NYER Nyer Medical Grp. (MM)

HOLLISTON, Mass., May 15 /PRNewswire-FirstCall/ -- Nyer Medical Group, Inc. (NASDAQ:NYER) reported results for the Company's third quarter ended March 31, 2009. Revenues for third quarter of fiscal 2009 increased $1.3 million or 7.5% to $18.6 million from $17.3 million as reported for the comparable quarter in the prior year. The increase in revenues was primarily due to the addition of five 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 5% from the third quarter of fiscal 2008. Net loss for the third quarter of fiscal 2009 was $0.3 million or $.07 per diluted share and was comprised of a loss from continuing operations of $0.2 million or $0.05 per diluted share and a net loss from discontinued operations of $0.1 million or $0.02 per diluted share. The net loss for the comparable period in the prior year was $0.6 million or $0.16 per diluted share and was comprised of a loss from continuing operations, net of deemed dividend on redemption of preferred stock. Costs and expenses, mainly selling, general and administrative expenses, for the third quarter of fiscal 2009 as a percentage of revenues increased over the comparable quarter in the prior year primarily due to the five newly opened pharmacies where we have constructed an operating infrastructure capable of supporting the assisted living community, where we are planning to increase our market share. "The organizational restructuring of the Company continued into the third quarter of fiscal 2009," President and CEO Mark Dumouchel said. "During the quarter, we began operating at the Dimock Community Health Center in Roxbury, Massachusetts, increasing our number of locations with 340B affiliations to 14. We additionally laid the ground work to close a non-profitable location this June and simultaneously retain the majority of its revenue base by transferring its prescription records to other pharmacy locations." Mr. Dumouchel further stated, "We remain confident that our investment in our growth initiatives will be profitable for us and beneficial to our shareholders." 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. 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 Balance Sheets March 31, June 30, $ in millions 2009 2008 --------- -------- Assets (unaudited) Current assets $13.3 $13.9 Property and equipment, net 1.4 1.3 Other assets 3.2 3.3 ----- ----- Total assets $17.9 $18.5 ===== ===== Liabilities and shareholders' equity Current liabilities $7.4 $8.0 Long-term debt, net of current portion 1.9 2.0 Shareholders' equity 8.6 8.5 ----- ----- Total liabilities and shareholders' equity $17.9 $18.5 ===== ===== NYER MEDICAL GROUP, INC. Condensed Consolidated Statements of Operations (unaudited) For the three months For the nine months $ in millions, ended March 31, ended March 31, except share ---------------- ----------------- data 2009 2008 2009 2008 ---- ---- ---- ---- Net revenues $18.6 $17.3 $55.2 $50.7 Cost and expenses 18.9 17.6 55.5 51.3 ---- ---- ---- ---- Loss from operations (0.3) (0.3) (0.3) (0.6) Other income (expense), net (0.1) - (0.1) - ---- - ---- - Loss from continuing operations before provision for income taxes and minority interest (0.4) (0.3) (0.4) (0.6) Benefit for income taxes 0.2 0.1 0.1 0.1 --- --- --- --- Loss from continuing operations (0.2) (0.2) (0.3) (0.5) Net (loss) gain from discontinued operations, net of tax (0.1) - 0.2 0.2 ---- - --- --- Net loss (0.3) (0.2) (0.1) (0.3) Deemed dividend attributable to common shareholders - (0.4) - (0.4) ---- ---- ---- ---- Net loss attributable to common shareholders $(0.3) $(0.6) $(0.1) $(0.7) ===== ===== ===== ===== Basic and diluted earnings per share: Loss per share, continuing operations, net of deemed dividend on redemption of preferred stock $(0.05) $(0.16) $(0.06) $(0.22) Earnings (loss)per share, discontinued operations (0.02) 0.00 0.04 0.03 ----- ---- ---- ---- Loss per share attributable to common shareholders $(0.07) $(0.16) $(0.02) $(0.19) ====== ====== ====== ====== Shares used in computing earnings per share: Basic 3,978,199 3,978,199 3,978,199 3,978,199 Diluted 3,978,199 3,978,199 3,978,199 3,978,199 DATASOURCE: Nyer Medical Group, Inc. CONTACT: Mark Dumouchel of Nyer Medical Group, Inc., +1-508-429-8506, ext. 16 Web Site: http://nyermedicalgroup.com/

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