BANGOR, Maine, May 22 Nyer Medical Group, Inc.(Nasdaq: NYER) reported results for the third quarter of fiscal year 2008.Revenues for the three months ended March 31, 2008 increased $1.55 million or8.9% to $18.92 million from $17.38 million as reported for the same periodlast year. Net loss for the three months ended March 31, 2008 was $615,892 or$.16 per share as compared to a net loss of $67,919 or $.02 per share for thesame period ended March 31, 2007. The net loss reflects costs related to theacquisition of the remaining 20% minority interest in D.A.W. and the change incontrol of the Company, totaling approximately $721,000 or $.18 per share forthe three months ended March 31, 2008. This was primarily due to the purchaseof Class A and B (Series 1) Preferred Stock of $400,000; legal expense of$186,000 and a severance charge attributable to the non-renewal of the formerchief executive officer's employment contract of $118,000.
The pharmacies segment's revenues increased $1.79 million to $17.94million or 11.1% for the three months ended March 31, 2008 as compared to$16.15 million for the three months ended March 31, 2007. This was due to an8.5% increase in the number of prescriptions dispensed at stores open morethan one-year, the acquisition of a pharmacy in July 2007 and the addition oftwo new pharmacies, in April and December 2007, respectively. Stores openmore than one year experienced a 5.4% growth in revenue. The pharmaciesrecognize revenues both from the sale of prescription medications and otherproducts as well as through dispensing fee revenue derived through thedispensing of inventory owned by Federally Qualified Health Centers ("FQHCs")pursuant to Pharmacy Management Services Contracts entered into by thepharmacies with various FQHCs. The dollar growth in the pharmacies segment'srevenues does not directly correlate with the growth in prescriptiondispensing due to a significant increase in the utilization of generic drugswhich typically have a significantly lower selling price.
"We are pleased to have successfully concluded the acquisition of theremaining interest in the pharmacy segment and to have concluded the buyout ofthe control position of the Nyer family during the quarter ended March 31st,"stated President and CEO Mark Dumouchel. "Going forward, the company willfocus on capitalizing on both existing and developing growth opportunities inpharmacy niche businesses as well as further broadening our base of retaillocations. We are additionally continuing to establish relationships withinthe Health Center Community to further expand our dispensing activity withinthe federal 340B prescription drug pricing program." Dumouchel furtherstated, "We anticipate further consolidation of expenses as we eliminateduplication in general and administrative expenses necessitated by the priorparent/subsidiary relationship. We are in the midst of a thorough examinationand elimination of businesses that are not consistent with our strategicdirection and profit objectives."
About Nyer Medical Group
Nyer Medical Group, Inc. is a holding company that through itssubsidiaries operates pharmacies in the greater Boston area and a medicalproducts business that distributes and markets medical equipment and supplyproducts to hospitals, physicians and nursing homes using relationship-basedtelemarketing, direct sales personnel, catalogs and the Internet. Theseorders are filled by the company's distribution centers located in New Englandand South Florida.
For further information contact Mark Dumouchel (508) 429-8506, ext. 16.
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