| President's
Corner
PRESIDENT/CEO
REPORT
Ana
Hoffman 2007 Annual Meeting
Quyana tamarpeci
tailriani, ilagautellriani unuamek.
Most of you
are aware of the corporate activities over the last year thru the
annual report and our auditor Jim Hassle will be presenting the
detailed financials later so I would just like to highlight a few
items this morning.
2006 was a challenging
year operationally with reduced profitability at the subsidiary
level, however I am proud to report that BNC was able to book a
significant profit of nearly $2 million dollars with the successful
sale of the Bivin Plaza. In the recent annual report, I described
the 1031 Exchange process utilized for the Bivin sale and attorney
Bruce Edwards, who is here with us today was instrumental in assisting
in that transaction. With the proceeds of the sale BNC purchased
two other properties in Anchorage 4200 Lake Otis and 4115 Lake Otis
and placed them into two wholly owned limited liability companies.
These properties should provide positive long-term cash flow.
Another strategic
change last year was doing away with the age-old pension plan and
implementing a 401K plan for the employees. This saves the corporation
money by lower corporate overhead costs, while allowing employees
to have some control over their retirement investments, which is
very good.
BNC’s
portfolio experienced some change last year for the better. The
investment portfolio had not preformed for many years and last year
the board of directors decided to reassess the designation of the
portfolio manager. After careful review, BNC chose Phil Younker
and Associates a firm out of Fairbanks, to manage the portfolio.
Under Mr. Younker’s direction the portfolio has experience
over $55,000 in gains. This is a dramatic improvement over the recent
past performance.
Another long-term
investment BNC was presented with last year was thru Denali Spectrum
Manager (DSM) which is owned by Doyon Limited. DSM was successful
in obtaining a wireless license to provide wireless services in
the mid-west region of the United States. Their successful license
bid opened an investment opportunity for select AK native corporations
including BNC. This investment of approximately $400,000 has high
return expectations with anticipated distributions at 5 and 10 years
and has very limited risk. Council Tree Communication, one of BNC’s
long time business partners coordinated the investment and are involved
in the transaction. Council Tree has been successful with BNC in
the past and we anticipate this investment will provide good returns
over time.
For litigation
matters, I am happy to report that BNC and Hoffmann Commercial Company
have agreed to terms of a settlement. This is a significant accomplishment
after years of litigation, court judgments and appeals. BNC should
be recovering $136,000 cash from Bernd Hoffmann by the end of May
to settle all matters.
The other legal
matter that had been lingering on for many years BNCI vs Charles
McGaa is also being resolved. Over the last few months the BNCI
board has reviewed the circumstances of this case and the likelihood
of recovery any of the disputed funds and decided to settle the
matter with a notice of non-suit. Settling those two matters will
close all of BNC’s on-going legal disputes. Jeannie Sleeper
who is here from Anchorage assisted with both of these matters and
worked hard to assert BNC’s claims. Thank you Jeannie.
Now I’d
like to take a moment to recognize the BNC staff, Cindy LePore Apt/Shareholder
Records, Louise Rousey Bookkeeper, Jimmie Nelson Part-time admin,
Kyunga Chang Controller and Maintenance staff Nick Pollock, Ben
Thatcher, Fritz McCarr, Evan Wiseman, Dustin Anaruk and our retiring
Lydia Wheeler (plaque to Lydia Wheeler). I’d like to also
recognize an employee who has been working for BNC for ten years,
(plaque to Cindy LePore). And, now I’d like to take a moment
to recognize an employee who has been working here for thirty years,
(plaque presented to Nick Pollock).
Nick and Helen
Pollock are traveling to Anchorage tonight and in appreciation for
his continued service BNC will pay for the hotel stay at the Springhill
Suites, where BNC enjoys a corporate rate $79 winter and $156 in
the summer, which all of you are eligible for. Call Marriott reservations
800# and ask for the Bethel Native Corporation rate. Nick we thank
you and I would truly be lost without you.
To all of the
BNC staff, I rely on all of you and sincerely appreciate your work.
And to the shareholders
and the Board, I very much appreciate your support and encouragement.
This board is extremely dedicated to the success of the corporation
and functions with your interests in mind at all times. Quyana for
your confidence and I welcome your feedback not just here, but throughout
the year.
Quyana
Cakneq,
Ana
Hoffman
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