Greetings shareholders,

We just wrapped up our annual audit, and I am pleased to report that we were blessed in 2021 to continue our multi-year trend of financial success. Despite the negative impacts of the pandemic, the Ahtna family of companies has emerged stronger than ever. Our successful growth strategy has led to our revenues and profits reaching the second-highest total in company history, eclipsed only by 2020. It was also a record-setting year for shareholder benefits, with over $9.8 million paid out in shareholder wages and benefits and $9.4 million in dividend and Elder distributions.

Although 2021 was another successful year for Ahtna, we continue to monitor impacts to our business from rising inflation, employee turnover, supply chain delays and the pandemic. We have some bright spots on the horizon as we continue to follow the Infrastructure Bill opportunities in Alaska and throughout the United States. Backlog continues to remain strong, and we are eagerly awaiting award announcements for some large proposals that are outstanding. The Infrastructure Investment & Jobs Act will have limited impact on project starts and revenues in 2022 due to project planning/procurement and grant processes, but will lay the groundwork for new opportunities emerging in 2023.

Our solid reputation for quality service and reliable performance has opened new doors for our subsidiaries and produced follow-on work with current customers. Ahtna Logistics, LLC has been awarded a 5-year Artillery and Chemical Training contract recompete. This contract provides training support, warehousing, procurement, and simulator lifecycle support (maintenance and parts fabrication) for the U.S. Army at seven locations, including international locations in Germany and Republic of Korea. The total contract value is $12.2M if all options are fully exercised. Ahtna Support and Training Services, LLC (ASTS) was successful in renewal of their Migrant Protection Program (MPP) contract, which you can read more about on page 5. Staff has been busy conducting new/refresher training for MPP personnel, replenishing and preparing employee resources (uniforms/equipment), as well as procuring government consumables.

Ahtna Marine & Construction Company, LLC (AMCC) was the successful bidder on the Kings Bay Submarine Base dredging project, valued at $12.1M, for the Jacksonville U.S. Army Corps of Engineers. The project duration is 11 months and entails hydraulically dredging approximately 1.3 million cubic yards for a distance of 8,500 feet. Also of note, the project is located in Camden County, Georgia and is the first large dredging project for AMCC outside of Florida. Shareholders have benefited from employment opportunities in dredging operations, and we are planning to send additional shareholders to support AMCC projects this year.

We recently held an AN Strategies and Growth meeting with our subsidiaries to discuss expectations and tactics. We conducted a brief recap of our 2021 performance, key wins, accomplishments and things we need to improve upon. Each of our subsidiary groups presented on 2022 plans, key financial targets, risks, strengths, weaknesses and investment areas. Strategic discussions for 2023 and beyond included topics such as obtaining security clearances, growing our core capabilities, pursuing subcontract work with large primes, increasing work for non-federal customers, making strategic investments and succession planning.

I would like to encourage you to exercise your shareholder rights by casting your proxies and joining us on June 4th for Ahtna’s 49th Annual Shareholders Meeting. The Annual Meeting and communications such as this newsletter are how we keep you updated on company news and operations, and now we want to hear from you! See the comment card included in your proxy packet to learn how you can submit questions and comments to Ahtna’s leadership team.

This year the Ahtna family of companies is proud to celebrate 50 years of providing exceptional service. There have been many changes in the business world over the past 50 years, but Ahtna’s values remain a constant beacon. In the words of Ahtna’s first president, the late Robert Marshall, in the first Ahtna Annual Report, “As a business we must be willing to stand on an equal footing with any business in the world, and we must have to be willing to be measured against the demands of the competitive business world.” Those words still ring true today, and we will continue to put our best foot forward on behalf of our shareholders. Thank you for your continuing support.

Thank you,

Tom Maloney, Chief Executive Officer
Ahtna Netiye’