PENNICHUCK?
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Financial Statements
December 31, 2020 and 2019
(With Independent Auditors’ Report Thereon)
CONTENTS
Independent Auditors’ Report
Consolidated Balance Sheets
Consolidated Statements of Income (Loss)
Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statement of Changes in Stockholder’s Equity Current Year
Consolidated Statement of Changes in Stockholder’s Equity Prior Year
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
11
© MELANSON
INDEPENDENT AUDITORS’ REPORT
Board of Directors and Stockholder
Pennichuck Corporation and Subsidiaries
We have audited the accompanying consolidated financial statements of Pennichuck Corporation
and Subsidiaries, which comprise the consolidated balance sheets as of December 31, 2020 and 2019,
and the related consolidated statements of income (loss), comprehensive income (loss), changes in
stockholder’s equity, and cash flows for the years then ended, and the related notes to the
consolidated financial statements.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audits. We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the consolidated financial statements. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal contro! relevant to the entity’s preparation and fair
presentation of the consolidated financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements.
Merrimack, New Hampshire
Andover, Massachusetts
Greenfield, Massachusetts
Ellsworth, Maine 800.282.2440 | melansoncpas.com
D MELANSON
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Pennichuck Corporation and Subsidiaries as of
December 31, 2020 and 2019, and the results of their operations and their cash flows for the
years then ended in accordance with accounting principles generally accepted in the United
States of America.
Modarsen
Merrimack, New Hampshire
March 23, 2021
800.282.2440 | melansoncpas.com
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
As of December 31, 2020 and 2019
(in thousands, except share data)
ASSETS
Property, Plant and Equipment, net
Current Assets:
Cash and cash equivalents
Restricted cash - RSF
Restricted cash - CIAC
Restricted cash - Bond Project Funds
Accounts receivable - billed, net
Accounts receivable - unbilled, net
Accounts receivable - other
Inventory
Prepaid expenses
Prepaid property taxes
Deferred and refundable income taxes
Total Current Assets
Other Assets:
Deferred charges and other assets
Acquisition premium, net
Total Other Assets
TOTAL ASSETS
$
2020
242,469
310
8,611
274
237
4,297
4,473
16
598
507
1,290
20,613
17,014
67,202
84,216
347,298
2019
$__ 237,182
4,885
1,963
3,426
3,041
2,975
16
648
418
992
8
17,972
13,727
69,263
- 82,990
$ 338,144
The accompanying notes are an integral part of these consolidated financial statements.
3
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets - Continued
As of December 31, 2020 and 2019
(in thousands, except share data)
2020
STOCKHOLDER'S EQUITY AND LIABILITIES
Stockholder's Equity:
Common stock; $0.01 par value; 1,000 shares
authorized, issued and outstanding S -
Additional paid in capital 30,561
Accumulated deficit (30,403)
Accumulated other comprehensive income 254
Total Stockholder's Equity 412
Long-Term Debt, Less Current Portion
and Unamortized Debt Issuance Costs 223,805
Current Liabilities:
Lines of credit 5,480
Current portion of long-term debt 6,018
Accounts payable 2,973
Deferred revenue 66
Accrued interest payable 1,304
Other accrued expenses 390
Accrued wages and payroll withholding 306
Customer deposits and other 435
Total Current Liabilities 16,972
Other Liabilities and Deferred Credits:
Deferred income taxes 14,931
Accrued pension liability 15,424
Unamortized debt premium 3,109
Deferred investment tax credits 405
Regulatory liability 9,918
Accrued post-retirement benefits 4,910
Customer advances 84
Contributions in aid of construction, net 56,536
Derivative instrument 460
Other long-term liabilities 332
Total Other Liabilities and Deferred Credits 106,109
TOTAL STOCKHOLDER'S EQUITY AND LIABILITIES S$ 347,298
$
2019
30,561
(28,140)
318
2,739
__212,296
9,283
6,582
3,529
59
1,723
898
192
322
22,588
14,427
12,971
3,162
438
9,930
3,982
84
54,770
353
404
100,521
338,144
The accompanying notes are an integral part of these consolidated financial statements.
4
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Statements Of Income (Loss)
For the Years Ended December 31, 2020 and 2019
(in thousands)
Operating Revenues
Operating Expenses:
Operations and maintenance
Depreciation and amortization
Taxes other than income taxes
Total Operating Expenses
Operating Income
Interest Expense
Other, Net
Loss Before Provision for Income Taxes
Provision for Income Taxes
Net Loss
2020
50,091
24,768
8,549
6,445
39,762
10,329
(11,896)
90
(1,477)
(507)
(1,984)
$
2019
44,779
24,158
8,449
6,287
38,894
5,885
(11,172)
264
(5,023)
(314)
(5,337)
The accompanying notes are an integral part of these consolidated financial statements.
5
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2020 and 2019
(in thousands)
2020 2019
Net Loss S (1,984) S (5,337)
Other Comprehensive Loss:
Unrealized loss on derivatives (149) (160)
Reclassification of net income realized in net loss 42 70
Income tax provision relating to
other comprehensive loss 43 36
Other Comprehensive Loss (64) (54)
Comprehensive Loss S (2,048) $ (5,391)
The accompanying notes are an integral part of these consolidated financial statements.
6
Suite 101
Nashua Public Works Garage
9 Stadium Drive
Nashua, NH 03060
Cust #:
Bill
To:
303829
City of Nashua
City Hall
P.O. Box 2019
Nashua, NH 03061-201
Power & Telephone
200 Keough Drive
Piperton, TN 38017
QUOTE
UPC Vndr | Ack Date |
| 000001
Order #
_ 05/18/22 | 7493221-00
PO # Page# |
—IMSA 5/18/2200
Contact: Tami Sherman
(901)866-3109
tami.sherman@ptsupply.com
lusD |
‘THS
Currency
Sales Rep In
Reference
Instructions Terms
Net 30 Days
Ship Point e Via | Ship Date
Power & Tel PA Dist Center | WHS ROUTING |
Requested Ship Date ‘| 05/19/22) Freight In/Out _|
Ln|
Z | Product and Description
Quantity) Qty |
Ordered
Net
Amount
Unit) Price |
Price) U/M |
|CABLE NOTES:
+/- TOLERANCE = 10% THAT WILL BE INVOICED.
WILL SHIP VIA FLATBED, FORKLIFT REQUIRED
|FOR DELIVERY. FORKLIFT MUST BE ABLE TO
| HANDLE MORE THAN A 3500# REEL.
| PRICE GOOD THROUGH 5/25/22.
‘PRICES ARE BASED ON COPPER COMEX PER DAY
AND ARE SUBJECT TO ESCALATION/DE-
[ESCALATION AT TIME OF ORDER PLACEMENT.
NON-CANCELABLE/NON-RETURNABLE
APPROX. 19 WEEK LEAD TIME.
|**REELS TO HAVE 3" ARBOR HOLES
1 |SPECIALM
‘PART # IM2021410PRSCU/1
14AWG 10PR SOL BC SCU PE/PE IMSA 20-2 600V 75C
14 AWG 10 PAIR SOLID BARE COPPER WIRE
WITH .025" PE INSULATION, FILLERS
AND OVERALL CLEAR MYLAR WRAP TAPE,
OVERALL .005" HELICALLY APPLIED
| BARE COPPER TAPE SHIELD, OVERALL
|.080" BLACK PE JACKET.
| NON-UL
| LAKE CABLE IMSA 20-2 600V (YEAR OF MFG) "ROHS"
CC: PER IMSA 20-2 STANDARD
INDENT PRINT
(1X 5400', 1 X 5900'
2 /20C14B11201
CABLE 14GA 20COND SOL 20-1 IMSA 600V AERIAL DU
| 14 AWG 20C SOLID BARE COPPER WIRE WITH .025" PE INSULATION,
NONSHIELDED,
OVERALL CLEAR MYLAR WRAP TAPE, OVERALL .060" BLACK PE
JACKET.
|NON(UL)
CC: IMSA SPECIFICATION 20-1, TABLE 5.1
11,300
18,000
U/M |
4,334.52, M 48,980.08
57,231.90
Paae 1 of 2
Balance as of
January 1, 2020
Common dividends declared
Net loss
Other comprehensive income:
Unrealized loss on derivatives,
net of taxes of $(60)
Reclassification of net income
realized in net loss, net of
taxes of $17
Balance as of
December 31, 2020
PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholder's Equity
For the Year Ended December 31, 2020
(in thousands, except per share data)
Accumulated
Additional Other
Common Stock Paid in Accumulated Comprehensive
Shares Amount Capital Deficit Income Total
1,000 $ - $ 30,561 $ (28,140) $ 318 $ 2,739
- - (279) - (279)
- - - (1,984) - (1,984)
- - - (89) (89)
- - - 25 25
1,000 $ - $30,561 $ (30,403) S 254 $ 412
The accompanying notes are an integral part of these consolidated financial statements.
7
