Sealaska Income Nearly Doubles, Share value decreases
May 13, 2013
The report contains financial data from an annual independent audit of the company’s consolidated financials of the previous fiscal year, January 1 through December 31. Sealaska’s consolidated continuing operations produced revenues of $311.6 million in 2012, up from $263.8 million in 2011. Net income is $11.3 million, up from net income of $6.8 million in 2011. Sealaska’s total assets at December 31, 2012 of $386.3 million grew 4.8 percent from $368.7 million at December 31, 2011.
According to the report, Sealaska shareholders’ equity was $269.5 million at the end of 2012, which increased from $262.1 million at the end of 2011. Sealaska earned $11.3 million of net income in 2012 and paid shareholder dividends of $4.9 million.
Sealaska has businesses in environmental remediation and construction, forest products, information technology outsourcing, and manufacturing, among others, but the leading contributors to 2012 profitability were financial market investment returns and ANCSA section 7(i) natural resource revenue sharing. Sealaska is financially very strong according to Sealaska President and CEO Chris E. McNeil Jr. and the annual report illustrates an “excellent balance sheet.”
“Sealaska is transforming itself and redefining its path to long-term economic sustainability,” stated McNeil in a letter to tribal member shareholders. “Our goal is that, within the next three years, Sealaska will continue to be profitable even without including ANCSA Section 7(i) revenue.”
The process McNeil outlines to increase operational profitability involves re-engineering Sealaska’s portfolio of operating companies and could include selling subsidiaries that do not fit the company’s long-term strategy or its core Native values. McNeil cautions this could result in revenue decline in the short-term but ultimately may contribute to more substantial growth with potentially less risk. “This is a healthy process, since we will deliberately shrink to a more cohesive base from which we will grow again,” he stated.
“While the board is pleased with our increased revenues and profitability in 2012, we must achieve the operational transformation that management is implementing in order to advance our purpose—to strengthen our people, culture and homelands,” said Sealaska Board Chair Albert Kookesh. “In 2012 Sealaska paid nearly $27 million in distributions to shareholders and village corporations; contributed more than $1.3 million of cash and in-kind services to Sealaska Heritage Institute; and paid more than $293,000 in educational scholarships. These are important measures of success in addition to revenues and net income.”
The theme of the annual report is Values In Action and speaks to the values of the Tlingit, Haida and Tsimshian who have made their home in the forests of the Tongass for thousands of years. While our communities have grown and populations have shifted, the Tongass has always been a Native place. Highlighted within the report are four active cultural development projects: the Walter Soboleff Cultural Center, Chief Shakes Tribal House, Chief Son-i-Hat Whale House and the Klawock Totem Park. The projects were metaphorical examples of living Southeast Native core cultural values of land, leadership, balance and honoring the past while taking action for the future—values that guide Sealaska, its operations and initiatives.
Sealaska's wholly owned subsidiaries are Sealaska Timber Corporation, Sealaska Constructors, LLC, Alaska Coastal Aggregates, Security Alliance and Sealaska Environmental Services. Other subsidiary businesses include the Nypro Kánaak joint ventures and Managed Business Solutions.
The 2012 audit was completed by KPMG, LLP of Seattle, Washington. KPMG LLP, is a U.S. audit, tax and advisory services firm, operating from 87 offices with more than 23,000 employees and partners throughout the U.S.
Although Sealaska net income in 2012 doubled to $11.3 million, $4.9 million were paid to shareholder dividends showing a decrease in the 2012 per share value. According to the Sealaska 2008 Annual Report, more than 3,100 new tribal member shareholders enrolled from 2006-2008, bringing the Corporation’s total membership to more than 20,000 in 2008.
Sealaska's total revenues produced in a five-year summary of selected consolidated financial data in the 2012 report:
Sealaska's website list 14 Corporate Officers and Management personnel, 7 Subsidiary Management personnel, and 13 board members.
Edited by Mary Kauffman, SitNews
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