Printer Friendly

GWC CORPORATION REPORTS SECOND QUARTER 1993 EARNINGS

 WILMINGTON, Del., Aug. 10 /PRNewswire/ -- GWC Corporation (NASDAQ-NMS: GWCC) today reported consolidated net income to common stockholders of $3,850,000 or $.35 per share, on revenues of $32,044,000 for the quarter ended June 30, 1993, as compared to net income to common stockholders of $3,351,000 or $.30 per share, on revenues of $30,309,000 in 1992.
 Net income to common stockholders for the six months ended June 30, 1993, was $4,068,000 or $.37 per share, on revenues of $58,864,000 compared to net income to common stockholders of $4,643,000 or $.42 per share, on revenues of $56,189,000 during the comparable period in 1992.
 There were two primary reasons for the $499,000 (15 percent) increase in net income to common stockholders in the second quarter. First, during the second quarter of 1993 the company sold the assets of a small utility operation in Pennsylvania and recorded a $388,000 net gain from the sale. Second, income tax expense decreased in the second quarter of 1993 as compared to 1992 because of the company recording $640,000 of income tax expense in 1992 related to the settlement of a federal income tax audit of the years 1983 to 1986. Revenues increased 6 percent in the second quarter of 1993, primarily due to 1992 and 1993 rate awards. Increased revenues from growth were largely offset by decreases in volume caused by unfavorable weather conditions in the Northwest and Midwest sections of the country.
 Net income to common stockholders for the first six months of 1993 was $575,000 lower than in 1992. The variances identified for the second quarter also affected the first six month comparisons, but were more than offset by two items that reduced income. The company recorded a loss on its 40 percent investment in Infilco Degremont, Inc. (IDI) during the first half of 1993, a result of lower shipments by IDI in 1993. This sales shortfall is expected to be recovered in the second half of the year. In addition, the preferred dividend of $1,144,000 on the company's $30 million of Series A Preferred Stock has a significantly higher after tax cost than interest on debt borrowings. Because this stock was issued in September 1992, there was no preferred stock dividend during the first six months of 1992.
 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 25 regulated utility subsidiaries operating in 14 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 Six months
 June 30 1993 1992 1993 1992
 Total revenues $32,044 $30,309 $58,864 $56,189
 Operating income 10,121 9,937 16,189 16,256
 Net income to
 common stockholders 3,850 3,351 4,068 4,643
 Earnings per share
 of common stock $.35 $.30 $.37 $.42
 Consolidated Statements of Income
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Revenues $32,044 $30,309 $58,864 $56,189
 Operating expenses:
 Operations and maintenance 14,803 14,009 28,578 27,135
 Depreciation and amortization 3,540 3,020 6,848 6,057
 Taxes, other than income taxes 3,421 3,272 6,906 6,497
 Other expenses 159 71 343 244
 Total operating expenses 21,923 20,372 42,675 39,933
 Operating income 10,121 9,937 16,189 16,256
 Other income 909 423 488 530
 Interest expense 4,506 4,409 8,850 8,757
 Allowance for funds used
 during construction 413 160 781 221
 Income before income taxes and
 minority interest 6,937 6,111 8,608 8,250
 Income tax expense 2,504 2,749 3,374 3,585
 Minority interest in income
 of subsidiaries 11 11 22 22
 Net income 4,422 3,351 5,212 4,643
 Preferred dividends 572 --- 1,144 ---
 Net income to common
 stockholders 3,850 3,351 4,068 4,643
 Earnings per share
 of common stock $.35 $.30 $.37 $.42
 Dividends per share
 of common stock .25 .25 .50 .50
 Weighted average number of shares
 of common stock outstanding 11,067 11,067 11,067 11,067
 /delval/
 -0- 8/10/93
 /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-MP -- PH004 -- 1117 08/10/93 10:25 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 10, 1993
Words:776
Previous Article:FEDERAL HOME LOAN BANK OF PITTSBURGH REPORTS INCOME AND INCREASES IN LOAN DEMAND
Next Article:VERIFONE ANNOUNCES OMNICHECK(TM) -- A COMPACT ELECTRONIC READER FOR AUTOMATING POINT-OF-SALE CHECK TRANSACTIONS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters