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HEALTHDYNE ANNOUNCES FINAL SECOND QUARTER RESULTS

 HEALTHDYNE ANNOUNCES FINAL SECOND QUARTER RESULTS
 MARIETTA, Ga., July 23 /PRNewswire/ -- Healthdyne, Inc.


(OTC: HDYN) today announced its final financial results for the second quarter of 1992.
 Revenues for the second quarter of $60.3 million increased 32 percent over the second quarter of 1991, while operating earnings for the quarter increased 97 percent to $6.7 million from $3.4 million in the second quarter of 1991. Net earnings of $3.7 million, or $0.24 per share, were almost six times the second quarter 1991 net earnings of $636,000, or $0.04 per share, which included a noncash, nonrecurring charge of $2.4 million, or $0.16 per share.
 Revenues for the six months ended June 30 were $116.3 million compared to $86.7 million in the first half of 1991. Operating earnings for the six-month period increased to $14.2 million from $7.9 million, while net earnings increased to $7.9 million, or $0.50 per share, from $3.0 million, or $0.20 per share, which included $2.4 million or $0.16 per share of a noncash, nonrecurring charge in the first six months of last year.
 Home Nutritional Services, Inc. (OTC: HNSI), the company's 68 percent-owned home infusion therapy subsidiary, had revenues for the quarter of $30.5 million, up 27 percent from $24.1 million for the second quarter of 1991. However, net earnings at HNS decreased to $2.3 million from $2.8 million in the second quarter of 1991. This decrease in net earnings was largely a result of HNS's investing in new strategies, which included development costs associated with a number of new alternate site Integrated Care Centers and an increased amount of managed care revenues as a result of national and regional contracts. These were both investments in HNS's future growth strategy, but they resulted in operating earnings decreasing from 17 percent in the first quarter to approximately 13 percent. It is the company's expectations that these margins will return to more conventional levels in the near future.
 Healthdyne Perinatal Services, the company's home obstetrical care subsidiary, continued its industry-leading rate of growth with a 60 percent increase in revenues for the quarter to $18.6 million from $11.6 million in the second quarter of 1991. Operating profit for the quarter increased 117 percent to $2.5 million, compared to $1.2 million in the second quarter of 1991. The division opened two additional service centers during the quarter which brings its national total to 35 with approximately 70 other sites of service.
 Healthdyne Technologies, the company's manufacturing division, also continued to improve its performance. Revenues increased 12 percent to $11.9 million from $10.6 million in the second quarter of 1991, and operating profit for the quarter increased 19 percent to $1.6 million from $1.3 million in the second quarter of 1991. Several of its new product lines are having a positive influence on its growth and profitability. This trend is expected to continue.
 Parker H. Petit, chairman and chief executive officer of Healthdyne, stated: "We were disappointed that HNS was unable to implement their new growth strategies without having their operating profit margins decrease by several percent. However, they are definitely making investments in their future as a major national infusion therapy provider. Our other two operating units continued to grow with significant operating profits, and the outlook for the high tech home health care environment in which we operate is still excellent. Even though there are some changes occurring in the infusion therapy area, I expect HNS to rebound to their more conventional operating profit percentages in the near future. Also, Healthdyne was successful in repurchasing approximately 365,000 shares of our outstanding common stock during the quarter."
 Healthdyne is a national provider of high technology home care medical services, including infusion therapy through Home Nutritional Services, its partially owned subsidiary, and obstetrical home care through Healthdyne Perinatal Services. In addition, Healthdyne manufactures high technology home care products through its Healthdyne Technologies division.
 HEALTHDYNE, INC. AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
 (Amounts in thousands, except per share amounts)
 (Unaudited)
 3 mos. ended 6/30 1992 1991
 Revenues $60,310 $45,842
 Cost of revenues 26,603 19,642
 Gross profit 33,707 26,200
 Selling and admin. expenses 21,587 16,116
 Noncash compensation expense
 resulting from exercise of
 stock options --- 2,434
 Provision for doubtful
 accounts 4,835 3,684
 Research and development
 expenses 588 564
 Operating profit 6,697 3,402
 Interest income 200 205
 Interest expense (233) (184)
 Other income (expense), net (87) ---
 Minority interest in earnings of
 partnerships (590) ---
 Earnings before income tax expense
 and minority interest in net
 earnings of subsidiary 5,987 3,423
 Income tax expense 1,528 1,775
 Earnings before minority interest
 in net earns. of subsidiary 4,459 1,648
 Minority interest in net earnings
 of subsidiary 752 1,012
 Net earnings $ 3,707 $ 636
 Net earnings per common
 share and common share
 equivalent $ .24 $ .04
 Weighted average number of
 common shares and common
 share equivalents 15,751 15,582
 6 mos. ended 6/30 1992 1991
 Revenues $116,291 $ 86,709
 Cost of revenues 51,042 37,949
 Gross profit 65,249 48,760
 Selling and admin. expenses 40,669 30,447
 Noncash compensation expense
 resulting from exercise of
 stock options --- 2,434
 Provision for doubtful
 accounts 9,305 6,921
 Research and development
 expenses 1,082 1,044
 Operating profit 14,193 7,914
 Interest income 433 427
 Interest expense (374) (354)
 Other income (expense), net (193) (1)
 Minority interest in earnings of
 partnerships (822) ---
 Earnings before income tax expense
 and minority interest in net
 earnings of subsidiary 13,237 7,986
 Income tax expense 3,546 3,058
 Earnings before minority interest
 in net earns. of subsidiary 9,691 4,928
 Minority interest in net earnings
 of subsidiary 1,807 1,884
 Net earnings $ 7,884 $ 3,044
 Net earnings per common
 share and common share
 equivalent $ .50 $ .20
 Weighted average number of
 common shares and common
 share equivalents 15,849 15,503
 HEALTHDYNE, INC. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheets
 (Amounts in thousands)
 ASSETS 6/30/92 12/31/91
 Current assets: (Unaudited)
 Cash and short-term
 investments $ 11,199 $ 23,015
 Trade accounts receivable, net 83,321 74,165
 Inventories 16,052 13,063
 Deferred income taxes 1,084 841
 Other current assets 6,429 4,702
 Total current assets 118,085 115,786
 Property and equipment, net 17,736 15,252
 Goodwill and other intangibles,
 net 7,343 5,056
 Other assets 2,229 2,649
 Total $ 145,393 $ 138,743
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of long-
 term debt and obligations
 under capital leases $ 901 $ 595
 Accounts payable, principally
 trade 8,833 8,861
 Other current liabilities 9,518 11,974
 Total current liabilities 19,252 21,430
 Long-term debt and obligations
 under capital leases, excluding
 current installments 17,669 6,576
 Deferred income taxes 6,766 6,766
 Other long-term liabilities 515 604
 Total liabilities 44,202 35,376
 Minority int. in subsidiary and
 partnerships 22,830 23,352
 Shareholders' equity 78,361 80,015
 Total $ 145,393 $ 138,743
 -0- 7/23/92
 /CONTACT: Donald R. Millard of Healthdyne, 404-423-4529/
 (HDYN HNSI) CO: Healthdyne, Inc. ST: Georgia IN: HEA SU: ERN


BN-EA -- AT002 -- 2259 07/23/92 08:13 EDT
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Publication:PR Newswire
Date:Jul 23, 1992
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