Synergy CHC Corp (SNYR) 2025 Q1 法說會逐字稿

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.

大家早安，感謝大家參加今天的電話會議，討論 Synergy CHC Corporation 截至 2025 年 3 月 31 日第一季的財務業績。今天參加我們活動的有 Synergy 執行長 Jack Ross、財務長 Jaime Fickett 和投資者關係部門的 Greg Robles。

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.

發言結束後，我們將開始回答分析師的問題。在我們進一步討論之前，我想先將電話轉給羅伯斯先生，讓他宣讀公司的安全港聲明。格雷格，請繼續。

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 investors.synergychc.com. 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.

謝謝馬文，早上好，感謝您參加我們的電話會議討論我們 2025 年第一季度的財務業績。我想提醒各位，本次電話會議可供重播，並透過網路直播發佈在我們的投資者關係網站 investors.synergychc.com 上。本次電話會議中的資訊包含前瞻性陳述。這些陳述通常以相信、希望、可能、預期、期望、將和其他類似的表達方式為特徵。

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.

前瞻性陳述並非對未來績效的保證，實際結果可能與前瞻性陳述所暗示的結果有重大差異。可能導致結果與本文暗示的結果大不相同的因素包括但不限於。這些因素在公司提交給美國證券交易委員會的文件中以「風險因素」為標題進行揭露。本次電話會議中的資訊僅代表截至今日的情況，本公司不承擔更新此處提供的資訊的任何義務。

And now I would like to turn the call over to the CEO of Synergy, Jack Ross, Jack?

現在我想把電話轉給 Synergy 的執行長傑克羅斯，傑克？

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.

大家早安。感謝您今天加入我們討論 Synergy 2025 年第一季的業績。我們非常高興地報告每股收益年增 30%，這標誌著我們連續第九個季度獲利。此外，我們的 EBITDA 利潤率已大幅提高至 24.1%，而上一季為 19.7%。這項績效凸顯了我們營運模式的優勢以及持續的成本管理紀律。

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.

在我們討論結果之前，我想先強調團隊一直在努力實現的一些令人興奮的業務發展。首先，介紹一下我們的國際擴張情況。我們與阿拉伯聯合大公國的一家公司簽訂了 Focus Factor 品牌的三年授權協議，這使得 Focus Factor 能夠擴大其全球影響力。我們預計被授權人及其指定區域將在第四季度開始產生收入。

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.

展望未來，我們計劃在協同效應目前尚未運作且不打算建立直接影響力的選定市場中增加新的授權商，以擴大我們的全球影響力。此外，我們在墨西哥成立了一家全資子公司，並正在努力吸收我們的製造合作夥伴和客戶，其中包括 Costco 和沃爾瑪。我們預計這項舉措將在第三季初開始產生收入。

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.

我們仍打算在第四季初開拓澳洲和台灣市場，Costco 是這兩個地區的主要客戶。其次，我想介紹一下我們的 RTD 飲料的進展。我們聘請了一位在飲料和便利商店行業擁有10多年經驗的行業資深人士。他將於 5 月 26 日加入我們的團隊。我們期望他能立即為我們的飲料業務帶來顯著的成長。

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.

自 3 月上次電話會議以來，我們已在加拿大開設了 400 多家便利商店，與 Metro、en route、INS Markets 等公司開展業務。展望未來，我們將繼續擴大加拿大和美國的 RTD 飲料便利商店業務。我們很高興地報告，在第二季度，我們收到了來自亞馬遜的近 100 萬美元的 RTD 產品採購訂單。這些訂單代表著第二季的強勁勢頭。我們預計將在今年下半年與亞馬遜和其他主要零售商全面推出該產品。

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.

第三，我們已簽訂了 Focus Factor 產品的長期供應商協議，這將為 Synergy 帶來顯著的成本節約效益。這種安排改變了我們的資金需求，從 Synergy 購買和擁有 Focus Factor 品牌的庫存轉變為供應商擁有庫存並直接運送給我們的客戶。

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.

最後，我們還簽署了兩份條款清單，以對我們的債務進行再融資，我們預計將盡快完成，預計這將在短期內加速業務的自由現金流，並將我們的債務到期日延長至 2029 年。根據目前提出的條款，此次再融資將減輕 2025 年超過 1,000 萬美元的本金支付。

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.

在將電話轉給傑米之前，我想先跟大家聯絡一下。我想簡單談談關稅問題，因為我們知道這種不斷變化的情況是所有投資者最關心的問題。Synergy 的所有產品均從其代表國家的供應商處採購，這意味著在一個國家/地區銷售的所有產品均在該國/地區生產。雖然我們可能會看到某些成分的關稅產生一些影響，但我們預計這不會對我們的業務產生任何重大影響。

With those updates, I'd like to turn the call over to our Chief Financial Officer, Jamie Thickett. Jamie?

了解了這些更新後，我想將電話轉給我們的財務長 Jamie Thickett。傑米？

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.

謝謝你，傑克。我現在來回顧一下我們的財務結果。2025 年第一季度，淨收入為 820 萬美元，而去年同期為 940 萬美元，年減 13%。造成這一下降的主要原因是 2024 年向一位客戶進行了一次性銷售，但 2025 年並未再次發生。第一季毛利率為75.4%，去年同期為72%。毛利率的成長主要得益於良好的產品組合。

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.

第一季的營運費用為 420 萬美元，而去年同期為 500 萬美元。營運費用下降 15% 反映了我們持續專注於有效管理成本，同時繼續投資於關鍵成長計畫。營業收入為 190 萬美元，較 2024 年第一季的 180 萬美元成長 8%。

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%.

第一季淨收入為 876,000 美元或每股攤薄收益 0.10 美元，而去年同期淨收入為 580,000 美元或每股攤薄收益 0.08 美元。這意味著每股盈餘年增 30%，反映了我們策略性成長計畫和成本管理的成功執行。第一季的 EBITDA 為 198 萬美元，而 2024 年第一季為 185 萬美元，成長 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.

截至 2025 年 3 月 31 日的資產負債表顯示，我們的現金及現金等價物為 177.9,000，截至 2024 年 12 月 31 日為 687.9,000。第一季末的庫存為 230 萬美元，而 2024 年 12 月 31 日至末的庫存為 170 萬美元。截至 2025 年 3 月 31 日，我們的總負債為 3,130 萬美元，而 2024 年 12 月 31 日的總負債為 3,300 萬美元，比第一季減少了 170 萬美元。

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.

截至 2025 年 3 月 31 日的三個月。我們的經營活動所用現金為 823,000 美元，而 2024 年 3 月 31 日的經營活動所用現金為 858,000 美元。減少的主要原因是庫存增加以及應付帳款和應計費用減少，但應收帳款減少。現在我將把電話轉回給接線生。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

And our first question comes from a line of Sean McGowan of Roth Capital Partners. Please proceed.

我們的第一個問題來自羅斯資本合夥公司的 Sean McGowan。請繼續。

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?

早安.感謝您回答這些問題。我的第一個問題是關於 RTD 飲料的。那麼，本季的銷售額是多少？今年剩餘時間的推出計畫是怎麼樣的？

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.

是的，肖恩，謝謝你的提問。因此，如果你看一下 Synergy 的預算，你會發現我們實際上並沒有為第一季制定任何計劃。我們第一季的 RTD 收入為 30,000 美元。考慮到亞馬遜已經取得的進展，我們預計第二季的銷售額將達到 200 萬美元左右。

Okay, and in terms of kind of geographic territories and other distribution channels, what's the plan for the balance of the year?

好的，就地理區域和其他分銷管道而言，今年剩餘時間的計劃是什麼？

For RTDs?

對於 RTD？

Yeah, in terms of, adding new stores and new customers.

是的，就增加新店和新客戶而言。

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.

是的，目前主要集中在加拿大和美國，我們針對的主要客戶，也就是便利商店，沒有任何變化。顯然，我們將回到 Costco 和我們系統中已有的其他零售商，我們將向他們出售當前的帳單。

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?

好的，然後是關於費用的問題。所以，幹得好，他們排在了我想像的下面，但是您是否認為 G&A 水平將在全年上升，還是我們應該預期在全年持續上升？

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.

因此，G&A 方面，我們將對 G&A 進行一些員工人數調整，如果你願意的話，可以進行廣告宣傳，但我認為按百分比計算，可能會比較平穩。

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.

好的，我的最後一個問題是。您在第一季獲得的授權收入是多少？您之前談過這個嗎？我認為這是我們今年晚些時候會期待的事情。

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.

是的，正如我在電話對話中提到的那樣，我們簽署了阿拉伯聯合大公國的許可協議，我們在該地區獲得了 150 萬美元的費用，我們將以這種方式開拓其他地區，但我們不打算在這些地區留下自己的足跡，如果你願意的話。因此，基本上擴大了我們的全球影響力。

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.

因此，在未來，至少對於特定的合約來說，這將僅基於實際收入，而這只是一種啟動費。

That's correct.

沒錯。

Okay.

好的。

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.

在第四季度，他們獲得了一些註冊時間來開始產生收入，但我們預計將在第四季度開始產生收入。

Okay, thank you. Just one more clarification. Did you mention Australia and Thailand? Were those the two countries you.

好的，謝謝。再澄清一點。您提到澳洲和泰國了嗎？那是兩個國家嗎？

Expected Taiwan.

預計台灣。

Taiwan. Okay, thank you.

台灣.好的，謝謝。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

At this time I'm showing no questions. I'll now turn the call back over to Mr. Ross for closing remarks.

此刻我沒有任何疑問。現在我將把電話轉回給羅斯先生，請他作最後發言。

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.

謝謝。我們感謝大家參加我們的收益電話會議，我們期待在八月報告第二季度業績時與您交談。謝謝。

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation.

感謝您的參與。