BANGOR, Maine, Oct. 21 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. today reported results for its fiscal year ended June 30, 2004. Revenues from continuing operations increased 8.3% to $61,687,258 for fiscal year ended June 30, 2004 as compared to $56,972,494 as reported for the same period ended June 30, 2003. The Company posted a net loss of $425,220 or $.11 per common share for the year ended June 30, 2004 as compared to a net income of $499,137 or $.13 per common share for the same period ended June 30, 2003. The Company had a loss of $.01 per common share from continuing operations and a loss of $.10 per common share for discontinued operations for the year ended June 30, 2004.
Karen Wright, President and Chief Executive Officer of Nyer Medical Group, Inc., stated, “In September, we trimmed corporate overhead, streamlined operations and consolidated some of our subsidiaries. The result of these changes will save approximately $525,000 annually and will have a positive impact in the 2nd and 3rd quarters of fiscal year 2005. The Company’s fire and police segment was discontinued as of June 30, 2004, resulting in approximately $370,600 of annual savings.” Ms. Wright further stated, “The Company’s strategy for our pharmacies has been one focused on growth while not jeopardizing the short term viability of the Company. This strategy has resulted in an increase in sales from approximately $18 million in 1997 to $53 million in 2004 and growing.”
The pharmacy segment, an 80% owned subsidiary of Nyer, continued strong revenue growth for fiscal year ended June 30, 2004. Sales increased 11.4% to $53,220,507 due to the acquisition of two pharmacies in fiscal year 2003 and continued contracts with the three largest PACE (Progressive All-inclusive Care for the Elderly) providers in the state, as well as the Boston Healthcare for the Homeless Program. This segment’s net income decreased $209,605 or 21% as compared to the same period last year. The decrease in earnings can be attributed to the following: additional advertising expense in an attempt to brand the name “Eaton Apothecary"; expenses incurred to facilitate the further expansion; expenses incurred to complete a new location in the Sterling Medical Center (formerly Waltham Hospital).
The medical segment’s sales decreased $727,143 in 2004 to $8,466,751 or 7.9% for the year ended June 30, 2004 as compared to $9,193,894 for the year ended June 30, 2003. The sales decline can be attributed to the following: sales decline from the Las Vegas operation due to continual turnover of personnel and a lack of on-site management; increased pressure from regional and national buying groups which are able to command larger discounts from manufacturers and offer on line purchasing and inventory controls; physicians and physician groups being purchased by hospitals that insist they purchase from their sources; and new buying groups offering lower prices to induce customers to purchase their products. The medical segment had a loss of $343,400 for the year ended June 30, 2004 as compared to a loss of $49,000 for the year ended June 30, 2003. The factors listed above along with the following were the major reasons for this loss: increased advertising expense to try to stop the sales decline; increase in personnel costs; increase in accounts receivable bad debt expense; and a charge for inventory obsolescence.
Corporate overhead increased by $8,471 or 1.3% to $648,779 for the year ended June 30, 2004 as compared to $640,308 for the year ended June 30, 2004. This was mainly additional accounting and legal expenses due to the passing of the Sarbanes-Oxley Act of 2002 to set procedures in place to insure the Company is compliant.
Nyer Medical Group, Inc., is a holding company that operates pharmacies in the greater Boston area and a medical products distribution 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, South Florida and Nevada.
For further information contact Alliance Capital Resources, Inc., Jack Sutton (909) 597-2476.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
This press release contains 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, including, but not limited to, statements regarding trimming overhead and expenses, streamlining operations, consolidating subsidiaries, and a positive impact in the 2nd and 3rd quarters of fiscal year 2005, are forward-looking statements and are subject to risk and uncertainties. Such risk and uncertainties include, but are not limited to, sustained profitability and any possible change in our core business. 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.
Nyer Medical Group, Inc.
CONTACT: Jack Sutton of Alliance Capital Resources, Inc.,+1-909-597-2476
Web site: http://nyermedicalgroup.com/