                            
Current liabilities:                                            
Accounts payable                                   $3,857,167   $3,541,193
Accrued expenses and other current liabilities     1,152,716    1,270,457
Liabilities of discontinued operations             3,176        25,438
Total current liabilities                          5,013,059    4,837,088
                                                               
Other liabilities                                  82,811       82,811
Total Liabilities                                   5,095,870    4,919,899
                                                               
6% Senior Convertible Preferred Stock, par value
$0.01 per share; 1,500,000 shares authorized;       746,280      716,664
648,846 shares issued and outstanding (aggregate
liquidation value of $1,275,000)
                                                               
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 authorized; no shares issued and     --           --
outstanding
Common stock, par value $0.01 per share; 40,000,000
shares authorized, 8,902,218 and 8,819,095 shares   89,022       88,191
issued; and 8,195,808 and 8,112,685 shares
outstanding, respectively
Additional paid-in capital                         17,991,289   17,965,327
Treasury stock, 706,410 shares at cost             (1,260,057)  (1,260,057)
Accumulated deficit                                (7,076,171)  (7,378,700)
Accumulated other comprehensive loss               (19,972)     (20,451)
Total shareholders' equity                          9,724,111    9,394,310
Total liabilities and shareholders' equity          $15,566,261  $15,030,873

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

Forward Industries, Inc.
 
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