Abbey Healthcare Posts Profit of $14.3 Million for ’93

Abbey Healthcare Group Inc., a provider of home medical services, said Thursday that it had a 1993 profit of $14.3 million, up 38% from the previous year.

The earnings, which amounted to $1.42 a share, compared to net income of $10.4 million, or $1.28 a share, in 1992. Revenue increased 32% last year, to $329.1 million, up from $248.7 million the year before.

Chairman Timothy M. Aitkin said the record profit was the result of emphasizing high-profit segments of Abbey’s core business, like respiratory therapy and infusion therapy, which each grew more than 30% over the previous year.

The company also completed its $195-million purchase of Torrance-based Total Pharmaceutical Care Inc., which Aitkin said broadened Abbey’s product base. Total Pharmaceutical provides drugs and medical equipment for patients receiving home infusion therapy.

“We believe Abbey now has all the tools to sustain its leadership position as a low-cost provider of health care services through an efficient, nationwide distribution network,” Aitkin said.

For the fourth quarter, Abbey had earnings of $3.2 million, or 29 cents a share, on a greater number of outstanding shares than in the same quarter of the previous year, when the company earned $3.1 million, or 34 cents a share.

Quarterly revenue was $100.7 million, up 39% from $72.4 million in 1992, the company said.

In Nasdaq trading Thursday, Abbey stock closed at $25.75, down 75 cents. The price has slumped from $29 last week.

The drop follows the company’s announcement Feb. 8 that President Victor Chaltiel, who came to Abbey from Total Pharmaceutical, was replaced by Aitkin and an announcement Tuesday that Chaltiel had resigned from the board of directors and is no longer associated with the company.

Record Earnings

Last year was a profitable one for Abbey Healthcare Group Inc. For the fiscal year ended Dec. 31, the company reported revenue of $329 million, up 32% from the previous year. Net revenue also increased, to $14 million. Figures in millions of dollars, except per-share data:

Fiscal Fiscal 4th quarter 4th quarter 1992 1993 1992 1993 Revenue $249 $329 $72 $101 Net income (loss) 10 14 3 3 Per share (loss) 1.28 1.42 0.34 0.29

Source: Abbey Healthcare Group Inc.; Researched by JANICE L. JONES / Los Angeles Times