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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, 2017 are attached to this report.
_($ Millions)
4h Quarter _ Year-to-Date
2017 2016 2017 2016
Revenues $ 9.7 $ 8.8 $ 40.9 $ 42.7
Operating Expenses (9.0) (8.3) (35.4) (33.9)
Operating Income 0.7 0.5 5.5 8.8
Interest Expense (2.7) (2.8) (10.8) (10.8)
Other Income _ - - 0.9
Pre-Tax Income (Loss) (2.0) (2.2) (5.3) (1.1)
Income Tax Provision (Benefit) 1.5 (0.1) Ll 0.1
Net Income (Loss) (3.5) (2.1) (6.4) (1.2)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) 2.7 2.3 13.3 16.3
Consolidated revenues for the fourth quarter increased by $0.9 million from
$8.8 million in 2016 to $9.7 million in 2017. The increase can be attributable to the
November 7, 2017 PUC Order No. 26,070 for Pennichuck Water Works, Inc. which
approved a permanent rate increase of 3.12% on a bills-rendered basis effective
December 7, 2016, and a step increase of 7.69% which was effective as of the date
of the order, November 7, 2017. Pennichuck Water Works also experienced a slight
increase in water usage in the fourth quarter in 2017 over 2016, as well.
Consolidated year-to-date revenues decreased from $42.7 million in 2016 to
$40.9 million in 2017. Revenues from the regulated utilities decreased primarily due
to lower consumption in 2017, as compared to 2016, as the prior year experienced
higher consumption levels due to the dry weather patterns throughout the summer
months, as the drought that began in mid-2015 persisted through 2016 and into the
very early part of 2017.
Consolidated operating expenses increased by $0.7 million for the fourth quarter of 2017,
over the same quarter in 2016. The increase is primarily related to increases in property
taxes and higher depreciation costs associated with ongoing capital investments.
Consolidated operating expenses increased by $1.5 million, for the full year, from 2016
to 2017, mainly due to higher maintenance related costs, increased depreciation costs,
property taxes, and pension and labor related costs.
