Board Of Aldermen

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, 2017 and 2016
(in thousands)

2017 2016

Net Loss $ (6,441) $ (1,240)
Other Comprehensive Income (Loss):

Unrealized gain (loss) on derivatives 3 (28)

Reclassification of net income realized in net income 76 123

Income tax benefit relating to

other comprehensive income (32) (38)

Other Comprehensive Income 47 57
Comprehensive Loss $ (6,394) $ (1,183)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
For the Years Ended December 31, 2017 and 2016
(in thousands)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
As of December 31, 2017 and 2016
(in thousands, except share data)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of December 31, 2017 and 2016
(in thousands, except share data)

2017 2016

ASSETS

Property, Plant and Equipment, net $ 210,498 $ 201,698

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, 2017 and 2016, 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.

Mebenson Haath

MELANSON| maa

ACCOUNTANTS * AUDITORS

12! River Front Drive

Manchester, NH 03102
(603)669-6130
melansonheath.com

Additional Offices:

Nashua, NH
Andover, MA
Greenfield, MA

Board of Directors and Stockholder Ellsworth, 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

il

Pennichuck Corporation and Subsidiaries
Consolidated Financial Statements

December 31, 2017 and 2016

(with Independent Auditors’ Report Thereon)

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Fixed Asset Line of Credit (FALOC) in place with TD Bank, NA, in order to provide for short-
term financing of capital projects each year coupled with the annual QCPAC surcharge, and annual
issuances of bonds under the $32.5 million facility described above. On February 2, 2018, the

. NHPUC approved a portion of this order, allowing for the issuance of the $32.5 million in bonds
early in the second quarter of 2018; the order on the FALOC with TD Bank, NA, is still pending.

Other Events

PFOA Contamination Issues