Pennichuck Corporation — Quarterly Report (Quarter Ended September 30, 2020)
Executive Summary
Revenues for the third quarter of 2020 were 14.4% higher than the prior year ($15.9 million
for 2020 versus $13.9 million for 2019). Revenues on a year-to-date basis were 10.9%
higher than last year ($37.6 million for the nine months in 2020 versus $33.9 million in
2019). Quarterly and year-to-date revenues were higher to prior year results as the
Company benefited from increased consumption levels at the regulated utilities due to the
dry weather patterns experienced during the Spring and mid-Summer months, versus the
comparative year. The Pennichuck Water Service Company revenues were below 2019
comparative results, due to reductions in their Unplanned Revenues and Backflow sales as
these activities were negatively impacted by the ongoing COVID-19 pandemic, versus
prior year results.
Operating Income for the third quarter of 2020 was 42.5% higher than the prior year
($5.7 million for 2020 versus $4.0 million for 2019). Operating Income on a year-to-date
basis was 68.6% higher than the prior year ($8.6 million for 2020 versus $5.1 million for
2019). Both of these variances are almost exclusively attributable to the quarter and
year-to-date revenue variations as previously discussed.
Pre-tax Income for the third quarter of 2020 was $3.0 million versus $1.3 million for
2019. Ona year-to-date basis, pre-tax income was $0.3 million for 2020 versus pre-tax
loss of $3.1 million for 2019.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the
third quarter of 2020 was 27.4% higher than the prior year ($7.9 million in 2020 versus
$6.2 million for 2019). On a year-to-date basis, EBITDA was $15.1 million for 2020
versus $11.5 million for 2019.
During the quarter, the Company paid approximately $2.1 million to the City in principal,
interest and dividends to fund the City Acquisition Debt. Year-to-date, the Company has
paid approximately $6.4 million to the City in principal, interest and dividends to fund
the City Acquisition Debt.
Capital expenditures for the third quarter of 2020 were $2.9 million compared to
$6.9 million in the third quarter of 2019. On a year-to-date basis, capital expenditures for
2020 were $5.8 million compared to $9.4 million in 2019. The decrease in activity for the
quarter and year-over-year can be attributed mainly to the Pennichuck Water Works, Inc.
deferment of the Kessler Farm Tank replacement project in Nashua to 2021, due to the
ongoing COVID-19 pandemic.
We remain focused on the Company’s primary mission, in that we continue to provide clean
water and excellent service to our customers and operate within the confines of the budgeted and
planned levels of operating and capital expenditures.
