Exhibit 99
Synergy Brands Reports Third Quarter Financial results
Revenue Increases 34% for the three months
Operating Profit Increased 163% for the three months.
Melville, NY (date) - Synergy Brands, Inc. (NASDAQ: SYBR) today reported a 34%
increase in revenues for the third quarter ending September 30, 2004. For the
quarter, Synergy reported revenues of $13,759,995 compared to third quarter
revenue in 2003 of $10,278,027. The Company's operating profit increased 163%
from the 3rd quarter of last year to $264,256 or $.12 per share as compared to
an operating loss of ($419,227) or ($.22) per share in the 3rd quarter of the
prior year. The Company's net loss for the third quarter of 2004 was ($170,230)
or ($0.08) per share, a substantial improvement from last year's quarterly loss
of ($627,923) or ($.34) per share. Most of the net loss resulted from higher
financing costs resulting from increased sales. (see table below)
For the nine months ending September 30, Synergy reported a 42 % increase in
revenues to $39,927,507 as compared to nine-month revenue ending September 30,
2003 of $28,112,897. The Company's operating loss for the nine-month period
decreased in 2004 by 62% to ($263,958) or ($0.12) per share as compared to an
operating loss of ($700,617) or ($.44) per share. The Company's net loss for the
nine month period in 2004 was ($1,328,212) or ($.65) per share as compared to a
net loss in 2003 of ($858,292) or ($.55 per share). In the nine months the
Company opened a new warehouse operation in Syosset, NY, significantly expanded
its Canadian sales and increased its line of credit $8.5 million to accommodate
its growth.
The largest percentage of increase revenue came form the Company's B2B
operations. The Company's grocery operation continued to develop additional
vendor relationships in the grocery and HBA businesses, expanded its sales in
Canada and widened its operating margin. Sales for Company's Internet operation,
which includes www.CigarGold.com, CigarsAroundTheWorld.com, and
www.BeautyBuys.com, remained the same while operating margins increased.
Management believes that its main goal for 2005 is to reduce its financing costs
to better market rates but utilizing traditional asset based facilities as
opposed to trade financing for the bulk of its credit transactions.
The tables on the following pages summarize the operating results of the Company
for the Nine Months and Quarter ended September 30, 2004. For more detail please
review the Company's filed 10QSB.
ABOUT SYNERGY BRANDS
Synergy Brands, Inc. is a holding Company that operates in the wholesale and
Internet distribution of consumer goods as well as the retail distribution of
premium cigars. It principally focuses on the sale of nationally known brand
name consumer products manufactured by major U.S. manufacturers. The consumer
products are concentrated within the Grocery and Health & Beauty Aids (HBA)
industries as well as the premium cigar business. The Company distributes and
sells these products through wholly owned subsidiaries in two distinct manners.
The Company uses advancements in web-based technology to process and use
logistics based programs to optimize its distribution costs on both wholesale,
Internet and retail levels.
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" under
the Private Securities Litigation Reform Act 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", and other deviations thereof and other
words of similar meaning. In particular these include, but are not limited to,
statements reflecting the projected 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
10KSB and 10QSB.
Contact: Bev Jedynak
Martin E. Janis & Company, Inc.
312-943-1100 ext. 12
bjedynak@janispr.com
SEGMENT INFORMATION OF OPERATING BUSINESSES
PROSET CHANGE PHS GROUP CHANGE B2C CHANGE
9 months ended 9/30/04
Revenue $3,248,172 7.89% $35,125,961 49.45% $1,553,374 -2.89%
Gross Profit $452,435 43.32% $1,946,284 51.30% $416,240 -5.75%
SG&A $218,858 -33.71% $1,195,969 27.98% $672,480 14.85%
Operating Profit (loss) $73,512 142.20% $746,236 406.55% ($358,846) -61.65%
Net loss ($107,373) 66.79% ($17,322) 87.17% ($413,417) 1436.49%
Net loss per common share ($0.05) ($0.01) ($0.20)
Depreciation and amortization $160,065 0.21% $4,079 -98.01% $102,606 31.36%
Interest income - ($4,344) -56.45%
Interest and financing expenses $179,303 22.00% $784,926 142.98% $38,250 38.37%
EBITDA $231,995 1493.03% $767,339 1315.97% ($272,561) -86.60%
EBITDA net (loss) income per share $0.11 $0.37 ($0.13)
TOTAL TOTAL
OPERATING CHANGE CONSOLIDATE CHANGE
9 months ended 9/30/04 cont.
Revenue $39,927,507 42.03% $39,927,507 42.03%
Gross Profit $2,814,959 37.74% $2,814,959 37.74%
SG&A $2,087,307 12.82% $2,574,215 14.42%
Operating Profit (loss) $460,902 285.21% ($263,958) 62.32%
Net loss ($538,112) -25.89% ($1,328,212) -54.75%
Net loss per common share ($0.26) ($0.65)
Depreciation and amortization $266,750 -39.71% $504,702 2.05%
Interest income ($4,344) -56.45% ($4,430) -55.99%
Interest and financing expenses $1,002,479 101.44% $1,077,614 116.32%
EBITDA $726,773 421.83% $249,674 232.58%
EBITDA net (loss) income per share $0.35 $0.12
TOTAL TOTAL
PROSET PHS GROUP B2C OPERATING CONSOLIDATED
9 months ended 9/30/03
Revenue $3,010,607 $23,502,757 $1,599,533 $28,112,897 $28,112,897
Gross Profit $315,689 $1,286,397 $441,651 $2,043,737 $2,043,737
SG&A $330,142 $934,502 $585,530 $1,850,174 $2,249,770
Operating Profit (loss) ($174,185) $147,316 ($221,988) ($248,857) ($700,617)
Net Profit(loss) ($323,360) ($135,013) $30,933 ($427,440) ($858,292)
Net loss per common share ($0.21) ($0.09) $0.02 ($0.27) ($0.55)
Depreciation and amortization $159,732 $204,579 $78,109 $442,420 $494,584
Interest income - ($9,974) - ($9,974) ($10,066)
Other income ($30,740) ($282,750) ($313,490) ($312,703)
Interest and financing expenses $146,974 $323,043 $27,643 $497,660 $498,154
One time promotional rebates ($415,000) ($415,000)
EBITDA ($16,654) ($63,105) ($146,065) ($225,824) ($188,323)
EBITDA net (loss) income per
share (0.01) (0.04) (0.09) -$0.14 ($0.12)
SEGMENT INFORMATION OF OPERATING BUSINESSES
PROSET CHANGE PHS GROUP CHANGE B2C
3 months ended 9/30/04
Revenue $1,446,351 91.89% $11,732,159 31.98% $581,485
Gross Profit $187,557 169.56% $951,985 158.64% $159,688
SG&A $81,561 -29.75% $423,030 26.25% $230,407
Operating Profit (loss) $52,641 152.76% $526,448 1595.55% ($114,641)
Net Profit(loss) ($20,102) 87.16% $242,240 253.05% ($137,527)
Net loss per common share ($0.01) $0.11 ($0.06)
Depreciation and amortization $53,355 0.21% $2,507 -96.32% $43,922
Interest income
Interest and financing expenses $72,411 27.58% $303,539 140.07% $12,750
EBITDA $105,664 327.11% $548,286 1561.88% ($80,855)
EBITDA net (loss) income per share $0.05 $0.25 ($0.04)
TOTAL TOTAL
OPERATING CHANGE CONSOLIDATE CHANGE
3 months ended 9/30/04 CONT.
Revenue $13,759,99 33.88% $13,759,995 33.88%
Gross Profit $1,299,23 109.68% $1,299,230 109.68%
SG&A $734,998 5.16% $875,235 4.07%
Operating Profit (loss) $464,448 -295.68% $264,256 163.03%
Net Profit(loss) $84,611 -119.73% ($170,230) 72.89%
Net loss per common share $0.04 ($0.08)
Depreciation and amortization $99,784 -36.86% $159,739 -19.26%
Interest income ($3) -99.91%
Interest and financing expenses $388,700 99.55% $427,848 119.59%
EBITDA $573,095 822.44% $417,354 273.62%
EBITDA net (loss) income per share $0.26 $0.19
TOTAL TOTAL
PROSET PHS GROUP B2C OPERATING CONSOLIDATED
3 months ended 9/30/03
Revenue $753,731 $8,889,336 $634,960 $10,278,027 $10,278,027
Gross Profit $69,580 $368,067 $181,978 $619,625 $619,625
SG&A $116,105 $335,075 $247,773 $698,953 $841,020
Operating Profit (loss) ($99,769) ($35,201) ($102,386) ($237,356) ($419,227)
Net Profit(loss) ($156,528) ($158,280) ($113,980) ($428,788) ($627,923)
Net loss per common share ($0.09) ($0.09) ($0.06) ($0.23) ($0.34)
Depreciation and amortization $53,244 $68,193 $36,591 $158,028 $197,832
Interest income - ($3,361) - ($3,361) ($3,404)
Other income ($1,725)
Interest and financing expenses $56,759 $126,440 $11,594 $194,793 $194,837
One time promotional rebate
EBITDA ($46,525) $32,992 $65,795) ($79,328) ($240,383)
EBITDA net (loss) income per share (0.03) 0.02 (0.04) ($0.04) ($0.13)