FORD Nasdaq .90:
(BSNS WIRE) Forward Industries Reports Fiscal 2002 EPS of $.15 vs. Loss of
Forward Industries Reports Fiscal 2002 EPS of $.15 vs. Loss of $.33, Resulting
In P/E Ratio of 5.7
Business & Technology Editors
POMPANO BEACH, Fla.--(BUSINESS WIRE)--Nov. 26, 2002--Forward
Industries, Inc. (Nasdaq:FORD), a designer and distributor of custom
carrying case solutions, today announced results for its fiscal year
ended September 30, 2002.
Fiscal Year 2002 Financial Highlights - compared to fiscal year
2001 results
-- Net sales increased 24% to $16.4 million.
-- Gross profit increased 36% to $5.6 million.
-- Net income reached $855,592 or $.15 per diluted share, a
significant turnaround from a net loss of $2.0 million or $.33
per diluted share.
The Company's net income for the year ended September 30, 2002 of
$.15 per share results in a price-earnings ratio of approximately 5.7
based on the closing price of Forward's common stock of $.85 on
November 25, 2002.
Jerome E. Ball, Chairman and Chief Executive Officer of Forward,
stated, "We are extremely pleased with the Company's results for this
year, especially with the growth in sales of our cases for diabetic
monitoring equipment to companies such as Bayer, Lifescan, Roche,
Abbott Laboratories and TheraSense. With approximately 16 million
diabetics in the U.S. and 175 million worldwide, we see continued
growth and recurring demand in this portion of our business.
"Regarding our licensing agreement with Motorola, during the
fourth quarter we amended the terms of our license and are very
enthusiastic about this agreement and the continuation of our 15-year
relationship. In fiscal 2002, the agreement generated approximately
$2.1 million in sales of licensed Motorola products to third parties
and helped expand our customer base in Europe. Sales of cell phone
cases will continue to be a very important piece of our business and
we expect to see increased demand for our products as the next
generation cell phones are introduced into the marketplace."
Mr. Ball continued, "We closed the year with $1.2 million in cash
and our balance sheet is in excellent shape. We have no long-term debt
and no borrowings outstanding under our line of credit. We believe
that our stock price does not reflect Forward's value based on the
Company's performance and fundamentals. In this regard, our Board of
Directors recently authorized a stock buyback program of up to 400,000
shares, or approximately 7% of our outstanding shares, that we believe
will further enhance shareholder value as we implement the program."
Mr. Ball concluded, "We expect continued progress in fiscal 2003
and beyond as we capitalize on the vast cellular phone and home
medical equipment markets, and explore new markets for cases. We look
forward to reporting our progress."
About Forward Industries
Forward Industries, Inc. designs and distributes custom carrying
case solutions primarily for cellular phones, laptop computers and
home medical equipment. 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.
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FORWARD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended September 30,
2002 2001
------------ ------------
Net sales $16,362,708 $13,176,558
Cost of goods sold 10,732,692 9,044,036
------------ ------------
Gross profit 5,630,016 4,132,522
------------ ------------
Operating expenses:
Selling 2,759,435 2,420,407
General and administrative 2,166,220 2,086,936
------------ ------------
Total operating expenses 4,925,655 4,507,343
------------ ------------
Income (loss) from operations 704,361 (374,821)
------------ ------------
Other income (expense):
Interest expense (52,456) (30,158)
Interest income 17,051 54,147
Other income (expense) - net 6,636 (284,096)
------------ ------------
Total other income (expense) (28,769) (260,107)
------------ ------------
Income (loss) before provision (benefit) for
income taxes 675,592 (634,928)
Provision (benefit) for income taxes (1) (180,000) 1,344,000
------------ ------------
Net income (loss) $855,592 $(1,978,928)
============ ============
Net income (loss) per common and common
equivalent share:
Basic $0.15 $(0.33)
============ ============
Diluted $0.15 $(0.33)
============ ============
Weighted average number of common and common
equivalent shares outstanding:
Basic and diluted 5,825,641 5,908,349
============ ============
(1) The tax benefit for fiscal year 2002 resulted from the
reinstatement of a portion of the Company's deferred tax assets (for
which a 100% valuation allowance was provided as of September 30,
2001) based on management's expectation that the Company will realize
the benefit of a portion of its deferred tax assets.
FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2002
ASSETS
Current assets:
Cash and cash equivalents $1,207,311
Accounts receivable, less allowance for doubtful
accounts of $39,100 2,680,916
Inventories 718,986
Prepaid expenses and other current assets 219,124
Deferred tax asset 15,500
-----------
Total current assets 4,841,837
Property, plant and equipment - net 341,187
Deferred tax asset 164,500
Other assets 41,337
-----------
TOTAL ASSETS $5,388,861
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,306,381
Current portion of capital lease obligations 27,814
Accrued expenses and other current liabilities 291,984
-----------
Total current liabilities 1,626,179
Long term portion of capital lease obligations 58,751
Commitments and contingencies
Stockholders' equity
Preferred stock, 4,000,000 authorized shares, par value
$0.01; none issued --
Common stock, 40,000,000 authorized shares, par value
$0.01; 6,286,531 issued and outstanding
(including 460,890 held in treasury) 62,865
Additional paid-in capital 8,251,780
Accumulated deficit (3,928,827)
-----------
4,385,818
Less: Cost of shares in treasury (681,887)
-----------
Total stockholders' equity 3,703,931
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,388,861
===========
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--30--ck/ny*
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
KEYWORD: FLORIDA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS NETWORKING
TELECOMMUNICATIONS EARNINGS
SOURCE: Forward Industries, Inc.
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