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Synergy Brands records net revenues up $31.6mn
14 Aug '06
3 min read
Synergy Brands Inc reported revenues for the six months ended June 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 to $4,000 as compared to an operating loss of $103,000 for the same period.
Gross Profit increased by 20 percent to a record $2.4 million while EBITDA increased by 115 percent to a record $581,000, predominately due to a $925,000 contribution to EBITDA by PHS Group, the Company's grocery operations. The company's net loss attributable to common shareholders decreased by 10 percent to $875,000 or ($.19) per share.
Operating profit for the business segments of Synergy Brands (SYBR), which include PHS Group, Proset and B2C operations, increased by 186 percent to $741,000, commensurate with a 103 percent increase of EBITDA to $873,000. The Company was able to grow revenues by 2 percent during the quarter while increasing gross profit by 20 percent.
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 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.
Proset
Revenues increased by 37 percent to $993,000. Gross profit increased by 427 percent to $160,000 while operating loss decreased by 93 percent to $13,000. Net loss decreased by 75 percent to $59,000. EBITDA for Proset increased by 133 percent to $36,000. Proset continues to expand its luxury goods customer base. It currently distributes to Costco and Amazon and expects to secure additional customers. Proset focuses on the sale of salon hair care products and luxury goods through wholesale and online channels.
Gross Profit increased by 20 percent to a record $2.4 million while EBITDA increased by 115 percent to a record $581,000, predominately due to a $925,000 contribution to EBITDA by PHS Group, the Company's grocery operations. The company's net loss attributable to common shareholders decreased by 10 percent to $875,000 or ($.19) per share.
Operating profit for the business segments of Synergy Brands (SYBR), which include PHS Group, Proset and B2C operations, increased by 186 percent to $741,000, commensurate with a 103 percent increase of EBITDA to $873,000. The Company was able to grow revenues by 2 percent during the quarter while increasing gross profit by 20 percent.
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 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.
Proset
Revenues increased by 37 percent to $993,000. Gross profit increased by 427 percent to $160,000 while operating loss decreased by 93 percent to $13,000. Net loss decreased by 75 percent to $59,000. EBITDA for Proset increased by 133 percent to $36,000. Proset continues to expand its luxury goods customer base. It currently distributes to Costco and Amazon and expects to secure additional customers. Proset focuses on the sale of salon hair care products and luxury goods through wholesale and online channels.
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