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PACIFIC TELECOM REPORTS EARNINGS

 VANCOUVER, Wash., Oct. 29 /PRNewswire/ - Pacific Telecom Inc. (PTI) (NASDAQ: PTCM) reports increased revenues, operating income and record net income for both the third quarter and nine months ended Sept. 30, 1993.
 Net income for the quarter ended Sept. 30, 1993 was $74.5 million or $1.88 per share compared to $8.2 million or 21 cents per share for the same quarter last year. PTI recorded a $60.4 million after-tax gain from discontinued operations in 1993 resulting in a $1.53 per share increase. The gain on discontinued operations resulted from the sale of TRT Communications Inc. (TRT) and the stock of a smaller subsidiary of PTI, to IDB Communications Group Inc. (IDB) (NASDAQ: IBDX) for 4.5 million shares of IDB common stock and $1.0 million in cash. The gain was calculated using the market value of the IDB stock on Sept. 23, 1993, the closing date of the sale, net of expenses and other valuation adjustments. In the third quarter of 1992, PTI recorded an after-tax loss of $6.5 million or 16 cents per share on discontinued operations.
 Contributing to the improvement in the third quarter operating income were increased revenue relating to local exchange access line growth and reduced operating expense from 1992 early retirements. The revenue increase was offset in part by lower intrastate message toll and private line revenues. Reduced interest expense resulting primarily from decreased borrowing levels also improved income from continuing operations. However, valuation adjustments of $2.5 million, after-tax, on certain noncore investments and the effects of the Federal income tax rate change caused income from continuing operations to decrease slightly when compared to the third quarter of 1992.
 Net income for the nine months ended Sept. 30, 1993 was $102.7 million or $2.59 per share as compared to $41.1 million or $1.04 per share for the same period in 1992. Income from continuing operations decreased 14 cents per share primarily from the effect of a $13.5 million after-tax gain on the sale of Catalina Marketing common stock, offset in part in 1992 by $4.5 million in after-tax valuation adjustments related to certain noncore investments. Excluding the Catalina gain, the valuation adjustments, early retirement charges and the accrual for postretirement benefits required by new accounting standards, income from continuing operations increased by $4.2 million or 10-percent over 1992. Operating income was $3.0 million above the same period in 1992 due to access line growth, reduced operating expenses due to the 1992 early retirement and higher out-of-period revenues. These increases were partially offset by lower private line and intrastate message toll revenues.
 By action of the board of directors on Oct. 29, 1993, a dividend of 33 cents per share was declared. The dividend will be payable Dec. 6, 1993 to shareholders of record as of Nov. 12, 1993.
 Pacific Telecom Inc. is an 87 percent owned subsidiary of PacifiCorp (NYSE: PPW).
 PACIFIC TELECOM INC.
 CONSOLIDATED INCOME STATEMENTS
 (Unaudited; in thousands, except per share amounts)
 Three months ended Nine months ended
 Sept. 30 1993 1992 1993 1992
 Operating revenues $182,924 $182,293 $530,231 $518,217
 Operating expenses 146,541 147,721 427,163 418,191
 Operating income 36,383 34,572 103,068 100,026
 Other income (expense)
 Interest expense (11,244) (13,427) (34,135) (40,452)
 Interest income 166 76 460 632
 Gain on sale of investments
 & subsidiaries 1,340 1,615 1,340 23,057
 Minority interest (192) 49 (341) 87
 Other (3,518) (1,902) (7,927) (13,069)
 Total other income
 (expense) (13,448) (13,589) (40,603) (29,745)
 Income before income
 taxes 22,935 20,983 62,465 70,281
 Income taxes 8,901 6,311 20,243 22,652
 Income from continuing
 operations 14,034 14,672 42,222 47,629
 Gain (Loss) from discontinued operations,
 Net of income tax 60,444 (6,500) 60,444 (6,500)
 Net Income $ 74,478 $ 8,172 $102,666 $ 41,129
 Net Income per common share from
 continuing operations $ 0.35 $ 0.37 $ 1.07 $ 1.21
 Net income per
 common share $ 1.88 $ 0.21 $ 2.59 $ 1.04
 Average shares
 outstanding 39,588 39,545 39,580 39,519
 A PACIFICORP COMPANY
 -0- 10/29/93
 /CONTACT: Brian M. Wirkkala, vice president-treasurer, of Pacific Telecom, 206-696-0983/
 (PTCM IBDX PPW)


CO: Pacific Telecom Inc.; PacifiCorp; TRT Communications Inc.;
 IDB Communications Group Inc. ST: Washington, Oregon IN: TLS SU: ERN


IC -- SE009 -- 8572 10/29/93 14:04 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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