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Strategies supporting the corporate mission have been developed relative to our water resources,
employees, financing, customer services and Company assets. These strategies together with
the goals and plans to support the strategies are available on the Company’s website,
www.pennichuck.com, under the “Company Reports” caption.
The Company currently has 113 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/A ffirmative 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, 2016 are attached to this report.
($ Millions)
4" Quarter Year-to-Date
2016 2015 2016 2015
Revenues $ 8.8 $ 8.9 $ 42.7 $ 40.8
Operating Expenses (8.3) (8.1) (33.9) (32.0)
Operating Income 0.5 0.8 8.8 8.8
Interest Expense (2.8) (3.1) (10.8) (10.9)
Other Income - 0.1 0.9 _ 0.1
Pre-Tax Income (Loss) (2.2) (2.2) (1.1) (2.0)
Income Tax Expense (Benefit) (0.1) 0.3 0.1 0.3
Net Income (Loss) (2.1) (2.5) (1.2) (2.3)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization(EBITDA) 2.3 2.7 16.3 15.4
e Consolidated revenues for the fourth quarter decreased by $0.1 million from
$8.9 million in 2015 to $8.8 million in 2016. The decrease is primarily
attributable to lower water usage for Pennichuck Water Works, Inc.
e Consolidated year-to-date revenues increased from $40.8 million in 201 5 to
$42.7 million in 2016. Revenues from the regulated utilities increased primarily
due to increased consumption in 2016 resulting from the dry weather patterns
during the summer months.
e Consolidated operating expenses increased by $0.2 million for the fourth quarter
of 2016, over the same quarter in 2015. The increase is related to increases in
property taxes and higher depreciation costs associated with ongoing capital
investments.
