1 / 55

Natives of Kodiak 2014 Annual Meeting “Investing in Our Future”

Natives of Kodiak 2014 Annual Meeting “Investing in Our Future”. Overview Welcome and Introduction Board of Directors and Organizational Structure NOK Shareholder Permanent Fund Trust Update Brief FY 2013 Financial Review Parent Company Initiatives in Kodiak

sage-finch
Download Presentation

Natives of Kodiak 2014 Annual Meeting “Investing in Our Future”

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Natives of Kodiak2014 Annual Meeting“Investing in Our Future”

  2. Overview • Welcome and Introduction • Board of Directors and Organizational Structure • NOK Shareholder Permanent Fund Trust Update • Brief FY 2013 Financial Review • Parent Company Initiatives in Kodiak • Subsidiary Operations/Business Development • Strategic Plan Progress Report • Question and Answer Session

  3. Natives of Kodiak, Inc. Board of Directors - Seated from left -Laurence Anderson, Secretary Margaret L. Roberts, Director Jeannine (“JJ”) Marsh, Director - Standing from left -Carla Schauff, Treasurer Donene Tweten, Chairperson Alexis (“Sonny”) Chichenoff, Vice Chairperson Anthony (“Tony”) Cange, Director Leonard (“Pat”) Heitman, Director David Anderson, Director Updated: 6/26/2014

  4. Natives of Kodiak, Inc. Alaska Native Urban Corporation NOK / KANA Commercial Condominium, Inc. 50% NOK 50% KANA NOK Shareholder Permanent Fund Trust 100% NOK Shareholders KOMAN Holdings, LLC. (KH) 100% NOK KOMAN, Inc. 100% NOK VXM, Inc. 100% NOK Condo Management Trust Management Holding Company Construction, Support Services Timber Holding KOMAN Diversified Services, LLC (KDS) 100% KH, LLC 8(a) Corporation Kodiak Support Services, J.V. (KSS) 51% Inuit Services 49% KOMAN, Inc. Koncor Forest Products Company, J.V. 35.04% VXM 64.96% ONC Construction, Apparel, Environ. , Security USCG BOSS ISC Kodiak Forest Management KDS Propper JV of Puerto Rico 51% KDS 49% Propper Military Uniforms Specialty Apparel

  5. NOK and Subsidiaries – Functional Organizational Chart NOK President / CEO Michael Kelly CFO Michael Kelly NOK Vice President David Anderson NOK KOMAN Holdings Michael Kelly KOMAN INVESTMENTS Accounting, HR & IT Audrey Duncan-Fearnside KOMAN Diversified Services, LLC KOMAN Government Solutions, LLC (New 8a Company) LANDS A/P, A/R and Payroll Kathy Giordano Office Mgr. Irene Lind Receptionist Gloria Bishop Apparel Mfg. Mike Zavosky KSS Contract David Anderson Environmental Bruce Beck Construction Jack Hively Fusion Centers Eddie Ortiz SCIF Projects John Williams Updated: 9/18/2014

  6. Nok Shareholder permanent fund Trust update

  7. Results of recent initiative to amend Trust Agreement provisions • Discussion of Trust Fund fractional shares • Shareholder survey on preference between receiving one annual lump-sum or quarterly distributions • Inflation-Proofing Requirements and Related Actions

  8. FY 2013 FINANCIAL Review

  9. Summary of Revenue and Investment Income Natives of Kodiak, Inc : $596,823 VXM, Inc : $3,590,417 KOMAN, Inc: $219,580 KOMAN Holdings: $13,910,321 Less: Eliminations: ($116,736) Consolidated Total: $18,200,405

  10. Summary of Net Income (Excluding Unrealized Gains] Natives of Kodiak, Inc : $2,645,805 VXM, Inc : $3,273,800 KOMAN, Inc: $917,331 KOMAN Holdings: ($967,015) Less: Eliminations: ($3,224,116) Total: $2,645,805

  11. Summary of Net Comprehensive Income Natives of Kodiak, Inc : $2,645,805 VXM, Inc : $3,273,800 KOMAN, Inc: $917,331 KOMAN Holdings: ($967,015) Less: Eliminations: ($3,224,116) Total Operating Income: $2,645,805 Add: Unrealized Gains: 912,990 Comprehensive Income: $3,558,795

  12. Update on Parent Company Initiatives on kodiak island

  13. Purchase and Marketing of Alaska Russian Orthodox Church Art Collection: • Background: • On May 21, 2013, the individual responsible for creating this very unique art collection, Roger Pike, gave a very informative and heartfelt presentation to the NOK Board of Directors. • Roger shared his personal story of how he became dedicated to creating this project and seeing it through to a successful completion. • The collection will ultimately be composed of all 106 Russian Orthodox Churches in the State of Alaska and include four more religious icon paintings of important Russian Orthodox saints.

  14. NOK Art Collection Background (cont.): • Roger explained that only 80 of the 110 paintings had been completed at this time and the 30 remaining paintings were scheduled to be completed within the next six to eight months . • After viewing a significant number of the professional-quality original oil paintings, the NOK Board of Directors readily recognized and appreciated their deep cultural, historical and religious value. • The Board also believed there is significant commercial value in acquiring the collection. • Based on the above considerations, the Board authorized the purchase of the entire collection for $242,000.

  15. NOK Art Collection Background (cont.): • The Board of Directors also authorized the following items to purchased to support the proper framing, safe storage and marketing of the collection. • Frames ($300 each): $33,000 (Actual cost was less than half of this amount.) • Legal Fees: $5,000 • Laser Printer: $5,500 • Graphics Software: $2,500 • Printing Supplies (Ink, Canvas, Paper): $7,500 • Digital Camera Proofs: $6,000 • Initial Marketing and Advertising Costs: $15,000 • Total Preliminary Estimated Costs: $316,500

  16. NOK Art Collection Background (cont.): • Types of Items/Products That Can Be Created and Sold Using these Russian Orthodox Church Painting Images • Canvas Prints • Digital Paper Prints • Calendars • Post Cards • Coffee mugs and glasses • Computer Mouse Pads • Jigsaw Puzzles • Vinyl Placemats • Christmas Cards • Christmas Ornaments

  17. NOK Art Collection Background (cont.): • NOK retained Solstice Advertising, LLC in Anchorage to develop the name, logo and branding for the art collection. • After being provided with several different potential choices, the NOK Board of Directors selected “Kupol Collection” • “Kupol” is the Russian word for dome and ties together Russian culture and the iconic dome of Russian Orthodox churches. Adding the word “collection” to the name reflects the names of classic art collections and makes it clear that this is a group of works. • The Board-approved logo for the “Kupol Collection” appears on the next slide.

  18. A sample of the Kupol Collection is provided below and on the next slide:

  19. Kupol Collection “Next Steps” • David Anderson and Mike Kelly will continue to work closely with Solstice Advertising, LLC personnel to develop the Kupol Collection website, e-commerce payment processes and inventory management procedures. • Methods to increase awareness of the collection and to generate demand for personal prints and other resale items • Establish a small art gallery and resale kiosk in the NOK Corporate Offices • Advertise in various marketing publications • Advertise on the NOK Website • Explore an art loan program with museums and Alaska Native organizations

  20. Are there any shareholder questions or comments on the Natives of Kodiak, Inc. “Kupol Collection”?

  21. Current Real Estate Development Activities on Kodiak • Ongoing sustained efforts to get NOK properly compensated for the contaminated property it received under ANCSA • Meetings with Alaska Congressional Delegation and other elected officials • Recent trip by David Anderson to Washington, D.C. (September 15-18, 2014) • Meetings between NOK Directors and incumbents/candidates seeking office • Active Participation in Alaska Native Village CEO Association (ANVCA) • Creation of one-page, high impact document to bring attention to NOK’s land contamination issue

  22. Current Kodiak Real Estate Development Activities • Close cooperation and interaction with Kodiak Island Borough (KIB) and City of Kodiak officials to fund a study of a fresh water line to NOK property located south of the City of Kodiak • This item is currently on the list of approved Capital Improvement Projects, but is awaiting availability of funding

  23. NOK Property on Kodiak Island Initial Master Development Plan

  24. Aerial View of Tract “A”

  25. Conceptual Drawing of Potential Large Retail Store

  26. Current Real Estate Development Activities (cont.) • Recent Unanimous Consent Resolution approved by the NOK Board to take the following immediate actions to pursue development of Tract “A” in order to avoid a one-year delay in developing this property for the financial benefit of our shareholders • Begin required Environmental and Wetlands Assessment processes before winter ($20,000) • Determine if a satisfactory source of potable water is available on the property ($21,200) • Perform comprehensive assessment of Kodiak commercial market/opportunities ($15,000) • Miscellaneous Items and Contingencies: $3,800 • Total Expenditures Authorized: $60,000

  27. Update on CURRENT Subsidiary operations

  28. Offices • Kodiak, AK • Anchorage, AK • Severn, MD • Chantilly, VA • Raleigh, NC • Operations • Alaska • Washington, D.C • Continental US (DHS) • Puerto Rico PR

  29. Current and Previous Customers

  30. KOMAN, Inc. • Background Information: • KOMAN, Inc. reached the 9-year maximum time limit allowed by the SBA and exited the 8(a) Program in 2011 • Previously focused on Construction, Apparel Manufacturing and Support Services • Current focus is on Base Operations Support Services (Kodiak U.S. Coast Guard Contract) • Company will remain in operation at least until the end of the KSS Joint Venture

  31. Kodiak Support Services – JV • Contract Started on October 1, 2006 • Joint Venture with the Bering Straits Native Corporation Subsidiary (Inuit Services) • 10-Year Contract • Contract Value: $13,750,000 Annually • Infrastructure Management and Support Services to Kodiak Coast Guard Station • 110 Full-Time Jobs • Highly Visible Contract – Largest USCG Base in the World • Coast Guard remains very pleased with KSS Management Staff and Operations • As indicated on the next slide, profitability on this contract has significantly improved in recent years

  32. Update on KOMAN, Inc. • Kodiak U.S. Coast Guard Base Operations Support Services (BOSS) contract has become significantly more profitable over the past four years • Active involvement by NOK Board of Directors and Executive Team continues to contribute to improved safety, operations and profitability • Annual Net Income to KOMAN, Inc. from this contract follows: • 2014: $601,760 [Year-to-Date: Through July 31, 2014] • 2013: $1,083,149 • 2012: $64,822 (Affected by Wage Determination Increase in Fourth Quarter) • 2011: $344,442 • 2010: $4,980 • 2009: ($51,947) • 2008: ($8,754) • 2007: ($34,258) • 2006: ($116,205)

  33. KOMAN Diversified Services, LLC • 100% Owned by Natives of Kodiak, Inc. • Business Originally Formed in September 2003 • Certified by the SBA as an 8(a) Company in March 2008 • Current focus is on the following business lines: • Construction Management • Apparel Manufacturing • Federal Alarm Systems Maintenance and Monitoring Services (DHS Fusion Centers) • Environmental Services • Pursuing other profitable business activities

  34. KOMAN Diversified Services, LLC • Construction Management • The following conditions continued to significantly and negatively impact our Construction Management business line during FY 2013 and FY 2014 • U.S. National Debt of $16,738,492,645,235 ($16.7 Trillion) as of 09/18/2013 • U.S. National Debt of $17,764,283,324,567 ($17.7 Trillion) as of 09/17/2014 • Recurring annual Federal Budget Deficits of roughly $1 Billion • Federal Agency budget reductions • Justification and Approval (J&A) requirements for sole-source awards over $20 million • Result: Fewer construction contract awards, smaller dollar values and more competition with lower margins.

  35. KOMAN Diversified Services, LLC • Construction Management • During the last few months, we have seen an increase in the number of Task Orders being awarded to KDS from: • Alaska National Guard • U.S. Fish and Wildlife Service • We will continue to aggressively pursue construction projects that we can perform safely, professionally and profitably.

  36. Background Information on Apparel Manufacturing: • Three years ago, KDS and Propper International, Inc. created a new Joint Venture to manufacture military uniforms and related items (KOMAN-Propper, LLC ) • This initial Joint Venture has reached the end of allowable life under SBA rules and has been replaced by a follow-on Joint Venture called KOMAN–Propper Government Apparel (KPGA) • Fortunately, K-P, LLC did finally receive several long-awaited apparel manufacturing subcontracts (as shown on the next slide). • KPGA has already been awarded two new apparel contracts • Contract details are shown on several subsequent slides.

  37. K-P, LLC: • Military budget shortfalls and manpower reductions had a highly negative affect on the military apparel business line during 2013. • However, K-P, LLC did recently receive two long-delayed subcontract awards. Both of these subcontracts were bid far in advance of K-P LLC’s “sunset”, but were not awarded until after K-P LLC had “graduated” from its SBA Mentor-Protégé 8(a) eligibility. • Bronze Star subcontract is valued at $3,900,000(+) and scheduled to be finished by June 30, 2015. It is for the manufacture of Navy Working Uniform (NWU) Blouses. • The M&M subcontract is also for Navy Working Uniform Blouses, but has a total contract value of $10 million to $12 million and a term of 3 years.

  38. Navy Working Uniform (NWU) Trouser Award: • Approved by the SBA and awarded to KPGA in June 2014 • Total Contract Value of $15,135,452 (based on the maximum amount that the Federal Government is authorized to purchase). • However, we believe the Government is likely to buy $12 million to $13 million. • Due to material lead times and production “ramp-up” times, we anticipate this contract will generate no more than $40,000 in profits during 2014. • Admin Recovery and Profit forecast at 5.58%, or approximately $697,500 net return to KDS over the 3-year life of the contract.

  39. Jacket, Soft-Shell, Generation III, Level 5 • KPGA was awarded this contract in August of 2014 • Total Contract Value is approximately $5.4 million • We expect the Government to buy most or all of maximum authorized quantity. • Again, due to material lead times and production “ramp-up” requirements, we anticipate that no more than $30,000 in profits will be generated for KDS in Calendar Year 2014. • G & A Cost Recovery and Profit proposed on this contract is 6%; roughly $324,000 in total return to KDS over the 3-year contract life.

  40. Summary: • We are finally beginning to see notable improvement in our military apparel business line.

  41. Background Information on DHS Fusion Centers: • DHS awarded KDS a one-year 8(a) sole source contract last September to provide the following support to their Fusion Centers. • Site Survey Assessments • Digital Subscriber Lines • Alarm System Maintenance and Monitoring • Security Equipment Support • Fusion Centers are joint Federal/State/Local/Tribal intelligence- sharing facilities in each of the 50 states and four US territories. • The contract is valued at slightly over $500,000 per year. • It is our understanding that DHS intends to award a follow-on contract to KDS for Federal Fiscal Year 2015.

  42. Background Information on Environmental Services: • Approved by the NOK Board of Directors in July 2013. • Bruce Beck hired as KDS Regional Manager for U.S. East Coast. • We have been aggressively developing important strategic relationships and Teaming Agreements with large, reputable and capable companies: • STANTEC (formerly USKH). • Engineering Consulting Services (ECS) • Power Secure • We are also utilizing Bruce’s Environmental Science background to expedite the completion of the wetlands assessment and permitting process for our Tract “A” property, as well as to limit the amount of fees to be paid to STANTEC.

  43. We are also actively pursuing various opportunities in the Energy Services sector, to include: • Privatization of Government utility systems (water, sewer, electricity, steam heating, etc.) • Power Secure is currently waiting on a decision by the Department of Energy (DOE) for their firm to be listed as an “approved” Energy Services Company or ESCO. • Renewable Energy/Retrofit Projects. • Strategic partnering in the federal-sector to pursue joint programs/projects in renewable energy and Energy Efficiency Improvements (EEI).

  44. Summary: • We have continued to demonstrate our commitment to market our capabilities as aggressively as possible to improve our overall growth and profitability. • We are working diligently on a daily basis to strengthen our relationships with key business partners, as well as to grow new strategic business partnerships. • We have identified and are actively pursuing new business lines to generate long-term revenue streams and profits for our shareholders, including: • Selectively bidding on profitable and risk-acceptable construction projects • Expanding into Multi-Year Alarm System Monitoring and Maintenance Services • Expanding our capabilities within the U.S. Intelligence Community • Growing our new Environmental Services and Energy Services business lines

  45. Natives of kodiak, inc. Strategic plan PROGRESS REPORT

  46. Update on List of Current Action Items Resulting from Recent NOK Follow-on Strategic Planning Retreat Held in Kodiak on June 27-28, 2014

More Related