BANGOR, Maine, May 16 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. reports results for the third quarter of fiscal year 2007. Revenues for the three months ended March 31, 2007 increased $1,603,226 or 10.2% to $17,359,126 from $15,755,900 as reported for the same period last year. Net loss for the three months ended March 31, 2007 was $67,919 or $.02 basic loss per share as compared to $101,061 or $.03 basic income per share for the same period ended March 31, 2006.
The pharmacy segment’s revenues increased $2,135,143 to $16,134,628 or 15.3% for the three months ended March 31, 2007 as compared to $13,999,485 for the three months ended March 31, 2006. The pharmacies’ revenues (excluding dispensing fees) increased $2,040,116 to $15,556,843 or 15.1% for the three months ended March 31, 2007 as compared to $13,516,726 for the three months ended March 31, 2006. The pharmacy segment acquired a new location in April 2006, which accounts for approximately $1,088,501 or 46.6% of the increase for the three months ended March 31, 2007. The remainder of the increase was due to the success of marketing initiatives directed at specialty niches as well as the maturation of the company’s location within Children’s Hospital Boston at Waltham. Dispensing fees revenue increased $95,026 to $577,785 or 19.7% for the three months ended March 31, 2007 as compared to $482,759 for the three months ended March 31, 2006. The pharmacies commenced dispensing prescriptions under two new contracts (June 2006 and January 2007) with federally qualified health centers (FQHC), which accounted for approximately $43,650 of the increase. The remainder of increase was due to increased market penetration within existing health center relationships due to increased patient awareness and health center staff commitment to the health center pharmacies.
The pharmacies’ S,G&A expenses increased $524,979 to $3,369,972 or 18.5% for the three months ended March 31, 2007 as compared to $2,844,993 for the three months ended March 31, 2006, mainly due to increased labor costs of approximately $442,600. The increased labor costs consisted of approximately $272,000 due to the short supply of pharmacists and pharmacy technicians and additional personnel due to growth in revenues and approximately $126,000 of the increase was due to a pharmacy opened in April 2006 and $44,600 for a pharmacy opened in January 2007. The balance of the increase was primarily composed of legal expense of $56,600 and rent expense of $36,925.
The medical segment’s sales decreased $531,917 to $1,224,498 or 30.3% for the three months ended March 31, 2007 as compared to $1,756,415 for the three months ended March 31, 2006. Approximately $326,000 of the decrease was due to the medical segment continuing to be pressured by regional and national buying groups able to command larger discounts from manufacturers whom are able to offer on-line purchasing, inventory controls as well as larger competitors who offer lower prices and the loss of a salesman in January 2007. Internet sales decreased by approximately $206,000 due to lower equipment sales as the Company has increased prices for equipment eliminating unprofitable sales. Also, Internet sales have decreased due to increased competition.
The medical segment’s S,G&A expenses decreased $85,385 or 16.6% to $427,919 for the three months ended March 31, 2007 as compared to $513,304 for the three months ended March 31, 2006. The decrease was primarily due to a reduction in sales related expenses of $56,110 and miscellaneous operating expenses of $22,575.
The Corporate segment’s overhead increased by $95,467 or 75.2% to $222,417 for the three months ended March 31, 2007 as compared to $126,950 for the three months ended March 31, 2006 primarily due to certain payments made to the minority shareholders of the pharmacy segment. (For further information, see Form 10-Q of the Company, filed on May 15, 2007 with the Securities and Exchange Commission, Selected Notes to Consolidated Financial Statements, Note 3 (Restricted Assets and Uncertainties)).
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.
Additional information concerning Nyer Medical Group, Inc. may be found on NYER’s website www.nyermedicalgroup.com.
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 risk and uncertainties. Such risks and uncertainties include, but are not limited to, any possible change in our core business and changes in the capital equity markets. Nyer Medical Group, Inc. does not undertake any obligation to update these forward-looking statements.
Nyer Medical Group, Inc.
CONTACT: Karen Wright of Nyer Medical Group, Inc., +1-207-942-5273
Web site: http://nyermedicalgroup.com/
