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HOSPITAL STAFFING SERVICES REPORTS YEAR-END RESULTS

 FORT LAUDERDALE, Fla., March 1 /PRNewswire/ -- Hospital Staffing Services, Inc. (NYSE: HSS) today announced its results for the fourth quarter and fiscal year ended Nov. 30, 1992.
 Revenue during the fourth quarter of fiscal 1992 was $27,132,193, compared to revenue of $26,369,574 during fourth quarter of fiscal 1991. During the fourth quarter of fiscal 1992 the company incurred a net loss of $5,141,982, or $.90 per share on a primary basis, compared to income of $913,298, or $.17 per share on a primary basis, during the same period in fiscal 1991.
 Revenue for fiscal 1992 increased 34 percent to a record $120,591,248, from $90,121,028 during fiscal 1991. During fiscal 1992 the company incurred a net loss of $3,184,988, or $.54 per share on a primary basis, compared to net income of $2,711,395, or $.57 per share on a primary basis, during fiscal 1991. The number of weighted average common and common share equivalents outstanding used to compute the net loss per share for fiscal 1992 reflects the inclusion of 1,151,400 common shares from the company's October 1991 stock offering.
 Notwithstanding the results of operations for fiscal 1992, the company at Nov. 30, 1992 had stockholders' equity of approximately $25 million, or about $4.43 per share, and tangible net worth of approximately $18 million, or about $3.19 per share.
 Ronald A. Cass, chairman of Hospital Staffing Services, noted that the loss incurred in the fourth quarter was attributable to several non- recurring expenses, including certain accrued expenses, as well as a charge for potential Medicare reimbursement disallowances. "In recording these one-time charges during fiscal 1992," stated Cass, "consequently incurring a loss during what was already a difficult year, we are hopeful that these factors will not impede our efforts to restore earnings growth during future periods.
 "Moving forward," Cass added, "we intend to continue to focus on our ongoing programs to stimulate and develop internal growth. More specifically, the Mid-South, encompassing Tennessee and Mississippi, experienced substantial growth during the past fiscal year and has developed into one of our home healthcare group's key operating regions. In fiscal 1993 we will seek to further expand our market share and presence in the region. We will also continue to move ahead aggressively with our management services business, which we believe has the potential to develop into an important profit center."
 The company noted that corporate cost absorption, revenue, and consequently gross margins, during the fourth quarter of fiscal 1992 were negatively impacted by increases in estimated Medicare reimbursement disallowances related primarily to potentially non- reimbursable costs incurred on subcontracted staffing in its now closed South Florida Medicare offices.
 In addition, selling, general and administrative expenses during fiscal 1992 included accruals for several non-recurring costs recorded during the fourth quarter. Included is the accrual of a severance obligation of approximately $900,000 due to the company's former president and chief operating officer who left the company's employ in the fourth quarter of 1992. The company also incurred non-recurring legal expenses of approximately $2.5 million during fiscal 1992, consisting of settlement fees and costs for arbitration which resulted in an unfavorable outcome to the company; costs incurred for an intended acquisition which was not completed; and an accrual for expenses related to issues surrounding the overall downsizing of the company's South Florida Medicare operations and problems related thereto.
 Hospital Staffing Services employs about 2,600 people at 72 locations across the U.S., and is a leading professional home health care services and recruitment organization. The company specializes in the provision of nursing services to patients at home and in health care institutions through a national network of home health care offices, and in the placement of medical personnel, on a temporary and interim basis, in hospitals and other health care facilities located throughout the United States, the United Kingdom and the Virgin Islands.
 HOSPITAL STAFFING SERVICES, INC.
 COMPARATIVE OPERATING HIGHLIGHTS
 For the Three Months Ended Nov. 30,
 1992 1991
 REVENUE $27,132,193 $26,369,574
 INCOME (LOSS) BEFORE TAXES $(8,140,982) $ 1,599,298
 PROVISION (BENEFIT)
 FOR INCOME TAXES (2,999,000) 677,000
 NET INCOME (LOSS) $(5,141,982) $ 913,298
 EARNINGS (LOSS) PER SHARE $(.90) $.17
 WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING 5,716,450 5,255,452
 For the Fiscal Year Ended Nov. 30,
 1992 1991
 REVENUE $120,591,248 $90,121,028
 INCOME (LOSS) BEFORE TAXES $(4,823,988) $ 4,511,395
 PROVISION (BENEFIT)
 FOR INCOME TAXES (1,639,000) 1,800,000
 NET INCOME (LOSS) $(3,184,988) $ 2,711,395
 EARNINGS (LOSS) PER SHARE $(.54) $.57
 WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING 5,858,630 4,780,332
 -0- 3/1/93
 /CONTACT: Mary Fanizzi of Hospital Staffing Services, 305-771-0500; or Barry A. Rothman of Greenstone Roberts Public Relations, 305-975-3500, for Hospital Staffing Services/
 (HSS)


CO: Hospital Staffing Services, Inc. ST: Florida IN: HEA SU: ERN

JJ-AW -- FL010 -- 1670 03/01/93 18:13 EST
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Date:Mar 1, 1993
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