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ABBEY HEALTHCARE GROUP INC. REPORTS RECORD FIRST QUARTER 1993 RESULTS

 Revenue Up 23 Percent Over 1992;
 Net Income Increases 51 Percent Over 1992 First Quarter
 COSTA MESA, Calif., April 23 /PRNewswire/ -- Abbey Healthcare Group Inc. (NASDAQ-NMS: ABBY) reported record revenues, net income and net income per share for the three months ended April 3, 1993.
 Revenues increased to $71.0 million, a 23.4 percent increase over the $57.5 million for the first quarter of 1992. Operating income advanced 50.2 percent, to $7.0 million, compared to operating income of $4.6 million for the same period in 1992. Net income rose 51.5 percent, to $3.1 million, or $.33 per share, compared to net income of $2.0 million, or $.31 per share, for last year's first quarter. Current per share earnings reflect the full year's dilution of its initial public offering of 3.8 million shares of common stock in February of 1992.
 First Quarter Results Meet Company Targets
 Chairman and President Timothy Aitken commented on the results saying, "We are pleased to have exceeded our targets for the first quarter of 1993. They reflect sharp improvements over the same period last year. Our continued emphasis on high growth markets and high margin products directly affected the company's positive financial results. Our increased profitability is also attributable to accelerated implementation of expense control programs which further advances our operating efficiencies."
 Aitken noted that the company is continuing its successful integration of complementary companies that it has acquired. During all of 1992, the company acquired businesses with annualized revenue of $10 million. The pace accelerated in 1993, with companies totaling $12 million in annualized revenue acquired in the first quarter. "We believe that strategic acquisitions will continue to play a role in the company' future growth. As industry consolidation continues, Abbey's positioning becomes more and more attractive to profitable independents seeking to be acquired."
 Aitken noted that the company's strong financial condition will allow it to continue its growth. "At the end of the quarter the company had cash and cash equivalents totaling $12.1 million, working capital of $53.1 million and a current ratio of 2.2 to 1.
 National Accounts Program Growing Rapidly
 "Our national accounts program continues to outpace most others in the industry. In the last year we have added more than 400 managed care accounts including such prestigious payors as Aetna, Cigna, Prudential, Blue Cross and Kaiser Permanente. We are beginning to see the results of a refocused sales organization that is presenting a broad range of effective, cost containment solutions to national payors, while maintaining the all-important aspect of local service through our 161 branches.
 "Supported by a strong infrastructure of over 2,600 committed employees, a national branch system in 36 states covering over 70 percent of the nation's population, we believe we are in an excellent position to evolve to a true national `one-stop' provider of home healthcare products and services as we enter into the balance of 1993 and beyond."
 Abbey Healthcare, headquartered in Costa Mesa, provides a broad range of respiratory therapy services and home medical, clinical and rehabilitation equipment and services through a network of 161 branches in 36 states. Its majority-owned subsidiary, Abbey Pharmaceutical Services Inc., provides pharmaceutical and enteral therapy services and specialized products to long-term care facilities in 24 states. The group has about 2,600 employees.
 ABBEY HEALTHCARE GROUP INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited) (Dollars in thousands, except per share data)
 Three months ended
 April 3, March 28,
 1993 1992
 Net revenues $71,008 $57,526
 Cost of net revenues 24,828 19,890
 Gross profit 46,180 37,636
 Operating expenses:
 Distribution & selling
 expenses 16,454 14,250
 General & administrative
 expenses 19,653 16,890
 Provision for doubtful
 accounts 3,028 1,807
 Amortization of intangible
 assets 87 56
 Total operating expenses 39,222 33,003
 Operating profit 6,958 4,633
 Other income (expense):
 Interest expense (1,610) (1,433)
 Other income (5) 128
 Income before income taxes
 & minority interest
 in earnings 5,343 3,328
 Income taxes 1,833 1,002
 Income before minority
 interest in earnings 3,510 2,326
 Minority interest in earnings 431 293
 Net income $3,079 $2,033
 Net income per common share
 and common share equivalent:
 Primary $0.40 $0.31
 Fully diluted $0.33 $0.31
 Weighted average common shares
 and common share equivalents
 outstanding:
 Primary $7,691 $6,462
 Fully diluted $11,838 $6,462
 ABBEY HEALTHCARE GROUP INC. AND SUBSIDIARIES
 Selected Balance Sheet Data
 (Dollars in thousands)
 April 2, Jan. 2,
 1993 1993
 Working capital $53,080 $54,341
 Total assets 192,271 184,957
 Long-term debt 89,084 90,922
 Total liabilities 141,431 146,424
 Shareholders' equity 50,840 38,533
 Total liabilities and
 shareholders' equity 192,271 184,957
 -0- 4/23/93
 /CONTACT: Richard J. Rapp, VP & CFO of Abbey Healthcare Group, 714-957-2000; or William F. Coffin of Coffin Communications Group, 818-789-0300, for Abbey Healthcare Group/
 (ABBY)


CO: Abbey Healthcare Group Inc. ST: California IN: HEA SU: ERN

JL-BP -- LA004 -- 9907 04/23/93 09:04 EDT
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Date:Apr 23, 1993
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