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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_______________

FORM 10-Q

(Mark One)

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

OR

o     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________ to ___________________

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
(Exact name of registrant as specified in its charter)
____________________

Delaware		52-2126573
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

600 Telephone Avenue, Anchorage, Alaska 99503
(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (907) 297-3000

Former name, former address and former three months, if changed since last report: Not Applicable

     Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes    ü          No                            

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes                No                            

APPLICABLE ONLY TO CORPORATE ISSUERS:

     The number of shares outstanding of the registrant’s Common Stock, as of October 25, 2002 was 30,683,648.

DOCUMENTS INCORPORATED BY REFERENCE

None

Table of Contents

TABLE OF CONTENTS

						Page
						Number
PART I.				Financial Information
Item 1.				Financial Statements:
				Consolidated Balance Sheets (unaudited) As of September 30, 2002 and December 31, 2001			3
				Consolidated Statements of Operations (unaudited) For the Three and Nine Months Ended September 30, 2002 and 2001			4
				Consolidated Statements of Stockholders’ Equity (unaudited) For the Nine Months Ended September 30, 2002 and 2001			5
				Consolidated Statements of Cash Flows (unaudited) For the Nine Months Ended September 30, 2002 and 2001			6
				Notes to Consolidated Financial Statements (unaudited)			7
Item 2.				Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
Item 3.				Quantitative and Qualitative Disclosures About Market Risk			31
Item 4.				Controls and Procedures			31
PART II.				Other Information
Item 1.				Legal Proceedings			32
Item 2.				Changes in Securities and Use of Proceeds			33
Item 3.				Defaults upon Senior Securities			33
Item 4.				Submission of Matters to a Vote of Security Holders			33
Item 5.				Other Information			33
Item 6.				Exhibits and Reports on Form 8-K			33
Signatures							34
Certifications							35

2

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ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Consolidated Balance Sheets
(Unaudited, In Thousands Except Per Share Amounts)

				September 30,				December 31,
Assets				2002				2001
Current assets:
	Cash and cash equivalents			$	21,040			$	41,012
	Restricted cash				3,428				6,932
	Accounts receivable-trade, net of allowance of $5,386 and $4,944				46,812				46,912
	Materials and supplies				10,438				8,723
	Prepayments and other current assets				8,561				6,032
	Assets held for sale				271				—
		Total current assets			90,550				109,611
Property, plant and equipment					1,077,843				1,036,829
Less: accumulated depreciation					610,311				557,849
	Property, plant and equipment, net				467,532				478,980
Goodwill					141,980				250,495
Intangible assets					23,146				26,785
Debt issuance costs, net of amortization of $15,296 and $12,126					22,598				25,768
Deferred charges and other assets					25,155				9,875
Total assets				$	770,961			$	901,514
Liabilities and Stockholders’ Equity
Current liabilities:
	Current portion of long-term obligations			$	5,548			$	4,823
	Accounts payable-affiliates				989				1,303
	Accounts payable, accrued and other current liabilities				54,451				63,081
	Advance billings and customer deposits				9,531				9,190
		Total current liabilities			70,519				78,397
Long-term obligations, net of current portion					600,810				606,427
Other deferred credits and long-term liabilities					27,875				25,003
Commitments and contingencies					—				—
Stockholders’ equity:
	Preferred stock, no par, 5,000 authorized, no shares issued and outstanding				—				—
	Common stock, $.01 par value; 145,000 shares authorized, 33,360 and 33,221 shares issued and 31,328 and 31,688 outstanding, respectively				334				332
	Treasury stock, 2,032 and 1,532 shares, respectively, at cost				(10,565	)			(9,735	)
	Paid in capital in excess of par value				277,549				276,840
	Accumulated deficit				(177,946	)			(61,921	)
	Accumulated other comprehensive loss				(17,615	)			(13,829	)
		Total stockholders’ equity			71,757				191,687
Total liabilities and stockholders’ equity				$	770,961			$	901,514

See Notes to Consolidated Financial Statements

3

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ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Consolidated Statements of Operations
(Unaudited, In Thousands Except Per Share Amounts)

See Notes to Consolidated Financial Statements

4

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ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Consolidated Statements of Stockholders’ Equity
Nine Months Ended September 30, 2002 and 2001
(Unaudited, In Thousands Except Share Amounts)