Westbrook, Maine, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Synergy CHC Corp. (OTCQB: SNYR) (“Synergy” or the “Company”), a consumer health care & beauty company, today reported results for the quarter ended June 30th, 2019.
2019 Second Quarter Highlights
- Generated adjusted EBITDA of $1.2 million, up from $0.4 million in the second quarter of 2018, an increase of 200%
- Generated net income of $318,462 or $0.00 (Basic and diluted) earnings per share versus a net loss of $783,393 in second quarter of 2018, an improvement of over $1.1 million
- Improved income from operations to $705,454 for the quarter from a loss of $95,944 in the same quarter of 2018, an improvement of $0.8 million
- Generated net cash provided by operating activities of $962,641 for the quarter and 1.8 million for the first six months of the year
- Repaid $512,500 of long-term debt in the quarter, a reduction of 6.9%
- Cash and cash equivalents grew to $1,201,267 from $826,187 compared to the previous quarter, an increase of 45%
- Reduced accounts payable by $3.3 million for the first six months of the year, a reduction of 39%
- Improved net working capital by $109,398 for the quarter
- Gross profit improved to 75% in second quarter 2019 from 72% second quarter 2018
Net sales for the first six months ended were $15.8 million, compared to $19.4 million for the same six months in 2018. For the second quarter, our net income was $0.3 million or $0.00 (basic and diluted) earnings per share, compared to a net loss of $0.8 million or $0.00 (basic and diluted) earnings per share for 2018, an improvement of over $1.1 million.
We currently focus on Adjusted EBITDA to evaluate our business relationships and our resulting operating performance and financial position. Adjusted EBITDA for the quarter was $1.2 million and adjusted EBITDA for the first six months was $3.5 million.
EBITDA and Adjusted EBITDA are considered non-GAAP financial measures. The Company’s definitions of EBITDA and adjusted EBITDA might not be comparable to similarly titled measures reported by other companies.
“Synergy’s second quarter numbers continue to show drastic improvement compared to 2018. We have achieved a significant reduction in accounts payable and long-term debt, as the company has retired more than 4.3 million of current payables and long-term debt for the first 6 months. We will continue to focus on profitability, debt reduction and balance sheet improvements for the remainder of 2019”
“We have also been working hard on Synergy’s pipeline of new product innovation across all brands and we should start seeing the results from these efforts as we enter the back part of 2019 and the first quarter of 2020. We are excited to return back to growth mode now that the majority of the work has been done to ensure a solid foundation to launch our new innovative pipeline across our ever growing retail footprint ”said Jack Ross, CEO of Synergy.
About Synergy CHC Corp.
Synergy CHC Corp. is a leading omni-channel consumer health and beauty company that is in the process of building a portfolio of best-in-class consumer product brands and utilizes The Synergy Effect, which includes a proprietary ROI based algorithm, to sell its products online through social media influencers. Synergy’s strategy is to grow its portfolio both organically and by further acquisition. Synergy’s diversified portfolio now includes FOCUSfactor™, Flat Tummy™, Per-fékt Beauty™, Sneaky Vaunt™, Neuragen™, and Hand MD™. For more information, please visit http://www.synergychc.com
Synergy’s main brands:
Flat Tummy Tea’s uniquely formulated two-step herbal detox tea works to naturally help speed metabolism, boost energy and reduce bloating to flatten your tummy. It is currently sold online to a 20-30 year old female, predominantly American market.
Since being founded in 2013, Flat Tummy has grown rapidly, largely attributed to the strength of its branding and its innovative and effective use of social media marketing. The secret is a very specific process and ROI based algorithm used on various social media platforms. To date, Flat Tummy has built a targeted social media following of over 1,750,000, many of whom are now customers.
FOCUSfactor is sold at America’s leading retailers such as Costco, Sam’s Club, Wal-Mart, BJ’s, Walgreens, CVS and The Vitamin Shoppe. FOCUSfactor, America’s leading brain health supplement, is a nutritional supplement that includes a proprietary blend of brain supporting vitamins, minerals, antioxidants and other nutrients. In December 2012, the United States Patent and Trademark Office issued US Patent 8,329,227 covering FOCUSfactor’s proprietary formulation “for enhanced mental function”. The issuance of the patent marked one of the few times a patent has been issued for a nationally branded nutritional supplement. FOCUSfactor is clinically tested with results demonstrating improvements in focus, concentration and memory in healthy adults. More information on FOCUSfactor can be found at https://www.focusfactor.com/ or visit their Instagram page.
Hand MD is the world’s first anti-aging skincare line formulated specifically for the hands. Hands reveal a woman’s true age and the rejuvenation of the hand has become women’s #1 aging concern. Developed by Kara Harshbarger and renowned celebrity dermatologist Dr. Alex Khadavi, Hand MD’s extensive clinical trials show significant improvement in the appearance of fine lines and wrinkles, skin hydration, hyper-pigmentation and radiance. Hand MD launched on QVC and sold out in an astonishing 5 minutes. More information on Hand MD can be found at handmd.com or visit their Instagram page which now has more than 55,000 followers.
Neuragen® is a topical product that works directly at the site of the pain as opposed to oral products. Neuragen® reduces the spontaneous firing of damaged peripheral nerves. By calming these firings at the source, Neuragen® is clinically shown to reduce shooting and burning pains quickly and without the side effects of orally taken medications. This is in part due to the small lipophilic molecules found in Neuragen® which rapidly carry the active ingredients through the rough outer layer of the skin to the site of the pain. Neuragen® is available over the counter in most local pharmacies either in the diabetic section or the analgesic (pain) section. For more information, please visit neuragen.ca.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. All statements, other than statements of historical facts, regarding management’s expectations, beliefs, goals, plans or Synergy’s prospects should be considered forward-looking. Readers are cautioned that actual results may differ materially from projections or estimates due to a variety of important factors, including: Synergy’s ability to integrate any new products into its current operations; the risks and uncertainties associated with Synergy’s ability to manage its cash resources; obtaining additional financing to support Synergy’s operations; Synergy’s dependence on third parties for its research and development, manufacturing and distribution functions; Synergy’s dependence on its license relationships; protecting the intellectual property developed by or licensed to Synergy; and Synergy’s ability to build its operations to support its business strategy and promote its products. These and other risks are described in greater detail in Synergy’s filings with the SEC, copies of which are available free of charge at the SEC’s website (www.sec.gov) or upon request from Synergy. Synergy may not actually achieve the goals or plans described in its forward-looking statements, and investors should not place undue reliance on these statements. Synergy assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Brendan Horning, VP – Investor Relations
Synergy CHC Corp.