Synergy Brands Reports Record Six Month Results: Revenues increase to record $31.6 Million.SYOSSET, N.Y. -- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Increases 115% to record $581,000; Grocery operations report record net profit of $372,000 or $.08 per share; PERX PERX Pilot Engineering Repository Xsearch reports $40 million in travel bookings & EBITDA of $1.2 million for the six months Synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. Brands, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SYBR SYBR Synergy Brands, Inc. (stock symbol) ) today reported revenues for the six months ended June June: see month. 30, 2006 of $31.6 million, an increase from the $30.8 million recorded for the same period in 2005. The company narrowed its operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. to $4,000 as compared to an operating loss of $103,000 for the same period. Gross Profit increased by 20% to a record $2.4 million while EBITDA increased by 115% to a record $581,000, predominately due to a $925,000 contribution to EBITDA by PHS (Personal Handyphone System) A TDMA-based cellular phone system introduced in Japan in mid-1995. Operating in the 1880-1930 MHz band, PHS uses microcells that cover an area only 100 to 500 meters in diameter, resulting in lower equipment costs but requiring more base Group, the Company's grocery operations. The company's net loss attributable to common shareholders decreased by 10% to $875,000 or ($.19) per share. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the business segments of Synergy Brands (SYBR), which include PHS Group, Proset ProSet - A derivative of SETL with Ada-like syntax developed at the University of Essen in 1990. Formerly known as SETL/E. ["SETL/E, A Prototyping System Based on Sets", E.E. Doberkat et al, in Tagungsband TOOL90, W. Zorn ed, pp. 109-118, U Karlsruhe, Nov 1990]. and B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. operations, increased by 186% to $741,000, commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with a 103% increase of EBITDA to $873,000. The Company was able to grow revenues by 2% during the quarter while increasing gross profit by 20%. Corporate and regulatory expenses totaled $672,000 for the six months. The Company believes that it has achieved strong operating results for PHS group and contained the operating performance of Proset and GRC GRC Greece (ISO Country code) GRC Glenn Research Center (NASA) GRC Governance, Risk and Compliance GRC Gendarmerie Royale du Canada (RCMP - Canada) GRC John H. so that it may have the ability to generate an operating profit. However, corporate regulatory expenses, such as compliance with Sarbanes-Oxley requirements, as well as financing costs, have become material cost centers that cause the Company to report a net loss. Below are Six months results for the Company's operating and non-operating segments: PHS Group (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business Operations) PHS Group is SYBR's largest subsidiary and segment and represents 94% of total revenues for the period. PHS focuses on the distribution of nationally branded grocery and HBA (Host Bus Adapter) See host adapter. products. PHS represents some of the country's largest consumer products companies and distributes their goods through its warehousing and logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation facilities in the Northeastern region of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . PHS generated a record net profit of $372,000 for the period predominately due to higher margins and an expanding product mix. PHS reported sales of $29.6 million for the period. Gross profit increased by 15% to $2 million while operating profit increased by 41% to $922,000. EBITDA increased by 40% to $925,000, also a record for PHS Group. PHS continues to expand its wholesale operations as well as develop proprietary products for national grocery, drug and discount chains. Proset Revenues increased by 37% to $993,000. Gross profit increased by 427% to $160,000 while operating loss decreased by 93% to $13,000. Net loss decreased by 75% to $59,000. EBITDA for Proset increased by 133% to $36,000. Proset continues to expand its luxury goods customer base. It currently distributes to Costco Costco Wholesale Corporation (NASDAQ: COST) is the largest membership warehouse club chain in the world based on sales volume, headquartered in Issaquah, Washington, United States,[1] with its flagship warehouse in nearby Seattle. and Amazon Amazon, in Greek mythology Amazon (ăm`əzŏn), in Greek mythology, one of a tribe of warlike women who lived in Asia Minor. and expects to secure additional customers. Proset focuses on the sale of salon Salon, annual exhibition of art works chosen by jury and presented by the French Academy since 1737; it was originally held in the Salon d'Apollon of the Louvre. By the mid-19th cent. the Salon had become an expression of conservative, established tastes in art. hair care products and luxury goods through wholesale and online channels. Gran Gran: see Esztergom, Hungary. Reserve Corporation (GRC: B2C Operation) GRC continued its progress of growing its retail operation in Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , widening its wholesale revenues as well as expanding its online operations. GRC reported revenues of $917,000, with a gross profit of $270,000. Operating loss decreased by 15% to $168,000. EBITDA loss improved by 28% to $88,000, and GRC reported its first EBITDA gain of $16,000 in the second quarter of 2006. GRC continues to streamline and integrate its GRC cost centers as well as continue to seek strategic relationship in the B2C industry it operates in as well as develop online business partnerships. Interline in·ter·line 1 tr.v. in·ter·lined, in·ter·lin·ing, in·ter·lines To insert between printed or written lines. in Travel (www.perx.com) PERX contributed $133,000 for the six months period. In addition PERX is completing the integration of its acquired operations. PERX is a minority owned subsidiary of Synergy Brands and SYBR is continuing to seek alternatives to optimize optimize - optimisation its investment. Synergy Brands owns 22% of Interline Travel and Tours Inc. (PERX). PERX generated $40 million in travel bookings for the first quarter with an EBITDA of $1.2 million and a Pre-tax profit of $874,000. Travel bookings mostly consist of Cruise and Hotel reservations conducted through PERX proprietary reservation system. PERX is believed to be the largest Interline travel agency in the United States. The Financial Tables below provide details of the Company's results of operations for the six months and three months ended June 30, 2006 as compared to the same period in 2005:
SEGMENT INFORMATION OF OPERATING BUSINESSES
PROSET CHANGE PHS GROUP CHANGE B2C CHANGE
---------- ------------- -----------
6 months ended 6/30/06
Revenue $993,026 36.61% $29,640,533 1.58% $917,301 -0.03%
Gross Profit $159,773 427.41% $1,952,028 15.48% $270,466 1.27%
SG&A $123,187 -9.50% $1,023,717 -0.65% $359,965 -7.17%
Operating
Profit(loss) ($13,166)-93.33% $922,139 40.98% ($167,727)-15.25%
Net
Profit(loss) ($58,933)-74.57% $371,727 4030.30% ($170,624)-16.31%
Per Share ($0.01) $0.08 ($0.04)
Non Cash
Charges $49,752 -45.75% $6,172 5.18% $82,392 1.25%
Financing &
Dividend
Charges $45,077 35.03% $547,557 -14.05% $0
Income Tax
Expense $240 100.00%
EBITDA $36,136 133.89% $925,456 40.38% ($88,232) 27.83%
Per Share $0.01 $0.20 ($0.02)
6 months ended 6/30/05
Revenue $726,907 $29,180,328 $917,609
Gross Profit $30,294 $1,690,398 $267,082
SG&A $136,114 $1,030,440 $387,774
Operating
Profit(loss) ($197,530) $654,090 ($197,904)
Net
Profit(loss) ($231,714) $9,000 ($203,880)
Per Share ($0.06) $0.00 ($0.06)
Non Cash
Charges $91,710 $5,868 $81,376
Financing &
Dividend
Charges $33,384 $637,060 $0
Income Tax
Expense $7,319 $250
EBITDA ($106,620) $659,247 ($122,254)
Per Share (0.03) 0.19 (0.04)
SEGMENT INFORMATION OF OPERATING BUSINESSES
PROSET CHANGE PHS GROUP CHANGE B2C CHANGE
---------- ------------- -----------
3 months ended 6/30/06
Revenue $500,504 -9.08% $15,153,530 2.38% $526,149 -2.29%
Gross Profit $31,857 13.39% $990,509 1.18% $157,614 -10.22%
SG&A $39,974 -44.66% $452,526 -13.06% $140,751 -29.04%
Operating
Profit(loss) ($32,993)-63.34% $535,015 17.46% ($22,251)-63.24%
Net Profit
(loss) ($55,519)-48.25% $278,128 145.07% ($25,175) 59.52%
Per Share ($0.01) $0.06 ($0.01)
Non Cash
Charges $24,876 -45.75% $2,968 1.16% $41,196 3.52%
Financing &
Dividend
Charges $22,526 30.55% $254,424 -24.37% $0
Income Tax
Expense
EBITDA ($8,117) 81.63% $535,520 16.88% $16,021 171.56%
Per Share ($0.00) $0.11 $0.00
3 months ended 6/30/05
Revenue $550,516 $14,801,499 $538,475
Gross Profit $28,094 $978,931 $175,549
SG&A $72,228 $520,529 $198,366
Operating
Profit(loss) ($89,989) $455,468 ($60,531)
Net
Profit(loss) ($107,289) $113,489 ($62,184)
Per Share ($0.02) $0.03 ($0.02)
Non Cash
Charges $45,855 $2,934 $39,796
Financing &
Dividend
Charges $17,255 $336,426 $0
Income Tax
Expense $5,319
EBITDA ($44,179) $458,168 ($22,388)
Per Share (0.01) 0.13 (0.01)
CONSOLIDATED RESULTS OF CONSOLIDATED CONSOLIDATED
OPERATIONS: OPERATING TOTAL
SEGMENTS CHANGE RESULTS CHANGE
6 months ended 6/30/06
Revenue $31,550,860 2.36% $31,550,860 2.36%
Gross Profit $2,382,267 19.85% $2,382,267 19.85%
SG&A $1,506,869 -3.05% $2,179,608 18.22%
Operating Profit(loss) $741,246 186.58% ($4,147) -95.99%
Net Profit(loss) $142,170 133.33% ($874,850) -10.09%
Per Share $0.03 ($0.19)
Non Cash Charges $138,316 -22.71% $410,971 47.24%
Financing & Dividend
Charges $592,634 -11.61% $1,006,409 12.46%
Income Tax Expense $240 $38,168 -44.91%
EBITDA $873,360 102.93% $580,698 114.85%
Per Share $0.19 $0.12
6 months ended 6/30/05
Revenue $30,824,844 $30,824,844
Gross Profit $1,987,774 $1,987,774
SG&A $1,554,328 $1,843,663
Operating Profit(loss) $258,656 ($103,311)
Net Profit(loss) ($426,594) ($973,017)
Per Share ($0.12) ($0.29)
Non Cash Charges $178,954 $279,111
Financing & Dividend
Charges $670,444 $894,912
Income Tax Expense $7,569 $69,280
EBITDA $430,373 $270,286
Per Share $0.12 $0.08
3 months ended 6/30/06
Revenue $16,180,183 1.82% $16,180,183 1.82%
Gross Profit $1,179,980 -0.22% $1,179,980 -0.22%
SG&A $633,251 -19.96% $1,089,181 17.36%
Operating Profit(loss) $479,771 57.33% ($12,497) -109.49%
Net Profit (loss) $197,434 452.66% ($405,914) 44.52%
Per Share $0.04 ($0.09)
Non Cash Charges $69,040 -22.06% $205,061 49.79%
Financing & Dividend
Charges $276,950 -21.69% $515,211 10.95%
Income Tax Expense $100 -99.29%
EBITDA $543,424 38.77% $314,458 -6.00%
Per Share $0.11 $0.06
3 months ended 6/30/05
Revenue $15,890,490 $15,890,490
Gross Profit $1,182,574 $1,182,574
SG&A $791,123 $928,032
Operating Profit(loss) $304,948 $131,723
Net Profit(loss) ($55,984) ($280,870)
Per Share ($0.01) ($0.08)
Non Cash Charges $88,585 $136,901
Financing & Dividend
Charges $353,681 $464,351
Income Tax Expense $5,319 $14,137
EBITDA $391,601 $334,519
Per Share $0.11 $0.10
About Synergy Brands Synergy Brands, Inc. is a holding Company that operates in the wholesale and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the distribution of consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and as well as the retail distribution of premium cigars in the U.S. and Canada. It principally focuses on the sale of nationally known brand name products manufactured by major U.S. Manufacturers. The consumer products are concentrated within the Grocery and Health & Beauty Aids (HBA) industries, salon products, designer luxury goods and premium cigars. Synergy also owns 22% of PERX, which is believed to be the largest travel company providing cruise and resort products to airline employees in the United States and Canada. FORWARD LOOKING STATEMENTS This press release and Company review and assumptions made regarding the financial figures and other information, referenced and presented, state and reflect assumptions, expectations, projections, intentions and/or beliefs about past and future events that are intended as "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. You can identify these statements by the fact that they do not relate to historical or current facts. They use words such as "anticipate", "estimate", "project", "forecast", "may", "will", "should", "expect", "assume", "believe" and other derivations thereof and other words of similar meaning. In particular these include, but are not limited to, statements reflecting the projected business activities and goals, revenues, earnings, profit and loss of the Company and associated costs. Any or all of the Company's forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. For a description of many of these risks and uncertainties, please refer to the Company's filings with the U.S. Securities & Exchange Commission (www.sec.gov including Forms 10K and 10Q). *EBITDA represents earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. ) and is not a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). number, and relevance is therefore is often questioned, but it is useful in analyzing a wholesale distribution business such as the Company. The reconciliation to relevant comparable GAAP figures in the net loss is included in the table presented. |
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