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Here's the press release about Sealaska's earnings and losses in 2008:
Sealaska Publishes 2008 Annual Report to Tribal Member Shareholders
The corporation remains strong financially despite $40.9 million in losses primarily attributed to the recessionary decline in
investment markets. Gross revenues were $125.7 million.
Juneau, Alaska – Sealaska Corporation mailed its 2008 Annual Report to tribal member shareholders
today, which contains independently audited, consolidated financials for the corporation and its
subsidiaries plus key strategies to manage the impacts of the current recession and to capture the
business investment opportunities that have been created by the recession. The theme for this year’s
publication is “Perseverance”.
“We are in the midst of the worst economic crisis since the Great Depression and Sealaska has been
affected like every other company with investments in the financial markets,” said Sealaska President
and CEO Chris E. McNeil, Jr. “The annual report and audited financials show 2008 losses of $40.9
million on revenues of $125.7 million, primarily attributable to a decline in value of the Sealaska
Permanent Fund and Investment and Growth Fund. In spite of the loss in value Sealaska remains
strong financially. We want tribal member shareholders to know Sealaska is positioned to grow
during this recession, and that we are moving to capture business development opportunities that will
increase our future profitability.”
The 2008 losses according to Sealaska Chief Financial Officer Richard Rinehart “ indicate the value
of our financial investment assets as if we had sold them at December 31, the end of the fiscal year
represented in the annual report,” said Rinehart. “We in fact still own most of these assets and as the
markets recover, so may the value of these investments.”
Sealaska continues to pursue innovative new business ventures while actively managing its long-term
investments. The corporation is currently invested in 12 subsidiaries within the information
technology, environmental remediation, natural resources, global logistics and manufacturing sectors.
“Sealaska implemented lean manufacturing and administration, federal contracting and commercial
diversity supply strategies that positioned our operations to minimize impacts from the recession,”
said McNeil. “Our manufacturing and services divisions were profitable in 2008 and are poised for
growth in the coming years.”
“We also added two new strategic companies, Sealaska Global Logistics and Sealaska Wood
Products Solutions. These companies are adjacencies that are built upon our long experience in
resource development and management and enhance our services and presence in the supply
“The experience of Sealaska’s management and the Board of Directors provides the strength and
experience that we need to withstand these turbulent times. The economic crisis has been handled
with exceptional skill and is preserving the corporation’s financial strength in spite of the losses we
are reporting,” said Sealaska Board Chair Albert Kookesh. “The company is poised to take advantage
of new business opportunities and is still able to continue support of the Sealaska Heritage Institute’s
cultural programs, educational scholarships, land stewardship investments and advocacy on many
social and political issues that affect our Native people.”
“In 2009 and beyond we will continue with our federal contracting and commercial diversity supply
strategies plus aggressively look to innovative approaches to new and enhanced economic
development in Southeast Alaska,” said McNeil. “We must further manage our operating costs to
become a more efficient and lean organization.”
Sealaska has identified opportunities in the American Recovery and Reinvestment Act and is
exploring new partnerships in the region with privately held businesses and also with other Native
institutions like Central Council of Tlingit and Haida Indians of Alaska. “Our collective abilities will
strengthen opportunities for our membership as well as the communities in the region,” Said McNeil.
Statistics from the Sealaska 2008 Annual Report:
• Sealaska now has more than 20,000 tribal member shareholders.
• Sealaska contributed $1.3 million in cash and in-kind services support to the Sealaska
Heritage Institute in 2008
• Sealaska paid $26.3 million in dividends and ANCSA Section 7(j) payments to tribal member
shareholders and Village Corporations in 2008.
• Since inception Sealaska has paid $410 million in dividends and ANCSA Section 7(j)
payments to tribal member shareholders and village corporations.
• Silviculture activity included:
o Pre-commercial thinning of 3,542 acres of overstocked young forest lands.
o Hand-planted 40,000 Sitka Spruce seedlings on 200 acres.
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