NYER Nyer Medical Group, Inc. Reports Revenues of $18.1 Million With Net Loss of $.01 Per Share for 1st Quarter Fiscal Year 2008

Nyer Medical Group, Inc. Reports Revenues of $18.1 Million With Net Loss of $.01 Per Share for 1st Quarter Fiscal Year 2008PR Newswire "US Press Releases "
BANGOR, Maine, Nov. 15 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. (Nasdaq: NYER) today reported results for the first quarter of fiscal year 2008. Revenues for the three months ended September 30, 2007 increased $1,203,498 or 7.1% to $18,085,149 as compared to $16,881,651 as reported for the same period last year. Net loss for the three months ended September 30, 2007 was $34,789 or $.01 per common share as compared to a net loss of $5,214 or $.00 per common share for the same period ended September 30, 2006.
The pharmacies segment's revenues increased $1,460,019 to $16,924,429 or 9.4% for the three months ended September 30, 2007 as compared to $15,464,410 for the for the three months ended September 30, 2006, due both to increased prescription sales revenue and dispensing fees. The pharmacies revenues (excluding dispensing fees) increased $1,254,961 to $16,221,026 or 8.4% for the three months ended September 30, 2007 as compared to $14,966,065 for the three months ended September 30, 2006. Three new locations (opened January, April and July 2007, respectively) were the main reason for the increase in revenues of $1,088,661 for the three months ended September 30, 2007 as compared to $0 for the three months ended September 30, 2006. The remainder of the increase is due to growth of the federal Medicare Part D drug benefit and the aging of the American population resulting in increased drug utilization. Dispensing fees revenue increased $205,058 to $703,403 or 41.1% for the three months ended September 30, 2007 as compared to $498,345 for the three months ended September 30, 2006. The reasons for the increase in dispensing fees is the same as increased revenues. Dispensing fees revenue is recognized from contracts with federally qualified health centers (FQHC). The pharmacies manage three pharmacies owned by federally qualified health centers.
The medical segment's sales decreased $256,521 to $1,160,720 or 18.1% for the three months ended September 30, 2007 as compared to $1,417,241 for the three months ended September 30, 2006 mainly due to a salesman who left to work for a competitor in January 2007 which resulted in a loss of approximately $300,000. Internet sales increased by approximately $95,000 due to increased Internet advertising.
The pharmacies' S,G&A expenses increased $538,947 to $3,680,446 or 17.2% for the three months ended September 30, 2007 as compared to $3,141,499 for the three months ended September 30, 2006 mainly due to increased labor costs of approximately $425,572. The increased labor costs consisted of approximately $170,000 due to the short supply of pharmacists and pharmacy technicians and additional personnel due to increased revenues and approximately $240,300 of the increase was due to three pharmacies opened in January, April and July 2007, respectively. The balance of the increase was composed of rent expense of $36,700, advertising expense of $27,201, equipment rental of $25,167, software upgrades and maintenance of $18,294, donations of $14,000, legal expense of $13,427, and seminars of $9,015. The increases were partially offset by a reduction in LIFO expense of $35,000. The remaining increase of $4,571 was a combination of miscellaneous operating expenses.
The medical segment's S,G&A expenses decreased $47,579 to $375,154 or 11.3% for the three months ended September 30, 2007 as compared to $422,733 for the three months ended September 30, 2006. The decrease was due to a combination of the following: a reduction in sales related expenses of $18,136, a decrease in administrative expenses of $13,606, a reduction in warehouse and delivery expense of $10,835, and a decrease in shipping charges of $5,002.
The Corporate segment's overhead increased by $58,697 to $220,974 or 36.2% for the three months ended September 30, 2007 as compared to $162,277 for the three months ended September 30, 2006 due to a combination of an increase in fees paid to the minority shareholders for an extension of $66,660 and investment banker expense of $28,016. These increases were partially offset by a reduction in legal expenses of $31,013. The remaining increase of $4,966 was a combination of miscellaneous operating expenses.
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 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.
SOURCE Nyer Medical Group, Inc.