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ALC COMMUNICATIONS CORPORATION REPORTS PROFITS UP 289 PERCENT

 BINGHAM FARMS, Mich., Feb. 1 /PRNewswire/ -- ALC Communications Corporation (AMEX: ALC) today reported 1992 net income of $20.8 million ($.74 per share) on revenue of $376.1 million. Compared to 1991, this represents net income improvement of $15.5 million on revenue growth of $29.2 million. Operating income was up 70.3 percent to $40.7 million versus $23.9 million for 1991. ALC(R) continued to experience steady growth in long-distance traffic, which was up 9.6 percent over the prior year. Continued emphasis on sales force productivity, introduction of innovative services and cost management programs were among the major contributors to the company's net income growth of 289 percent during 1992.
 For the quarter ended Dec. 31, 1992, ALC recorded net income of $7.2 million ($.23 per share) and revenue of $95.7 million. This compares to net income of $618,000 ($.05 loss per share) on revenue of $86.3 million for the fourth quarter of 1991. In past years, the company's long-distance traffic, which is primarily commercial, has declined slightly during the fourth quarter due to the November and December holiday periods. However, in 1992 this trend was more than offset by strong traffic growth, which was up 12.3 percent from the fourth quarter of 1991. (Fourth-quarter operating margins reached 12.9 percent on operating income of $12.4 million. Both established new all-time highs.)
 On Jan. 19, 1993, the company filed with the Securities and Exchange Commission a shelf registration for 19.5 million previously issued shares held by certain shareholders. Several factors, such as market conditions, will determine when and how many of these shares will be sold. Any such offering of shares will provide for a broader public ownership of the company's common stock, and none of the proceeds from stock sales under this registration will accrue to the company.
 In 1992, the Financial Accounting Standards Board issued Statement No. 109 "Accounting for Income Taxes" that is required to be applied starting in the first quarter of 1993. The company has determined that it will not restate 1992 financial statements to reflect adoption of the new rules. Application of the new rules will result in the recording, as of Jan. 1, 1993, of a net deferred tax asset of approximately $13.5 million related primarily to the future tax benefit of net operating loss carryforwards.
 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, provides long-distance products and services to more than 273,000 customers nationwide. The company is headquartered in Bingham Farms and employs more than 1,500 people nationwide.
 ALC COMMUNICATIONS CORPORATION AND CONSOLIDATED SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (In thousands except per-share amounts)
 Revenue $95,690 $86,250 $376,064 $346,873
 Operating Expenses:
 Cost of communication
 services $52,873 $52,653 $216,889 $212,716
 Sales, general and
 administrative 27,644 25,510 107,294 97,964
 Depreciation and
 amortization 2,801 3,035 11,197 12,343
 Total operating
 expenses $83,318 $81,198 $335,380 $323,023
 Operating income $12,372 $5,052 $40,684 $23,850
 Interest expense 4,114 4,199 17,158 18,128
 Income before income taxes
 and extraordinary item $8,258 $853 $23,526 $5,722
 Income taxes 3,275 935 9,700 3,005
 Income (loss) before
 extraordinary item $4,983 ($82) $13,826 $2,717
 Extraordinary item -
 utilization of operating
 loss carryforward 2,260 700 7,000 2,630
 Net income $7,243 $618 $20,826 $5,347
 Income (loss) per common
 and common equivalent
 share before
 extraordinary item $0.16 ($0.09) $0.43 ($0.17)
 Income (loss) per common
 and common equivalent
 share $0.23 ($0.05) $0.74 ($0.02)
 Weighted average common
 and common equivalent
 shares 34,401 17,221 22,141 17,216
 -0- 2/1/93
 /CONTACT: David Thomas, vice president and treasurer, ALC Communications Corporation, 313-433-4935/
 (ALC)


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

ML -- DE004 -- 1137 02/01/93 08:04 EST
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Date:Feb 1, 1993
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