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ACC CORP. DETAILS GAINS AND LOSSES FROM ASSET SALES AND ONE-TIME CHARGE TO EARNINGS AND EXPECTED THIRD QUARTER RESULTS

 ROCHESTER, N.Y., Oct. 22 /PRNewswire/ -- ACC Corp. (NASDAQ-NMS: ACCC) today announced that it expects to report consolidated earnings for the third quarter of between $1.50 and $1.65 per share.
 The company plans to take a non-operating gain of approximately $28 million before taxes in the third quarter. The gain will include $19 million from the previously announced sale of its Kentucky cellular licenses and assets, approval for which was granted by the FCC on Sept. 24, 1993, and was later completed on Oct. 7, 1993. The company will also realize a $9 million gain on its initial public offering sale of 30-percent ownership of ACC TelEnterprises Ltd., the company's Canadian subsidiary, which was completed in July. The company also announced it will take a one-time special charge of approximately $13 million, $7 million in the United States and $6 million in Canada, for the write-off and write-down of certain intangibles and other assets in the third quarter.
 Commenting on the gain and the one-time charge, Richard T. Aab, chairman and chief executive officer, stated, "The closing of our cellular asset sale has resulted in ACC repaying all its bank debt, depositing $17 million in cash and freeing $30 million in available lines of credit. These accounting measures have further strengthened the company's balance sheet by eliminating both tangible and intangible assets that no longer reflect their current and future value on ACC's consolidated books."
 Included in the third quarter charges are: the write-off of intangibles (primarily customer bases and goodwill), reorganization costs of past acquisitions, uncollectible receivables associated with the recent Canadian acquisitions, a foreign currency adjustment on the repayment of subsidiary debt, accelerated depreciation of dialer and station equipment in preparation for equal access in Canada, and a revaluation of ACC's technologically obsolete 180-mile microwave system, which will continue to serve as a back-up for ACC's newer optical fiber facilities.
 Aab added, "We anticipate that our Canadian operations will show a third quarter operating loss due to both the accounting measures and significant investment in new programs. The U.S. long-distance results from operations, before write-offs, will be profitable but lower than the second quarter due to the seasonality of our college and university long-distance business in the U.S." Aab further stated, "However, in the fourth quarter, we expect to realize the benefits of several new long-distance service contracts that were announced by ACC's operating subsidiaries in the third quarter. These contracts, which total approximately $135 million in revenue over terms ranging from three to 10 years, have already contributed to significant revenue increases in September, and we anticipate a strong operating fourth quarter in both the U.S, and Canada."
 ACC Corp. will announce consolidated earnings on Nov. 8, 1993.
 ACC Corp. is a telecommunications holding company headquartered in Rochester. Through its U.S., Canadian and United Kingdom subsidiaries, the company provides domestic and international long-distance telephone services to corporate and residential customers, as well as specialized programs for colleges and universities. Its Canadian subsidiary is the second largest long-distance reseller in Canada and its U.K. subsidiary holds the first international simple resale license in the U.K. ACC Corp. had 1992 revenue of $81.7 million.
 -0- 10/22/93
 /CONTACT: Richard T. Aab, chairman and CEO of ACC Corp., 716-987-3150, or David Allan of Burson-Marsteller, 212-614-5163/
 (ACCC)


CO: ACC Corp. ST: New York IN: TLS SU: ERP

LD-CK -- NY083 -- 5942 10/22/93 17:32 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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