E'TOWN CORPORATION AND SUBSIDIARIES Exhibit 11
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
1996 1995 1994
PRIMARY
EARNINGS
Income Before Preferred Stock
Dividends of Subsidiary $ 15,886,268 $ 16,108,533 $ 12,941,790
Deduct: Preferred Stock Dividends 813,000 813,000 854,047
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Net Income Available for Common Stock $ 15,073,268 $ 15,295,533 $ 12,087,743
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SHARES
Weighted Average Number of Common Shares Outstanding 7,668,300 7,093,027 6,207,564
Assuming Exercise of Options Reduced by the Number of
Shares Which Could Have Been Purchased With the Proceeds
From Exercise of Such Options 6,100 2,156 2,845
Weighted Average Number of Common Shares ------------ ------------ ------------
Outstanding As Adjusted 7,674,400 7,095,183 6,210,409
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Primary Earnings Per Share of Common Stock $ 1.96 $ 2.16 $ 1.95
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ASSUMING FULL DILUTION
EARNINGS
Income Before Preferred Stock Dividends of Subsidiary $ 15,886,268 $ 16,108,533 $ 12,941,790
Deduct: Preferred Stock Dividends 813,000 813,000 854,047
Add: After Tax Interest Expense Applicable to 6 3/4%
Convertible Subordinated Debentures 513,350 524,066 542,195
------------ ------------ ------------
Adjusted Net Income $ 15,586,618 $ 15,819,599 $ 12,629,938
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SHARES
Weighted Average Number of Common Shares Outstanding 7,668,300 7,093,027 6,207,564
Assuming Exercise of Options Reduced by the Number of
Shares Which Could Have Been Purchased With the Proceeds 6,100 2,156 2,845
From Exercise of Such Options Assuming Conversion of 6 3/4%
Convertible Subordinated Debentures (a) 291,707 299,613 308,943
------------ ------------ ------------
Weighted Average Number of Common Shares Outstanding as Adjusted 7,966,107 7,393,796 6,519,352
------------ ------------ ------------
Fully Diluted Earnings Per Share of Common Stock $ 1.96 $ 2.14 $ 1.94
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<FN>
(a) Convertible at $40 per share.