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GWC CORPORATION REPORTS THIRD QUARTER 1991 EARNINGS

 GWC CORPORATION REPORTS THIRD QUARTER 1991 EARNINGS
 WILMINGTON, Del., Nov. 6 /PRNewswire/ -- GWC Corporation


(NASDAQ-NMS: GWCC) today reported consolidated net income of $3,829,000 or $.34 per share, on revenues of $31,971,000 for the quarter ended Sept. 30, 1991.
 Net income for the third quarter includes an extraordinary charge of $1,118,000 or $.10 per share, related to an early repayment of debt. Income before the extraordinary charge was $4,947,000 or $.44 per share, an increase of $338,000 as compared to the third quarter of 1990. This compares to net income of $4,609,000 or $.46 per share, on revenues of $26,643,000 for the comparable period in 1990. Net income for the nine months ended Sept. 30, 1991, was $9,105,000 or $.82 per share, on revenues of $84,988,000 compared to net income of $11,428,000 or $1.14 per share, on revenues of $72,715,000 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 $2,375,000 in the third quarter, primarily due to 1990 and 1991 rate awards, higher volumes of water sold, and the operation in 1991 of a water and wastewater utility in New Mexico that was acquired in November 1990. This increase in operating income was partially offset by lower other income and increased interest expense. Other income decreased $952,000 in the third quarter, primarily due to lower equity in the earnings of Infilco Degremont, Inc. (IDI). Interest expense increased $681,000 due to additional debt incurred as a result of capital expenditures and the above mentioned acquisition.
 Operating income increased $5,483,000 in the first nine months of 1991 due to the benefit of rate awards, higher volumes of water sold and the New Mexico acquisition, but this was offset by a $5,281,000 decrease in other income and a $2,227,000 increase in interest expense. The decrease in other income was primarily due to the second quarter 1990 sale of one-half of the company's investment in IDI, while the increase in interest expense was a result of the higher levels of debt that resulted from capital expenditures and the New Mexico acquisition.
 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 approximately 11.1 million shares of common stock currently outstanding.
 GWC CORPORATION AND SUBSIDIARIES
 Financial Highlights
 (In thousands, except per-share data)
 Periods ended Three months Nine months
 Sept. 30 1991 1990 1991 1990
 Total revenues $31,971 $26,643 $84,988 $72,715
 Operating income 11,879 9,504 27,605 22,122
 Net income before
 extraordinary item 4,947 4,609 10,223 11,428
 Net income 3,829 4,609 9,105 11,428
 Earnings per share before
 extraordinary item $.44 $.46 $.92 $1.14
 Earnings per share .34 .46 .82 1.14
 Consolidated Sources of Revenues and Income
 (In thousands, except per-share information)
 Periods ended Three months Nine months
 Sept. 30 1991 1990 1991 1990
 Revenues:
 Utility operations $31,690 $26,344 $84,140 $71,201
 Non-regulated operations 281 299 848 1,514
 Total revenues 31,971 26,643 84,988 72,715
 Operating income (loss):
 Utility operations 11,702 9,601 27,078 22,001
 Non-regulated operations 177 (97) 527 121
 Total operating income 11,879 9,504 27,605 22,122
 Other income (expense):
 Gains (loss) on sales of utility
 and non-utility assets (69) 367 (30) 5,171
 Equity in earnings (loss) of
 affiliate 26 381 280 (20)
 Interest, dividends and other 31 192 102 482
 Total other income (12) 940 352 5,633
 Interest expense, net of
 capitalized interest 4,087 3,406 12,017 9,790
 Income before income taxes and
 minority interest 7,780 7,038 15,940 17,965
 Income tax expense 2,822 2,418 5,684 6,503
 Minority interest in income
 of subsidiaries 11 11 33 34
 Income before extraordinary
 charge 4,947 4,609 10,223 11,428
 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 --- 1,118 ---
 Net income 3,829 4,609 9,105 11,428
 Earnings per share:
 Income before
 extraordinary charge $.44 $.46 $.92 $1.14
 Extraordinary charge (.10) --- (.10) ---
 Net income .34 .46 .82 1.14
 Dividends per share .25 .36 .86 1.08
 Weighted average number of
 shares outstanding 11,067 10,000 11,067 10,000
 /delval/
 -0- 11/6/91
 /CONTACT: Joseph V. Boyle, vice president and treasurer of General Waterworks Management & Service Company, 215-278-2965/
 (GWCC) CO: GWC Corporation ST: Delaware IN: UTI SU: ERN MP-KA -- PH015 -- 1674 11/06/91 11:55 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 6, 1991
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