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GWC REPORTS 1991 EARNINGS

 GWC REPORTS 1991 EARNINGS
 WILMINGTON, Del., Feb. 5 /PRNewswire/ -- GWC Corporation


(NASDAQ-NMS: GWCC) today reported consolidated net income of $12,425,000 or $1.12 per share, on revenues of $111,840,000 for the year ended Dec. 31, 1991.
 Net income for the year was reduced by an extraordinary charge of $1,118,000 or $.10 per share, related to an early repayment of debt. Income before the extraordinary charge was $13,543,000 or $1.22 per share. This compares to net income of $15,151,000 or $1.50 per share, on revenues of $97,306,000 for 1990. Net income for the three months ended Dec. 31, 1991, was $3,320,000 or $.30 per share, on revenues of $26,852,000, compared to net income of $3,723,000 or $.36 per share, on revenues of $24,591,000 during the comparable period in 1990.
 During the third quarter of 1991, the company called all of its outstanding 8-3/4 percent First Mortgage and Collateral Trust Bonds due 1996 and recorded as an extraordinary item an after tax, non-cash charge of $1,118,000 related to the write-off of the remaining balance of a 1985 purchase accounting adjustment on those bonds.
 Operating income increased $4,900,000 during 1991, primarily due to 1990 and 1991 rate awards, higher volumes of water sold, and the operation in 1991 of a New Mexico water and wastewater utility that was acquired in November 1990. This increase in operating income was offset, however, by lower other income and increased interest expense. Other income decreased $4,139,000 in 1991 due to lower gains on the sales of utility and non-utility assets as compared to 1990, primarily as a result of the sale in 1990 of one-half of the company's investment in Infilco Degremont, Inc. Interest expense increased $2,833,000 due to additional debt incurred as a result of capital expenditures and the above-mentioned acquisition.
 Operating income decreased $583,000 in the fourth quarter of 1991 because higher utility operating costs exceeded the favorable increase in revenues from rate increases. Interest expense increased $606,000, due to additional debt needed to finance 1991 capital expenditures. Other income increased $1,142,000 in the fourth quarter of 1991, principally because 1990 included a write-down to net realizable value of the assets of the company's mapping operation.
 GWC Corporation, headquartered in Wilmington, is a water utility holding company that is also engaged in non-regulated activities. Its major subsidiary, General Waterworks Corporation, owns 34 regulated utility subsidiaries operating in 15 states. The company's common stock is traded on the NASDAQ National Market System under the symbol "GWCC." There are 11,066,600 shares of common stock currently outstanding.
 GWC CORPORATION AND SUBSIDIARIES
 Financial Highlights
 (In thousands, except per-share data)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Total revenues $26,852 $24,591 $111,840 $97,306
 Operating income 7,703 8,286 35,308 30,408
 Net income before
 extraordinary item 3,320 3,723 13,543 15,151
 Net income 3,320 3,723 12,425 15,151
 Earnings per share
 before extraordinary
 item $.30 $.36 $1.22 $1.50
 Earnings per share $.30 $.36 $1.12 $1.50
 Consolidated Sources of Revenues and Income
 (In thousands, except per-share information)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Revenues:
 Utility operations $26,576 $24,014 $110,716 $95,215
 Non-regulated operations 276 577 1,124 2,091
 Total revenues 26,852 24,591 111,840 97,306
 Operating income:
 Utility operations 7,585 8,194 34,663 30,195
 Non-regulated operations 118 92 645 213
 Total operating income 7,703 8,286 35,308 30,408
 Other income (expense):
 Gain (loss) on sales of utility and
 non-utility assets 260 (892) 230 4,279
 Equity in earnings of affiliates 302 399 582 379
 Interest, dividends and other 56 (31) 158 451
 Total other income 618 (524) 970 5,109
 Interest expense, net of
 capitalized interest 4,237 3,631 16,254 13,421
 Income before income taxes and
 minority interest 4,084 4,131 20,024 22,096
 Income tax expense 753 397 6,437 6,900
 Minority interest in income
 of subsidiaries 11 11 44 45
 Income before
 extraordinary charge 3,320 3,723 13,543 15,151
 Extraordinary charge:
 Write-off of purchase accounting
 adjustment on early retirement of
 First Mortgage and Collateral
 Trust Bonds, net of income tax
 benefit of $952 --- --- 1,118 ---
 Net income 3,320 3,723 12,425 15,151
 Earnings per share:
 Income before
 extraordinary charge $.30 $.36 $1.22 $1.50
 Extraordinary charge --- --- (.10) ---
 Net income .30 .36 1.12 1.50
 Dividends per share .25 .36 1.11 1.44
 Weighted average number of
 shares outstanding 11,067 10,356 11,067 10,089
 /delval/
 -0- 2/5/92
 /CONTACT: Joseph V. Boyle, vp and treasurer of General Waterworks Management and Service Company, 215-278-2965/
 (GWCC) CO: GWC Corporation ST: Delaware IN: UTI SU: ERN


LJ-JS -- PH011 -- 7077 02/05/92 10:20 EST
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