Pennichuck Corporation — Quarterly Report (Quarter Ended September 30, 2020)
Notes to Balance Sheet
Note 1 (Restricted Cash) — At September 30, 2020, the balance of $10.3 million represents an
increase of $8.3 million from the end of 2019, mainly due to (1) the cash generated from the
increased revenue levels year-over-year; and (2) the additional proceeds received from
Pennichuck Water’s September 2" bonding event as a one-time replenishment of the existing
MOERR Rate Stabilization Fund.
Note 2 (Accounts Receivable) — During the nine months of 2020, the balance in Accounts
Receivable increased approximately $2.2 million from the year-end total at December 31, 2019
of $5.6 million. This is mainly attributed to revenue increases generated by the regulated utilities
due to the increased consumption levels year-over-year, as previously discussed, and the fact that
September 30 represents the balance of accounts receivable at the end of the high summer
consumption months, whereas December 31 represents the balance of accounts receivables at the
end of a “base consumption” month.
Note 3 (Other Current Assets) — At September 30, 2020, the balance of $1.1 million represents a
decrease of $0.3 million from the end of 2019, mainly due to the expensing of prepaid property
taxes in the first quarter of 2020.
Note 4 (Lines of Credit) — At September 30, 2020, approximately $1.8 million of this balance
was comprised of the corporate Working Capital Line of Credit which is periodically drawn
upon in support of our operations. The remaining $3.4 million balance relates to Pennichuck
Water Works, Inc. and Pennichuck East Utility, Inc. Fixed Asset Lines of Credit (FALOC),
which are used to fund Construction Work in Progress on capital projects which will be
refinanced into long-term debt obligations or tax-exempt or taxable bond indebtedness annually.
Note 5 (Other Current Liabilities) — At September 30, 2020, approximately $2.7 million of this
balance is comprised of accounts payable which relates to activities that were performed in the
third quarter of 2020.
Note 6 (Accrued Pension Liability) — During the nine months of 2020, $1.2 million was
contributed into the Pension Plan, while approximately $583,000 in benefit payments were made
to participants and approximately $86,000 of investment income and appreciation was earned in
the plan.
