-4-
An increase in interest expense from 2014 to 2015 of approximately $0.8 million
is primarily due to the increased financed amounts for capital projects.
Pre-tax loss for the fourth quarter increased from $1.6 million in 2014 to
$2.2 million in 2015 due to an increase in interest cost associated with the
financing of capital projects, as well as the increase in operating expenses, offset _
by the higher year-over-year revenues.
The pre-tax loss for the year increased from $1.2 million in 2014 to $2.0 million
in 2015 due to overall increased operating and interest expenses, offset by higher
revenues.
Dividends paid to the sole shareholder in both 2014 and 2015 were consistent
with, and were paid pursuant to, the CBFRR structure provided for in the New
Hampshire Public Utilities Commission’s Order approving the City’s ownership
of the Company.
Income Tax Expense in the current year reflects the tax treatment for the
Municipal Acquisition Regulatory Asset, which is not deductible for tax purposes.
Therefore, the year-to-date results reflect a tax provision of approximately -15%
of pre-tax income compared to the statutory tax rate expense of 39.6%.
Earnings Before Interest, Taxes, Depreciation and Amortization increased in the
fourth quarter from $2.6 million in 2014 to $2.7 million in 2015 due to higher
revenues, offset by operating expense variations (excluding depreciation and
interest),
Earnings Before Interest, Taxes, Depreciation and Amortization for 2015
increased slightly over 2014 by approximately $0.2 million, again due to higher
revenues earned year-over-year, offset by operating expense increases, excluding
depreciation and interest expenses.
