BANGOR, Maine, May 22 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. 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.
CONTACT: Mark Dumouchel of Nyer Medical Group, Inc., +1-508-429-8506, ext.
Web site: http://nyermedicalgroup.com/