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The Company currently has 127 employees. The employees are committed to supporting the
Company’s mission. Each of our managers has goals and objectives to support the strategies
supporting the mission. Pennichuck is an Equal Opportunity/Affirmative Action Employer. It is
the policy of the Company to hire, train, promote, and otherwise provide terms and conditions of
employment without regard to race, color, religion, sex, sexual orientation, gender identity,
national origin, ancestry, age, marital status, pregnancy, disability or veteran status. All
employment and promotion decisions are based solely on valid requirements, in accordance with
the principles of equal employment opportunity and affirmative action.
Financial Performance During the Last Year. The Company’s audited consolidated financial
statements for the year ended December 31, 2020 are attached to this report.
($ Millions)
4" Quarter Year-to-Date
2020 2019 2020 2019
Revenues $12.1 $10.6 $49.7 $44.5
Operating Expenses (10.4) (9.8) (39.4) (38.6)
Operating Income 1.7 0.8 10.3 5.9
Interest Expense (3.6) (2.8) (11.9) (11.1)
Other Income _0O1 _0.1 | _ 0.1 0.2
Pre-Tax Income (Loss) (1.8) (1.9) (1.5) (5.0)
Income Tax Provision (Benefit) _ 0.8. _0.1 — _0.5_ 0.3
Net Income (Loss) (2.6) (2.0) (2.0) (5.3)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) 4.0 3.2 19.1 14.7
e Consolidated revenues for the fourth quarter increased by $1.5 million from $10.6 million
in 2019 to $12.1 million in 2020. The increase is attributable to $1.6 million in additional
recoupment revenues earned and recorded for Pennichuck Water Works, Inc. in the fourth
quarter, which resulted from the November 24, 2020 NHPUC issued Order No. 26,425.
This order approved an overall rate increase of 11.85%, which was effective for services
rendered back to April 14, 2020.
* Consolidated year-to-date revenues increased from $44.5 million in 2019 to $49.7 million
in 2020, an increase of 11.7%. Revenues from the regulated utilities increased due to:
(1) 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;
and (2) the additional $1.6 million in recoupment revenues recorded for PWW, resulting
from the November 24, 2020 NHPUC order, as previously discussed. The Service
Company revenues decreased from the prior year 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 and unimpeded activities.
e Consolidated operating expenses increased by $0.6 million for the fourth quarter of 2020,
over the same quarter in 2019. The increase is related to increased direct operating costs
associated with the increase in water consumption levels, as well as labor and benefit
related costs.
