Agenda

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2018 and 2017
(in thousands)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the Year Ended December 31, 2017
(in thousands, except per share data)

Accumulated

Additional Other
Common Stock Paid in Retained Comprehensive
Shares Amount Capital Earnings /(Deficit) Income Total

Balance as of
January t, 2017 1,000 $ - $ 30,561 $ (10,241) $ 258 $ 20,578
Common dividends declared - - - (279) - (279)
Net loss - - - (6,441) - (6,441)
Other comprehensive income:

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the Year Ended December 31, 2018
(in thousands, except per share data)

Accumulated
Additional Other
Common Stock Paid in Retained Comprehensive
Shares Amount Capital Earnings/(Deficit) Income Total

Balance as of
January 1, 2018 1,000 =$ - $ 30.561 $ (16,961) $ 305 $ 13,905
Common dividends declared - - - (280) - (280)
Net loss - - - (3,282) - (5,282)
Other comprehensive income:

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, 2018 and 2017
(in thousands)

2018 2017

Net Loss $ (5,282) $ (6,441)

Other Comprehensive Income (Loss):
Unrealized gain on derivatives

53 3
Reclassification of net income realized in net income 59 76
Income tax benefit relating to

other comprehensive income (45) (32)
Other Comprehensive Income 67 47

Comprehensive Loss

$ (5,215) $_ (6,394)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)

For the Years Ended December 31, 2018 and 2017
(in thousands)

Operating Revenues

Operating Expenses:
Operations and maintenance
Depreciation and amortization
Taxes other than income taxes

Total Operating Expenses
Operating Income

Interest Expense
Allowance for Funds Used During Construction
Other, Net

Loss Before Provision for Income Taxes
Provision tor Income Taxes

Net Loss

$

$

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
As of December 31, 2018 and 2017
(in thousands, except share data)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of December 31, 2018 and 2017
(in thousands, except share data)

2018 2017
ASSETS

Property, Plant and Equipment, net $ 221,860 $ 210,498

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of Pennichuck Corporation and Subsidiaries as of
December 31, 2018 and 2017, and the results of their operations and their cash flows for the

years then ended in accordance with accounting principles generally accepted in the United
States of America.

Molaro Hoa th

ACCOUNTANTS * AUDITORS [ia

MELANSON ga

121 River Frant Drive
Manchester, NH 03102
(603}669-6130

melansomheath.com

Additional Offices:
Nashua, NH
Andover, MA
Greenfield, MA

Board of Directors and Stockholder Elisworth, ME
Pennichuck Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REPORT

CONTENTS

Independent Auditors’ Report

Consolidated Balance Sheets

Consolidated Statements of Income (Loss)

Consolidated Statements of Comprehensive Income (Loss)

Consolidated Statement of Changes in Stockholder’s Equity Current Year

Consolidated Statement of Changes in Stockholder’s Equity Prior Year

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

11