Board Of Aldermen

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)
For the Years Ended December 31, 2020 and 2019
(in thousands)

2020 2019
Net Loss S (1,984) S (5,337)
Other Comprehensive Loss:
Unrealized loss on derivatives (149) (160)
Reclassification of net income realized in net loss 42 70
Income tax provision relating to
other comprehensive loss 43 36
Other Comprehensive Loss (64) (54)
Comprehensive Loss S (2,048) $ (5,391)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements Of Income (Loss)
For the Years Ended December 31, 2020 and 2019

(in thousands)

Operating Revenues

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

Total Operating Expenses
Operating Income

Interest Expense
Other, Net

Loss Before Provision for Income Taxes
Provision for Income Taxes

Net Loss

2020

50,091

24,768
8,549

6,445
39,762

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets - Continued
As of December 31, 2020 and 2019
(in thousands, except share data)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31, 2020 and 2019
(in thousands, except share data)

ASSETS
Property, Plant and Equipment, net

Current Assets:
Cash and cash equivalents
Restricted cash - RSF
Restricted cash - CIAC
Restricted cash - Bond Project Funds
Accounts receivable - billed, net
Accounts receivable - unbilled, net
Accounts receivable - other
Inventory
Prepaid expenses
Prepaid property taxes
Deferred and refundable income taxes

D MELANSON

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, 2020 and 2019, 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.

© MELANSON

INDEPENDENT AUDITORS’ REPORT

Board of Directors and Stockholder
Pennichuck Corporation and Subsidiaries

We have audited the accompanying consolidated financial statements of Pennichuck Corporation
and Subsidiaries, which comprise the consolidated balance sheets as of December 31, 2020 and 2019,
and the related consolidated statements of income (loss), comprehensive income (loss), changes in
stockholder’s equity, and cash flows for the years then ended, and the related notes to the
consolidated financial statements.

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

PENNICHUCK?

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements
December 31, 2020 and 2019

(With Independent Auditors’ Report Thereon)

-12-

¢ Completion and ongoing response and action to PFOA contamination issues in Southern NH, in
cooperation with the NHDES and other State agencies

© Implementation of the new PFAS MCL and Arsenic MCL, as governed by the NHDES

© Continued training, mentoring and succession planning throughout the organization, including
impending retirements occurring 2021-2023 for certain key roles

-ll-

Additionally, during 2018 the Company was asked by NHDES to contract for similar design
services with SGPP for expansion of its public water system in southern Bedford. This project
was initiated in 2018, and was slated for completion in the first half of 2019, bringing water to
approximately 90 new customers in that community.