f i n a n c i a l RESULTS Fiscal Year ending December 31, 2019

statement oF inCome

Net income in 2019 was $17.3 million compared to $16.4 million in 2018. The $0.9 million improvement in earnings is primarily due to higher levels of distribution revenue in 2019 compared to 2018. Distribution revenue increased $1.5 million in 2019 to $53.7 million from $52.2 million in 2018 as a result of a rate increase implemented to support our capital and maintenance programs.

During 2019, WUC invested $24.0 million in property, plant and equipment to ensure sustainability of Windsor's drinking water system.

Operating expenses excluding depreciation of $36.6 million were lower than the $37.4 million spent in 2018.

By controlling operating expenses at current levels for the past 5 years (2019 = $36.6 million, 2015 = $37.1 million), WUC has been able to grow Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from $22.3 million in 2015 to $28.3 million in 2019.