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ALC COMMUNICATIONS REPORTS RECORD 2ND-QUARTER RESULTS; PROFITS UP 89 PERCENT

 BINGHAM FARMS, Mich., July 14 /PRNewswire/ -- ALC Communications Corporation (AMEX: ALC) today reported net income of $8.4 million ($0.23 per share) before extraordinary item on revenue of $104.2 million for the quarter ended June 30, 1993. This represents a 12.5-percent increase in revenue and an 89-percent increase in profits over the second quarter of 1992, which had net income of $4.4 million ($0.15 per share) on revenue of $92.7 million. The company's record results were achieved despite a 25-percentage-point increase in the effective tax rate (31 percent versus 6 percent a year ago).
 Gross margin grew to 45.5 percent in the second quarter, up from 40.4 percent in the 1992 second quarter, while operating income rose 68 percent to $15.0 million, compared to $8.9 million in the second quarter. Earnings per share were up 53 percent despite the impact of a 73-percent year-over-year increase in average shares outstanding.
 Long-distance call volume was up substantially, rising 15 percent over the second quarter of 1992 -- a growth rate more than double industry average. ALC(R) traffic growth rate has now increased for six consecutive quarters. Part of the recent increase is attributable to increased 800 call volume generated by customers what were acquired through the company's 800 portability sales efforts initiated in May.
 During the quarter, the company successfully completed two major financing transactions. The first was a public offering of $85 million of 9-percent Senior Subordinated Notes due 2003, and the second was a new $40 million revolving line of credit with Bank One and Star Bank. Both transactions replace higher-cost facilities and will result in substantial interest savings for the company starting in the third quarter.
 On July 6, 1993, the company announced the acquisition of the 800 customer base of Call Home America, Inc. of Austin, Texas. Call Home America, Inc. serves approximately 50,000 customers and is generating annualized revenue of approximately $20 million.
 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 256,000 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 INCOME
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1993 1992 1993 1992
 (In Thousands Except Per-Share Amounts)
 Revenue $104,233 $92,659 $206,077 $184,702
 Operating Expenses:
 Cost of communication
 services $56,824 $55,236 $112,291 $111,286
 Sales, general and
 administrative 29,575 25,671 58,090 51,255
 Depreciation and amortization 2,826 2,830 5,680 5,573
 Total operating expenses $89,225 $83,737 $176,061 $168,114
 Operating income $15,008 $8,922 $30,016 $16,588
 Interest expense 2,866 4,214 6,520 8,413
 Income before income taxes,
 extraordinary items and
 cumulative effect of
 accounting change $12,142 $4,708 $23,496 $8,175
 Income taxes 3,750 1,996 7,100 3,522
 Income before extraordinary
 items and cumulative effect
 of accounting change $8,392 $2,712 $16,396 $4,653
 Extraordinary Items:
 Loss related to early
 retirement of debt (net of
 income tax benefit of
 $4,000,000) (7,490) --- (7,490) ---
 Utilization of operating
 loss carryforward --- 1,722 --- 3,048
 Cumulative effect of change
 in method of accounting
 for income taxes --- --- 13,500 ---
 Net income $902 $4,434 $22,406 $7,701
 Earnings per common and common
 equivalent share:
 Income before extraordinary
 items and cumulative effect
 of accounting change $0.23 $0.07 $0.46 $0.09
 Extraordinary items:
 Loss related to early
 retirement of debt ($0.21) --- ($0.21) ---
 Utilization of operating
 loss carryforward --- $0.08 --- $0.15
 Cumulative effect of change
 in method of accounting for
 income taxes --- --- $0.38 ---
 Net income $0.02 $0.15 $0.63 $0.24
 Weighted average common and
 common equivalent shares 35,635 20,634 35,058 20,633
 -0- 7/14/93
 /CONTACT: David J. Thomas, vice president & treasurer, ALC Communications Corporation, 313-433-4935/
 (ALC)


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

DD-SM -- DE003 -- 1212 07/14/93 08:42 EDT
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Date:Jul 14, 1993
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