Forward Reports Fiscal 2020 Results

Rhea-AI Summary

Forward Industries (NASDAQ:FORD) reported fiscal year 2020 revenues of $34.5 million, down 7.8% from $37.4 million in 2019. The company experienced a loss from operations of $2.0 million, improved from $3.1 million in the prior year. Gross margin increased to 19.3%, compared to 17.6% a year earlier. The net loss decreased to $1.8 million from $3.6 million in 2019, with net loss per share at $0.19, down from $0.38. Cash and equivalents stood at $2.9 million as of September 30, 2020.

Positive

• Improved gross margin at 19.3% compared to 17.6% in 2019.
• Reduced loss from operations, improving from $3.1 million to $2.0 million.
• Net loss decreased from $3.6 million to $1.8 million.
• Cash and cash equivalents of $2.9 million provides a stable short-term liquidity position.

Negative

• Revenues decreased by 7.8% from $37.4 million in 2019 to $34.5 million.
• Continued decline in historical core business.

Revenues of $34.5 million and operating loss of $2.0 million for the year

HAUPPAUGE, N.Y., Dec. 17, 2020 (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, 2020.

Full Fiscal Year 2020 Financial Highlights

• Revenues were $34.5 million compared to $37.4 million for 2019, a decrease of 7.8%.
  
  
• Loss from operations was $2.0 million compared to $3.1 million in 2019.
  
  
• Gross margin improved to 19.3% compared to 17.6% in 2019.
  
  
• Net loss was $1.8 million compared to $3.6 million in 2019.
  
  
• Net loss per share was $0.19 compared to $0.38 for 2019.
  
  
• Cash and cash equivalents totaled $2.9 million at September 30, 2020.
  

Terry Wise, Chief Executive Officer of Forward Industries, stated, “In spite of the very challenging trading circumstances, I am pleased that the fiscal year-end financial performance has improved relative to the previous year.

"Importantly, as trading conditions improve, particularly within the retail sector, we will continue to build momentum in terms of achieving profitability. Additionally, our underlying business within the design division remains robust, and with the addition of Kablooe Design, I am confident that will continue to strengthen. Thus, whilst there has continued to be the predictable decline in our historical core business, I am strongly encouraged by Forward’s progress this fiscal year. 

"During this fiscal year, we will seek to build upon the considerable momentum we have been able to achieve despite the exceptional trading environment. It is for this very reason that I look forward to the future with cautious optimism."

The tables below are derived from the Company’s consolidated financial statements included in its Form 10-K filed on December 17, 2020 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, 2020 and 2019. 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 momentum and growth in our business. 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 salespeople, failure to develop products at a profit, failure to commercialize products that we develop and unanticipated issues with our affiliated sourcing agent, failure to take advantage of synergies between Kablooe. 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, 2020 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 provider to top tier medical and technology customers worldwide. Through its acquisition of Intelligent Product Solutions, Inc. and Kablooe Design, Inc., the Company has expanded its ability to design and develop solutions for our existing multinational client base and expand beyond the diabetic product line into a variety of industries with a full spectrum of hardware and software product design and engineering services. In addition to our existing design and distribution of carry and protective solutions, primarily for hand-held electronic devices, we are now a one-stop shop for design development and manufacturing solutions serving a wide range of clients in the industrial, commercial, medical and consumer industries.

Contact:
Forward Industries, Inc.
Anthony Camarda, CFO
(631) 547-3041

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	September 30,
		2020				2019
Assets
Current assets:
Cash	$	2,924,627			$	3,092,813
Accounts receivable, net		7,602,316				6,695,120
Inventories		1,275,694				1,608,827
Prepaid expenses and other current assets		419,472				441,502
Total current assets		12,222,109				11,838,262
Property and equipment, net		215,323				243,002
Intangible assets, net		1,531,415				1,248,712
Goodwill		1,758,682				2,182,427
Investment		-				326,941
Operating lease right of use assets, net		3,512,042				-
Other assets		116,697				255,008
Total assets	$	19,356,268			$	16,094,352
Liabilities and shareholders' equity
Current liabilities:
Line of credit	$	1,000,000			$	1,300,000
Note payable to Forward China		1,600,000				1,600,000
Accounts payable		197,022				315,444
Due to Forward China		3,622,401				3,236,693
Deferred income		485,078				219,831
Current portion of notes payable		983,395				54,799
Current portion of capital leases payable		18,411				39,941
Current portion of deferred consideration		45,000				834,000
Current portion of operating lease liability		259,658				-
Accrued expenses and other current liabilities		615,401				694,972
Total current liabilities		8,826,366				8,295,680
Other liabilities:
Notes payable, less current portion		529,973				-
Operating lease liability, less current portion		3,359,088				-
Capital lease liability, less current portion		12,769				26,438
Deferred rent		-				60,935
Deferred consideration, less current portion		45,000				-
Total other liabilities		3,946,830				87,373
Total liabilities		12,773,196				8,383,053
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized;
9,883,851 and 9,533,851 shares issued and outstanding at September 30, 2020
and 2019, respectively		98,838				95,338
Additional paid-in capital		19,579,684				18,936,130
Accumulated deficit		(13,095,450	)			(11,320,169	)
Total shareholders' equity		6,583,072				7,711,299
Total liabilities and shareholders' equity	$	19,356,268			$	16,094,352

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Fiscal Years Ended September 30,
		2020				2019
Revenues, net	$	34,478,358			$	37,409,030
Cost of sales		27,839,851				30,828,148
Gross profit		6,638,507				6,580,882
Sales and marketing		1,950,704				1,965,230
General and administrative		5,655,186				7,713,035
Goodwill impairment		1,015,000				-
Loss from operations		(1,982,383	)			(3,097,383	)
Fair value adjustment of earn-out consideration		(350,000	)			260,000
Fair value adjustment of deferred cash consideration		16,000				36,000
Interest income		(60,932	)			-
Interest expense		174,962				201,004
Other expense, net		3,701				13,805
Loss before income taxes		(1,766,114	)			(3,608,192	)
Provision for (benefit from) income taxes		9,167				(4,162	)
Net loss	$	(1,775,281	)		$	(3,604,030	)
Net loss per share:
Basic	$	(0.19	)		$	(0.38	)
Diluted	$	(0.19	)		$	(0.38	)
Weighted average common shares outstanding:
Basic		9,583,441				9,532,034
Diluted		9,583,441				9,532,034

 

FAQ

What were Forward Industries' financial results for 2020?

Forward Industries reported revenues of $34.5 million for the year ended September 30, 2020, a decrease from $37.4 million in 2019.

How much was the net loss for Forward Industries in 2020?

The net loss for Forward Industries in 2020 was $1.8 million, improved from $3.6 million in 2019.

What is the gross margin reported by Forward Industries for fiscal year 2020?

Forward Industries reported a gross margin of 19.3% for fiscal year 2020, up from 17.6% in 2019.

What is the cash position of Forward Industries as of September 30, 2020?

As of September 30, 2020, Forward Industries had cash and cash equivalents totaling $2.9 million.

How did Forward Industries' loss from operations change in 2020?

Forward Industries' loss from operations improved from $3.1 million in 2019 to $2.0 million in 2020.