Synergy CHC Corp Announces Fiscal 2016 Year End Results
WESTBROOK, ME–(Marketwired – Mar 27, 2017) – Synergy CHC Corp (OTCQB: SNYR) today reported results for the year ended December 31, 2016.
Net sales for the fiscal year ended December 31, 2016 were $34.8 million, compared to $13.5 million for fiscal year 2015, a 158% increase. For fiscal year 2016, net loss was $0.8 million or $0.01 (basic and diluted) earnings per share, compared to net loss of $7.5 million or $0.11 (basic and diluted) loss per share for 2015.
Cash flow provided by operations for the year ended December 31, 2016 was $6 million, compared to cash flow used in operations of $0.6 million for the same period in 2015.
We currently focus on Adjusted EBITDA to evaluate our business relationships and our resulting operating performance and financial position. Adjusted EBITDA for 2016 was $10.3 million and for 2015, adjusted EBITDA was $1.9 million, a 442% increase.
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.
During 2016, Synergy reduced its debt to $7.6 million from $15 million, which is a 49% decrease.
Jack Ross, chairman and chief executive officer, commented, “Our fiscal 2016 net sales grew by $21.3 million, or 158%, primarily related to organic growth from our brands. During 2017, management will continue to focus on developing new products and explore options for future acquisitions.”
“Synergy will continue to grow organically while refining execution across all brands. We will also focus on our Synergy Effect social media marketing platform to exponentially grow all of our brands online. We will continue to evaluate further acquisitions to generate shareholder value through the addition of products that can help improve the lives of customers while leveraging our existing distribution relationships. We expect 2017 to be a very active year on the acquisition trail,” said Jack Ross, CEO of Synergy.
About Synergy CHC Corp.
Synergy CHC Corp. is a consumer health care company that is in the process of building a portfolio of best-in-class consumer product brands. Synergy’s strategy is to grow its portfolio both organically and by further acquisition. Synergy’s diversified portfolio now includes FOCUSFactor™, Flat Tummy Tea™, Sneaky Vaunt™, Neuragen™, and Hand MD™. For more information, please visit www.synergychc.com.
Flat Tummy Tea®
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’s currently sold exclusively online to a global, 20-30 year old female, predominantly American market.
Since being founded in 2013, Flat Tummy Tea has grown rapidly, largely attributed to the strength of their branding and their innovative and effective use of social media. Their secret is a very specific process and ROI based algorithm used on various online platforms. To date, Flat Tummy Tea has built a targeted social media following of over 1,270,000, many of whom are now customers.
Sneaky Vaunt is Synergy’s newest brand that just launched in March, 2017. Sneaky Vaunt markets and sells a backless, strapless, stick on, push up bra exclusively online through social media channels.
Sneaky Vaunt is being marketed on the same ROI based algorithm that Flat Tummy Tea uses and is currently being used by The Synergy Effect on various online marketing platforms. In one month, Sneaky Vaunt has built a targeted social media following of over 108,000 on Instagram.
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. www.focusfactor.com.
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 www.neuragen.com.
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. For more information, please visit www.buyhandmd.com.
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.
Chairman / CEO
Synergy CHC Corp