HOLLISTON, Mass., Feb.19 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. (Nasdaq: NYER) reported results for the Company's second quarter ended December 31, 2008. Revenues for the second quarter of fiscal 2009 increased $1.8 million or 10.7% to $19.0 million from $17.1 million as reported for the comparable quarter in the prior year. The increase in revenues was primarily due to the addition of four new pharmacies over the past 12 months. Revenues slightly decreased at stores open more than one year due to management's decision to transfer business from existing pharmacies to two of the newly opened pharmacies to achieve efficiencies in the dispensing process. If the effect of the business transfer is taken into account, comparable store revenue was up approximately 6%.
Net income for the second quarter of 2009 was $224,709 or $.05 per diluted share and was comprised of a loss from continuing operations of $52,540 or $0.01 per diluted share and a net gain from discontinued operations of $277,249 or $0.06 per diluted share. The Company had discontinued operations during the second quarter of fiscal 2009 due to the sale of its Topsfield store. The net loss for the comparable period in the prior year was $98,023 or $0.02 per diluted share and was comprised of a loss from continuing operations of $235,127 or $0.06 per diluted share and a net gain from discontinued operations of $137,104 or $0.04 per diluted share.
Gross profit margin was 19.8% for the second quarter of fiscal 2009 compared to 22.1% in the second quarter of fiscal 2008 due to declining insurance reimbursement rates and the fact that the Topsfield store's results, which had a lower than average gross profit margin rate in fiscal 2008, have been removed from continuing operations. Dispensing fees were not included in the calculation, as no cost of sales is estimatable for dispensing fees.
Selling, general and administrative expenses for the second quarter of fiscal 2009 increased $0.3 million or 7.2% to $4.9 million from $4.6 million as reported for the second quarter of fiscal 2008 primarily due to increased payroll costs related to the four newly opened locations partially offset by a decrease in administrative expenses.
"The reorganization of Nyer Medical and streamlining of operations continued into the second quarter of fiscal 2009," President and CEO Mark Dumouchel said. "During the second quarter of fiscal 2009, we sold our lower margin Topsfield location and entered into a contract with the East Boston Neighborhood Health Center to assume management of the Health Center's pharmacy already in operation, which immediately became our highest volume location in terms of prescriptions dispensed. As of December 31, 2008, we had successfully integrated the pharmacy dispensing software platform, the robotic dispensing unit, the work-flow software, and the point of purchase software. While the process was taxing on operational resources, we believe the changes were necessary in order to maximize the long-term profit potential of the pharmacy." Dumouchel further stated, "Our restructuring and growth initiatives have been costly in the short-run but we remain confident that our efforts will prove to be profitable for us and beneficial to our shareholders in the long run."
About Nyer Medical Group
Nyer Medical Group, Inc. is a holding company that through its pharmacy subsidiary operates pharmacies and provides pharmacy management services to various not-for-profit entities in the greater Boston area.
For further information contact Mark Dumouchel (508) 429-8506, extension 16.
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These statements are generally identified by the inclusion of phrases such as "we expect", "we anticipate", "we believe", "we estimate" and other phrases of similar meaning. For example, the statements regarding restructuring and growth initiatives that will prove to be profitable and beneficial to shareholders all involve forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: The continued growth in prescription volume at newly opened locations and success in consolidation of administration and elimination of overhead. Additional factors are described under "Part I. Item 1. A. - Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Except as required by law, Nyer Medical Group undertakes no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
NYER MEDICAL GROUP, INC. Condensed Consolidated Statements of Operations (unaudited) For the three months For the six months ended December 31, ended December 31, ------------------- ------------------- $ in millions, except share data 2008 2007 2008 2007 Net revenues $19.0 $17.1 $36.6 $33.4 Cost and expenses 19.1 17.5 36.6 33.8 Income (loss) from operations (0.1) (0.3) 0.06 (0.3) Other income (expense), net (0.0) 0.0 (0.1) 0.0 Loss from continuing operations before provision for income taxes and minority interest (0.1) (0.3) 0.0 (0.3) Benefit for income taxes 0.1 0.1 0.0 0.1 Minority interest expense, net of income taxes - (0.0) - 0.0 Loss from continuing operations (0.1) (0.2) (0.0) (0.2) Net gain from discontinued operations, net of tax 0.3 0.1 0.2 0.1 Net income (loss) 0.2 (0.1) 0.2 (0.1) Basic earnings per share: Basic loss per share, continuing operations $(0.01) $(0.06) $- $(0.07) Basic income per share, discontinued operations 0.07 0.04 0.05 0.04 Basic income (loss) per share $0.06 $(0.02) $0.05 $(0.03) Diluted earnings per share: Diluted loss per share, continuing operations $(0.01) $(0.06) $0.00 $(0.07) Diluted income per share, discontinued operations 0.06 0.04 0.05 0.04 Diluted income (loss) per share $0.05 $(0.02) $0.05 $(0.03) Shares used in computing earnings (loss) per share: Basic 3,978,199 3,978,199 3,978,199 3,978,199 Diluted 5,011,416 3,978,199 5,011,416 3,978,199 NYER MEDICAL GROUP, INC. Condensed Consolidated Balance Sheets December 31, June 30, $ in millions 2008 2008 Assets (unaudited) Current assets $14.1 $13.9 Property and equipment, net 1.4 1.3 Other assets 3.3 3.3 Total assets $18.8 $18.5 Liabilities and shareholders' equity Current liabilities $8.2 $8.1 Long-term debt, net of current portion 1.8 1.9 Shareholders' equity 8.8 8.5 Total liabilities and shareholders' equity $18.8 $18.5
|SOURCE Nyer Medical Group, Inc.|
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