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VANGUARD REPORTS RECORD 1992 RESULTS

 GREENSBORO, N.C., March 4 /PRNewswire/ -- Vanguard Cellular Systems, Inc. (NASDAQ-NMS: VCELA) today reported record operating cash flow, subscriber additions and service revenues for the year ended Dec. 31, 1992.
 Operating cash flow (income from operations before depreciation and amortization) more than tripled during 1992 to $14.0 million compared to $4.4 million in 1991. Operating cash flow in the fourth quarter of 1992 was $4.0 million compared to $2.1 million in the fourth quarter of 1991.
 The Company added a record 9,200 net subscribers during the fourth quarter of 1992 increasing its cellular subscriber base to 92,300, a 33 percent increase from a year ago and an 11 percent increase from the previous quarter. Net subscriber additions during 1992 increased 60 percent to 23,100 compared to 14,400 for the preceding year.
 Service revenues increased to $83.6 million for 1992, a 30 percent increase from 1991 service revenues of $64.5 million. Fourth quarter 1992 service revenues grew 34 percent to $22.7 million from $16.9 million in the fourth quarter of 1991. Average monthly service revenue per subscriber during 1992 was $89, compared to $88 in 1991. The Company's average monthly service revenue per subscriber has been virtually unchanged over the last three years.
 Cost of service increased from 24 percent to 26 percent of service revenues year to year primarily due to an increase in the proportion of the Company's service fees attributable to the Company's cellular subscribers roaming into adjacent markets. General and administrative expenses declined to $29.3 million during 1992 compared to $29.6 million during 1991 and decreased as a percentage of service revenues from 46 percent in 1991 to 35 percent in 1992. Marketing and selling expenses were $16.9 million and $13.9 million in 1992 and 1991 representing 20 percent and 21 percent of service revenues for those years, respectively. During 1992 the Company reclassified certain costs and expenses related to personnel and overhead associated with its installation and field office facilities from marketing and selling to general and administrative expenses in order to conform with industry practice.
 Vanguard's President and Chief Executive Officer Haynes G. Griffin commented, "1992 was a record year for Vanguard in many respects. The most significant of these was a threefold improvement in operating cash flow, which remains the single most important focus of management. We are particularly encouraged that our record level of subscriber additions did not come at the expense of lower average monthly revenue per subscriber. In addition, the combination of innovative marketing and distribution programs, advances in our management information systems and other cost control measures produced a number of key operating indicators which we believe are among the best in the industry."
 The Company's net loss for 1992 was $24.5 million or ($0.99) per share excluding a one time writedown of property and equipment in the third quarter of $2.2 million or ($0.09) per share for a net loss of $26.7 million or ($1.08) per share. This compares to a net loss of $32.7 million or ($1.44) per share in 1991.
 Vanguard Cellular Systems, Inc., headquartered in Greensboro, N.C., owns and operates cellular telephone systems in the eastern United States. Based upon its 6.1 million Pops, including Pops under contract, Vanguard is the nation's third largest independent operator of solely non-wireline cellular systems.
 VANGUARD CELLULAR SYSTEMS, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollar amounts in thousands, except per share data)
 Three Months Twelve Months
 Ended Dec. 31, Ended Dec. 31,
 1992 1991 1992 1991
 (Unaudited) (Unaudited) (see note) (see note)
 Revenues:
 Service fees $22,682 $ 16,944 $ 83,554 $ 64,521
 Cellular telephone
 equipment revenues 1,619 1,307 5,999 4,837
 24,301 18,251 89,553 69,358
 Cost and Expenses:
 Cost of service 6,170 3,738 21,807 15,166
 Cost of cellular
 telephone equipment 2,209 1,733 7,579 6,314
 Marketing and selling 4,882 3,890 16,877 13,867
 General and
 administrative 7,031 6,798 29,334 29,578
 20,292 16,159 75,597 64,925
 Income (loss) from
 operations before
 depreciation and
 amortization 4,009 2,092 13,956 4,433
 Depreciation and
 amortization (6,071) (4,931) (22,100) (19,112)
 Loss From Operations (2,062) (2,839) (8,144) (14,679)
 Net gains (losses)
 on dispositions 18 374 (2,655) 480
 Interest expense (3,944) (4,200) (16,177) (19,292)
 Other, net (51) (256) 13 469
 Loss Before Minority
 Interests (6,039) (6,921) (26,963) (33,022)
 Minority Interests 140 (62) 304 309
 Net Income (Loss) $ (5,899) $ (6,983) $ (26,659) $ (32,713)
 Net Income (Loss)
 Per Share $ (0.24) $ (0.28) $ (1.08) $ (1.44)
 Weighted Average
 Number of Common
 Shares
 Outstanding 24,912,589 24,533,217 24,740,229 22,702,117
 CONDENSED CONSOLIDATED BALANCE SHEETS
 Dec. 31, Dec. 31,
 1992 1991
 (See Note) (See Note)
 Current Assets $ 19,556 $ 22,202
 Investments in Cellular Entities 153,996 151,571
 Property and Equipment, net of
 accumulated depreciation of
 $48,442 and $36,489 72,026 74,581
 Other Assets 6,242 7,456
 Total Assets $251,820 $255,810
 Current Liabilities $ 20,741 $ 14,348
 Long-Term Debt, net of current portion 195,005 183,680
 Minority Interests 5,809 6,113
 Total shareholders' equity 30,265 51,669
 Total Liabilities and Shareholders'
 Equity $251,820 $255,810
 Note: The balance sheet information at Dec. 31, 1992 and 1991 and
 the statement of operations information for the 12 months
 then ended have been derived from the audited financial
 statements at these dates.
 -0- 3/4/93
 /CONTACT: Rich Preyer, 919-545-2203, or Stan Haines, 919-545-2100, both of Vanguard Cellular Systems, Inc.
 (VCELA)


CO: Vanguard Cellular Systems, Inc. ST: North Carolina IN: TLS SU: ERN

MM-SB -- CH006 -- 3120 03/04/93 16:01 EST
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Date:Mar 4, 1993
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