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HOME NUTRITIONAL SERVICES ANNOUNCES THIRD QUARTER RESULTS

 MARIETTA, Ga., Oct. 28 /PRNewswire/ -- Home Nutritional Services, Inc. (HNS) (NASDAQ: HNSI) today announced its financial results for the third quarter of 1993.
 Revenues for the quarter increased slightly to $33.7 million, compared to $33.3 million in the third quarter of 1992. The effect of the expense reductions implemented by HNS during the quarter were not fully realized and, therefore, operating expenses for the quarter remained higher than the third quarter of 1992. While operating profit doubled over last quarter, net earnings for the quarter declined to $421,000, or $0.04 per share, as compared to $1.5 million, or $0.13 per share, for the third quarter of 1992. This reduction in earnings was attributed primarily to the continuing impact of lower-priced managed care revenue coupled with increased selling and field administrative expenses.
 Revenues for the nine months ended Sept. 30 were $103.5 million, an increase of 12 percent over the equivalent period in 1992. Earnings for this same period, however, declined to $1.5 million, or $0.13 per share, compared to $6.9 million, or $0.58 per share, in the first nine months of 1992.
 Gross profit margins, which had declined during the first three quarters of 1992, have stabilized for the last four quarters, at approximately 50 percent, despite significant increases in both the number of patients served and in the proportion of HNS patients covered by contracts with managed care providers or subjected to case management by other insurance carriers. This indicates that the clinical costs of providing services have been reduced and are being better matched with the lower prices received for patients from the managed care and case management portion of the business.
 John W. Anderson, president and chief executive officer of HNS, stated: "We have taken numerous steps at HNS during recent quarters to reduce and standardize the cost of providing our services in the face of the new managed care environment. I am pleased to report that our operating expenses for the 1993 third quarter were 8 percent lower than the 1993 second quarter even though the full impact of recent expense reductions were evident only in the month of September. We will continue to maintain our high clinical levels of patient care and to monitor and further reduce our costs in an effort to be one of the low cost providers of alternate site infusion therapies."
 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, 17 satellite facilities, and 37 additional sites of services. HNS is recognized as a 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 9/30 9 mos. ended 9/30
 1993 1992 1993 1992
 Revenues $33,675 33,253 103,457 92,755
 Cost of revenues 16,882 16,525 52,002 42,533
 Gross profit 16,793 16,728 51,455 50,222
 Selling and administrative
 expenses 12,637 10,863 38,163 29,875
 Provision for doubtful
 accounts 2,718 3,203 8,871 8,889
 Operating earnings 1,438 2,662 4,421 11,458
 Interest income 45 92 165 385
 Interest expense (375) (161) (1,185) (277)
 Other expense, net 1 --- (55) (3)
 Minority interest in
 earnings of partnerships (283) (210) (695) (216)
 Earnings before income
 taxes 826 2,383 2,651 11,347
 Income tax expense 405 929 1,153 4,450
 Net earnings $ 421 1,454 1,498 6,897
 Net earnings per com. share
 and com. share equiv. $.04 .13 .13 .58
 Weighted avg. number of common
 shares and common
 share equivalents 11,538 11,542 11,534 11,824
 HOME NUTRITIONAL SERVICES, INC. AND SUBSIDIARIES
 Consolidated Condensed Balance Sheets
 (Amounts in thousands)
 Sept. 30, 1993 Dec. 31, 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and short-term investments $ 7,578 7,811
 Trade accounts receivable, net 51,709 45,376
 Inventories 2,786 3,722
 Deferred income taxes 2,988 4,690
 Refundable income taxes 1,152 4,353
 Other current assets 1,086 912
 Total current assets 67,299 66,864
 Property and equipment, net 6,291 6,649
 Goodwill, net 22,768 22,931
 Other assets 1,415 1,352
 Total $97,773 97,796
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of
 long-term debt $ 2,361 2,726
 Accounts payable, principally trade 4,785 5,191
 Due to (from) affiliate (227) 502
 Accrued liabilities 4,282 6,946
 Total current liabilities 11,201 15,365
 Long-term debt, excluding
 current installments 25,901 23,435
 Total liabilities 37,102 38,800
 Minority interest 725 593
 Shareholders' equity 59,946 58,403
 Total $97,773 97,796
 -0- 10/28/93
 /CONTACT: Donald R. Millard of Home Nutritional Services, 404-423-4529/
 (HNSI)


CO: Home Nutritional Services, Inc. ST: New Jersey IN: MTC SU: ERN

BN-BR -- AT002 -- 7685 10/28/93 07:54 EDT
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Date:Oct 28, 1993
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