For
Immediate Release:
February
23, 2005
Contact:
Donald
L. Correll, President and Chief Executive Officer
William
D. Patterson, VP, Treasurer and Chief Financial Officer
Phone:
603-882-5191
Fax: 603-882-4125
Pennichuck Corporation
Announces 2004 Earnings
Higher Utility
Revenues and Customer Growth Contribute to Earnings Increase
MERRIMACK, NH (February 23, 2005) – Donald L.
Correll, President and Chief Executive Officer of Pennichuck Corporation, today
announced the Company’s consolidated earnings for the year ended December 31,
2004.
Net income for the year was $1.8 million, compared
to consolidated net income of $1.2 million in 2003. On a per share basis, basic
earnings per share for 2004 were $.76 compared to $.52 for 2003. The earnings increase
was due primarily to higher utility revenues.
These were attributable to a temporary rate increase approved by the New
Hampshire Public Utilities Commission (NHPUC) of 8.9% implemented by Pennichuck
Water Works, Inc. for service rendered on and after June 1, 2004; a permanent
rate increase of 17.7% approved by the NHPUC and implemented by Pittsfield
Aqueduct Company, Inc. in February 2004; and a 1.5% increase in the combined
utility customer base for the year.
Mr. Correll said, “2004 was a transitional year for
Pennichuck, characterized by solid progress toward our key growth initiatives
and continued investments in capital improvements. From that platform, we are
moving forward in 2005 with a renewed focus on growing revenues, improving
profitability, undertaking major system upgrades, and broadening our customer
base through acquisitions and new service contracts. Despite the ongoing distraction and cost of
defending against the eminent domain action by the City of
During 2004, the Company incurred approximately $1.2
million in expenses relating primarily to the eminent domain action by the City
of
The combined revenues of the Company's three
utilities increased to $19.6 million, or an increase of approximately 5.0% from
2003. This increase was due primarily to
the rate relief received during 2004 as well as customer growth within the
regions in which the Company serves. Combined
net income for the Company's three utilities increased from $1.3 million in
2003 to $1.6 million in 2004.
Contract operations and other activities generated
revenues of $1.9 million in 2004 compared to $1.7 million in 2003. The increase
in contract revenues reflects the addition of 12 smaller system contracts
during 2004 and increased contract fees for work performed under certain
operating contracts.
Revenues generated from the Company's real estate
activities during 2004 were $1.4 million compared to $949,000 in 2003. Revenues
in 2004 included approximately $1.2 million from the sale of a 67-acre parcel
of unimproved land.
Pennichuck will conduct a Webcast and conference
call for investors at 9 a.m. on Thursday, February 24. The live webcast and webcast replay will be
available at www.pennichuck.com. To
access the webcast, go to www.pennichuck.com,
then click on the Investor Relations page and the webcast section. The domestic call-in number is
1-800-500-0311; international callers should dial 1-719-457-2698. A replay of the webcast will be available
after the conclusion of the call and archived on the Company’s website.
Pennichuck Corporation is a holding company involved
principally in the supply and distribution of potable water in southern and
central
This news release contains 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, timing and results of eminent domain
proceedings before the NHPUC, and the impact thereof on consolidated business
operations; timing and amount of regulated water utility rate relief; changes
in general economic conditions, legislation or regulation and accounting
factors affecting Pennichuck Corporation’s financial condition and results of operations;
and, the impact of weather. Investors
are encouraged to access Pennichuck Corporation’s 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 Corporation’s forward-looking statements.
Summary of Financial
Results
Pennichuck
Corporation
Twelve
Months Ended December 31 –
2004 2003
Total
Revenues $23,045,000 $21,388,000
Net
Income $ 1,832,000 $ 1,247,000
Earnings
Per Share:
Basic $.76 $.52
Diluted $.76 $.52
Average
Shares Outstanding:
Basic 2,401,000 2,393,000
Diluted 2,409,000 2,398,000
Quarter Ended December 31 –
2004 2003
Total
Revenues $6,598,000 $4,886,000
Net
Income (Loss) $1,061,000 $ (313,000)
Earnings
(Loss) Per Share:
Basic $ .44 $ (.13)
Diluted $ .44 $ (.13)
Average
Shares Outstanding:
Basic 2,413,000 2,396,000
Diluted 2,422,000 2,396,000