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Investor Info 2004 For Immediate
Release: Contact:
Donald L. Correll., President and Chief Executive Officer Pennichuck
Corporation Announces Third Quarter 2004 (Nashua, NH) -- Donald L. Correll, President and Chief Executive Officer of Pennichuck Corporation, announced today that for the quarter ended September 30, 2004 the Company earned $577,000, or $.24 per share, compared to net income of $1,022,000, or $.43 per share for the same quarter in 2003. Mr. Correll indicated that, among things, the results of operations for the three months ended September 30, 2004 were adversely impacted by nearly $250,000 of legal and other costs relating to the City of Nashua's ongoing eminent domain efforts. Excluding the effects of these charges, the Company's net income for the quarter ended September 30, 2004 was $724,000, or $.30 per share compared to $1,054,000, or $.44 per share for the quarter ended September 30, 2003. Mr. Correll stated that these costs continue to be borne the Company's shareholders and he emphasized that none of the eminent domain costs relating to the City of Nashua's efforts have been charged or allocated to any of the Company's regulated utilities. For the nine months ended September 30, 2004, the Company's consolidated net income was $771,000, or $.32 per share, compared to $1,560,000, or $.65 per share for the same period in 2003. Consolidated revenues for the third quarter of 2004 were $6.24 million, representing a 2.4% decrease from the same quarter in 2003. Consolidated revenues for the first nine months of 2004 were $16.48 million compared to $16.5 million for the first nine months of 2003. The combined revenues of the Company's three utilities decreased slightly from $5.71 million in the third quarter of 2003 to $5.65 million for the quarter ended September 30, 2004. Mr. Correll stated that the water sales during the third quarter of 2004 were adversely affected by nearly 17" of rainfall, or 21% more than in the same quarter of 2003. However, Mr. Correll did point out that the utilities' revenues have been positively affected by a 1.5% increase in new customers, especially in the utilities' outlying community water systems and an 8.94% temporary rate increase granted to Pennichuck Water Works, Inc. effective on June 1, 2004. Revenues from the Company's non-regulated water service business were $494,000 for the quarter ended September 30, 2004, a modest decrease of $25,000 compared to the same period last year. The decrease in contract revenues is principally due to lower fees earned for unscheduled maintenance work under the two largest operating contracts with the Town of Hudson, New Hampshire and the Town of Salisbury, Massachusetts. The decrease in quarterly revenues from these operating contracts was partially offset, however, by revenues from the acquisition of 15 new operating contracts for smaller, privately-owned systems in the southern part of New Hampshire. Pennichuck Corporation is a holding company located in Nashua, New Hampshire with diversified businesses involved in regulated water supply and distribution in Nashua 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".
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