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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, 2018 are attached to this report.
($ Millions)
4 Quarter Year-to-Date
2018 2017 2018 2017
Revenues $10.7 $ 9.7 $ 45.3 $ 40.9
Operating Expenses (9.4) (9.0) (38.1) (35.4)
Operating Income 1.3 0.7 7.2 5.5
Interest Expense (2.8) (2.7) (10.9) (10.8)
Other Income ae - - -
Pre-Tax Income (Loss) (1.5) (2.0) (3.7) (5.3)
Income Tax Provision (Benefit) 17 1.5 1.6 1.1
Net Income (Loss) (3.2) (3.5) (5.3) (6.4)
Dividends Paid to the Shareholder 0.1 0.1 0.3 0.3
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) 3.5 2.7 15.4 13.3
Consolidated revenues for the fourth quarter increased by $1.0 million from
$9.7 million in 2017 to $10.7 million in 2018. The increase is primarily attributable
to the October 4, 2018 PUC Order No. 26,179 for Pennichuck East Utility, Inc.
which approved an overall permanent rate increase of 17.86%, which already
included a temporary rate increase of 12.24%, which was approved on May 31, 2018
as a Subset of the new permanent rates, and a 1.43% step increase earned on a
forward-looking basis for bills-rendered on or after November 16, 2018.
Consolidated year-to-date revenues increased from $40.9 million in 2017 to
$45.3 million in 2018, an increase of 10.8%. Revenues from the regulated utilities
increased primarily due to: (1) the full-year inpact of the Pennichuck Water Works,
Inc. Permanent and Step increase which was approved on November 7, 2017,
totaling 10.81%, by the New Hampshire Public Utilities Commission (NHPUC) on
Order No. 26,070, (2) the Pennichuck East Utility, Inc. permanent rate increase of
17.86%, described in detail in the preceding paragraph, and (3) the Service Company
experiencing increases in overall revenues despite the loss of one large service
contract at the end of June 2018, which was offset by the addition of another new
significant service contract in early 2018, in addition to increases in unplanned
revenue activities for a number of the operating contracts during the year.
Consolidated operating expenses increased by $0.4 million for the fourth quarter of 2018,
over the same quarter in 2017. The increase is primarily related to labor related costs,
inflationary increases, higher maintenance related costs, production costs, and higher
depreciation costs associated with ongoing capital investments.
