BANGOR, Maine, May 22 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc.
(Nasdaq: NYER) reported results for the third quarter of fiscal year 2008.
Revenues for the three months ended March 31, 2008 increased $1.55 million or
8.9% to $18.92 million from $17.38 million as reported for the same period
last year. Net loss for the three months ended March 31, 2008 was $615,892 or
$.16 per share as compared to a net loss of $67,919 or $.02 per share for the
same period ended March 31, 2007. The net loss reflects costs related to the
acquisition of the remaining 20% minority interest in D.A.W. and the change in
control of the Company, totaling approximately $721,000 or $.18 per share for
the three months ended March 31, 2008. This was primarily due to the purchase
of Class A and B (Series 1) Preferred Stock of $400,000; legal expense of
$186,000 and a severance charge attributable to the non-renewal of the former
chief executive officer's employment contract of $118,000.
The pharmacies segment's revenues increased $1.79 million to $17.94
million or 11.1% for the three months ended March 31, 2008 as compared to
$16.15 million for the three months ended March 31, 2007. This was due to an
8.5% increase in the number of prescriptions dispensed at stores open more
than one-year, the acquisition of a pharmacy in July 2007 and the addition of
two new pharmacies, in April and December 2007, respectively. Stores open
more than one year experienced a 5.4% growth in revenue. The pharmacies
recognize revenues both from the sale of prescription medications and other
products as well as through dispensing fee revenue derived through the
dispensing of inventory owned by Federally Qualified Health Centers ("FQHCs")
pursuant to Pharmacy Management Services Contracts entered into by the
pharmacies with various FQHCs. The dollar growth in the pharmacies segment's
revenues does not directly correlate with the growth in prescription
dispensing due to a significant increase in the utilization of generic drugs
which typically have a significantly lower selling price.
"We are pleased to have successfully concluded the acquisition of the
remaining interest in the pharmacy segment and to have concluded the buyout of
the control position of the Nyer family during the quarter ended March 31st,"
stated President and CEO Mark Dumouchel. "Going forward, the company will
focus on capitalizing on both existing and developing growth opportunities in
pharmacy niche businesses as well as further broadening our base of retail
locations. We are additionally continuing to establish relationships within
the Health Center Community to further expand our dispensing activity within
the federal 340B prescription drug pricing program." Dumouchel further
stated, "We anticipate further consolidation of expenses as we eliminate
duplication in general and administrative expenses necessitated by the prior
parent/subsidiary relationship. We are in the midst of a thorough examination
and elimination of businesses that are not consistent with our strategic
direction and profit objectives."
About Nyer Medical Group
Nyer Medical Group, Inc. is a holding company that through its
subsidiaries operates pharmacies in the greater Boston area and a medical
products business that distributes and markets medical equipment and supply
products to hospitals, physicians and nursing homes using relationship-based
telemarketing, direct sales personnel, catalogs and the Internet. These
orders are filled by the company's distribution centers located in New England
and South Florida.
For further information contact Mark Dumouchel (508) 429-8506, ext. 16.
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking in
nature within the meaning of the Private Securities Litigation Reform Act of
1995 and other federal securities laws. These statements are generally
identified by the inclusion of phrases such as "we expect", "we anticipate",
"we believe", "we estimate" and other phrases of similar meaning. For
example, the statements regarding capitalizing on growth opportunities in the
pharmacy business, expanding retail locations and dispensing activity and
controlling costs all involve forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors that may
cause the actual results to be materially different from those contemplated in
the forward-looking statements. Such factors include, but are not limited to:
1) The continuing opportunities for acquisitions, establishment of FQHC
relationships and success in consolidation of administration and elimination
of overhead; and 2) Changes in capital equity markets. Additional factors are
described under "Part I. Item 1. A. - Risk Factors" in our most recent
Quarterly Report on Form 10-Q and under "Part I. Item 1. A. - Risk Factors" in
our most recent Annual Report on Form 10-K as filed with the Securities and
Exchange Commission. Except as required by law, Nyer Medical Group undertakes
no obligation to release publicly the result of any revision to these forward-
looking statements that may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Nyer Medical Group, Inc.