Latest news with #SynergyCHC
Yahoo
16-06-2025
- Business
- Yahoo
Here is What You Need to Know Before Investing in Synergy CHC Corp. (SNYR)
Synergy CHC Corp. (NASDAQ:SNYR) is among the 10 Most Undervalued Stocks to Buy for Under $5. The stock's valuation has been a subject of discussion among analysts and investors. Given its forward price-earnings ratio of 4.37, it is among the most undervalued stocks to buy. A trader in a financial institution using fundamentals analysis to select stocks for a portfolio. Recent insider buying, led by CEO Jack Ross, has also added to the speculation. According to reports, Ross made a series of purchases between June 2 and June 10, acquiring a total of 16,100 shares, worth $29,837. However, the stock has plunged by over 50% year-to-date, due to a combination of factors, including its high debt and revenue challenges. During the Q1 FY25 earnings call on May 15, Synergy CHC Corp. (NASDAQ:SNYR) said it entered and continued debt refinancing negotiations during and after the quarter, with the aim to extend the maturity to 2029. On June 4, Synergy CHC Corp. (NASDAQ:SNYR) announced a $20 million term loan credit agreement, the proceeds of which will be used to provide the company with growth capital and pay down debt. CEO Jack Ross had the following to say on the recent agreement: 'We are very pleased to have completed our debt refinancing, which supports our growth strategy and significantly strengthens our capital structure. The long-term nature of the new facility enhances our balance sheet and provides the flexibility needed for our next phase of growth. Additionally, the delayed draw proceeds allow us to fully repay debt related to settlement agreements, positioning us for greater financial stability as we execute our strategic goals.' While we acknowledge the potential of SNYR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
16-05-2025
- Business
- Yahoo
Synergy CHC Corp (SNYR) Q1 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...
Net Revenue: $8.2 million, a 13% decrease year over year. Gross Margin: 75.4%, up from 72% in the prior year. Operating Expenses: $4.2 million, a 15% decrease from the previous year. Income from Operations: $1.9 million, an 8% increase year over year. Net Income: $876,000 or $0.10 per diluted share, a 30% increase in earnings per share. EBITDA: $1.98 million, up 7% from the previous year. Cash and Cash Equivalents: $177.9 thousand as of March 31, 2025. Total Liabilities: $31.3 million, a decrease of $1.7 million from December 31, 2024. Cash Used in Operating Activities: $823,000 for the first quarter. Warning! GuruFocus has detected 5 Warning Signs with SNYR. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Synergy CHC Corp (NASDAQ:SNYR) reported a 30% growth in earnings per share year over year, marking the ninth consecutive quarter of profitability. EBITDA margins expanded significantly to 24.1% compared to 19.7% in the prior period, highlighting strong cost management. The company has entered into a three-year license agreement for the Focus Factor brand in the United Arab Emirates, expanding its global reach. Synergy CHC Corp (NASDAQ:SNYR) has incorporated a wholly owned subsidiary in Mexico and is onboarding manufacturing partners and customers, including Costco and Walmart. The company received nearly $1 million in purchase orders from Amazon for its RTD products, indicating strong momentum in the second quarter. Net revenue for the first quarter of 2025 was $8.2 million, reflecting a 13% decrease year over year due to a one-time sell-in to a customer in 2024. Cash and cash equivalents decreased significantly to $177.9 thousand as of March 31, 2025, from $687.9 thousand at the end of 2024. The company experienced a decrease in cash used in operating activities, primarily due to an increase in inventory and a decrease in accounts payable and accrued expenses. Synergy CHC Corp (NASDAQ:SNYR) has a high level of total liabilities at $31.3 million as of March 31, 2025, although this is a decrease from the previous quarter. The company faces potential impacts from tariffs on certain ingredients, although it does not expect these to have a material impact on its business. Q: Can you provide details on the RTD beverage revenue for the quarter and plans for the rest of the year? A: Jack Ross, CEO, stated that Synergy did not plan for significant RTD revenue in the first quarter, achieving $30,000. However, with recent developments, including Amazon orders, they expect $2 million in the second quarter. Q: What are the geographic and distribution plans for RTD beverages for the remainder of the year? A: Jack Ross, CEO, mentioned that the focus will be on Canada and the US, targeting convenience stores and existing retail partners like Costco. Q: Will General and Administrative (G&A) expenses rise throughout the year, or remain consistent? A: Jack Ross, CEO, indicated that while there will be some headcount additions, G&A expenses are expected to remain relatively flat as a percentage of revenue. Q: What was the licensing revenue booked in the first quarter, and is it expected to continue? A: Jack Ross, CEO, explained that they received a $1.5 million fee from a licensee in the United Arab Emirates. Future revenue will be based on actual sales in that territory. Q: Can you clarify the countries mentioned for future market expansion? A: Jack Ross, CEO, confirmed plans to expand into Australia and Taiwan, with Costco as a lead customer in both regions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
16-05-2025
- Business
- Yahoo
Q1 2025 Synergy CHC Corp Earnings Call
Greg Robles; Investor Relations; Synergy CHC Corp Jack Ross; Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary; Synergy CHC Corp Jaime Fickett; Chief Financial Officer; Synergy CHC Corp Operator Good morning, everyone and thank you for participating in today's conference call to discuss Synergy CHC Corporation's financial results for the first quarter ended March 31, 2025. Joining us today are Synergy CEO Jack Ross; CFO Jaime Fickett; and Greg Robles with Investor Relations. Following the remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Robles as he reads the company's safe harbor statement. Greg, please go ahead. Greg Robles Thanks Marvin, good morning and thanks for joining our conference call to discuss our first-quarter 2025 financial results. I'd like to remind everyone that this call is available for replay and via a live webcast that will be posted on our investor relations site at The information on this call contains forward-looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include but are not limited to. Those factors disclosed in the company's SEC filings under the caption risk factors. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided here. And now I would like to turn the call over to the CEO of Synergy, Jack Ross, Jack? Jack Ross Good morning, everyone. Thank you for joining us today to discuss Synergy's performance for the first quarter of 2025. We are very pleased to report a 30% growth in earnings per share year over year, marking our ninth consecutive quarter of profitability. Additionally, we have expanded our EBITDA margins significantly to 24.1% compared to 19.7% in the prior period. This performance highlights the strength of our operating model and the ongoing discipline around cost management. Before we get into the results, I want to highlight a few exciting business developments that the team has been working diligently on. First, as an update on our international expansion. We have entered into a three year license agreement for the Focus Factor brand with a company in the United Arab Emirates which allows Focus Factor to expand its global reach. We expect the licensee and their designated territory to begin generating revenue by the fourth quarter. Looking ahead, we plan to expand our global presence by adding new licensees in selected markets where synergy does not currently operate and does not intend to establish a direct footprint. Additionally, we have incorporated a wholly owned subsidiary in Mexico, and we are working on onboarding our manufacturing partners and customers, which includes Costco and Walmart. We expect this initiative to start generating revenue early in the third quarter. We still intend to open Australia and Taiwan markets early in the fourth quarter with Costco being the lead customer for both regions. Second, I would like to provide an update on our RTD beverage progress. We have hired an industry veteran with over 10 years of experience in the beverage and convenience store industry. He is set to join our team on May 26. We expect him to add significant growth to our beverage business starting almost immediately. Since our last call in March, we now have opened more than 400 additional convenience stores in Canada, doing business with Metro, en route, INS Markets, to name a few. Moving forward, we will continue to grow our Canadian and US convenience store business for RTD beverages. We are pleased to report that during the second quarter, we received nearly $1 million of purchase orders from Amazon for our RTD products. These orders represent strong momentum through the second quarter. We expect to be in full rollout mode with Amazon and other major retailers in the back half of the year. Third, we have entered into a long-term supplier agreement for Focus Factor products, which we will have significant cost saving benefits to Synergy. This arrangement has changed our capital needs from Synergy buying and owning the inventory for the Focus Factor brand to the supplier now owning the inventory and shipping directly to our customers. Lastly, we also have entered into two term sheets to refinance our debt that we expect to close as soon as possible, which is expected to accelerate free cash flow in the business in the near term and extend our debt maturity date into 2029. With the terms that are currently being presented, this refinancing will alleviate more than $10 million of principal payments in 2025. Before passing the call over to Jamie, I want to touch base. I want to touch briefly on tariffs as we know this evolving situation is on top of the mind of all investors. Synergy purchases all its products from suppliers in their representative countries, meaning all products sold within a country are produced in that country. While we may see some impact from tariffs on certain ingredients, we do not expect to have any material impact on our business. With those updates, I'd like to turn the call over to our Chief Financial Officer, Jamie Thickett. Jamie? Jaime Fickett Thank you, Jack. I'll now review our financial results. For the first quarter of 2025, net revenue was $8.2 million compared to $9.4 million in the year ago quarter, reflecting a 13% decrease year over year. This decline was primarily driven by a one-time sell-in to one customer during 2024 that did not repeat in 2025. Gross margin for the first quarter was 75.4% compared to 72% in the same quarter last year. The increase in gross margin was primarily driven by a favorable product mix. Operating expenses for the first quarter were $4.2 million compared to $5 million in the year ago quarter. The decrease of 15% in operating expenses reflects our ongoing focus on managing cost effectively while continuing to invest in key growth initiatives. Income from operations was $1.9 million, an increase of 8% compared to $1.8 million in the first quarter of 2024. Net income for the first-quarter was $876,000 or $0.10 per diluted share compared to $580,000 or $0.08 per diluted share in the year ago quarter. This represents a 30% increase in earnings per share year over year, reflecting the successful execution of our strategic growth initiatives and cost management. EBITDA for the first quarter was $1.98 million compared to $1.85 million in the first quarter of 2024, up 7%. Moving to our balance sheet as of March 31, 2025, we had cash and cash equivalents of 177.9,000 compared to 687.9,000 as of December 31, 2024. Inventory was $2.3 million at the end of the first quarter compared to $1.7 million at the end of December 31, 2024. At March 31, 2025, we had $31.3 million in total liabilities, which compares to $33 million in total liabilities at December 31, 2024, which is a decrease of $1.7 million in the first quarter. For the three months ended March 31, 2025. Our cash used in operating activities was $823,000 compared to cash used in operating activities of $858,000 at March 31, 2024. The decrease was primarily attributable to an increase in inventory and a decrease in accounts payable and accrued expenses offset by a decrease in receivables. Now I will turn the call back over to the operator. Operator Thank you. (Operator Instructions) And our first question comes from a line of Sean McGowan of Roth Capital Partners. Please proceed. Good morning. Thanks for taking the questions. My first question would be on the RTD beverage. So what, how much was in the quarter and kind of what are the plans for the roll out for the for the remainder of the year? Jack Ross Yeah, Sean, thank you for the question. So if you sort of look at Synergy's budget, we didn't have really anything planned for the first quarter. We did $30,000 of RTD revenue in the first quarter. In the second quarter, with what's happened already with Amazon, we expect to do about $2 million. Okay, and in terms of kind of geographic territories and other distribution channels, what's the plan for the balance of the year? Jack Ross For RTDs? Yeah, in terms of, adding new stores and new customers. Yeah, so primarily just in Canada and the US at this point and nothing's changed from, the major customers that we are targeting, meaning convenience stores. Obviously we're going to go back to Costco and the rest of the retailers that we already have in our system that we sell our current bills to. Okay, and then a question on expenses. So the, good job there, they came in below, where I thought, but would you say this G&A level is going to rise through the year or is this, something we should expect to see, consistently through the year? So G&A, we will have a couple of headcount, ads if you will, to G&A, but I think it'll be as a percentage, it will probably be pretty flat. Okay, and then my last question was. What was the licensing revenue that you booked in the first quarter there? Is that something you've talked about before? I thought that was stuff that we would expect later in the year. Jack Ross Yeah, so that's, as mentioned in my dialogue on the call here, we signed a licensee for the United Arab Emirates that we received a fee for $1.5 million for that territory, and we will pursue other territories that way that we don't plan on having a footprint ourselves in, if you will. So expanding our global reach, basically. So in the future then that for at least that particular contract that would be just based on the actual revenue and this is just sort of a startup fee. Jack Ross That's correct. Okay. Jack Ross In the fourth quarter they got a bit of registration timeline to start generating revenue but we expect to generate start generating revenue in the fourth quarter. Okay, thank you. Just one more clarification. Did you mention Australia and Thailand? Were those the two countries you. Jack Ross Expected Taiwan. Taiwan. Okay, thank you. Operator Thank you. (Operator Instructions) At this time I'm showing no questions. I'll now turn the call back over to Mr. Ross for closing remarks. Jack Ross Thank you. We'd like to thank everyone for joining our earnings call, and we look forward to speaking with you, when we report the second quarter results in August. Thank you. Operator Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
Q1 2025 Synergy CHC Corp Earnings Call
Greg Robles; Investor Relations; Synergy CHC Corp Jack Ross; Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary; Synergy CHC Corp Jaime Fickett; Chief Financial Officer; Synergy CHC Corp Operator Good morning, everyone and thank you for participating in today's conference call to discuss Synergy CHC Corporation's financial results for the first quarter ended March 31, 2025. Joining us today are Synergy CEO Jack Ross; CFO Jaime Fickett; and Greg Robles with Investor Relations. Following the remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Robles as he reads the company's safe harbor statement. Greg, please go ahead. Greg Robles Thanks Marvin, good morning and thanks for joining our conference call to discuss our first-quarter 2025 financial results. I'd like to remind everyone that this call is available for replay and via a live webcast that will be posted on our investor relations site at The information on this call contains forward-looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will, and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include but are not limited to. Those factors disclosed in the company's SEC filings under the caption risk factors. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided here. And now I would like to turn the call over to the CEO of Synergy, Jack Ross, Jack? Jack Ross Good morning, everyone. Thank you for joining us today to discuss Synergy's performance for the first quarter of 2025. We are very pleased to report a 30% growth in earnings per share year over year, marking our ninth consecutive quarter of profitability. Additionally, we have expanded our EBITDA margins significantly to 24.1% compared to 19.7% in the prior period. This performance highlights the strength of our operating model and the ongoing discipline around cost management. Before we get into the results, I want to highlight a few exciting business developments that the team has been working diligently on. First, as an update on our international expansion. We have entered into a three year license agreement for the Focus Factor brand with a company in the United Arab Emirates which allows Focus Factor to expand its global reach. We expect the licensee and their designated territory to begin generating revenue by the fourth quarter. Looking ahead, we plan to expand our global presence by adding new licensees in selected markets where synergy does not currently operate and does not intend to establish a direct footprint. Additionally, we have incorporated a wholly owned subsidiary in Mexico, and we are working on onboarding our manufacturing partners and customers, which includes Costco and Walmart. We expect this initiative to start generating revenue early in the third quarter. We still intend to open Australia and Taiwan markets early in the fourth quarter with Costco being the lead customer for both regions. Second, I would like to provide an update on our RTD beverage progress. We have hired an industry veteran with over 10 years of experience in the beverage and convenience store industry. He is set to join our team on May 26. We expect him to add significant growth to our beverage business starting almost immediately. Since our last call in March, we now have opened more than 400 additional convenience stores in Canada, doing business with Metro, en route, INS Markets, to name a few. Moving forward, we will continue to grow our Canadian and US convenience store business for RTD beverages. We are pleased to report that during the second quarter, we received nearly $1 million of purchase orders from Amazon for our RTD products. These orders represent strong momentum through the second quarter. We expect to be in full rollout mode with Amazon and other major retailers in the back half of the year. Third, we have entered into a long-term supplier agreement for Focus Factor products, which we will have significant cost saving benefits to Synergy. This arrangement has changed our capital needs from Synergy buying and owning the inventory for the Focus Factor brand to the supplier now owning the inventory and shipping directly to our customers. Lastly, we also have entered into two term sheets to refinance our debt that we expect to close as soon as possible, which is expected to accelerate free cash flow in the business in the near term and extend our debt maturity date into 2029. With the terms that are currently being presented, this refinancing will alleviate more than $10 million of principal payments in 2025. Before passing the call over to Jamie, I want to touch base. I want to touch briefly on tariffs as we know this evolving situation is on top of the mind of all investors. Synergy purchases all its products from suppliers in their representative countries, meaning all products sold within a country are produced in that country. While we may see some impact from tariffs on certain ingredients, we do not expect to have any material impact on our business. With those updates, I'd like to turn the call over to our Chief Financial Officer, Jamie Thickett. Jamie? Jaime Fickett Thank you, Jack. I'll now review our financial results. For the first quarter of 2025, net revenue was $8.2 million compared to $9.4 million in the year ago quarter, reflecting a 13% decrease year over year. This decline was primarily driven by a one-time sell-in to one customer during 2024 that did not repeat in 2025. Gross margin for the first quarter was 75.4% compared to 72% in the same quarter last year. The increase in gross margin was primarily driven by a favorable product mix. Operating expenses for the first quarter were $4.2 million compared to $5 million in the year ago quarter. The decrease of 15% in operating expenses reflects our ongoing focus on managing cost effectively while continuing to invest in key growth initiatives. Income from operations was $1.9 million, an increase of 8% compared to $1.8 million in the first quarter of 2024. Net income for the first-quarter was $876,000 or $0.10 per diluted share compared to $580,000 or $0.08 per diluted share in the year ago quarter. This represents a 30% increase in earnings per share year over year, reflecting the successful execution of our strategic growth initiatives and cost management. EBITDA for the first quarter was $1.98 million compared to $1.85 million in the first quarter of 2024, up 7%. Moving to our balance sheet as of March 31, 2025, we had cash and cash equivalents of 177.9,000 compared to 687.9,000 as of December 31, 2024. Inventory was $2.3 million at the end of the first quarter compared to $1.7 million at the end of December 31, 2024. At March 31, 2025, we had $31.3 million in total liabilities, which compares to $33 million in total liabilities at December 31, 2024, which is a decrease of $1.7 million in the first quarter. For the three months ended March 31, 2025. Our cash used in operating activities was $823,000 compared to cash used in operating activities of $858,000 at March 31, 2024. The decrease was primarily attributable to an increase in inventory and a decrease in accounts payable and accrued expenses offset by a decrease in receivables. Now I will turn the call back over to the operator. Operator Thank you. (Operator Instructions) And our first question comes from a line of Sean McGowan of Roth Capital Partners. Please proceed. Good morning. Thanks for taking the questions. My first question would be on the RTD beverage. So what, how much was in the quarter and kind of what are the plans for the roll out for the for the remainder of the year? Jack Ross Yeah, Sean, thank you for the question. So if you sort of look at Synergy's budget, we didn't have really anything planned for the first quarter. We did $30,000 of RTD revenue in the first quarter. In the second quarter, with what's happened already with Amazon, we expect to do about $2 million. Okay, and in terms of kind of geographic territories and other distribution channels, what's the plan for the balance of the year? Jack Ross For RTDs? Yeah, in terms of, adding new stores and new customers. Yeah, so primarily just in Canada and the US at this point and nothing's changed from, the major customers that we are targeting, meaning convenience stores. Obviously we're going to go back to Costco and the rest of the retailers that we already have in our system that we sell our current bills to. Okay, and then a question on expenses. So the, good job there, they came in below, where I thought, but would you say this G&A level is going to rise through the year or is this, something we should expect to see, consistently through the year? So G&A, we will have a couple of headcount, ads if you will, to G&A, but I think it'll be as a percentage, it will probably be pretty flat. Okay, and then my last question was. What was the licensing revenue that you booked in the first quarter there? Is that something you've talked about before? I thought that was stuff that we would expect later in the year. Jack Ross Yeah, so that's, as mentioned in my dialogue on the call here, we signed a licensee for the United Arab Emirates that we received a fee for $1.5 million for that territory, and we will pursue other territories that way that we don't plan on having a footprint ourselves in, if you will. So expanding our global reach, basically. So in the future then that for at least that particular contract that would be just based on the actual revenue and this is just sort of a startup fee. Jack Ross That's correct. Okay. Jack Ross In the fourth quarter they got a bit of registration timeline to start generating revenue but we expect to generate start generating revenue in the fourth quarter. Okay, thank you. Just one more clarification. Did you mention Australia and Thailand? Were those the two countries you. Jack Ross Expected Taiwan. Taiwan. Okay, thank you. Operator Thank you. (Operator Instructions) At this time I'm showing no questions. I'll now turn the call back over to Mr. Ross for closing remarks. Jack Ross Thank you. We'd like to thank everyone for joining our earnings call, and we look forward to speaking with you, when we report the second quarter results in August. Thank you. Operator Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Sign in to access your portfolio
