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Ahtna Kanas Spring 2016

‘Safety First’ Work Environment Paying Big Dividends

Dear shareholder-owners,

Tom Maloney

Every day, the men and women of Ahtna are safely executing challenging projects in locations across the country. Something we should all be very proud of is Ahtna’s Experience Modification Rating (EMR) of 0.63, which means that over the past three policy years we have experienced far fewer worker-compensation losses than other companies that are similar in size and operating within the same industry. A rating of 1.0 is the average rating in each industry, and we are well below 0.8, which is considered to be a “very good” rating. This rating not only means that we have been successful in minimizing losses, we have and will pay lower premiums than our competitors. The rating also shows that our commitment to a “Safety First” work environment is being achieved despite the fact that we often work in very challenging conditions.

Ahtna Government Services Corporation (AGSC) was recently recognized for its dedication to safety when it was honored with the distinguished Pacific Gas and Electric (PG&E) Gold Shovel Standard Certification. AGSC not only received the client certification, but was also given the highest score of “A” by PG&E under ISNetworld Safety Program Metrics, which gives us positive exposure to hundreds of hiring clients within ISNetworld.

All of our subsidiaries are focused on safely performing work and seeking out new work opportunities for the benefit of our Ahtna shareholder-owners. One example of successful project execution is the Alyeska Pipeline Service Co.’s Sag River Project, highlighted in this issue of the Kanas. Ahtna has been performing excellent contract work for Alyeska for more than 40 years, and we are pleased to announce that we recently signed a new five-year contract, with two option years. Congratulations to Ahtna Construction for a job well done!

Three man looking at camera, two of them are holding a check

Ahtna Technical Services Inc. (ATSI) President Sue Taylor, along with her management and project team, recently attended a Customer Performance Review at the Beaufort, South Carolina, Marine Corps Air Station. The customer recognized the project team for their value-added work performance in multiple areas. Jason Hart, Ahtna Board treasurer, represented our Board of Directors at the site visit and was able to witness firsthand our outstanding performance.

Ahtna acquires new company

Ahtna continues to seek acquisitions that provide multiple benefits to our shareholder-owners, such as job-hiring opportunities, increased profitability and ultimately higher shareholder-owner dividends. We just closed on the acquisition of AAA Valley Gravel, which is strategically located to support planned transportation projects in the Matanuska-Susitna region. Federal highway monies are scheduled to increase in Alaska every year for the next five years, and Mat-Su is a prime area for increased highway spending due to its rapid growth. Ahtna performs an extensive due-diligence process with any acquisition, and the Ahtna Board of Directors ultimately has final approval.

Tolsona oil and gas project update

The Tolsona gas prospect, which is approximately 10 miles outside of Glennallen, is a major investment area for Ahtna. The economic benefits, including potentially decreasing energy costs in the region and creating employment opportunities for shareholder-owners, are prime reasons for the Board of Directors’ decision to move forward with the project. The engineering and permitting are all going very well, and Ahtna recently participated in a Copper River Basin Job Fair and hosted our own fair in Anchorage to explain the project to shareholder-owners and local communities. We’re looking forward to having local high school students visit the project site to see firsthand some of the subject matter that is covered in their coursework being used.

Click here to read more about this project.

Mentor-Protégé agreements

Ahtna continues to seek growth opportunities through mutually beneficial teaming agreements with other firms. For example, our engineering service company is working on a mentor-protégé agreement with the Potawatomi Tribe based in Milwaukee, WI. Ahtna would be the mentor for the first time and would focus on government contracting, particularly in the Midwest. Ahtna Professional Services is working on a mentor-protégé agreement with Centerra and continues to pursue multiple government and commercial contracts. The mentor-protégé agreements are pending approval by the Small Business Administration (SBA). We are also teamed up with some of the largest engineering and construction firms in the country on prospects located throughout the United States.

Survey shows strong Ahtna employment satisfaction

The 2015 corporate- and project-employee- satisfaction survey, coordinated by our Human Resources Department with an external vendor, showed remarkable results. Of the 323 eligible employees, 93 percent (300) participated in the survey, and the results reflected that 95 percent are satisfied with their employment at Ahtna. We are impressed with the number of survey responses and glad our employees feel so strongly about working for the Ahtna family of companies.

In summary, I am proud to be part of the Ahtna team, and there are some exciting times ahead that I am happy to be a part of.

Thank you,

CEO Tom Maloney Signature

Tom Maloney
Chief Executive Officer