BANGOR, Maine, Sept. 29 /PRNewswire/ -- Nyer Medical Group, Inc. today reported the audited financial results for its fiscal year ended June 30, 2006. Revenues increased 3.9% to $63,596,975 for fiscal year ended June 30, 2006 as compared to $61,184,025 as reported for the same period ended June 30, 2005. The Company reported a net income of $858,399 or $.22 basic net earnings per common share for the year ended June 30, 2006 as compared to a net income of $223,639 or $.06 basic net earnings per common share for the same period ended June 30, 2005. The Company reported a $.20 diluted net earnings per common share for the year ended June 30, 2006 as compared to $.06 diluted net earnings per common share for the year ended June 30, 2005. Since the Company has had growth and taxable income in the recent past, management reevaluated the deferred tax allowance in the fourth quarter of 2006. The allowance has been adjusted to $600,000 and this amount has been 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 from timing differences for property, plant and equipment and intangibles which are generally depreciated or amortized for longer periods for tax purposes than for financial reporting purposes. Also included in the allowance are timing differences for inventory and accounts receivable which are recorded as expenses on the financial statements and are not deductible for income tax purposes. The deferred tax asset resulted in an increase in basic earnings of $.15 per common shares and diluted earnings of $.14 per share.
The pharmacies segment’s sales increased $3,529,058 to $56,422,211 or 6.7% for the year ended June 30, 2006 as compared to $52,893,153 for the year ended June 30, 2005. The increase was due to increased prescription sales and increased dispensing fees revenue. The pharmacies revenues (excluding dispensing fees) increased $2,558,371 to $54,676,137 or 5% for the year ended June 30, 2006 as compared to $52,117,765 for the year ended June 30, 2005. The pharmacies acquired a pharmacy in April 2006, which increased revenues by $820,000. The location in Waltham had an increase of approximately $530,000 or 143% to $900,000 as compared to $370,000 for the year ended June 30, 2005 as the facility is attracting more tenants. The remainder of the increase is due to growth of the federal Medicare Part D drug benefit and the aging of the American population. Dispensing fee revenue increased $970,687 to $1,746,074 or 81% for the year ended June 30, 2006 as compared to $775,388 for the year ended June 30, 2005. Dispensing fees revenue is recognized from contracts with federally qualified health centers (FQHC).
The pharmacies’ selling, general and administrative expenses increased $1,600,932 to $11,252,468 or 16.6% for the year ended June 30, 2006 as compared to $9,651,536 for the year ended June 30, 2005. The increase was due to the following increased expenses: labor costs (including benefits) of $900,000 mainly due to the short supply of pharmacists and pharmacy technicians, advertising expense of $201,282, store supplies of $76,207, insurance expense of $74,462, rent expense of $74,168, equipment rental of $66,260, legal expense of $56,466 and utilities of $39,925. The remaining increase of $112,965 was a combination of miscellaneous operating expenses.
The medical segment’s sales decreased $1,116,108 to $7,714,764 or 13.5% in 2006 as compared to $8,290,782 for the year June 30, 2005. Internet sales decreased by approximately $600,000 due to price increases to meet our profit objectives. An additional $400,000 of the revenue decline was due the closure of the Nevada location in July 2005. The remaining decrease of approximately $116,000 is 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 and inventory controls and larger competitors who offer lower prices.
The medical segment’s selling, general & administration expenses decreased $488,730 or 20.1% to $1,940,700 for the year June 30, 2006 as compared to $2,429,430 for the year June 30, 2005. The decrease was due to a combination of the following: a reduction in sales related expenses of $168,935, a reduction in bad debt expense of $160,000, Nevada overhead costs of $100,120 (due to continuing losses, this division was closed in June 2005), decrease in shipping charges $43,108 and reduced bulk inventory storage costs and expenses of $16,321.
The Corporate segment’s overhead increased by $38,546 or 7.6% to $548,455 for the year June 30, 2006 as compared to $509,909 for the year June 30, 2005. The increase was due to increased legal fees of approximately $52,000 and stock-based compensation expense of $46,908. The increases were partially offset by a combination of the following reductions: personnel costs of approximately $34,700, public relation fees of approximately $14,025, and insurance of $11,200.
Karen Wright, President and Chief Executive Officer of Nyer Medical Group, Inc., stated, “We are pleased to report that our most recent pharmacy acquisition in April of this year has increased overall pharmacy revenues by approximately $820,000 or 130% for the three months ended June 30, 2006. The Company has also recorded deferred tax assets of $600,000 for the fiscal year ended 2006, which mainly consisted of timing differences from depreciation, intangible asset amortization, and inventory allowances.”
Nyer Medical Group, Inc., is a holding company that, through its subsidiaries, 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 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.
Nyer Medical Group, Inc.
CONTACT: Karen Wright of Nyer Medical Group, +1-207-942-5273
Web site: http://nyermedicalgroup.com/
