BANGOR, Maine, Oct. 15 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. today reported the audited financial results for its fiscal year ended June 30, 2007. Revenues increased 9.9% to $69,908,210 for fiscal year ended June 30, 2007 as compared to $63,596,975 as reported for the same period ended June 30, 2006. The Company reported a net income of $86,446 or $.02 basic net earnings per common share for the year ended June 30, 2007 as compared to a net income of $858,399 or $.22 basic net earnings per common share for the same period ended June 30, 2006. The Company reported a $.02 diluted net earnings per common share for the year ended June 30, 2007 as compared to $.20 diluted net earnings per common share for the year ended June 30, 2006. In 2006, management reevaluated the deferred tax allowance in the fourth quarter and the allowance was adjusted to $600,000 which was recorded as an asset on the balance sheet and as a reduction to income tax expense on the income statement. The deferred tax asset resulted in an increase in basic earnings of $.15 per common shares and diluted earnings of $.14 per share for the year ended June 30, 2006.
The pharmacies segment's revenues increased $8,142,324 to $64,564,535 or 14.4% for the year ended June 30, 2007 as compared to $56,422,211 for the year ended June 30, 2006 due both to increased prescription sales revenue and dispensing fees. The pharmacies revenues (excluding dispensing fees) increased $7,618,700 to $62,294,837 or 13.9% for the year ended June 30, 2007 as compared to $54,676,137 for the year ended June 30, 2006. A full year of revenues for a location acquired in April 2006 accounted for an increase of $3,711,375 to $4,530,822. Revenues for the Waltham location increased approximately $412,400 or 45.8% to $1,411,250 as compared to $900,000 for the year ended June 30, 2006. The remainder of the increase is due to growth of the federal Medicare Part D drug benefit and the aging of the American population resulting in increased drug utilization. Dispensing fees revenue increased $523,624 to $2,269,698 or 30% for the year ended June 30, 2007 as compared to $1,746,074 for the year ended June 30, 2006. Dispensing fees revenue is recognized from contracts with federally qualified health centers (FQHC).
The pharmacies' S,G&A expenses increased $2,213,576 to $13,466,044 or 19.7% for the year ended June 30, 2007 as compared to $13,466,044 for the year ended June 30, 2006. The main reasons for the increases: a full year of operations for a pharmacy opened in April 2006, a pharmacy opened in January 2007, a pharmacy opened in April 2007, short supply of pharmacists and pharmacy technicians, and costs associated with increased revenues; increased labor costs of approximately $1,591,300, mainly due to the first full year of labor costs for a pharmacy opened in April 2006 of approximately $400,000, approximately $380,000 due to the short supply of pharmacists and pharmacy technicians, labor costs of $175,350 associated with two new pharmacies, with the balance of the increase due to increased revenues. The balance was composed of rent expense of $143,775, equipment rental of $128,935, legal expense of $120,125 (primarily due to litigation expense), advertising expense of $100,980, store supplies of $60,575, utilities of $34,080, and software support expense of $28,190. The increases were partially offset by a reduction in LIFO expense of $168,615.
The medical segment's sales decreased $1,831,089 to $5,343,675 or 25.5% in 2007 as compared to $7,174,764 for the year June 30, 2006. Internet sales decreased by approximately $848,860 due to lower equipment sales as the Company has increased prices for equipment eliminating unprofitable sales and less than expected government sales. The loss of a salesman resulted in a loss of approximately $850,000. The remaining decrease of approximately $132,000 was due to the medical segment continuing to be pressured by regional and national buying groups able to command larger discounts from manufacturers and able to offer on-line purchasing, inventory controls as well as larger competitors who offer lower prices.
The medical segment's S,G&A expenses decreased $278,976 or 14.4% to $1,661,724 for the year June 30, 2007 as compared to $1,940,700 for the year June 30, 2006. The decrease was due to a combination of the following: a reduction in sales related expenses of $213,994, warehouse and delivery expense of $19,355, in shipping charges of $28,920 and reduced bulk inventory storage costs and expenses of $25,888.
The Corporate segment's overhead increased by $413,005 or 75.3% to $961,460 for the year June 30, 2007 as compared to $548,455 for the year June 30, 2006 due to a combination of the following: an increase in fees paid to the minority shareholders (20% owners of the pharmacy segment) for an extension of $291,640, write off of a note receivable of $51,321, increased legal fees of approximately $23,000, investment banker expense of $26,116, increased board and audit committee expenses of $11,970, an increase in annual meeting expenses of $10,340, an increase in Nasdaq Stock Market listing fees of $10,000 and interest expense of $3,145. These increases were partially offset by a combination of the following reductions: personnel costs of $24,925 and audit expense of $12,630.
The Company received a going concern audit opinion recently, which opinion was set forth in its Form 10-K filed with the Securities Exchange Commission on October 12, 2007.
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 Karen Wright (207) 942-5273.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
This press release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All statements in this release that are not historical facts are forward-looking statements and are subject to risks and uncertainties. Among the factors that change the anticipated results are changes in the capital equity markets. Nyer does not undertake any obligation to update these forward-looking statements.
CONTACT: Karen Wright of Nyer Medical Group, Inc., +1-207-942-5273
Web site: http://nyermedicalgroup.com//