For Immediate Release: May 5, 2010
For More Information, Contact:
Thomas C. Leonard, Senior Vice President and Chief Financial Officer
Pennichuck Corporation Announces First Quarter 2010 Results
MERRIMACK, NH (May 5, 2010) - Pennichuck Corporation (NASDAQ: PNNW) today announced that net income
for its first quarter ended March 31, 2010 was $75,000, or $0.02 per share (diluted), on revenues
of $7.4 million. Adjusted for non-operating eminent domain-related costs which totaled $99,000,
first quarter earnings would have been $.03 per share (diluted). This compares to a net loss for
the first quarter in 2009 of $(68,000), or $(0.02) per share (diluted), on revenues of $7.0
million. Adjusted for eminent domain-related costs which totaled $118,000, 2009 first quarter
results would have been approximately breakeven.
The increase in earnings was due principally to increased water utility revenues of $476,000 and a
decrease in interest expense of $94,000, offset in part by higher utility operating expenses of
$183,000, lower Allowance for Funds Used During Construction (AFUDC) of $117,000, lower water
management service operating income of $66,000 and increased income taxes of $94,000.
The increase in utility revenues resulted from higher water rates prospectively granted by the New
Hampshire Public Utilities Commission to the Companys Pennichuck Water utility subsidiary in
August 2009. The increase in utility operating expenses was due principally to increased general
and administrative costs and higher real property taxes including state utility taxes.
Commenting on the results for the quarter, Duane C. Montopoli, Pennichucks President and Chief
Executive Officer, said, We are pleased with this earnings improvement especially considering that
our first quarter is typically our softest quarter in terms of water usage volumes. We are also
encouraged by the fact that water usage volumes for the quarter were essentially flat with the same
period in the preceding year. This is in contrast to the year-over-year consumption decline we
experienced in the first quarter of last year relative to the preceding year, and suggests the
economy may well be beginning to improve. Its also a good sign that we are seeing increased
interest by developers in new connections to our water systems.
Commenting on the Companys eminent domain dispute with the city of Nashua, Mr. Montopoli added,
Upon learning of the New Hampshire Supreme Court decision, Mayor Lozeau was quoted in the local
newspaper as saying that she believes a private settlement is still in everyones best interest.
Our board of directors shares that view and, accordingly, we will continue to consider any and all
credible acquisition proposals the city may wish to make.
Pennichuck Corporation is a holding company involved principally in the supply and distribution of
potable water in New Hampshire through its three regulated water utilities. Its non-regulated,
water-related activities include operations and maintenance contracts with municipalities and
private entities in New Hampshire and Massachusetts. The Companys real estate operations are
involved in the ownership, management and commercialization of real estate in southern New
Pennichuck Corporations common stock trades on the Nasdaq Global Market under the symbol PNNW.
The Companys website is at www.pennichuck.com.
This news release may contain certain forward-looking statements with respect to the financial
condition, results of operations and business of Pennichuck Corporation. Forward-looking
statements are based on current information and expectations available to management at the time
the statements are made, and are subject to various factors, risks and uncertainties that could
cause actual results to differ materially from those expressed or implied by such forward-looking
statements. These factors include, but are not limited to, the implications of the New Hampshire
Supreme Courts March 25, 2010 decision affirming the eminent domain order of the New Hampshire
Public Utilities Commission in favor of the City of Nashua, New Hampshire; the impact of an eminent
domain taking by Nashua on business operations and net assets; legislation and/or regulation and
accounting factors affecting Pennichuck Corporations financial condition and results of
operations; the availability and cost of capital, including the impact on our borrowing costs of
changes in interest rates; and the impact of weather. Investors are encouraged to access
Pennichuck Corporations annual and quarterly periodic reports filed with the Securities and
Exchange Commission for financial and business information regarding Pennichuck Corporation,
including a more detailed discussion of these and other risks and uncertainties that could affect
Pennichuck Corporations forward-looking statements. We undertake no obligation to update or
revise publicly any forward-looking statement.