ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
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A look at Chevak. Down by the river, not far from the Bering Sea, this village is of the Qissunamiut Tribe. (Story and photos on Page 7) Alaska Native Corporations Lead the top 49ers Two years ago, the U.S. slipped into a recession that the country hasn’t seen since The Great Depression. 2008 was a year of financial turmoil in Mudpies and smiles in Chevak just about every business sector. With the release of Alaska Business Monthly’s "Alaska’s Top 49ers," however, it is clear that the diversity, hard work and adaptability of Alaskan Native Corporations prevails. For 26 years, ABM has been recognizing the top 49 Alaskan-owned-and-operated companies. Most top industries are Native corporations and in the construction sector. Last year, a company had to have minimum gross revenue of $50.5 million to make the 49ers list. This year the bar was raised to $55 million, and nearly 45 percent of the list represents Native corporations – 2 percent more than last year! Eight of the Top 10 were ANCs. Notably, of the five companies that topped $1 billion, all were Native corporations. Calista Corp. ranked 16 in the Top 49 (28 in 2007) with reported revenue earnings of $203 million. ANCs have been relatively secure in this otherwise tumultuous economic era. The 2008 revenues for the combined ANCSA regional corporations totaled $6.89 billion – an increase of 17 percent from the year prior, and total corporate assets rose by 5 percent. October 2010 (Continued on page 4) 2 3 3 6 7 New Calista Calista Reports on President and Elders' Teachings Bethel Museum has New Acquisition Gets Growth and Future Chairman Messages Are Medicine Treasures on Display Big Recognition at AVCP Meeting
Chairman’s Message Art Heckman, Board Chairman The Board of Directors would like to extend a warm When a lawsuit by a Calista subsidiary employee welcome to Andrew Guy, the new president and was filed against President and CEO Matthew CEO of Calista. Nicolai, the board promptly commissioned an independent external investigation. All 11 board Born and raised in Napaskiak, a small village members attended the special meeting within a six miles downriver from Bethel, Guy grew up matter of days of the news and voted to put Nicolai speaking Yup’ik as a first language and English as a on administrative leave during the investigation. The second. His extended family still continues to live in board moved to terminate Nicolai’s employment Napaskiak and surrounding villages. contract after findings from the investigation were He left Napaskiak to pursue higher education at reported. In the 34 years Nicolai has been with Calista, and the 16 years as president and CEO, he "Calista University Alaska, Fairbanks, where he received a BBA in business administration. Guy then received a has raised the company’s worth. The board thanks Corporation’s goal law degree at the University of Colorado School of him for his years of service. Law in Boulder, CO. Since then he has held several is to maintain the very impressive jobs, including law clerk with the Calista Corporation’s goal is to maintain the highest level of Human Resources standards and honor our highest level of Native American Rights Fund and vice president of Yup’ik, Cup’ik and Athabascan values. We have a Human Resources Yulista Management Services. Guy has also been code of business ethics and personnel policies that a member of Calista's executive team as General standards and Counsel involving him in the Corporation's contract establishes these standards and values. honor our Yup’ik, negotiations and business enterprises. We know Andrew Guy will continue the work of the corporation and have the utmost confidence in his Cup’ik and His appointment at Calista follows some rather corporate leadership. Athabascan values." unfortunate events. President’s Message Calista Mission Statement: Andrew Guy, President and CEO Calista Corporation was created to generate profits Increase Shareholder benefits and and to balance the interests of our Shareholders, economic opportunities through Descendants and clients regardless of who is at the helm. It is the nature of corporations to be innovation, growth, leadership, perpetual – to survive longer than any one person. execution and financial discipline. It is not any one particular individual that makes or breaks a corporation. It is both humbling and an honor to be appointed • Placed among the top 49 revenue earning the new president of Calista Corporation. As a companies in the state. Calista intern in 1984, I first worked in the brokerage industry and with Professional Services in the • Issue dividend checks to Shareholders three "It is my goal to planning department doing research and financial years in a row. do everything analyses. Since then my service has been at Calista • Acquire two well-established successful Alaska in a number of capacities, including director and companies this summer. This further diversifies in my power to chairman on the Calista Board, and vice president our company, provides new job opportunities continue increasing of Yulista Management Services in Bethel. My work for Shareholders and Descendants and enables a experience serving as General Counsel with Calista, revenue, keep the Alaska State Legislature, the Native American more active business presence in our Region. moving operations Rights Fund and the legal system have also As president, one of my primary objectives is to create more jobs in the region. We need to be steadily forward prepared me for this new role. concentrating on our region more than we have in and protect the It is my goal to do everything in my power to the past. continue increasing revenue, keep moving assets of Calista operations steadily forward and protect the assets I have an open door policy because I like good Shareholders." of Calista Shareholders. communication, and welcome Shareholders to express their thoughts and ideas to me. I want to I am a Shareholder of Napaskiak Inc. and Calista know what people expect and want from Calista. and there are many good reasons to be pleased with being a Calista Shareholder. I am confident I can continue to lead this company forward, and thank you all for giving me the As the second largest Native Corporation in Alaska, opportunity to do so. I ask for your prayers for all of our hard work has seen us: us at Calista. 2
Brice's successes honored New subsidiary is Inducted Last July, Calista Corp. acquired Brice Inc. and its family of companies. The Brice companies include construction, transportation, quarry and environmental services. Just a month after the acquisition, The Brice Family of Brice Constructors was tapped to be inducted into the Alaska Business Hall of Fame (AKBHF). Junior Achievement of Alaska Inc. (JAA) and Alaska Business Monthly Magazine are the primary sponsors of the AKBHF event. Since 1987, JAA has been honoring outstanding individuals of Alaskan business. These individuals are nominated statewide and selected by a group of business peers. Business leaders are selected based on their commitment and direct impact toward furthering the success of Alaska business, and commitment to Junior Achievement programs. Junior Achievement is a worldwide organization dedicated to educating students and they are permanently inducted and recognized for about workforce preparedness, financial literacy and entrepreneurship. The their accomplishments.” The Brice Family joins ranks annual recognition of companies into the Hall of Fame has become one of the among 100 other Hall of Fame Alaska laureates. state’s most prestigious events. The official Alaska Business Hall of Fame induction “Laureates become role models for the next generation of business leaders,” says ceremony will be held at the Dena’ina Civic & JAA President Flora Teo. “Their stories are shared to young people all over the state Convention Center, Jan. 27, 2011. Yukon Equipment Calista’s Newest Subsidiary Last August, Calista further diversified and expanded its ventures with the purchase of Yukon Equipment Inc. They join subsidiaries Tunista Construction Inc. and the recently acquired Brice Inc. Yukon Equipment provides equipment for a number of different types of construction and maintenance operations. Past projects include construction of the Alaska Highway, the trans-Alaska oil pipeline and the Distant Early Warning line support. “We are happy to partner with such a well-established organization,” says Morry Hollowell, Yukon Equipment president. “This relationship will benefit our clients and Calista’s shareholders.” The Calista-Yukon connection is a natural one which Yukon Equipment has headquarters in Anchorage and a branch office in Fairbanks. will lower clients’ costs and improve overall services; Their managers will remain on staff to continue to provide the quality of service as well as provide additional job opportunities and a they have all along. new revenue stream for Calista Shareholders. Elders’ Voices Heard and Put to Text In 2003, a three-day gathering was held She explains that the gathering was the addendum to with 20 Elders. All in their 80s and 90s, men comprised of Elders from all over the the book, Sparks and women both discussed and shared with region who were invited to discuss writes, “These are the others the Cupiit/Yupiit teachings of how traditional methods of child rearing, stepping stones to a best to raise our children. instructions for married couples and other journey to understand ways of Yup’ik living. the Cupigtatt/ This gathering was enormously inspiring Yupigtaat principles and in its wake is the release of a 476-page The literal translation of the title, “Qanruyuteput and maxims.” book, transcriptions from a video of the Iinruugut” is “Our Yup’igtaat/Cup’igtaat meeting titled, “Qanruyuteput Iinruugut: precepts and principles are medicine.” This “Qanruyuteput Our Teachings are Medicine.” represents the Elders’ wisdom: “Qanrututet Iinruugut …” is (oral instructions), if swallowed, zipped into our published by the Association The book, edited by Alice Rearden and pockets or tied securely to ourselves will guide of Village Council Presidents in partnership Anna Jacobson of the Calista Elders Council, us to make decisions that will heal us from with the Alaska Native Language Center. It took close to seven years and numerous whatever trouble we may find ourselves in.” is available for sale at the Yupiit Piciryarait partners to complete. Museum in Bethel, Calista Elders Council in The book is written word for word in Cup’igtun/ Lucy Spark, the organizer of the 2003 Anchorage and the Alaska Native Language Yup’igtun and translated into English. In Elders gathering wrote the introduction. Center in Fairbanks. 3
Fiscal Community Impact of Alaska Native Corporations Scholarships Employment Contributions To change the great Total worldwide ANCs contributed more $11.1 million for 3,200 students. $24 million to charities 16% disparity found in the employment by than $24 million to education between Native ANCs rose charities and community- and non-Native students, 16 percent to oriented organizations. ANCs give a tremendous 35,430 – 15,000 One notable organization amount of money toward of which reside is the Alaskan Native various scholarships and in Alaska. The average Science and Engineering endowments. During annual compensation Program (ANSEP) of the 2008, ANCs donated per employee is $47,000. University of Alaska, $11.1 million toward the Anchorage. Dedicated to advancement of more than educating Alaska Natives 3,200 Native students. in highly skilled labor, more than 190 Native scientists and engineers have graduated from ANSEP since 1992. Above ANSEP photo by Michael Dineen 4 All figures from ANCSA Regional Association.
Last year, total ANC assets rose by 5 percent, from $4.39 billion to $4.61 billion. That sort of increase means Shareholders and communities have a solid base of economic capital. Dividends All 12 ANCs paid Arctic Slope 39% dividends to their Shareholders. These dividends Nana 2009 2010 rose by 39 percent from the year prior, from $125 million Doyon to $171 million. Bering Straits Ahtna Calista Cook Inlet Chugach Sealaska Bristol Bay Koniag Aleut 5
AVCP Gets Calista Update Around the State: At the Association of Village Council Presidents meeting Oct. 5th in Bethel, Calista Corporation Board of Director Felix Hess and Chief Operations Officer News From Other Regions Christine Klein delivered a Calista company update. Together they presented and ANC Endorsement for Murkowski covered three topics: corporate growth and changes, strategic management plan Last month, the Alaska Federation of Natives and the future of Calista. Board of Directors voted unanimously to ratify a resolution to endorse Lisa Murkowski as a write- Corporate Growth and Changes in candidate for the U.S. Senate. According to The past year has been a busy one, with continuing SBA 8(a) growth and increasing a press release issued by AFN, Sen. Murkowski contracts. This is largely due to diversifying non-government revenues. In addition, is the right candidate to represent the Native Calista has seen the acquisition of two successful new companies: Yukon Equipment, communities and the rest of Alaska. a well-established heavy equipment provider, and Brice Construction, a civil construction company that touts the highest village and local hire record in Alaska. “AFN does not take endorsements lightly,” Although Calista has been growing quickly and seeing solid profits, the year has also said Albert Kookesh, co-chair of AFN’s Board come with some internal changes. Besides Calista’s notable change at the position of of Directors. “Today’s unanimous vote by CEO, for the first time a COO position was added to the corporation’s ranks. As COO, our board is a testament to the faith in Sen. Klein’s job is to oversee the functions and general operations of the company. Murkowski that so many of us in Alaska share. She is the right person to stand up for our “Often, rapid growth makes it more difficult to communicate regularly, internally and Native communities, and the right person to externally, to each business and person on a one-on-one basis anymore—so we stand up for all Alaska.” have to work even harder, faster and more efficiently than ever before,” Klein said. AFN is now the largest statewide Native From February to April the Calista Shareholder Relations Committee visited organization in Alaska. Its membership over 15 villages to listen to and communicate with Shareholders. Other Native includes 178 villages, 12 regional Native corporations have approached Calista to learn about this model effort and do corporations and 12 regional nonprofit and something similar. To ensure continued company success, Klein said that Calista is tribal consortiums. encouraging employees to cross-train with one another to provide greater depth within the organization. Succession planning has been requested by the board for The AFN Resolution 10-1 is slated to be the the corporation and its subsidiaries. first addressed at this year’s convention, but ANCs around the state did not wait to declare Strategic Management Planning their endorsements. Calista and its board have adopted a strategic management planning framework to guide the corporation and its subsidiaries into the future. There are five Prior to the convention, Bristol Bay Native main areas or goals of the plan to focus on continued positive growth over the Corporation announced it was endorsing next five years which include: reaching $350M in revenues by 2015; increasing Sen. Murkowski. company pre-tax revenues; competing for and obtaining Donlin Creek contracts “Keeping Lisa Murkowski as Alaska’s senior if a mine proceeds; increasing regional infrastructure investment; and increasing senator helps make sure our rural communities Shareholder value in jobs, dividends and education. The plan is a general map continue to sustain the health care, housing intended to help the corporation, its employees and subsidiaries focus on and aim and transportation infrastructure, as well for the same goals in order to benefit Calista Shareholders. as education programs that are so vital to Calista’s Focus on the Future everyday life in rural Alaska,” said Jason Hess and Klein said the future looks great for Calista. There are innumerable Metrokin, BBNC president and CEO. “Not only opportunities that lie ahead, and much of the company’s success will rely on its has Sen. Murkowski been a tireless advocate people, resources and diversity. Some key points included: getting better at for Alaska Natives and our corporation, she all that we do; becoming more competitive – business and people; positioning has been a great representative of the best ourselves with the capability and experience to obtain work if a mine in the region interests of all Alaskans.” is developed; actively participating in legislation affecting our region; and training The NANA Regional Corp. also endorsed Sen. and developing a highly capable workforce. Murkowski, stating it acknowledged her track Calista has been building partnerships with other ANCs, collaborating on record for securing contracts and funding strengths and weaknesses and building complimentary businesses as seen by the toward infrastructure improvements. As did at recent business acquisitions. Calista’s future growth will likely come from internal least a dozen other ANCs around the state. growth, acquisitions and hopefully contracts at the Donlin Creek property. Election Day is Nov. 2 – To close, Klein pointed out the importance of the ANC – that it does not merely Get out the Native vote! function as a means to make a profit, it is also an investment in the people and community that it ultimately serves. Doing so entails outreach and generosity. “Every day we get better at what we do,” said Klein. "Every day Calista increases its profitability and better serves its community.” 6
Chevak Village Profile: Chevak Down by the riverside Cup’ik Rule: Pairtesqevkenaku Chiulista Brings Food –Never go against the consensus of to Yuut’s Tables the people. Always work together once a decision has been made. Yuut Elitnaurviat Corp., The People’s Learning Center, Located 15 miles east is dedicated to educating and training the local off the Bering Sea, people of the Yukon-Kuskokwim Delta region to Chevak is home to obtain high wage jobs. Yuut is considered a “one-stop nearly 1,000. The village is on the Yukon-Kuskokwim Delta, approximately shop.” It meets the needs of those who are looking for work, unemployable, uneducated or underskilled. 136 miles from Bethel and only 17 miles east of Hooper Bay. The brainchild of Sen. Ted Stevens and YK Health The word “chevak” refers to a connecting slough, where the original village was Corp. CEO Gene Peltola, Yuut was formed from a situated along – the Keoklevic River – eight miles west of where Chevak is now conversation about how to offer local vocational located. Due to storm tide flooding, “Old Chevak" was abandoned before 1950. training to create a workforce that could meet the Though the village is in the Yup’ik Eskimo region, the people of Chevak, part needs of residents and employers. The result was a of the Qissunamiut Tribe, are Cup’ik Eskimo – they speak a different dialect non-profit corporation supported primarily by nine that is understood throughout the region. local “partner” organizations, including Calista Corp. Chevak has a maritime climate. It experiences high precipitation, with This year, Calista subsidiary Chiulista Services Inc. temperatures that range from -25° to 79° F and a winter snowfall average of jumped on board. CSI specializes in purchasing and expediting food and housekeeping services for 60 inches. The village sits on the north banks of the Niglifak River. Skiffs are remote-site projects. Their services are both efficient used for local travel in the summer. In the winter, snowmachines are used and economical. and trails are maintained to Hooper Bay, Scammon Bay and Newtok. With the introduction of CSI at Yuut, not only is In the summer the economy relies on BLM firefighting and construction jobs, food available to students on campus, but they can but their incomes are supplemented by craftwork and subsistence; salmon, also choose culinary skills from the list of vocational seal, walrus and clams are harvested as well as duck and goose. training courses offered. Last May, Chevak was one of four villages being considered as a possible bypass mail hub by the US Postal Service. This will most likely mean an increase of jobs, predominately for infrastructure and airport upgrades. The current airport’s gravel airstrip is 3,200’ long and 75’ wide. If Chevak is approved as a mail hub, there could be economic benefits. 7
Gi ts o Treasured Things History and Nostalgia on Display at Bethel Museum Often, objects we treasure hold great sentiment. Yet they rarely hold significance or allure for others, unless of course you add time and craft. Calista HR Talent Bank “Gifts of Treasured Things,” the new exhibit at the Yupiit Piciryarait Museum in Bethel, does exactly that. When you visit Calista Corporation’s website you’ll notice the Human Resources (HR) job This exhibit is comprised of donations section has moved to a new online Talent Bank from 14 different collections. The system. This allows HR to more quickly notify recently accrued objects come from applicants of open positions. collections and estates all over the **NEED CAPTION** U.S., though most are regionally Applicants who have submitted Talent Bank local. Among the donors is the Marie applications within the last two years will need to verify their information in the system by contacting O. Swanson Estate, objects from the Swanson Store in Bethel collected over 20 the HR Department at 1-888-968-2416, ext. #2. For years ago. The children of Rev. Thorlief Harberg and his wife Elsie Johnson Harberg applicants outside of the two-year window, you will donated miniature objects and other items their parents collected from 1937-1941 need to create a new profile in the system. while they were in Alaska with the Morovian Missionary. The HR Department regularly receives new job Found among the treasures on display are baskets, photographs, dolls and announcements, but if your profile is not current interesting craftworks, like a pin cushion made from moose teeth donated by we cannot inform you of these opportunities. the Robert Overton collection and 15 articles of clothing donated by the Nagel To view the Calista Corporation Career Center or Collection. KYUK, the Native American Public Radio Station in Bethel donated to create a profile in the Talent Bank system visit historical footage that will play continuously in one of the galleries. www.jobs-calista.icims.com/jobs/intro. “Gifts of Treasured Things” will run to Jan. 15, 2011. Personal Data form Anchorage, AK U.S. Postage PRESORTED Permit # 165 STANDARD Paid Shareholder Name New Mailing Address Phone ( ) - SSN Birth Date / / Would you like Calista to send you new will forms? n Yes n No Calista Shares Village Corporation Shares Please change my address as I have indicated above. I understand that you cannot make address changes without my permission and signature, which I hereby give of my own free will and without constraint. I further authorize Calista and its subsidiaries to share this information. Shareholder Signature Date / / Signature of Witness 1 Signature of Witness 2 301 Calista Court, Suite A (Two witnesses are required if Shareholder signs with an “X.”) Anchorage, AK 99518 Mail to: 301 Calista Court, Suite A Anchorage, AK 99518-3028 Toll Free 800-277-5516 • Fax 907-279-8430 www.calistacorp.com
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