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Investor Info 2002 For
Immediate Release: Contact:
Maurice L. Arel, President and Chief Executive Officer Pennichuck
Corporation Announces Maurice
L. Arel, President and Chief Executive Officer of Pennichuck Corporation,
announced today that the Company’s consolidated net income for the
three months ended September 30, 2002 was $1,377,000, or $.58 per
share compared to net income of $1,008,000, or $.42 per share for
the same quarter last year. The net income for the first nine months
of 2002 was $1,298,000, or $.54 per share compared to net income of
$2,389,000, or $1.01 per share for the same period in 2001. He stated
that the Company's results of operations thus far in 2002 have been
impacted by approximately $1.67 million in expenses incurred in connection
with the proposed merger with Philadelphia Suburban Corporation. Excluding
the effect of those merger-related expenses, Mr. Arel indicated that
the Company's consolidated net income for the quarter ended September
30, 2002 would have been approximately $1.46 million, or $.61 per
share, and $2.83 million, or $1.18 per share, for the nine months
ended September 30, 2002. The Company’s
consolidated revenues for the third quarter increased from $5,654,000
in 2001 to $6,537,000 in 2002. The $883,000 increase in revenue occurred
primarily in the Company’s water-related businesses reflecting the
positive effect of a 14.43% overall increase in the Company's core
utility’s water rates and additional operating contracts in the Company’s
non-regulated service corporation. Consolidated year-to-date revenues in 2002 were $18,455,000, or $2.82 million more than the same period last year, chiefly due to a $2.43 million land sale which occurred in January 2002. Combined utility revenues of $14,314,000 for 2002 were $1,173,000 greater than in the first nine months of 2001 reflecting the net effect of the rate increase granted earlier this year and a 2.2% growth in the utilities’ customer base, offset by a 5.1% decrease in billed consumption from the same period last year. In
April 2002, the Company entered into a definitive agreement with Philadelphia
Suburban Corporation (“PSC”) to merge in a stock-for-stock transaction.
The merger is subject to several conditions, including among other things,
Pennichuck Corporation is a holding company located in Nashua, New Hampshire with diversified businesses involved in regulated water supply and distribution in cities and towns throughout southern and central New Hampshire; non-regulated, water-related services and operations; and real estate management and development. Pennichuck
Corporation is traded on the Nasdaq NMS exchange under the symbol “PNNW”.
This
communication may be deemed to be solicitation material in respect of
the proposed acquisition of Pennichuck by PSC, pursuant to an Agreement
and Plan of Merger, dated as of April 29, 2002, by and between Pennichuck
and PSC. Pennichuck and its directors and executive officers may be
deemed to be participants in the solicitation of proxies in respect
of the transactions contemplated by the Agreement and Plan of Merger.
Information concerning any direct or indirect interest in the proposed
merger of Pennichuck’s directors and executive officers, including their
beneficial ownership of Pennichuck common stock and the terms of change
of control or similar arrangements with certain of Pennichuck’s executive
officers, may be found in Pennichuck’s proxy statement filed with the
SEC under Schedule 14A on April 2, 2002 and in the proxy statement/prospectus
to be filed by Pennichuck and PSC in connection with the transaction.
The proxy statement is available, and the proxy statement/prospectus
when filed will be available, for free both on the SEC’s website (http://www.sec.gov)
or by contacting the Corporate Secretary at Pennichuck at (603) 882-5191.
Investors
and security holders are advised to read the definitive registration
statement and proxy statement/prospectus regarding the business combination
transaction referenced in the foregoing information, when it becomes
available, because it will contain important information. The registration statement and proxy statement/prospectus will be filed with the Securities and Exchange Commission by PSC and Pennichuck. Investors and security holders may obtain a free copy of the registration statement and proxy statement/prospectus (when they are available) and other documents filed by PSC and Pennichuck at the Commission's website at http://www.sec.gov. The proxy statement/prospectus and such other documents may also be obtained from PSC or from Pennichuck by directing such request to Philadelphia Suburban Corporation, 762 West Lancaster Avenue, Bryn Mawr, Pennsylvania 19010, Attn: Corporate Secretary; or to Pennichuck Corporation, 4 Water Street, Nashua, NH 03060. Pennichuck
Corporation
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