Published April 2019
Last year’s financial success showcased our team’s capabilities and raised the bar for years to come. Due to an orchestrated effort that involved your elected Board of Directors, our subsidiary presidents and every team member, we ended the year with record revenues of $284M and continued our three-year growth trend, reaching an approximate 51 percent increase in revenues since 2015. Our successful 2018 culminated in a record-high dividend distribution and increased shareholder benefits. Now, our team is primed for continued growth in 2019 as we take advantage of new opportunities that will provide additional career options and increased benefits to shareholders.
Opportunity through growth
To build on our Corporation’s success over the last three years, we must continue to provide exceptional service to our current customers while seeking and pursing additional opportunities. In the first quarter of 2019, we identified five new business opportunities, four of which are in Alaska. These opportunities range from working with producers on the North Slope taking advantage of our state’s oil renaissance and the rebound of legacy fields to industries in which Ahtna has not historically participated. The leadership of Ahtna Netiye’s Executive Vice President and shareholder Roy Tansy Jr. has been instrumental in our success. He is overseeing a large part of our growth strategy and managing existing and new relationships with customers.
We plan to launch four to eight companies in 2019. Our Corporation’s increased bonding capacity has allowed our current subsidiaries to win larger contracts while bidding on additional work.
We have purchased a new storage warehouse in midtown Anchorage. This facility will allow us to end storage-rental agreements with third-party landlords and securely store our subsidiaries’ equipment in a centralized location. This saves money, improves operating efficiencies and increases safety by reducing the amount of time our employees are on the road picking up the tools they need to service contracts. It also increases the amount of time they are on an Ahtna-secured jobsite, where safety is a priority.
New shareholder career paths
The Corporation’s involvement in new industries means new opportunities for shareholders in career fields that go beyond construction and include union and non-union jobs, careers in technology and more. We are always looking to match shareholders with new opportunities, which makes it important to keep your profile current in the online Shareholder Talent Bank.
All available jobs at Ahtna are listed online, as are the many training programs your Corporation sponsors. These are important components of continued growth because we become stronger and more successful when more shareholders are involved in our Corporation.
Securing our financial health
One of my responsibilities is to look after our Corporation’s financial safety by making sure we are in a position where events and circumstances outside of our control do not have a major impact on our bottom line. Because Ahtna is a federal contractor, the recent government shutdown did adversely impact our federal work. It caused a delay in the awarding of new contracts, hindered our ability to move forward on projects, suspended the processing of documents for new subsidiaries and paused payments on current contracts.
Despite these negative effects, Ahtna Netiye’ was able to weather the government shutdown and emerge in a better position to secure future contracts as federal agencies increase requirements and scrutiny over federal contractors. Our reputation is strong among our customers, thanks to our ability to safely and successfully deliver phenomenal results on our contracts.
Be prepared and stay safe
As spring creeps in, I encourage each of you to stay safe and take precautions when going out to enjoy the land. Make sure your loved ones know where you are going, wear the proper clothing and bring all the equipment you would need should your activities not go as planned.
I look forward to seeing many of you at the 46th Annual Meeting and encourage you to exercise your shareholder rights by casting your proxies, attending the meeting and asking questions of the leadership team. We value your thoughts and look forward to our conversations with you. When each shareholder becomes involved in the Corporation, we are stronger and better equipped to take on future challenges.
Tom Maloney, Chief Executive Officer