FORD...first 9mo earnings then agreement with Motorola announced today:
B: Forward Industries Reports Improved Third Quarter Result; Tw
B: Forward Industries Reports Improved Third Quarter Result; Two Directors
Added
POMPANO BEACH, Fla., Jul 30, 2002 (BUSINESS WIRE) -- Forward Industries, Inc.
(Nasdaq:FORD), a designer, and distributor of custom carrying case solutions,
today announced results for its fiscal third quarter ended June 30, 2002. The
period represents Forward's third consecutive quarter of profitability. Results
for the three and nine months ended June 30, 2002 are presented below.
Third Quarter 2002 Financial Highlights - compared to third quarter 2001 results
-- Net sales increased 73% to $4.1 million.
-- Net income improved significantly to $248,711, or $.04 per
diluted share, from a net loss of $305,535, or $.05 per
diluted share.
Nine-Month 2002 Financial Highlights - compared to nine month 2001 results
-- Net sales increased 24% to $12.3 million.
-- Net income rose 265% to $438,004 or $.08 per diluted share,
from $120,096, or $.02 per diluted share.
Jerome E. Ball, Chairman and Chief Executive Officer of Forward, stated, "We are
pleased with our fiscal third quarter and year to date results. The
significantly higher sales were largely the result of increased orders for our
diabetic monitoring equipment cases from customers including Bayer, Lifescan,
Roche, Abbott Laboratories and TheraSense. We believe that these developments
reflect management's hard work and focus to penetrate this very important
market.
"We also recorded increased sales under our license agreement with Motorola,
pursuant to which we distribute carrying solutions for Motorola's mobile phones
in the European, Middle Eastern and African markets. Products sold under this
agreement generated approximately $685,000 in sales in our fiscal third quarter,
compared to $430,000 in our fiscal second quarter and $500,000 in our fiscal
first quarter. These sales are in addition to direct sales to Motorola, which
are not covered by the agreement. As previously announced, we are currently in
discussions with Motorola to amend the terms of the agreement, and we are
optimistic that the negotiations will be successful and mutually beneficial.
Against the possibility that such negotiations are not successful, as announced
previously, we have given notice to terminate the agreement effective September
30, 2002.
"In summary, in a very difficult economic environment, our efforts have enabled
us to report increased revenues and profits. The higher sales achieved in the
third quarter translated into a significantly improved bottom-line, representing
our third consecutive quarter of profitability."
Forward Adds Two New Directors
At the Company's Annual Meeting held on May 24, shareholders elected two new
directors to the Company's Board of Directors, Bruce Galloway, 44, and Jeffrey
Kuhr, 43. Mr. Galloway and Mr. Kuhr, who will fill vacancies created by the
resignations of Noah Fleschner and Samson Helfgott, will also serve on the
Company's audit and compensation committees. Mr. Galloway and Mr. Kuhr bring to
Forward a broad range of financial, managerial and advisory experience.
Since 1993, Mr. Galloway has been Managing Director of Burnham Securities, a New
York-based investment bank. Mr. Galloway also serves as Chairman of Datametrics,
a manufacturer of ruggedized computer equipment, and Chairman of International
Microcomputer Software, a software development company. Mr. Galloway holds a
B.A. in Economics from Hobart College and an M.B.A. in Finance from New York
University.
Mr. Kuhr is currently Managing Partner of West End Capital Partners LLC, a
merchant banking firm he formed in October 2000. Prior to that, from 1989 -
March 2000, he was a Managing Director of Peter J. Solomon Company, an
independent investment banking firm that he co-founded. He also co-founded RS1W,
Inc., an online entertainment destination, with Russell Simmons in August 1999.
Mr. Kuhr holds a B.A. from Oberlin College and an M.B.A. from The Wharton
School.
Mr. Ball commented, "I sincerely thank Noah and Samson for all their hard work,
guidance and contributions on the Board. In that spirit, I extend a warm welcome
to Bruce and Jeff. I am confident that they will make important contributions to
the Company and I look forward to their guidance and support."
About Forward Industries
Forward Industries, Inc. designs, markets and distributes custom carrying case
solutions primarily for cellular phones, home medical equipment and laptop
computers. The Company sells its products directly to original equipment
manufacturers and recently began marketing a line of Carry Solutions under the
"Motorola" brand name. Forward's products can be viewed online at
www.fwdinnovations.com and www.forwardindustries.com.
Statements in this press release other than statements of historical fact are
"forward-looking statements." Such statements are subject to certain risks and
uncertainties, identified from time to time in the Company's filings with the
Securities and Exchange Commission that could cause actual results to differ
materially from any forward-looking statements. These forward-looking statements
represent the Company's judgment as of the date of the release. The Company
disclaims, however, any interest or obligations to update these forward-looking
statements.
FORWARD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
Ended June 30, Ended June 30,
--------------------------------------------
2002 2001 2002 2001
---------- ---------- ----------- ----------
Net sales $4,051,225 $2,348,083 $12,279,901 $9,905,857
Cost of goods sold 2,492,811 1,710,402 7,969,936 6,574,396
---------- ---------- ----------- ----------
Gross profit 1,558,414 637,681 4,309,965 3,331,461
---------- ---------- ----------- ----------
Operating expenses:
Selling 704,067 588,014 2,160,367 1,586,984
General and administrative 626,857 559,884 1,681,069 1,583,379
---------- ---------- ----------- ----------
Total operating expenses 1,330,924 1,147,898 3,841,436 3,170,363
---------- ---------- ----------- ----------
Income (loss) from
operations 227,490 (510,217) 468,529 161,098
---------- ---------- ----------- ----------
Other income (expense):
Interest expense (12,122) (5,648) (47,998) (18,711)
Interest income 3,165 15,010 14,419 44,830
Other income (expense) 10,778 (8,370) 3,054 12,939
---------- ---------- ----------- ----------
Total other income
(expense) 1,821 992 (30,525) 39,058
Income (loss) before
provision for income
taxes 229,311 (509,225) 438,004 200,156
Provision (benefit) for
income taxes (19,400) (203,690) -- 80,060
---------- ---------- ------------ ---------
Net income (loss) $ 248,711 $(305,535) $ 438,004 $ 120,096
========== ========== =========== ==========
NET INCOME (LOSS) PER
COMMON AND COMMON
EQUIVALENT SHARE
Basic $ 0.04 $ (0.05) $ 0.08 $ 0.02
========== ========== =========== ==========
Diluted $ 0.04 $ (0.05) $ 0.08 $ 0.02
========== ========== =========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON
EQUIVALENTSHARES
OUTSTANDING
Basic 5,825,641 5,825,641 5,825,641 5,935,919
========== ========== =========== ==========
Diluted 5,825,641 5,825,641 5,825,641 5,941,091
========== ========== =========== ==========
FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
June 30, September 30,
2002 2001
-------------- ---------------
ASSETS (Unaudited)
------
CURRENT ASSETS
Cash and cash equivalents $ 782,329 $ 1,376,572
Accounts receivable, less
allowance for doubtful
accounts of $39,115 and
$86,500, respectively 3,096,049 2,541,391
Inventories 1,035,056 753,926
Notes and loans receivable
- officers - current portion 34,200 20,300
Prepaid expenses and other
current assets 170,035 269,728
-------------- ---------------
Total current assets 5,117,669 4,961,917
Property, plant and
equipment - net 365,741 457,132
Assets held for sale -net -- 179,475
Notes and loans receivable -
officers - net of
current portion 50,854 83,618
Other assets 53,992 38,558
-------------- ---------------
Total Assets $ 5,588,256 $ 5,720,700
============== ===============
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $1,254,334 $ 1,051,609
Notes and acceptances
payable under credit line 600,000 1,500,000
Current portion of capital
lease obligations 27,300 26,030
Accrued expenses and other
current liabilities 354,345 208,157
-------------- ---------------
Total current liabilities 2,235,979 2,785,796
Long term portion of capital
lease obligations 65,934 86,565
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY
Preferred stock, 4,000,000
authorized shares, par value
$.01; none issued -- --
Common stock, 40,000,00
authorized shares, par value
$.01; 6,286,531 shares issued
(including 460,890 held in
treasury) 62,865 62,865
Paid-in capital 8,251,780 8,251,780
Accumulated deficit (4,346,415) (4,784,419)
-------------- ---------------
3,968,230 3,530,226
Less: Cost of shares
in treasury (681,887) (681,887)
-------------- ---------------
Total stockholders'
equity 3,286,343 2,848,339
-------------- ---------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,588,256 $ 5,720,700
============== ===============
CONTACT: Forward Industries, Inc.
Jerome E. Ball, 954/419-9544
or
INVESTOR RELATIONS COUNSEL
The Equity Group Inc.
Loren Mortman, 212/836-9604
lmortman@equityny.com
www.theequitygroup.com |
