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ALC COMMUNICATIONS REPORTS RECORD FIRST QUARTER: INCOME UP 142 PERCENT; EPS UP 156 PERCENT

 BINGHAM FARMS, Mich., April 13 /PRNewswire/ -- ALC Communications Corporation (AMEX: ALC) today reported income of $8.0 million ($.23 per share) on revenue of $101.8 million for the quarter ended March 31, 1993. These results compare to net income of $3.3 million ($.09 per share) on revenue of $92.0 million in the first quarter of 1992. (A non-operating after-tax gain of $13.5 million increased reported net income to $21.5 million ($.61 per share). This one-time gain represents the cumulative effect of a change in the method of accounting for income taxes required by FASB Statement No. 109.)
 Despite the impact of a 24-percentage-point increase in the effective tax rate (30 percent vs. 6 percent a year ago), income was up 142 percent. Also, earnings per share, notwithstanding the impact of a 71-percent-year-over-year increase in average shares outstanding, were up 156 percent over the year-ago quarter. Driven by continued strong traffic growth (up 12.8 percent over 1992), first-quarter revenue was up 10.6 percent.
 Indicative of the operating leverage that the company has achieved in recent quarters, operating margins surged to a new high of 14.7 percent; up dramatically from 8.3 percent a year ago, and from 12.9 percent in the fourth quarter of 1992. First-quarter operating income totaled $15.0 million vs. $7.7 million in the 1992 first quarter.
 During the quarter the company successfully completed a secondary stock offering of 10.3 million shares. This offering resulted in providing for a much broader public distribution of the company's common stock while simultaneously reducing the ownership previously held by a group of banks.
 ALC Communications Corporation common stock is traded on the American Stock Exchange under the symbol ALC. Allnet(R), the wholly owned operating subsidiary of ALC(R), provides long-distance products and services to more than 263,000 customers nationwide. The company is headquartered in Bingham Farms and employs 1,500 people nationwide.
 ALC COMMUNICATIONS CORPORATION AND CONSOLIDATED SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
 March 31, 1993 March 31, 1992
 (In thousands except per-share amounts)
 Revenue $101,844 $92,043
 Operating expenses:
 Cost of communication services $55,467 $56,050
 Sales, general and administrative 28,515 25,584
 Depreciation and amortization 2,854 2,743
 Total operating expenses $86,836 $84,377
 Operating income $15,008 $7,666
 Interest expense 3,654 4,199
 Income before income taxes,
 extraordinary item, and cumulative
 effect of accounting change $11,354 $3,467
 Income taxes 3,350 1,526
 Income before extraordinary item
 and cumulative effect of accounting
 change $8,004 $1,941
 Extraordinary item - utilization of
 operating loss carryforward --- 1,326
 Cumulative effect of change in method
 of accounting for income taxes 13,500 ---
 Net income $21,504 $3,267
 Income before extraordinary item,
 and cumulative effect of accounting
 change per common and common
 equivalent share $0.23 $0.03
 Extraordinary item peounting for income taxes per
 common and common equivalent share $0.38 ---
 Net income per common and common
 equivalent shares $0.61 $0.09
 Weighed average common and common
 equivalent shares 35,247 20,632
 -0- 4/13/93
 /CONTACT: David J. Thomas, vice president and treasurer, ALC Communications, 313-433-4935/
 (ALC)


CO: ALC Communications Corporation ST: Michigan IN: TLS SU: ERN

SB-KE -- DE004 -- 5047 04/13/93 08:10 EDT
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Date:Apr 13, 1993
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