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ALC COMMUNICATIONS REPORTS 21-PERCENT CALL VOLUME GROWTH; POSTS NEW HIGHS IN NET INCOME AND EPS

 BINGHAM FARMS, Mich., Oct. 13 /PRNewswire/ -- ALC Communications Corporation (AMEX: ALC) today reported net income of $10.9 million ($.29 per share) on revenue of $113.1 million for the quarter ended Sept. 30, 1993. These record results represent an 18.2-percent increase in revenue and an 84.5-percent increase in net income over the third quarter of 1992, which had net income of $5.9 million ($.20 per share) on revenue of $95.7 million.
 The company's strong across-the-board improvement was driven by a 21.3 percent increase in long-distance call volume vs. the year-ago quarter. The company's year-over-year traffic growth rate has now risen at an increasing rate for eight consecutive quarters.
 New highs were also established for both operating income and operating margin at $18.3 million and 16.2 percent respectively, as compared to $11.7 million and 12.3 percent in the 1992 third quarter. The company's net income growth was achieved despite a 16-percentage- point increase in the effective tax rate (33 percent vs. 17 percent a year ago), and its earnings-per-share growth is net of a 29-percent year-over-year increase in average shares outstanding.
 The company attributed its strong growth to the overall strength of the long-distance industry, combined with the growing effectiveness of its sales and support organizations and their commitment to customer satisfaction. Results for the quarter partially benefited from the July acquisition of Call Home America(R). This specialized 800 customer base added approximately 50,000 customers and an estimated $20 million of annualized revenue. Excluding the contribution from Call Home America, the company achieved third-quarter growth in traffic and revenue of 18.2 percent and 14.7 percent respectively.
 Also during the quarter, the company successfully completed a 7.7 million share secondary offering. As a result, more than 80 percent of the common stock of the company is publicly traded, with no single holding of more than 7.5 percent by any investor or group.
 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 customers nationwide. The company is headquartered in Bingham Farms.
 ALC COMMUNICATIONS CORPORATION AND CONSOLIDATED SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (In Thousands Except Per-Share Amounts)
 Revenue $113,098 $95,673 $319,175 $280,374
 Operating Expenses:
 Cost of communication
 services $60,561 $52,730 $172,852 $164,016
 Sales, general and
 administrative 30,915 28,396 89,005 79,650
 Depreciation and
 amortization 3,318 2,823 8,998 8,396
 Total operating
 expenses $94,794 $83,949 $270,855 $252,062
 Operating income $18,304 $11,724 $48,320 $28,312
 Interest expense 2,050 4,631 8,570 13,044
 Income before income
 taxes, extraordinary
 items and cumulative
 effect of accounting
 change $16,254 $7,093 $39,750 $15,268
 Income taxes 5,400 2,903 12,500 6,425
 Income before
 extraordinary items
 and cumulative effect
 of accounting change $10,854 $4,190 $27,250 $8,843
 Extraordinary items:
 Loss related to early
 retirement of debt
 (net of income tax
 benefit of $4 million) --- --- (7,490) ---
 Utilization of operating
 loss carryforward --- 1,692 --- 4,740
 Cumulative effect of
 change in method of
 accounting for income
 taxes --- --- 13,500 ---
 Net income $10,854 $5,882 $33,260 $13,583
 Earnings per common and
 common equivalent share:
 Income before
 extraordinary items
 and cumulative effect
 of accounting change $0.29 $0.15 $0.75 $0.23
 Extraordinary items:
 Loss related to early
 retirement of debt --- --- (0.21) ---
 Utilization of operating
 loss carryforward --- 0.05 --- 0.23
 Cumulative effect of change
 in method of accounting
 for income taxes --- --- 0.38 ---
 Net income $0.29 $0.20 $0.92 $0.46
 Weighted average common
 and common equivalent
 shares 36,856 28,663 35,847 20,711
 -0- 10/13/93
 /CONTACT: David J. Thomas, vice president and treasurer of ALC, 313-433-4935/
 (ALC)


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

SB -- DE002 -- 1495 10/13/93 08:40 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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