Sealaska directors approved a 2016 spring distribution to shareholders totaling $16 million. The record date is Friday April 1, 2016. The Distribution date is Thursday April 14, 2016. Sealaska will report a second consecutive year of positive net income from 2015 results.
Sealaska’s short-term financial priority is to be profitable before investment and ANCSA Section7(i) income. As we approach accomplishing this priority, we are also driving strategic initiatives that will make Sealaska a stronger, more resilient company. Operational dividends are currently low because of the 2013 operational losses. Our strategic plan maintains a goal to increase operational income, which will stabilize the dividends to shareholders and begin to consistently grow the amount.
“We are achieving improved operational performance each year,” said Sealaska President and CEO Anthony Mallott. “This is accomplished by being diligent to our strategic plan. Our business strategy is to operate and invest in relevant industries that fit our values. We focus on team-based management, and improvement initiatives. Executing on these strategies will result in sustainable and growing operations.”
“The success of these efforts will lead to increasing stable operations that can maintain and grow shareholder benefits,” said Sealaska Chair Joe Nelson. “Through three platforms (Sealaska Government Services, Natural Resources and Natural Foods/Seafood) as well as a value-based investment process, Sealaska will grow in industries that are meaningful to our shareholders and society. Growth will allow Sealaska to further achieve our mission of strengthening people, culture and homelands.”
Sealaska is oftened asked, when are distributions taxable?
- 7(j) distributions are always taxable to Urban and At-Large Shareholders
- Sealaska dividends can be taxable to shareholders when Sealaska generates sufficient taxable income, which is expected to occur under our long-term strategic plan
Sealaska Sources of Income (net income of $15 million in 2014)
- 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.