WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 5 <CIK> 0000819694 <NAME> Peoples Telephone Company, Inc. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> Mar-31-1997 <CASH> 4367000 <SECURITIES> 0 <RECEIVABLES> 20554000 <ALLOWANCES> (4147000) <INVENTORY> 2366000 <CURRENT-ASSETS> 26050000 <PP&E> 135733000 <DEPRECIATION> (74142000) <TOTAL-ASSETS> 133630000 <CURRENT-LIABILITIES> 25696000 <BONDS> 100491000 <PREFERRED-MANDATORY> 0 <COMMON> 162000 <OTHER-SE> (8516000) <TOTAL-LIABILITY-AND-EQUITY> 133630000 <SALES> 31608000 <TOTAL-REVENUES> 31608000 <CGS> 26003000 <TOTAL-COSTS> 32158000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 3348000 <INCOME-PRETAX> (3898000) <INCOME-TAX> 0 <INCOME-CONTINUING> (3898000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3898000) <EPS-PRIMARY> (0.26) <EPS-DILUTED> (0.26)