Abbey Healthcare Posts Profit of $2.4 Million in Turnaround

Abbey Healthcare Group Inc., which provides medical equipment and services for patients in their homes, is showing strength during its first year as a public company.

Abbey, which had a losing year in 1991, posted a profit of $2.4 million Wednesday for the second quarter of 1992. That contrasted with a loss of $2.7 million for the same period a year earlier. Earnings per share doubled to 28 cents from 14 cents. Revenue rose to $58.7 million from $55.2 million.

Timothy M. Aitken, president and chief executive officer of Abbey, attributed the turnaround to replacement of the company’s senior management team as well as the restructuring of its loan from General Electric Capital Corp. Another factor in the company’s rosier financial picture: It raised $38.3 million through an initial public offering of 3.3 million shares in February.

“A year ago, the odds were that Abbey was going into Chapter 11,” Aitken said. “The reality today is strikingly different.”

Separately, Abbey announced that on Monday it repurchased 404,143 shares of its common stock from Avon Products Inc., ending Avon’s financial interest in the company.

Abbey is one of the nation’s largest providers of health care services, with 155 medical equipment branches in 36 states.

For the first six months of 1992, Abbey reported a profit of $4.4 million, contrasted with a loss of $4 million for the first half of 1991. Sales jumped to $116.2 million from $111 million.