Abbey Healthcare Group's net income for the second quarter ended July 2 dropped 6% to $3.7 million, or 28 cents per share, compared with net income of $4 million, or 40 cents per share, during the year-ago period.
Revenues rose 55% to $118.5 million during the quarter.
For the six months, Abbey reported a net loss of $3 million, or 26 cents per share, compared with net income of $7 million, or 73 cents per share, in 1993. Revenues climbed 37% to $235.9 million.
The company said the $10.4 million in charges during the first quarter were non-recurring items related to "executive severance payments" as well as acquisition-related costs and restructuring charges.
The executive severance payments in question center on Abbey's former president and chief executive officer, Victor Chaltiel, who was fired by the company in February. Mr. Chaltiel and the company have since filed multimillion-dollar complaints against each other in state arbitration. Both cases are pending.
Without the first-quarter charges, Abbey's earnings would have been $7.4 million, or 54 cents per share, during the first six months, the company said.
Legal matters aside, Abbey also attributed the results to difficulties related to the integration of its home infusion business during the first half of 1994.
Abbey Healthcare Group provides home respiratory therapy, infusion services and home medical equipment through 230 branches in 49 states.