-3-
The Company currently has 114 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, 2015 are attached to this report.
($ Millions)
4tn Quarter Year-to-Date
2015 2014 2015 2014
Revenues $8.9 $ 8.2 $ 40.8 $ 38.8
Operating Expenses (8.1) (7.2) (32.0) (29.9)
Operating Income 0.8 1.0 8.8 8.9
Interest Expense (3.1) (2.6) (10.9) (10.1)
Other Income 0.1 - 0.1 -
Pre-Tax Income (Loss) (2.2) (1.6) (2.0) (1.2)
Income Tax Expense (Benefit) 0.3 0.6 0.3 0.6
Net Income (Loss) (2.5) (2.2) (2.3) (1.8)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) — 2.7 2.6 15.4 15.2
¢ Consolidated revenues for the fourth quarter increased by $0.7 million from
$8.2 million in 2014 to $8.9 million in 2015. The increase is primarily
attributable to higher water usage for Pennichuck Water Works, Inc.
¢ Consolidated year-to-date revenues increased from $38.8 million in 2014 to $40.8
million in 2015. Revenues from the regulated utilities increased primarily due to
increased consumption in 2015 resulting from the dry weather patterns during the
summer months.
¢ Consolidated operating expenses increased by $0.9 million for the fourth quarter
of 2015, over the same quarter in 2014. The increase is related to higher water
treatment and production costs related to higher year-over-year consumption, as
well as increases in property taxes and higher depreciation costs associated with
ongoing capital investments.
e Consolidated operating expenses increased by $2.1 million from 2014 to 2015
mainly due to higher water treatment and production costs related to higher
consumption levels, depreciation adjustments, property taxes, and pension and
labor related costs.
