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CENTEX TELEMANAGEMENT INC. REPORTS THIRD QUARTER 1993 EARNINGS AND RECORD GEOGRAPHIC EXPANSION

 SAN FRANCISCO, Nov. 4 /PRNewswire/ -- Centex Telemanagement Inc. (NASDAQ: CNTX) today reported client billings for the third quarter of 1993 slightly above the third quarter of 1992.
 Billings for the quarter were $49.1 million, a one percent increase over the $48.6 million recorded for the third quarter of 1992. Net income for the quarter was $1.8 million, or $0.10 per share, compared to the $2.2 million, or $0.11 per share, recorded for the third quarter of 1992. Centex's financial position remained exceptionally strong, with cash and cash equivalents of $19.3 million on Sept. 30, 1993, and no debt. At the end of the quarter, Centex's client list grew to an all- time high of 11,353 companies.
 Commenting on the third quarter, Centex chairman, president and chief executive officer Peter A. Howley said, "Centex has completed the majority of the investments necessary to support future growth and has implemented sales and client retention programs designed to enhance our position in the market. I believe the value of these infrastructure investments is demonstrated in the fact that our sales performance and expenses during the quarter were on track with our expectations. However, as we noted earlier, our business is being affected by transitional market conditions that may continue through the end of the year. Small businesses are being prompted to examine complex and confusing telecommunications choices, such as 800 'portability' and the pending but still not finalized deregulation of intrastate toll-calling in California. These market conditions are creating short-term industry volatility which is affecting our customer base."
 According to Howley, Centex's billings are were also impacted by a seasonal slowing of business during the summer months and the effects that businesses are still feeling from the continued softness in the California economy.
 Howley noted that these marketplace issues are also creating opportunities for Centex. "We believe that the uncertainty created by the current complex market conditions will work to Centex's advantage," Howley said. "Our customers -- and smaller business in general -- need us more than ever to help them make effective decisions and to manage their telecommunications needs. Our sales acceleration program is on track and will continue to ramp up during the coming quarters. We have the financial strength to vigorously pursue these opportunities. The outlook for Centex remains strong."
 At the end of the third quarter, the company had a net increase of over 100 new clients from the end of the prior quarter.
 Howley stated that the company is continuing to expand in new and existing markets. Centex expects to be managing client services in areas served by more than 100 local telephone company switches throughout its California, Midwest and Northeast service regions by the end of 1993, up from 80 switches at the end of 1992. At the end of the current quarter, the company managed client services in areas served by a total of 92 local telephone company switches.
 "We expanded our markets served by an additional seven local telephone company switches during the third quarter, which was the largest single quarterly increase in Centex's nine-year history. We plan to set a new record in the fourth quarter by adding areas served by nine more local telephone company switches," Howley said. He noted that, by comparison, Centex had a total increase of 11 switches for all of 1992.
 Centex Telemanagement pioneered the telecommunications management concept in 1985 and today is the largest provider of outsourced telecommunications management services for small and medium-sized businesses. The company presently serves more than 11,000 clients through 21 branch offices in nine states.
 Centex provides a single point of management to cost-effectively analyze, select and manage all the telecommunications activities of its clients. Centex's industry-leading array of services includes customized management reports for clients, multi-vendor coordination and management, equipment analysis, and call routing optimization and accounting.
 CENTEX TELEMANAGEMENT INC.
 Consolidated Statements of Operations
 (in thousands, except for per share amounts)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Billings to clients $ 49,128 $ 48,644 $149,822 $139,360
 Costs and expenses
 Telecommunications
 service costs 32,708 33,242 100,582 94,043
 Client acquisition
 expenses 7,570 6,714 22,020 18,103
 General and
 administrative
 expenses 5,896 5,315 17,691 15,018
 Total costs and
 expenses 46,174 45,271 140,293 127,164
 Operating income 2,954 3,373 9,529 12,196
 Interest income, net 146 156 471 628
 Income before
 income tax 3,100 3,529 10,000 12,824
 Income taxes (1,302) (1,376) (4,203) (4,908)
 Net income $ 1,798 $ 2,153 $ 5,797 $ 7,916
 Net income
 per share $ 0.10 $ 0.11 $ 0.32 $ 0.41
 Shares used in
 computing net
 income per share 18,052 18,885 18,326 19,288
 Consolidated Balance Sheets
 (in thousands)
 Sept. 30, Dec. 31,
 1993 1992
 Assets
 Cash and short term
 investments $19,262 $21,420
 Accounts receivable, net 37,667 36,760
 Other current assets 3,120 3,144
 Total current assets 60,049 61,324
 Fixed assets 26,870 19,518
 Accumulated depreciation
 and amortization (7,766) (5,518)
 Other assets 3,918 3,021
 Total assets $83,071 $78,345
 Liabilities and
 Stockholders' Equity
 Accounts payable $25,072 $21,674
 Other current
 liabilities 4,217 3,050
 Total current liabilities 29,289 24,724
 Deferred income taxes 1,953 1,437
 Total liabilities 31,242 26,161
 Common stock 102 102
 Paid in capital 43,487 42,875
 Retained earnings 39,833 34,037
 Cost of re-acquired stock (31,593) (24,830)
 Total stockholders' equity $51,829 $52,184
 Total liabilities and
 stockholders' equity $83,071 $78,345
 -0- 11/4/93
 /CONTACT: Pater A. Howley, chairman, president and chief executive officer of Centex Telemanagement, 415-882-2300; or Allan Jordan of Makovsky & Co., 212-532-6300, for Centex/
 (CNTX)


CO: Centex Telemanagement Inc. ST: California IN: TLS SU: ERN

TM -- SF004 -- 0452 11/04/93 06:01 EST
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Date:Nov 4, 1993
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