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HNS ANNOUNCES THIRD QUARTER RESULTS

 HNS ANNOUNCES THIRD QUARTER RESULTS
 MARIETTA, Ga., Oct. 30 /PRNewswire/ -- Home Nutritional Services,


Inc. (NASDAQ: HNSI) today announced its financial results for the third quarter of 1992.
 While revenue grew at 27 percent to $33.3 million, net earnings decreased to $1.5 million, or $0.13 per share, from $2.9 million, or $0.25 per share, in the third quarter of 1991. As previously announced, this decrease in earnings is principally the result of the continuation in the shift at HNS to increased managed care revenue, coupled with seasonally reduced patient census growth associated with the summer months.
 Revenues for the nine months ended Sept. 30 were $92.8 million compared to $72.6 million during the same period in 1991. Net earnings for the period were $6.9 million, or $0.58 per share in 1992, compared to $8.3 million, or $0.70 per share, during the first nine months of 1991.
 John W. Anderson, president and chief executive officer, stated: "As I discussed in our Second Quarter Report to Shareholders, HNS and the infusion therapy industry are in a transition period. The transition to increased managed care contractual revenues continued to reduce our gross profit margins during the third quarter. However, as a result of this shift, we are beginning to implement programs designed to match our operating costs more directly with the decreased prices we receive from managed care business. I believe that the contractual alliances that we are forming with major managed care entities will be the foundation for our future strength in revenue and profit growth, and we will seek to pursue them where available. In addition, we are continuing to add new Integrated Care Centers, and we expect to enter 1993 with at least eight of these centers in full operation. As you will recall, this will provide access to a broader base of patients than we have cared for in the past. With our slow summer period behind us, I hope that we can begin the process of better balancing our managed care revenue and operational costs. Our new management information system is providing data that will be critical to our operating decisions as we fine tune our business to this new environment."
 HNS is a national provider of home infusion therapies and related alternate sites services. The corporation is one of the oldest and largest providers of home infusion care and conducts its business through 38 regional centers, 19 satellite facilities, and 26 additional sites of service.
 HOME NUTRITIONAL SERVICES, INC. AND SUBSIDIARIES
 Consolidated Condensed Statements of Earnings
 (Amounts in thousands, except per share amounts)
 (Unaudited)
 3 mos. ended 9/30 9 mos. ended 9/30
 1992 1991 1992 1991
 Revenues $33,253 26,151 92,755 72,620
 Cost of revenues 16,525 10,335 42,533 28,819
 Gross profit 16,728 15,816 50,222 43,801
 Selling and administrative
 expenses 10,863 8,320 29,875 23,121
 Provision for doubtful
 accounts 3,203 2,718 8,889 7,278
 Operating earnings 2,662 4,778 11,458 13,402
 Interest income 92 136 385 414
 Interest expense (161) (53) (277) (154)
 Other expense, net --- --- (3) (8)
 Minority interest in earnings
 of partnerships (210) (27) (216) (27)
 Earnings before income taxes 2,383 4,834 11,347 13,627
 Income tax expense 929 1,898 4,450 5,358
 Net earnings $1,454 2,936 6,897 8,269
 Net earnings per com. share
 and com. share equiv. $.13 .25 .58 .70
 Weighted avg. number of common
 shares and common
 share equivalents 11,542 11,866 11,824 11,793
 HOME NUTRITIONAL SERVICES, INC. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheets
 (Amounts in thousands)
 Sept. 30, 1992 Dec. 31, 1991
 (Unaudited)
 ASSETS
 Current assets:
 Cash and short-term investments $ 9,543 16,073
 Trade accounts receivable, net 53,736 47,453
 Inventories 5,457 2,951
 Deferred income taxes 978 735
 Other current assets 1,351 669
 Total current assets 71,065 67,881
 Property and equipment, net 6,075 4,421
 Goodwill, net 24,406 3,328
 Other assets 1,226 1,205
 Total $102,772 76,835
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of
 long-term debt $ 168 168
 Accounts payable, principally trade 5,473 4,025
 Income taxes payable 933 1,843
 Due to affiliate 394 33
 Accrued liabilities 2,686 3,095
 Total current liabilities 9,654 9,164
 Long-term debt, excluding
 current installments 25,091 715
 Total liabilities 34,745 9,879
 Minority interest 385 60
 Shareholders' equity 67,642 66,896
 Total $102,772 76,835
 -0- 10/30/92
 /CONTACT: Donald R. Millard of Home Nutritional Services, 404-423-4529/
 (HNSI) CO: Home Nutritional Services, Inc. ST: Georgia IN: MTC SU: ERN


EA-BN -- AT002 -- 6964 10/30/92 08:52 EST
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Date:Oct 30, 1992
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