Investor Info 2000

May 15, 2000

Dear Shareholder:

I am pleased to report that for the three months ended March 31, 2000, consolidated net income was $460,000 compared to $456,000 for the same period in 1999 and that earnings per share were $0.26, the same as in 1999.  For the quarter, consolidated revenues were $4,135,000 compared to $3,892,000 last year.

For the quarter ended March 31, 2000, utility revenues were $3,640,000 versus $3,563,000 in 1999.  The increase in revenues is attributable to a modest increase in billed consumption in all three utilities.  Revenues from our other water-related activities were $157,000, an increase of 29% over last year.

Revenues from real estate activities were $317,000 versus $149,000 last year.  During the quarter, our real estate partnerships closed on eight homes in our Heron Cove joint venture and we sold a one-half interest in a land parcel to a local developer.  With a continued strong economy in our region, we expect real estate activity to continue at a brisk pace for the remainder of the year.

At our annual shareholders’ meeting held on April 20, 2000, all four resolutions presented for approval were adopted.  Also, the Board of Directors has adopted a Rights Agreement intended to prevent an acquiror from gaining control of the Company without offering a fair price to all of the Company’s stockholders.  Under separate cover you will receive a summary of the Rights Agreement.  I urge you to carefully review the material.

The Board of Directors has declared a quarterly dividend of $0.24 per share and your dividend check is enclosed with this report.  If you participate in the dividend reinvestment plan, you will receive a report from our transfer agent stating the number of new shares that you have acquired.  

I thank you for your continued support of our Company.

Sincerely,

Maurice L. Arel
President and Chief Executive Officer

 

Condensed Consolidated Statement of Income
Pennichuck Corporation and Subsidiaries
(in thousands, except per share amounts)

Three Months Ended --

March 31
2000

March 31
1999
Revenues
Water utility operations

$3,640

$3,563
Real estate operations and other

495
329

4,135

3,892
Expenses
Water utility operations

2,
720 		2,552
Real estate operations and other

218
163

2,938

2,715
Operating income

1,197

1,177
Other income (expense)

40

44
Interest expense

(500)
(503)
Pretax Income 737 718
Provision for income taxes

283

277
Net Income before minority interest 454 441
Minority interest in loss of Westwood Park LLC

6

15
Net Income
$ 460
$456

Basic Earnings Per Share

$.
26 		$.26

Diluted Earnings Per Share

 $.24 $.22

 

Condensed Consolidated Balance Sheet
Pennichuck Corporation and Subsidiaries
(in thousands)

March 31
2000

December 31
 1999
Assets
Plant in service

$84,585

$83,071

Accumulated depreciation (20,611) (20,066)
63,974 63,005
Current Assets 5,297 5,998
Land development costs 3,825 3,753
Other assets 2,951 2,825
Total Assets $76,047 $75,581
Stockholder's Equity and Liabilities
Common stock

$1,767

$1,761
Paid in capital

14,565

14,458
Retained earnings

10,401

10,361
Treasury stock

(358)

(323)

26,375

26,257

Minority Interest 288 295
Long Term Debt 27,206 27,223
Current Liabilities 2,549 3,130
Other liabilities & deferred credits

19,629

18,676

TOTAL STOCKHOLDERS' EQUITY & LIABILITIES $76,047 $75,581
The Company's Form 10-QSB filed quarterly with the Securities and Exchange Commission is available to shareholders upon request. Shareholders who are interested in the Company's dividend reinvestment and common stock purchase plan may obtain a prospectus by writing directly to the Company.