~3-
Ihe Company currently has 126 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,
nationat 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
*
($ Millions)
4" Quarter Year-to-Date
2021 2020 2021 2020
Revenues $13.8 $12.1 $51.7 $49.7
Operating Expenses (10.7) {10.4} (42.0) (39.4)
Opcrating Income 3.1 1.7 9.7 10.3
Interest Expense (3.3) (3.6) (13.9) (11.9)
Other Income _ 0.0 0.1 0.3 0.1
Pre-Tax Income (Loss) (0.2} (1.8) (3.9) (1.5)
Income Tax Provision (Bencfit) 0.2 0.8 _(0.2) 0.5
Net Income (Loss) (0.4) (2.6) 3.7) (2.0)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) — 5.4 40 18.9 19.1
Consolidated revenues for the fourth quarter increased by $1.7 million from $12.1 million
in 2020 to $13.8 million in 2021. The increase is attributable to (1) $2.3 million in
additional recoupment revenues earned and recorded for Pennichuck Water Works in the
fourth quarter, which resulted from the December 9, 2021 NHPUC issued Order No.
26,555. This order approved a QCPAC surcharge of 3.9%, which was effective for capital
projects placed in service in 2019; and (2) on November 9, 2021, the NHPUC issued
Order No. 26,544 approving a permancnt rate increase of 5.45% for Pittsfield Aqueduct,
becoming effective with services rendered back to December 17, 2020.
Consolidated year-to-date revenues increased from $49.7 million in 2020 to $51.7 million
in 2021, an increase of 4.0%. Revenues from the regulated utilities increased due to:
(1) the additional $2.3 million in recoupment revenues recorded for Pennichuck Water
Works, resulting from the December 9, 2021 NHPUC order, as previously discussed;
(2) the 5.45% permanent rate increase for Pittsfield Aqueduct, which was approved by the
NHPUC on November 9, 2021, as previously discussed; and (3) the Service Company
revenues which increased from the prior year due to increases in their Unplanned Revenues
and Backflow Salcs, as these activitics returned to their historical pre-COVID-19 pandemic
levels.
