Nome-based Sitnasuak Native Corporation ended a financially successful 2018, despite a lawsuit against three board members and a shareholder that delayed the annual meeting by a year and a half. The 44th Annual Meeting was held in September (2018) in Anchorage, departing from the corporation’s typical June annual meeting schedule.
In early December, Sitnasuak shareholders received record distributions of $7.50 per trust unit and a $750 benefit for elders. According to SNC Vice-President Ukallaysaaq Okleasik, this is due in part to profits in addition to a tax reform passed by U.S. Congress in December 2017. The reform allows Alaska Native Corporations to create shareholder approved trusts.
“The trust was approved by our shareholders and the distribution was paid through the trust but then it accumulates benefits to our shareholders where that distribution is no longer taxable for them in most cases. It also reduces the tax rate for the corporation distributing funds through the trust for its purposes”.
SNC Vice-President of Corporate Affairs, Ukallaysaaq Okleasik
2018’s distributions are up by $250 for the Elder Benefit and up $1.30 per share. Despite the increases, Chairman Bobby Evans says that the dividends are meant to be sustainable.
“We have a five- year plan and we’re on track… The Alaskan economy has had its challenges, but we have situated ourselves very well. We’ve diversified enough so that if one part of the economy is struggling the rest of the businesses are still going strong”.
SNC Chairman, Bobby Evans
Those diversified businesses include Bonanza Fuel in Nome, rental properties in Anchorage, and military contracts in Puerto Rico. Okleasik mentioned that the fuel tank farm footprint is expanding to do some improvements for erosion protection. Sitnasuak has hopes that the expansion will also allow for rental space at the Port of Nome, should the port continue to grow. Chairman Evans shared more plans for expanding operations in what he is projecting to be a strong fiscal year in 2019. 3
“We’re looking to expand operations. We’re also looking at a handful of business acquisitions so we may have some news in the first two quarters of 2019 if those work. We have a new line of business in cybersecurity so maybe in the first part of 2019 we’ll have some more news on that also.”
SNC Chairman, Bobby Evans
Neither Evans nor Okleasik elaborated more on the potential acquisitions but hope to have more public news by May.
The September 44th Annual Meeting welcomed two new directors, Richard Foster and Gloria Karmun. Barb Amarok and Helen Bell returned to the board.
This meeting was delayed by a year and a half after the corporation saw a lawsuit over anonymous proxy solicitations that were in violation of the Alaska Securities’ Act. That lawsuit was against three board directors, including Amarok, and one shareholder, Marie Tozier, and resulted in board director Charles Fagerstorm stepping down from the board. Vice President Okleasik views the experience as an opportunity for more shareholder education.
“What are the rules for soliciting proxies and how do you run as a candidate and what does that mean? What are our election rules? So its been a great piece that I think has helped with the settlement and at the same time brings up the capacity for all of our shareholders”.
SNC Vice-President of Corporate Affairs, Ukallaysaaq Okleasik
The next Sitnasuak Native Corporation annual meeting will be held in Nome and is already scheduled for June 1st, 2019.
