Exhibit 11 E'TOWN CORPORATION AND SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS 1994 1993 1992 _________ _________ _________ PRIMARY _______ EARNINGS Income Before Preferred Stock Dividends of Subsidiary $12,941,790 $14,879,828 $11,281,012 Deduct: Preferred Stock Dividends 854,047 1,050,000 1,050,000 ___________ __________ __________ Net Income Available for Common Stock $12,087,743 $13,829,828 $10,231,012 ___________ __________ __________ ___________ __________ __________ SHARES Weighted Average Number of Common Shares Outstanding 6,207,564 5,330,641 4,624,310 Assuming Exercise of Options Reduced by the Number of Shares Which Could Have Been Purchased With the Proceeds From Exercise of Such Options 2,845 7,298 3,504 ___________ __________ __________ Weighted Average Number of Common Shares Outstanding as Adjusted 6,210,409 5,337,939 4,627,814 ___________ __________ __________ ___________ __________ __________ Primary Earnings Per Share of Common Stock $ 1.95 $ 2.59 $ 2.21 ___________ __________ __________ ___________ __________ __________ ASSUMING FULL DILUTION ______________________ EARNINGS Income Before Preferred Stock Dividends of Subsidiary $12,941,790 $14,879,828 $11,281,012 Deduct: Preferred Stock Dividends 854,047 1,050,000 1,050,000 Add: After Tax Interest Expense Applicable to 6 3/4% Convertible Subordinated Debentures 542,195 550,843 577,082 ___________ __________ __________ Adjusted Net Income $12,629,938 $14,380,671 $10,808,094 ___________ __________ __________ ___________ __________ __________ SHARES Weighted Average Number of Common Shares Outstanding 6,207,564 5,330,641 4,624,310 Assuming Exercise of Options Reduced by the Number of Shares Which Could Have Been Purchased With the Proceeds From Exercise of Such Options 2,845 7,298 3,504 Assuming Conversion of 6 3/4% Convertible Subordinated Debentures (a) 308,943 313,869 322,954 ___________ __________ __________ Weighted Average Number of Common Shares Outstanding as Adjusted 6,519,352 5,651,808 4,950,768 ___________ __________ __________ ___________ __________ __________ Fully Diluted Earnings Per Share of Common Stock $ 1.94 $ 2.54 $ 2.18 ___________ __________ __________ ___________ __________ __________ (a) Convertible at $40 per share.