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related topics |
{debt, indebtedness, cash} |
{capital, credit, financial} |
{cost, contract, operation} |
{operation, natural, condition} |
{condition, economic, financial} |
{personnel, key, retain} |
{loan, real, estate} |
{provision, law, control} |
{stock, price, share} |
{cost, regulation, environmental} |
{acquisition, growth, future} |
{regulation, change, law} |
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Risks Related to Our Water Utilities
The City of Nashua s use of the power of eminent domain to acquire a significant portion of our water utility assets creates uncertainty and may result in material adverse consequences for us and our shareholders.
Our vigorous opposition to the City s efforts to acquire our assets by eminent domain has had, and may continue to have, a material adverse effect on our operating results and has been, and may continue to be, a significant distraction to our management.
Our liquidity may be reduced and our cost of debt financing may be increased while the eminent domain controversy remains unresolved, because, while such controversy is ongoing, we may be unable to, or elect not to, issue or remarket debt securities for which Pennichuck may be liable.
Our water utility business requires significant capital expenditures and the rates we charge our customers are subject to regulation. If we are unable to obtain government approval of our requests for rate relief, or if approved rate relief is untimely or inadequate to cover our investments, our operating results would suffer.
The relatively large magnitude of rate relief that we have currently requested in order to obtain recovery of and a return on recent capital expenditures may adversely affect our ability to obtain timely and adequate rate relief and, therefore, could adversely affect our ability to service the debt that we have incurred.
Our financial flexibility may be limited during the next several years, as our long-term debt and our ratio of total debt to total capitalization has increased significantly as a consequence of our debt funding of our capital expenditures.
Changes in the U.S. debt markets, including especially adverse changes to the municipal bond market in general and to the financial condition of our bond insurer, has had and may continue to have an adverse effect on the interest expense we incur for certain tax-exempt financings and in the future may require Pennichuck to accept less advantageous terms and conditions on its tax-exempt financings.
We may not be able to maintain our existing indebtedness or to incur additional indebtedness under our existing long-term and revolving debt facilities, if our future credit ratios do not satisfy the requirements under those facilities.
If we are unable to pay the principal and interest on our indebtedness as it comes due or we default under certain other provisions of our loan documents, our indebtedness could be accelerated and our operating results, financial condition and cash flows could be adversely affected.
We expect that all or substantially all of our then outstanding indebtedness would be accelerated if the City were to acquire a significant portion of our assets; such acceleration could adversely affect our financial condition, operating results and cash flows.
We may be restricted by one or more debt agreements from paying dividends in amounts similar to dividends that our Company has paid in recent periods, or, in more unlikely circumstances, from continuing to pay any dividend.
The loss of a significant commercial or industrial customer can and has adversely affected our operating results and cash flows.
We are subject to federal, state and local regulation that may impose significant limitations and restrictions on the way we do business.
An important element of our growth strategy is the acquisition of water systems. Any pending or future acquisition we decide to undertake will involve risks.
The current concentration of our business in southern and central New Hampshire makes us susceptible to any adverse development in local regulatory, economic, demographic, competitive and weather conditions.
Weather conditions and overuse may interfere with our sources of water, demand for water services and our ability to supply water to our customers.
Contamination of our water supply may cause disruption in our services and adversely affect our operating results, financial condition and cash flows.
The necessity for increased security has and may continue to result in increased operating costs.
Damage to any of our dams may adversely affect our financial condition, revenues, operating results and cash flows.
The success of our acquisition strategy depends significantly on the services of the members of our senior management team and the departure of any of those persons could cause our operating results to suffer.
Risks Related to Our Water Management Business
Our water management subsidiary s revenue growth depends on its ability to enter into new operating contracts and maintain its existing contracts with municipalities, communities and non-transient, non-community water systems.
Our water management subsidiary s business depends on trained, qualified employees.
Our water management subsidiary s business is subject to environmental and water quality risks.
Risks Related to Our Real Estate Activities
The cost of obtaining development permits and other land use approvals, as well as fluctuations in interest rates, construction costs and economic conditions prevailing in the Nashua/Merrimack area and the supply of investment capital for commercial real estate and related assets, could adversely affect the value of our undeveloped land.
There is a limited trading market for our common stock; you may not be able to resell your shares at or above the price you pay for them.
We are subject to anti-takeover measures that may be used by existing management to discourage, delay or prevent changes of control that might benefit non-management shareholders.
Supermajority Shareholder Approval May be Required for Fundamental Transactions with an Interested Shareholder
Approval of the NHPUC would be required for any acquisition of the Company and the NHPUC would consider factors other than what is in the best interest of our shareholders.
Full 10-K form ▸
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