Board Of Aldermen

PENNICHUCK CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Description of Business and Summary of Significant Accounting Policies

Description of Business

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows - Continued
For the Years Ended December 31, 2020 and 2019
(in thousands)

2020 2019

Cash Flows From Financing Activities:

Borrowings (payments) on lines of credit, net S (3,803) $ 2,657

Payments on long-term debt (65,649) (6,034)

Contributions in aid of construction 35 48

Proceeds from long-term borrowings 87,290 18,692

Debt issuance costs (11,922) (327)

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows
For the Years Ended December 31, 2020 and 2019
(in thousands)

Balance as of
January 1, 2019

PENNICHUCK CORPORATION AND SUBSIDIARIES

Consolidated Statement of Changes in Stockholder's Equity

For the Year Ended December 31, 2019
(in thousands, except per share data)

Accumulated

Common dividends declared - -

Net loss

Other comprehensive income:

Unrealized gain on derivatives,

net of taxes of $(63)

Reclassification of net income
realized in net income, net of

taxes of $27

Balance as of
December 31, 2019

Balance as of
January 1, 2020

Common dividends declared
Net loss
Other comprehensive income:

Unrealized loss on derivatives,
net of taxes of $(60)

Reclassification of net income
realized in net loss, net of
taxes of $17

Balance as of
December 31, 2020

PENNICHUCK CORPORATION AND SUBSIDIARIES
Consolidated Statement of Changes in Stockholder's Equity

For the Year Ended December 31, 2020
(in thousands, except per share data)

Accumulated

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.