Attached files
file | filename |
---|---|
10-Q - 10-Q - PENNICHUCK CORP | c24131e10vq.htm |
EX-32.1 - EXHIBIT 32.1 - PENNICHUCK CORP | c24131exv32w1.htm |
EX-31.2 - EXHIBIT 31.2 - PENNICHUCK CORP | c24131exv31w2.htm |
EX-32.2 - EXHIBIT 32.2 - PENNICHUCK CORP | c24131exv32w2.htm |
EX-31.1 - EXHIBIT 31.1 - PENNICHUCK CORP | c24131exv31w1.htm |
EXCEL - IDEA: XBRL DOCUMENT - PENNICHUCK CORP | Financial_Report.xls |
Exhibit 99.1
For Immediate Release: November 7, 2011
For More Information, Contact:
Thomas C. Leonard, Senior Vice President and Chief Financial Officer
Phone: 603-913-2300
Fax: 603-913-2305
Thomas C. Leonard, Senior Vice President and Chief Financial Officer
Phone: 603-913-2300
Fax: 603-913-2305
Pennichuck Corporation Announces Third Quarter 2011 Earnings
Year-to-Date Adjusted EPS Up 21% Over Prior Year
Year-to-Date Adjusted EPS Up 21% Over Prior Year
MERRIMACK, NH (November 7, 2011) - Pennichuck Corporation (NASDAQ: PNNW) today announced that net
income for its third quarter ended September 30, 2011 was $2.4 million, or $0.50 per share
(diluted), on revenues of $11.9 million. Adjusted for non-operating eminent domain and
merger-related costs incurred in connection with the Companys agreement to be acquired by the City
of Nashua, New Hampshire, which totaled $99,000, third quarter earnings were $0.51 per share
(diluted). This compares to net income for the third quarter in 2010 of $2.3 million, or $0.48 per
share (diluted), on revenues of $11.8 million. Adjusted for eminent domain and merger-related
costs which totaled $159,000, 2010 third quarter earnings were $0.50 per share (diluted).
The increase in 2011 third quarter earnings of $104,000 was due principally to increased water
utility revenues of $95,000, lower utility operating expenses of $33,000 and lower merger-related
costs of $60,000, offset in part by increased income tax expense of $69,000. The increase in
utility revenues for the quarter resulted from an 11.95% permanent rate increase granted to the
Companys Pennichuck Water regulated utility subsidiary in June 2011, net of the effects of an
approximate 15% decline in water usage volumes in this years third quarter. Weather conditions
for the third quarter of 2010 were unusually dry and warm. The decrease in utility operating
expenses was due principally to decreased production costs as a result of the lower water usage
volumes, partly offset by higher real property taxes including state utility taxes and higher
healthcare and other employee benefit costs.
For the nine months ended September 30, 2011, net income was $4.0 million, or $0.83 per share
(diluted), on revenues of $30.2 million. Adjusted for eminent domain and merger-related costs
which totaled $672,000, earnings for the nine months ended September 30, 2011 were $0.92 per share
(diluted). This compares to net income for the nine months ended September 30, 2010 of $3.3
million, or $0.71 per share (diluted), on revenues of $28.3 million. Adjusted for eminent domain
and merger-related costs which
totaled $392,000, earnings for the nine months ended September 30, 2010 were $0.76 per share
(diluted). Adjusted earnings of $0.92 per share represents a 21% increase over adjusted earnings
of $0.76 per share.
The increase in net income for the nine months ended September 30, 2011, compared with the same
period in the prior year, was due principally to increased water utility revenues of $1.8 million,
offset in part by higher utility operating expenses of $542,000, higher eminent domain and
merger-related costs in the amount of $280,000 and increased income tax expense of $408,000. The
increase in utility revenues resulted from a 10.8% temporary rate increase prospectively granted to
the Companys Pennichuck Water Works, Inc. regulated water utility subsidiary (Pennichuck Water)
in October 2010 and the replacement of that temporary rate order by an 11.95% permanent rate
increase granted in June 2011, net of the effects of lower water usage volumes in the third quarter
of the current year due to comparatively cooler weather and continued water conservation. In June
of this year, the Company also recorded recoupment operating revenues of approximately $1.2 million
based on rates set in the permanent rate order for service rendered from June 2010 to June 2011.
The increase in utility operating expenses was due principally to increased production,
transmission and distribution costs, higher real property taxes including state utility taxes and
higher healthcare and other employee benefit costs.
Commenting on the results for the third quarter, Duane C. Montopoli, Pennichucks President and
Chief Executive Officer, said, The timely receipt of rate relief by Pennichuck Water resulted in
revenues and net income that compare favorably with 2010 even though consumption dropped 15%
primarily as a result of a return to more seasonable weather in the current year.
Commenting on the Companys planned acquisition by the City of Nashua, Mr. Montopoli added, I am
pleased that we were able to reach a settlement with the NHPUC staff and a majority of the
intervenors, which was filed and then reviewed at an NHPUC hearing on October 25, 2011. We are
currently awaiting a decision from the NHPUC. If we receive a favorable decision, I would expect
Nashua to complete its bond issue as soon as practicable in order to close the transaction no later
than the first quarter of 2012.
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 environmentally responsible commercialization of real
estate in southern New Hampshire.
Pennichuck Corporations common stock trades on the Nasdaq Global Market under the symbol PNNW.
However, upon the completion of the proposed merger with the City
of Nashua, Pennichucks common stock will cease to be publicly-traded. The Companys website is at
www.pennichuck.com.
2
Forward-Looking Statements
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, a future judicial or regulatory
determination that events prior to the November 11, 2010 effective date of our merger agreement
with the City of Nashua constituted a final determination of the price to be paid under RSA 38:13
and triggered the statutory 90-day period within which the City was required to decide whether to
take, by eminent domain, the assets of our Pennichuck Water Works, Inc. subsidiary; the expiration
of said 90-day period without the City having made any such decision; whether the merger
transaction is approved by the NHPUC; whether the merger transaction is ultimately consummated;
Nashuas ability to obtain appropriate financing for the merger; the outcome of requests for rate
relief from the NHPUC from time to time; changes in governmental regulations; 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.
3
Pennichuck Corporation and Subsidiaries
Comparative Financial Results
Comparative Financial Results
Quarter Ended September 30: | 2011 | 2010 | ||||||
Operating Revenues |
$ | 11,901,000 | $ | 11,765,000 | ||||
Operating Income |
$ | 4,869,000 | $ | 4,762,000 | ||||
Net Income |
$ | 2,377,000 | $ | 2,273,000 | ||||
Earnings Per Common Share: |
||||||||
Basic |
$ | 0.51 | $ | 0.49 | ||||
Diluted |
$ | 0.50 | $ | 0.48 | ||||
Weighted Average Common Shares Outstanding: |
||||||||
Basic |
4,685,170 | 4,660,077 | ||||||
Diluted |
4,759,575 | 4,696,338 |
Nine Months Ended September 30: | 2011 | 2010 | ||||||
Operating Revenues |
$ | 30,214,000 | $ | 28,294,000 | ||||
Operating Income |
$ | 9,709,000 | $ | 8,448,000 | ||||
Net Income |
$ | 3,966,000 | $ | 3,344,000 | ||||
Earnings Per Common Share: |
||||||||
Basic |
$ | 0.85 | $ | 0.72 | ||||
Diluted |
$ | 0.83 | $ | 0.71 | ||||
Weighted Average Common Shares Outstanding: |
||||||||
Basic |
4,682,220 | 4,657,404 | ||||||
Diluted |
4,755,818 | 4,685,389 |
4