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ACC CORP. REPORTS STRONG REVENUE GROWTH AND 2ND QUARTER EARNINGS

 ROCHESTER, N.Y., Aug. 16 /PRNewswire/ -- ACC Corp. (NASDAQ-NMS: ACCC) reported second quarter results today which are highlighted as follows:
 Continuing Operations Results:
 -- Second quarter 1993 revenue was $24.04 million, up 29 percent over the second quarter 1992 revenue of $18.62 million.
 -- Net income for the North American business was up 9 percent to $1,023,094 or $.15 per share for the quarter compared to $936,466, or $.13 per share for the same period in 1992.
 -- Second quarter billable minutes increased 24 percent to 84,499,488 versus 68,177,085 for the same period in 1992.
 The above results are presented before a $.05 per share loss from discontinued operations reflecting the planned sale of the company's cellular business segment, for which a definitive agreement was signed with Horizon Cellular Telephone Company of Central Kentucky, L.P. on Jan. 22, 1993, and ACC's start-up United Kingdom (ACC U.K.) long- distance business which reported $28,492 in revenues and $128,562 in net losses, or a loss of $.02 per share for the quarter. Earnings per share have been retroactively adjusted to reflect a 3 for 2 stock dividend which occurred on Jan. 4, 1993.
 Consolidated Results:
 -- The second quarter 1993 consolidated net income increased to $532,639 or $.08 per share, which includes the loss from discontinued operations and the company's U.K. start-up, compared to $489,773 or $.07 per share for the same quarter a year ago.
 -- Six month year-to-date consolidated net income improved to $860,041 or $.12 per share compared to $843,967 or $.13 per share for the same period last year. The $.01 per share earnings decrease reflects the increase in the number of weighted average shares in 1993.
 In commenting on the results, Richard T. Aab, chairman and chief executive officer stated, "These results are in line with our expectations. ACC increased earnings from its continuing long distance operations in North America while losing money in both the United Kingdom long distance start-up and the soon to be sold cellular business. The opportunities for ACC to grow its businesses in the U.S., Canada and United Kingdom are considerable and the company remains focused on revenue growth and building critical mass market share in accordance with our strategic plan in all our markets."
 Aab continued, "In our U.S. long distance operation, we continue to experience solid growth and profitability. One change occurring in this operation is that revenues are becoming more seasonal due to the enormous success of ACC's college and university customer programs which are heavily skewed to the academic school year. The second quarter U.S. revenue was approximately $1.0 million less than the previous first quarter of 1993 due entirely to the academic school year. However, we recently announced five new schools having signed contracts ranging from 7 to 10 years in length which we will begin servicing with the fall 93/94 school year.
 ACC TelEnterprises Ltd., our 70-percent-owned Canadian long distance subsidiary, completed its initial public offering of 2,000,000 shares at $11.00 per share on July 6, 1993. Second quarter results show revenue from this Canadian based subsidiary increased 54 percent to $18.75 million (CDN.) compared to $12.21 million (CDN.) for the second quarter 1992 and net income increased to $203,141 (CDN.) versus $195,904 (CDN.).
 ACC TelEnterprises recently announced the purchase of ISM's (Information Systems Management) long distance customer base approximating $5.5 million (CDN.) in revenues. Further, the company recently signed contracts and letters of intent with several universities to provide and exclusively market ACC long distance voice services to students, faculty and alumni for terms ranging up to ten years.
 In commenting on the quarter's events for ACC TelEnterprises Ltd., Aab stated, "This structure of public ownership provides a framework for ACC TelEnterprises from which it can be evaluated on a level playing field with its competitors in the Canadian long distance industry. ACC Corp., through contracts with ACC TelEnterprises, will provide advanced switching and networking technology along with technical expertise, advanced information systems and applications, and the full array of products and services standard to our U.S. operations. To date, ACC TelEnterprises is the second largest resale long distance company in Canada and it is the only Company with a consistent record of profitability in the resale industry."
 ACC U.K. operations reported $28,492 in revenues and $128,562 in net losses for the second quarter 1993 against no operations in 1992. During the quarter, ACC successfully completed the trial program for 300 university students at Imperial College in London and will be expanding the service for the college beginning with the fall semester of 1993. ACC U.K. signed an agreement with Cambridge University administration to provide international long distance service to the university faculty and staff. ACC has activated its international transmission facility between the U.S. and U.K. Plans are in place to activate a switch in London later this year and relocate a number of U.S. employees to assist in implementing our U.K. operating plan.
 "ACC U.K. will continue to experience start-up losses as the Company builds its infrastructure in the United Kingdom," stated Aab.
 Finally, the sale of ACC's cellular business continues to move toward closing as we await the FCC license transfer approval, which ACC expects sometime in the third quarter.
 ACC Corp. is a diversified telecommunications company based in Rochester, N.Y. Through its subsidiaries, the company provides long- distance telephone service throughout the northeastern United States, and is the second largest long-distance reseller in Canada. In addition, the company holds the first international simple resale license granted in the United Kingdom.
 ACC CORP. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 Three months ended June 30,
 1993 1992
 Revenue:
 Toll revenue $23,194,359 $18,080,916
 Leased lines and other 846,012 538,231
 Total 24,040,371 18,619,147
 Operating expenses:
 Network costs 15,196,378 11,563,647
 Operator services and
 other costs 212,422 206,461
 Depreciation and
 amortization 1,187,946 872,922
 Selling, general,
 and administrative 6,093,920 4,375,207
 Total 22,690,666 17,018,237
 Operating income 1,349,705 1,600,910
 Other income (expense):
 Interest (50,517) (18,657)
 Other 2,662 4,094
 Total (47,855) (14,563)
 Income before provision for
 income taxes 1,301,850 1,586,347
 Provision for income taxes 407,318 649,881
 Income from continuing
 operations 894,532 936,466
 Loss from discontinued operations
 (net of income tax benefit of
 $186,000 in 1993 and $253,000
 in 1992) (361,893) (446,693)
 Net income $532,639 $489,773
 Net income (loss) per common &
 common equivalent share:
 Continuing operations $0.13 $0.14
 Discontinued operations ($0.05) ($0.07)
 Net income $0.08 $0.07
 Average number of common and
 common equivalent shares 7,006,709 6,862,508
 Six months ended June 30,
 1993 1992
 Revenue:
 Toll revenue $47,132,065 $34,890,752
 Leased lines and other 1,805,174 1,123,132
 Total 48,937,239 36,013,884
 Operating expenses:
 Network costs 31,726,629 22,408,681
 Operator services and
 other costs 520,629 449,024
 Depreciation and
 amortization 2,463,841 1,769,862
 Selling, general,
 and administrative 11,514,634 8,418,299
 Total 46,225,733 33,045,866
 Operating income 2,711,506 2,968,018
 Other income (expense):
 Interest (2,112) (56,698)
 Other (11,061) 8,638
 Total (13,173) (48,060)
 Income before provision for
 income taxes 2,698,333 2,919,958
 Provision for income taxes 990,798 1,161,739
 Income from continuing
 operations 1,707,535 1,758,219
 Loss from discontinued operations
 (net of income tax benefit of
 $434,000 in 1993 and $494,000
 in 1992) (847,494) (914,252)
 Net income $860,041 $843,967
 Net income (loss) per common &
 common equivalent share:
 Continuing operations $0.24 $0.26
 Discontinued operations ($0.12) ($0.13)
 Net income $0.12 $0.13
 Average number of common and
 common equivalent shares 7,018,885 6,838,988
 ACC CORP. AND SUBSIDIARIES
 BUSINESS SEGMENT INFORMATION
 (UNAUDITED)
 Three months ended June 30, 1993
 NORTH UNITED
 AMERICA KINGDOM CONSOLIDATED
 Revenue:
 Toll revenue $23,165,867 $28,492 $23,194,359
 Leased lines and other 846,012 --- 846,012
 Total 24,011,879 28,492 24,040,371
 Operating expenses:
 Network costs 15,140,425 55,953 15,196,378
 Operator services and
 other costs 212,422 --- 212,422
 Depreciation and
 amortization 1,157,789 30,157 1,187,946
 Selling, general,
 & administrative 5,868,216 225,704 6,093,920
 Total 22,378,852 311,814 22,690,666
 Income (loss) from
 operations 1,633,027 (283,322) 1,349,705
 Other income (expense):
 Interest (50,517) --- (50,517)
 Other 2,662 --- 2,662
 Total (47,855) --- (47,855)
 Income (loss) before
 provision for
 income taxes 1,585,172 (283,322) 1,301,850
 Provision for (benefit
 from) taxes 562,078 (154,760) 407,318
 Income from continuing
 operations $1,023,094 ($128,562) $894,532
 Income (loss) from
 continuing operations
 per common and common
 equivalent share: $0.15 ($0.02) $0.13
 ACC CORP. AND SUBSIDIARIES
 BUSINESS SEGMENT INFORMATION
 (UNAUDITED)
 Six months ended June 30, 1993
 NORTH UNITED
 AMERICA KINGDOM CONSOLIDATED
 Revenue:
 Toll revenue $47,083,641 $48,424 $47,132,065
 Leased lines and other 1,805,174 --- 1,805,174
 Total 48,888,815 48,424 48,937,239
 Operating expenses:
 Network costs 31,622,904 103,725 31,726,629
 Operator services and
 other costs 520,629 --- 520,629
 Depreciation and
 amortization 2,404,837 59,004 2,463,841
 Selling, general,
 & administrative 11,173,762 340,872 11,514,634
 Total 45,722,132 503,601 46,225,733
 Income (loss) from
 operations 3,166,683 (455,177) 2,711,506
 Other income (expense):
 Interest (2,112) --- (2,112)
 Other (11,061) --- (11,061)
 Total (13,173) --- (13,173)
 Income (loss) before
 provision for
 income taxes 3,153,510 (455,177) 2,698,333
 Provision for (benefit
 from) taxes 1,145,558 (154,760) 990,798
 Income from continuing
 operations $2,007,952 ($300,417) $1,707,535
 Income (loss) from
 continuing operations
 per common and common
 equivalent share: $0.28 ($0.04) $0.24
 -0- 8/16/93
 /CONTACT: Richard T. Aab, chairman and chief executive officer of ACC Corp., 716-987-3150/
 (ACCC)


CO: ACC Corp ST: New York IN: TLS SU: ERN

AR -- CL006 -- 2971 08/16/93 10:15 EDT
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