FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended September 30, 1999
Commission File Number 000-20175
NYER MEDICAL GROUP, INC
(Exact name of registrant as specified in its charter)
Florida 01-0469607
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1292 Hammond Street, Bangor, Maine 04401
(Address of principal executive offices) (Zip Code)
(207) 942-5273
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X . No .
As of November 22, 1999, there were outstanding, 3,407,093 shares of common
stock,par value $.0001 per share.
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
INDEX
PART I
FINANCIAL INFORMATION
Page No.
Item 1. Financial Statements:
Consolidated Balance Sheets, September 30, 1999
and December 31, 1998 3-4
Consolidated Statements of Operations, Three Months
Ended September 30, 1999 and September 30, 1998 5
Consolidated Statements of Operations, Nine Months
Ended September 30, 1999 and September 30, 1998 6
Consolidated Statements of Cash Flows, Nine Months
Ended September 30, 1999 and September 30, 1998 7-8
Notes to Consolidated Financial Statements 9-10
Item 2. Management's Discussion and Analysis of
Third Quarter 1999 Results 11-16
PART II - OTHER INFORMATION
Item 3. Other Information 16
Signatures 16
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
September 30, December 31,
1999 1998
Current assets:
Cash and cash equivalents $ 2,532,756 $ 4,136,988
Accounts receivable, less
allowance for doubtful accounts
of $165,998 at September 30, 1999
and $188,076 at December 31, 1998 3,330,837 3,560,377
Inventories, net 4,545,702 4,073,051
Prepaid expenses 175,892 105,045
Receivables from related parties 48,670 48,139
Total current assets 10,633,857 11,923,600
Property, plant and equipment, at
cost:
Land 92,800 92,800
Building 641,508 641,508
Leasehold improvements 517,306 381,702
Machinery and equipment 282,844 223,807
Transportation equipment 316,524 260,285
Office furniture, fixtures,
and equipment 972,330 805,748
2,823,312 2,405,850
Less accumulated depreciation
and amortization (1,079,235) (902,872)
1,744,077 1,502,978
Goodwill and other deferred assets,
net of accumulated amortization of
$486,575 and $386,171 at September 30,
1999 and December 31, 1998,
respectively 702,405 802,809
Advances due from related companies 31,254 34,488
Other 143,386 148,167
877,045 985,464
Total assets $13,254,979 $14,412,042
See accompanying notes to consolidated financial statements.
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
(Unaudited)
September 30, December 31,
1999 1998
Current liabilities:
Notes payable due related parties $ 120,000 $ 120,000
Current portion of long-term debt 358,560 236,669
Accounts payable 2,828,145 2,627,292
Accrued payroll and related taxes 188,770 206,465
Accrued expenses and other
liabilities 14,150 322,753
Total current liabilities 3,509,625 3,513,179
Notes payable due related party,
net of current portion 462,820 522,820
Long-term debt, net of current
portion 380,794 480,711
Minority interest 652,163 744,357
Deferred credits 78,707 118,109
Shareholders' equity:
Class A Preferred stock, par value
$.0001, Authorized, issued and
outstanding: 2,000 shares 1 1
Class B Preferred stock, series 1,
par value $.0001, Authorized:
2,500,000; issued and outstanding:
1,000 shares at September 30, 1999 and
December 31, 1998
Common stock, par value $.0001
Authorized: 10,000,000 shares;
issued: 3,407,093 at September 30, 1999
and December 31, 1998 341 341
Additional paid-in capital 15,238,376 15,238,376
Stock sale receivable (115,500) (115,500)
Treasury stock (11,000 shares at
September 30, 1999 and
December 31, 1998) (52,249) (52,249)
Accumulated deficit (6,900,099) (6,038,103)
Total shareholders' equity 8,170,870 9,032,866
Total liabilities and
shareholders' equity $13,254,979 $14,412,042
See accompanying notes to consolidated financial statements.
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Three Months Ended
September 30, September 30,
1999 1998
Net sales $9,897,925 $9,345,308
Cost and expenses:
Cost of goods sold 8,073,012 7,444,928
Selling and retail 1,474,227 1,528,630
Warehouse and delivery 90,668 74,180
Administrative 640,841 575,326
10,278,748 9,623,064
Operating (loss) income (380,823) (277,756)
Other income (expense):
Interest expense (20,992) (51,831)
Interest income 42,114 106,364
Other 19,830 65,327
Total other income 40,952 119,860
(Loss) income before
minority interest (339,871) (157,896)
Minority interest 32,124 22,317
Loss from continuing operations (307,747) (135,579)
Discontinued operations
Loss from operations of discontinued
subsidiary-Genetic Vectors (151,970)
Gain on sale of Genetic Vectors'
stock 122,319
Loss from discontinued subsidiary
Genetic Vectors (29,651)
Net Loss $ (307,747) $ (165,230)
Basic and diluted loss per common
share from continuing operations $ (.09) $ (.04)
Basic and diluted loss per common
share from discontinued operations (.01)
Basic and diluted loss per
common share $ (.09) $ (.05)
Weighted average common shares
outstanding 3,407,093 3,396,093
See accompanying notes to consolidated financial statements.
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Nine Months Ended
September 30, September 30,
1999 1998
Net sales $28,856,497 $26,935,777
Cost and expenses:
Cost of goods sold 23,450,600 21,175,500
Selling and retail 4,264,349 4,223,040
Warehouse and delivery 262,853 245,920
Administrative 2,006,935 1,867,867
29,984,737 27,512,327
Operating loss (1,128,240) (576,550)
Other income (expense):
Interest expense (65,473) (94,029)
Interest income 161,389 241,992
Other 78,134 75,570
Total other income 174,050 223,533
Loss before minority interest (954,190) (353,017)
Minority interest 92,194 4,471
Loss from continuing operations
before income taxes (861,996) (357,488)
Discontinued operations
Loss from operations of discontinued
subsidiary-Genetic Vectors (465,080)
Gain on sale of Genetic Vectors'
stock 269,181
Loss from discontinued subsidiary
Genetic Vectors (195,899)
Net Loss $ (861,996) $ (533,387)
Basic and diluted loss per
common share from continuing
operations $ (.25) $ (.10)
Basic and diluted loss per common
share from discontinued
operations (.06)
Basic and diluted loss per
common share $ (.25) $ (.16)
Weighted average common shares
outstanding 3,407,093 3,403,426
See accompanying notes to consolidated financial statements.
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
September 30, September 30,
1999 1998
Cash flows from operating
activities:
Net loss $ (861,996) $ (553,387)
Adjustments to reconcile to net cash
used in operating activities:
Loss of unconsolidated
subsidiary 465,080
Depreciation and amortization 374,808 274,283
Gain on disposal of property, plant
and equipment
Gain on sale of pharmacy (25,000)
Minority interest (92,194) (4,471)
Changes in certain working capital
elements (715,114) (441,204)
Net cash flows used in
operating activities (1,319,496) (259,699)
Cash flows from investing activities:
Purchase of property, plant and
equipment (384,573) (442,474)
Proceeds from sale of pharmacy 50,800
Proceeds from sale of Genetic
Vectors' stock 397,467
Proceeds from sale of other
equity securities 59,783
Net change in advances due from
related companies 3,234 4,508
Decrease (increase) in other
assets, net 4,781 (114,781)
Net cash used in investing
activities (325,758) (254,830)
Cash flows from financing activities:
Proceeds from issuance of
long-term debt 265,000 176,971
Payments of long-term debt (163,978) (178,752)
Net (repayments to)proceeds from
notes due related parties (60,000) (13,456)
Payments for purchase of treasury stock (52,249)
Net cash provided by
financing activities 41,022 (67,486)
Net decrease in cash
and cash equivalents (1,604,232) (582,015)
Cash and cash equivalents at
beginning of period 4,136,988 4,497,010
Cash and cash equivalents at
end of period $2,532,756 $3,914,995
See accompanying notes to consolidated financial statements.
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
September 30, September 30,
1999 1998
Changes in certain working capital
elements:
Accounts receivable, net $ 229,540 $ (520,463)
Inventories (472,651) (419,368)
Prepaid expenses (70,847) (15,978)
Receivables from related parties (531) (24,095)
Decrease in deferred credits (39,402) (38,318)
Accounts payable (34,925) 1,013,540
Accrued payroll and related
taxes (17,695) (19,622)
Accrued expenses and other
liabilities (308,603) (167,692)
Net change $ (715,114) $ (191,996)
Nine Months Ended
September 30, September 30,
1999 1998
Cash paid during the first
nine months:
Interest $ 60,541 $ 94,029
FORM 10-Q NYER MEDICAL GROUP, INC 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
1. The consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principals have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are
adequate to make the information presented not to be misleading. In
the opinion of management, the amounts shown reflect all adjustments
necessary to present fairly the financial position and results of
operations for the periods presented. All such adjustments are of a
normal recurring nature.
Basic and diluted loss per share of common stock has been determined
by dividing net earnings by the weighted average number of shares of
common stock outstanding.
It is suggested that the financial statements be read in conjunction
with the financial statements and notes thereto included in the
Company's Form 10-K for the year ended December 31, 1998.
2. Business Segments:
The Company had four active business segments in 1999, and 1998:
(1)wholesale and retail sale of surgical, diabetic, medical equipment and
supplies, (2) nutritional supplies (3) wholesale and retail distribution of
equipment, supplies, and novelty items to emergency medical service, fire
departments, and police departments, and (4) retail pharmacy drug store chain.
Business segments are determined based on products or services offered for sale.
Summary data for the quarter ended September 30, 1999 is as follows:
Diabetic,
Medical, and Nutritional EMT, Fire, Police Pharmacy
Surgical Supplies Supplies Equip and Supplies Chain Corporate
Net Sales $5,485,852 $4,989,128 $18,381,516
Operating
(loss)income (5,530) $(437,913) (196,990) (222,178)$ (265,629)
Total assets 2,804,048 599,243 1,940,191 4,714,213 3,197,282
Capital
Expenditures 91,003 2,275 35,349 208,863
Depreciation
and
amortization 81,552 42,045 60,975 186,433 3,803
Interest income (9,342) (17,009) (135,038)
Interest
expense 26,707 554 38,211
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
2. Business Segments, continued
Summary data for the quarter ended September 30, 1999 is as follows:
continued
Consolidated
Net Sales $28,856,497
Operating
(loss)income (1,128,240)
Total assets 13,254,979
Capital
Expenditures 337,490
Depreciation
and
amortization 374,808
Interest income (161,389)
Interest
expense 65,472
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE THIRD QUARTER RESULTS
Results of Operations
Quarter Ended September 30, 1999 as compared to Quarter Ended September 30,
1998.
NET SALES. Total sales for the first nine months of 1999 increased 7.1% over the
same period of 1998 to $28,856,497, representing an increase of $1,920,720.
The following table shows sales by subsidiary for the first nine months of 1999
and 1998:
Nine months ended
September 30, September 30,
Subsidiary 1999 1998 % increase (decrease)
Eaton $18,381,516 $16,603,165 10.7%
Anton 2,288,575 2,520,657 -
ADCO 4,530,042 4,026,766 12.5
SCBA 18,562 34,572 (46.0)
ADCO South 890,239 847,125 5.0
Conway 2,681,991 2,598,520 -
Nyer Nutritional 302,426 (100.0)
Nyer Diabetic 65,572 2,546 -
$28,856,497 $26,935,777
The major reason for the increase in sales was due to Eaton, ADCO
and Nyer Diabetic.
The following table shows sales by subsidiary for three months ended
September 30, 1999 and 1998:
Three months ended
September 30, September 30,
Subsidiary 1999 1998 % increase (decrease)
Eaton $6,316,948 $5,859,888 7.7%
Anton 774,804 772,650 -
ADCO 1,624,022 1,449,897 12.0
SCBA 2,147 10,067 (79.0)
ADCO South 330,069 288,495 14.4
Conway 832,390 761,631 9.2
Nyer Nutritional - 200,135 (100.0)
Nyer Diabetic 17,545 2,545
$9,897,925 $9,345,308
GROSS PROFIT MARGIN. The Company's overall gross margins were approximately
18.7% for the first nine months of 1999 as compared 21.4% for the same period
in 1998.
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Results of Operations: continued,
The following is a table of gross margins by subsidiary for the first nine
months 1999 and 1998 and for three months ended September 30, 1999 and 1998:
For Nine months ended For three months ended
September 30, September 30, September 30, September 30,
Subsidiary 1999 1998 1999 1998
Eaton 18.1% 20.4% 18.2% 19.7%
Anton 21.5 18.3 22.4 19.4
ADCO 25.3 25.3 25.4 25.9
SCBA 51.9 69.5 44.2 70.0
ADCO South 25.8 23.3 26.4 23.3
Conway 11.0 23.0 16.4 23.0
Nyer Nutritional - 22.9 - 22.9
Nyer Diabetic 23.4 27.0 23.9 27.0
Eaton's gross margin declined due to lower reimbursements from insurance
companies, medicare and medicaid. They believe they can off set this decline
by increased sales volume. Anton's increase was the result of higher
supplies sales and lower sales in equipment sales (supplies sales generally
have a higher gross profit margin than equipment sales). Conway's decrease
in margin was the result of fire truck deliveries. Fire trucks and equipment
sales are sold at lower gross margins. The average gross profit margin for
fire trucks is between 3-7%.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Consolidated selling, general,
and administrative expenses increased approximately 4.1% in 1999 to
$6,534,137 from $6,336,827 in 1998. The following table shows the breakdown
by subsidiary (and corporate expenses) as follows:
Nine months ended Three months ended
September 30, September 30, September 30, September 30,
Subsidiary 1999 1998 1999 1998
Eaton $ 3,556,077 $ 3,254,969 $ 1,194,098 $ 1,131,114
Anton 557,000 600,533 194,562 191,822
ADCO 1,162,217 1,015,184 417,336 339,256
SCBA 174 11,717 (2,150) 4,332
ADCO South 196,712 206,067 72,051 65,968
Corporate 265,629 203,370 62,118 91,576
Conway 443,535 593,190 158,443 193,565
Nyle Home Health 436 100 - 34
Nyer Diabetic 45,841 16,047 1,932 16,047
Nyer Nutritional 306,516 435,650 107,346 144,422
$ 6,534,137 $ 6,336,827 $ 2,205,736 $ 2,178,136
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Results of Operations: continued,
The main increases came from Eaton due to increased personnel costs.
Anton's and Conway's decrease is due to less personnel costs. Nyer
Nutritional had decreased marketing expenses in 1999 as compared to 1998.
NET LOSS. In total, the Company experienced a net loss of $861,996 in 1999 as
compared to a net loss of $533,387 in 1998 from continuing operations.
The following table summarizes the loss from continuing operations by
subsidiary:
Nine months ended Three months ended
September 30, September 30, September 30, September 30,
Subsidiary 1999 1998 1999 1998
Eaton $ (180,143) $ 125,118 $ (50,344) $ 17,562
Anton (54,904) (118,883) (26,806) (39,182)
ADCO (11,821) (20,534) 23,551 28,198
SCBA 1,722 7,462 3,425 32
ADCO South 19,617 (9,331) 4,255 (645)
Corporate (20,408) 37,021 6,652 46,050
Conway (135,454) 4,187 (54,771) (67,687)
Nyle Home Health (436) (800) - (33)
Nyer Diabetic (30,256) (15,360) 288 (15,360)
Nyer Nutritional (449,913) (366,368) (213,997) (104,514)
$ (554,248) $ (357,488) $(307,747) $(135,579
The majority of the loss came from the Company's subsidiary, Nyer
Nutritional, which showed a loss of $449,913 for the first nine months of 1999
as compared to a loss of $366,368 for the same period in 1998. Nyer Nutritional
generated no revenues for the first nine months of 1999. The Company has signed
a letter of intent to sell Nyer Nutritional Systems. See Liquidity and Capital
Resources section. Eaton incurred additional overhead costs associated with its
sale of a store, the implementation of a new computer system, and have seen a
decline in their margins due to lower than expected reimbursements from the
insurance companies. ADCO's loss of $11,821 as compared to a loss of $20,534 in
1998, can be attributed to increased sales and margin which was partially off
set by costs associated with the start up of its respiratory division in
February of 1999 (which had minimal sales to offset the additional overhead)
and the development of an interactive web site which added additional overhead
with minimal sales to offset the costs until the third quarter of 1999.
Corporate had a loss due to less interest income which help to reduce corporate
overhead costs and additional overhead for public relations. ADCO South's net
income was the result of increased gross profit margins and sales. ADCO South
also had minimal equipment sales for the first nine months of 1999 as compared
to 1998. Anton and reduction in their losses is due to less personnel costs
due to less sales. Their overhead cost will be lower in the fourth quarter
due the resignation of their general manager. Conway had a change over in
their sales force in the fourth quarter of 1998 and is now starting to
generate increased sales due to the hiring of two new salesmen. Nyer
Nutritional's decrease in overhead was due to less selling and show expenses
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE THIRD QUARTER RESULTS
Results of Operations: continued,
for the third quarter of 1999 as compared to 1998's third quarter.
The Company currently owns 739,216 shares (or 31.5%) of the outstanding
common stock of Vectors.
In December 1998, the Company wrote down its investment in Vectors to
zero due to significant uncertainties regarding the Company's ability to
recover its investment.
Net interest expense as a percentage of sales was less than 1% in the
first nine months of 1999 and 1998, respectively.
Liquidity and Capital Resources
In January 1999, the Company sold certain assets of a pharmacy
for cash.
During the first quarter of 1999, the Company's pharmacy chain
borrowed on its line of credit in the amount of $200,000. The interest
rate is prime which was 8.00% as of August 23, 1999.
The Company anticipates at current cash levels is adequate to fund the
operating needs and potential acquisitions for the foreseeable future.
The Company has signed a letter of intent to sell its 80% interest
in Nyer Nutritional Systems, Inc., to a national medical distributing
organization. Since its acquisition in December of 1996, this division has
incurred continuous losses. The Company feels that this is a positive move to
streamline operations and provide increased shareholder value.
The selling price consists of a cash payment at closing and a percentage
of sales over a period of time. The acquisition is subject to a definitive
asset purchase agreement. It is anticipated that this will close within the
next 40 days.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
The statements made above relating to the anticipated closing of the
transaction and receipt of future revenues are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Some or all of the results we anticipate from these forward-looking statements
may not occur. Important factors that could occur include contractual or due
diligence issues may arise which could cause the buyer not to close the
proposed transaction. Additionally, even if closing occurs, the Company may
not receive the full amount of the purchase price due to competitive concerns,
internal matters relating to the business of the buyer and the failure of the
marketplace to accept the products of Nyer Nutritional.
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE THIRD QUARTER RESULTS
Liquidity and Capital Resources, continued
Year 2000
IMPACT OF YEAR 2000 - Computer Systems Compliance
The "Year 2000 Issue" is the result of the way computer
systems and programs define calendar dates; they could fail or make
miscalculations due to interpreting a date including "00" to mean
the year 1900, not year 2000. Some computer programs were written
using two digits rather than four to define the appropriate year.
This could result in a system failure or miscalculations causing
disruptions in normal business activities.
The Company has substantially analyzed its computer systems,
including embedded chip technology, to determine the potential
technical and economic impact of the "Year 2000 Issue" on the
Company's systems and business operations. In the last two
years, the Company has upgraded its major computer systems and
programs. To date, the Company has identified only one of its
subsidiaries which will have to replace its computer system in
order to be Year 2000 compliant. The Company estimates this cost
will be no greater than $15,000.
The Company is requesting assurances from its outside
suppliers which it relies on for inventory and services and its
customers (which includes 3rd party insurance companies), that
they are Year 2000 Compliant.
The Company does not expect that the costs of addressing the
Year 2000 issues (which are in the Company's control) will have a
material effect on their future operating results or financial
position. The Company's management believes its in-house risks, as
associated with the Y2K problems, are minimal. The Company has
limited or no control over their outside suppliers and its
customers Y2K problems. Any failure of these parties could have
a material adverse effect on continued uninterrupted business
operations of the Company.
At this time, the Company is in the process of developing a
contingency plan for its systems that are not Year 2000 compliant
and intends to have it in place by the fourth quarter of 1999.
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE THIRD QUARTER RESULTS
Liquidity and Capital Resources, continued
FORWARD-LOOKING STATEMENTS
The statements made above relating to: (1) the anticipated costs to
the Company of complying with the Year 2000 conversion, (2) the
anticipated future impact as a result of outside suppliers not
being Year 2000 compliant on a timely basis are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
The results anticipated by any or all of the forward-looking
statements may not occur.
PART II
Item 3: Other information
The Company is still actively seeking to acquire medical related
companies.
The Company renewed its Chief Executive Officer's employment contract
in October, 1999. The contract is guaranteed for two years with an
annual base salary of $140,000, a vehicle allowance of $4,200, and a grant
of 500,000 shares of stock options.
The Company also entered into a two year agreement with a public
relations firm for two years beginning October 1, 1999. This firm
was granted 150,000 warrants.
FORM 10-Q NYER MEDICAL GROUP, INC. 000-20175 September 30, 1999
NYER MEDICAL GROUP, INC. AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NYER MEDICAL GROUP, INC.
Date: November 22, 1999 /s/ Samuel Nyer
Samuel Nyer,
President
Date: November 22, 1999 /s/ Karen L. Wright
Karen L. Wright,
Treasurer
(Chief Financial Officer)
[TYPE] EX-27
[DESCRIPTION] Article 5 Fin Data Schedule for the 1st, 2nd & 3rd quarter
[ARTICLE] 5
<TABLE>
<S> <C>
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] DEC-31-1998
[PERIOD-END] SEP-30-1999
[CASH] 2,532,756
[SECURITIES] 0
[RECEIVABLES] 3,496,835
[ALLOWANCES] (165,998)
[INVENTORY] 4,545,702
[CURRENT-ASSETS] 10,663,857
[PP&E] 2,823,312
[DEPRECIATION] (1,079,235)
[TOTAL-ASSETS] 13,254,979
[CURRENT-LIABILITIES] 3,509,625
[BONDS] 922,321
[PREFERRED-MANDATORY] 0
[PREFERRED] 1
[COMMON] 341
[OTHER-SE] 8,170,870
[TOTAL-LIABILITY-AND-EQUITY] 13,254,979
[SALES] 28,856,497
[TOTAL-REVENUES] 28,856,497
[CGS] 23,450,600
[TOTAL-COSTS] 6,534,137
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 65,473
[INCOME-PRETAX] (861,996)
[INCOME-TAX] 0
[INCOME-CONTINUING] (861,996)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (861,996)
[EPS-BASIC] (.25)
[EPS-DILUTED] 0
</TABLE>
