Sealaska Announces 2017 Spring Distribution

“The board and management are focused on developing existing businesses that have growth potential, match our values and are aligned with our strategic direction,” said Sealaska Chair Joe Nelson. “We have narrowed our operational focus to three segments; natural foods, natural resources, and government services.”

Sealaska directors approved a 2017 Spring Distribution to shareholders, totaling $10.6m. The distribution date is Friday, April 14, 2017. Sealaska will report another year of strong business growth and positive net income for 2016.

“The board and management are focused on developing existing businesses that have growth potential, match our values and are aligned with our strategic direction,” said Sealaska Chair Joe Nelson. “We have narrowed our operational focus to three segments; natural foods, natural resources, and government services.”

“We continue to improve the financial performance of Sealaska by sticking to our strategic plan,” said Sealaska President and CEO Anthony Mallott. “Through this hard work, Sealaska operational income will cover all of our costs in 2017, allowing investment and ANCSA Section 7(i) income to drive sustainable business growth and shareholder benefits.”

Sealaska Sources of Income

  • Sealaska Operations: Sealaska continues to close the operational gap since 2013. The 2013 loss will impact payments from operations until 2018.
  • Marjorie V. Young Permanent Fund: A source of strength for our corporation, providing shareholders with reliable dividends since 1987. The distribution policy uses a percent of market value (POVM). The fund is at approximately $100 million.
  • ANCSA Sections 7(i)/7(j): A significant source of income, but commodity prices have declined resulting in expected lower Section7 (I) income over the next few years.

ANCSA Section 7(i)/7(j)

  • Sealaska distributes monies to Urban and At-Large (Class B and C) shareholders from funds Sealaska receives under ANCSA Section 7(i). The payment to shareholders from Section 7(i) monies is called a Section 7(j) payment.
  • Village (Class A) shareholders do not receive an ANCSA Section 7(j) payment directly from Sealaska—under ANCSA, Sealaska is required to make Section 7(j) payments directly to each of the 10 Southeast village corporations. It is up to the village corporations to decide how to use their ANCSA Section 7(j) payments.
  • Descendant and Leftout (Class D and L) shareholders do not receive an ANCSA Section 7(j) payment from Sealaska.
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