Investor Info 2001

November 15, 2001

Dear Shareholder:

The beautiful summer that we all enjoyed contributed to improved earnings for the nine months ended September 30, 2001. Our consolidated net income was nearly $2.4 million compared to $2.2 million for the same period last year. On a per share basis, earnings increased to $1.34 from $1.25 last year. For the current quarter, however, earnings were $1.01 million, or $0.56 per share, compared to $1.15 million, or $0.65 per share in 2000.  

For the first nine months of 2001, consolidated net revenues increased to $15.6 million from $14.5 million last year. Revenue from our regulated water utilities were $13.1 million, real estate revenues were $1.65 million and revenues from contract operations and other activities were $842,000. I am please to report that all segments of our business are contributing to earnings this year.

On October 5, 2001 the Company's Board of Directors authorized a four-for-three split of our common stock to be effected in the form of a stock dividend. The additional shares to be issued under this split will be distributed on December 3, 2001 to shareholders of record on November 19, 2001. The purpose of the stock split is to make additional shares available and affordable to our existing shareholders and potential new investors. We appreciate the continued support of our investors and their confidence in our Company.  

The Directors also authorized a quarterly dividend of $0.26 per common share, a four percent increase over the previous quarter.  The Board also approved an amendment to our dividend reinvestment and common stock purchase plan affecting the price of shares purchased with reinvested dividends. The price of shares purchased with reinvested dividends will now be 100% of the fair market value of the Company’s common stock rather than 95% as originally stated in the plan. This change will become effective for any dividends reinvested under the plan on or after February 15, 2002, the next expected dividend payment date. 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 have been credited to your account.

As always, I thank you for your support.

Sincerely,

Maurice L. Arel
President and Chief Executive Officer

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

Three Months Ended
September 30

Nine Months Ended
September 30

2001

2000 2001 2000
Revenues
Water utility operations

$5,083

$4,753 $13,141 $12,154
Real estate operations

316

1,175 1,654 1,836
Contract operations and other

255

197

842

543
5,654 5,945 15,637 14,533
Expenses
Water utility operations

$3,217

$3,035 $9,161 $8,607
Real estate operations

148

330 548 450
Contract operations and other

167

64 603 380
3,532 3,429 10,312 9,437
Operating income

2,122

2,156 5,325 5,096
Other income

44

44 176 134
Interest expense

(505)
(496)

(1,498)
(1,496)
Pretax Income 1,161 2,064 4,003 3,734
Provision for income taxes

657

813

1,561

1,443
Net Income before minority interest 1,004 1,251 2,442 2,291
Minority interest in (loss) Westwood Park (4) 101 53 85
Net Income
$1,008

$1,150

$2,389

$2,206

Basic Earnings Per Share

$.
56 		$.65

$1.34
$1.25

Diluted Earnings Per Share

 $.25 $.24 $.75 $.72

 

Condensed Consolidated Balance Sheet
(in thousands)

September 30, 2001
(Unaudited)

December 31, 2000
Assets
Plant in service

$95,151

$90,890

Accumulated depreciation (24,221) (22,453)
70,930 68,437
Current Assets 7,994 8,453
Land development costs 2,421 2,522
Other assets 3,727 3,468
Total Assets $85,072 $82,880
Stockholder's Equity and Liabilities
Common stock

$1,792

$1,770
Paid in capital

14,985

14,667
Retained earnings

13,394

12,343
Treasury stock

(545)

(184)

29,626

28,596

Minority Interest 1,203 1,150
Long Term Debt 27,218 26,918
Current Liabilities 2,824 2,473
Other liabilities & deferred credits

24,201

23,743

TOTAL STOCKHOLDERS' EQUITY & LIABILITIES $85,072 $82,880
The Company's Form 10-Q 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.

437P 3QTR 01