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HOME NUTRITIONAL SERVICES ANNOUNCES FINAL QUARTERLY RESULTS

 HOME NUTRITIONAL SERVICES ANNOUNCES FINAL QUARTERLY RESULTS
 PARSIPPANY, N.J., July 23 /PRNewswire/ -- Home Nutritional Services, Inc. (OTC: HNSI) today announced its final financial results for the second quarter of 1992.
 While revenue grew at 27 percent to $30.5 million, net earnings decreased to $2.3 million, or $0.20 per share, from $2.8 million, or $0.24 per share, in the second quarter of 1991. As previously announced, this decline in operating profit margin from 17 percent in the first quarter to approximately 13 percent was a result of HNS investing in its growth strategies. This included start-up costs associated with the development of several new Integrated Care Centers, which provide alternate site infusion therapy for complex and fragile patients, and the acceptance of more managed care business which was garnered at reduced gross profit margins in order to secure national and regional contracts.
 John W. Anderson, newly elected president and chief executive officer, stated: "While we were disappointed to see our second quarter operating profit margin decrease to approximately 13 percent, we must keep in mind that this is because we made major investments in our future. As a national home infusion therapy provider, we are opening new opportunities with our alternate site Integrated Care Centers. In addition, we have opportunities to garner additional business through national and regional contracts with HMOs and other providers. This additional managed care business will necessarily come at reduced prices; however, we can make the necessary adjustments to see that no further deterioration in our gross profit margins occurs. I am confident that you will see HNS rebound close to its more traditional operating earnings level, and we will continue to show revenue increases that are significantly ahead of the industry's growth rate."
 HNS is a national provider of home infusion therapies and related alternate site services. The corporation is one of the oldest and largest providers of home infusion care and conducts its business through 37 regional centers, 18 satellite facilities and 26 additional sites of service. HNS is a recognized leader in quality care and clinical sophistication.
 HOME NUTRITIONAL SERVICES, INC. AND SUBSIDIARIES
 Consolidated Condensed Statements of Earnings
 (Amounts in thousands, except per share amounts)
 (Unaudited)
 3 mos. ended 6/30 6 mos. ended 6/30
 1992 1991 1992 1991
 Revenues $30,530 24,078 59,502 46,469
 Cost of revenues 13,808 9,378 26,008 18,484
 Gross profit 16,722 14,700 33,494 27,985
 Selling and administrative
 expenses 9,972 7,801 19,012 14,801
 Provision for doubtful
 accounts 2,930 2,361 5,686 4,560
 Operating earnings 3,820 4,538 8,796 8,624
 Interest income 137 133 293 278
 Interest expense (88) (51) (116) (101)
 Other expense, net (1) --- (3) (8)
 Minority interest in earnings
 of partnerships --- --- (6) ---
 Earnings before income
 taxes 3,868 4,620 8,964 8,793
 Income tax expense 1,528 1,837 3,521 3,460
 Net earnings $2,340 2,783 5,443 5,333
 Net earnings per com. share
 and com. share equiv. $.20 .24 .45 .45
 Weighted avg. number of common
 shares and common
 share equivalents 11,849 11,787 11,965 11,757
 HOME NUTRITIONAL SERVICES, INC. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheets
 (Amounts in thousands)
 June 30, 1992 Dec. 31, 1991
 (Unaudited)
 ASSETS
 Current assets:
 Cash and short-term investments $ 7,737 16,073
 Trade accounts receivable, net 51,943 47,453
 Inventories 5,571 2,951
 Deferred income taxes 978 735
 Other current assets 1,257 669
 Total current assets 67,486 67,881
 Property and equipment, net 5,248 4,421
 Goodwill, net 5,745 3,328
 Other assets 932 1,205
 Total $79,411 76,835
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of
 long-term debt $ 121 168
 Accounts payable, principally trade 4,433 4,025
 Income taxes payable 942 1,843
 Due to affiliate 874 33
 Accrued liabilities 2,274 3,095
 Total current liabilities 8,644 9,164
 Long-term debt, excluding
 current installments 4,528 715
 Total liabilities 13,172 9,879
 Minority interest 66 60
 Shareholders' equity 66,173 66,896
 Total $79,411 76,835
 -0- 7/23/92
 /CONTACT: Donald R. Millard of Home Nutritional Services, 404-423-4529/
 (HNSI) CO: Home Nutritional Services, Inc. ST: New Jersey IN: HEA SU: ERN


EA-BN -- AT003 -- 2260 07/23/92 08:14 EDT
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Date:Jul 23, 1992
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