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UNITED WATER RESOURCES REPORTS 82 PERCENT INCREASE IN THIRD QUARTER EARNINGS

 HARRINGTON PARK, N.J., Oct. 25 /PRNewswire/ -- United Water Resources (NYSE: UWR) today reported net income of $11.2 million for the third quarter of 1993, an increase of 82 percent from the comparable period in 1992. Net income per common share for the third quarter was 57 cents, compared with 34 cents a year ago. Operating revenues for the third quarter of 1993 were $78.2 million, versus $44.7 million for the third quarter of 1992.
 For the three months ending Sept. 30, a gain resulting from an intercompany real estate transfer accounted for a major portion of the increase in operating revenue and net income. As part of a legal settlement with two environmental groups, Hackensack Water Company, United Water's principal utility subsidiary, reacquired for $26 million 355 acres of property it transferred to United Water's real estate operation, Rivervale Realty, nine years ago.
 The company also attributed a portion of the higher earnings for the quarter to increased water consumption by utility customers, resulting in a 15 percent increase in utility operating revenues. "Hot, humid weather and record third quarter pumping levels for Hackensack Water strengthened our third quarter performance," said Donald L. Correll, United Water's president and chief executive officer. Despite dry weather conditions, with rainfall in Hackensack Water's service territory averaging 15 percent below normal for the quarter, he stressed that the utility and Spring Valley Water Company, United Water's subsidiary in Rockland County, N.Y., continue to have adequate supplies to meet the needs of customers.
 United Water's earnings for the nine months ending Sept. 30, 1993 were $15.8 million, an increase of 34 percent from the same period a year ago. Net income per common share for the nine months ending Sept. 30 was 82 cents, compared to 65 cents for the same period a year earlier. Operating revenues for the nine months ending September 30 were $157.5 million, versus $123.8 million for the same period a year ago.
 Correll cited the definitive merger agreement currently proceeding between United Water and GWC Corporation (NASDAQ: GWCC), which was announced in September, as a significant development for United Water. "This agreement is right on target with our strategy to build our core utility business through acquisitions, mergers and joint ventures," Correll said.
 United Water Resources is a holding company engaged in water-related businesses and real estate. Its utility subsidiaries, Hackensack and Spring Valley water companies, serve over one million people in New Jersey and New York. United Water's real estate subsidiary, Rivervale Realty Company, owns developable land and several office buildings in the metropolitan area. Other subsidiaries provide environmental testing and construct and operate small water and sewer utilities.
 United Water has paid continuous cash dividends on common stock since 1886.
 UNITED WATER RESOURCES AND SUBSIDIARIES
 (Unaudited, amounts in thousands except per-share data)
 Three months ended Sept. 30 1993 1992
 Operating revenues $78,225 $44,703
 Operating expenses 53,434 29,408
 Net income 11,206 6,156
 Net income per common share .57 .34
 Dividends paid per share .23 .23
 Average number of common
 shares outstanding 19,566 18,348
 Nine months ended Sept. 30 1993 1992
 Operating revenues $157,461 $123,811
 Operating expenses 113,173 88,646
 Net income 15,836 11,800
 Net income per common share .82 .65
 Dividends paid per share .69 .69
 Average number of common
 shares outstanding 19,246 18,024
 Twelve months ended Sept. 30 1993 1992
 Operating revenues $198,519 $163,064
 Operating expenses 142,881 117,248
 Net income 19,820 14,878
 Net income per common share 1.04 .83
 Dividends paid per share .92 .92
 Average number of common
 shares outstanding 19,095 17,849
 -0- 10/25/93
 /CONTACT: Carolyn M. Iglesias or Rose Duger of United Water Resources, 201-784-9434 or evenings, weekends, 201-487-0011/
 (UWR GWCC)


CO: United Water Resources ST: New Jersey IN: SU: ERN

WB -- NY090 -- 6445 10/25/93 15:09 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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