BANGOR, Maine, Feb. 15 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. yesterday reported results for the 2nd quarter of fiscal year 2005. Revenues for the three months ended December 31, 2004 decreased $291,509 to $15,528,903 as compared to $15,819,684 as reported for the same period last year. Net income for the three months ended December 31, 2004 was $129,746 or $.03 per common share as compared to $22,707 or $.01 per common share for the same period ended December 31, 2003. Revenues for the six months ended December 31, 2004 decreased $344,093 to $30,717,514 as compared to $31,061,607 as reported for the same period last year. Net income for the six months ended December 31, 2004 was $193,796 or $.05 per common share as compared to $205,168 or $.05 per common share for the same period ended December 31, 2003.
Karen Wright, President and Chief Executive Officer of Nyer Medical Group, Inc., stated, “We are pleased with the $.03 per share income for the three months ended and the $.05 per share income for the six months ended, December 31, 2004. This fits well with the Company’s plan for continued profitability, growth and the possibility of raising additional capital for potential future acquisitions.”
The pharmacies’ sales decreased $399,436 to $13,303,086 or 2.9% for the three months ended December 31, 2004 as compared to $13,702,522 for the three months ended December 31, 2003. The main reason for the decline was the conversion of a contractual arrangement with one federally qualified health center (FQHC) from a replenishment model to a segregated inventory model. Under the former arrangement, the pharmacies dispensed prescriptions from its inventory and recognized as sales the gross value of the prescription dispensed. Under the latter arrangement, the pharmacies dispensed prescriptions from a segregated inventory owned by the FQHC and recognized as revenues the dispensing fee paid it by the FQHC. The dispensing fees totaled approximately $147,000. Had the previous replenishment model and corresponding revenue recognition been employed, sales of approximately $735,000 would have been recognized as opposed to the approximately $147,000 in dispensing fees. Management expects prescriptions to increase due to an aging population, increased Medicare prescription benefits and additional new prescription drugs coming to the market place. Management plans to mitigate the effects of mandatory mail-order components within the prescription insurance plans by continuing to seek out niches within the market that it is uniquely qualified to service. In late November of 2004, the pharmacy segment opened a pharmacy within a medical center in Waltham, MA, recently acquired by Boston Children’s Hospital. Management expects that its presence within this unique medical community will result in added sales volume and incremental profits.
The medical segment’s sales increased $108,655 for the three months ended December 31, 2004 to $2,225,817 or 5.1% as compared to $2,117,162 for the three months ended December 31, 2003, primarily due to its Internet sales increase of approximately $138,180 and bulk inventory sales of approximately $25,500 recorded at no cost and reported for three month ended December 31, 2004.
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 the Company’s plan for continued profitability, growth and the possibility of raising additional capital for potential future acquisitions, management expecting prescriptions to increase, management’s plans to mitigate the effect of mandatory mail-order components within prescription insurance plans and management’s expectations resulting from the opening of a pharmacy within a medical center in Waltham, MA, 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/
