Dear fellow shareholders,

I want to start this update by announcing Tim Finnigan’s upcoming retirement from his role as President of Ahtna Diversified Holdings (ADH). After 16 years with Ahtna, and leading ADH since 2015, Tim has been crucial to our growth and success. His final day with us will be September 6th. Robert Harris, AN COO, will begin integrating into ADH’s operations immediately and will serve as interim president upon Tim’s departure. Robert will collaborate closely with Kevin Bergt, who will transition into the role of VP of Operations, giving him the authority to make essential decisions for our continued progress. I will provide more information on the search for a permanent president soon.

Our operations continue to face delays in government awards and project timelines. Although these setbacks are challenging, they are part of our industry’s dynamics. We are confident that the delayed revenues will eventually materialize, but the timing will influence our overall performance. In response, we are exploring strategies to improve profitability and cash flow, such as optimizing operations, streamlining processes, and utilizing technology to enhance efficiency.

We are also addressing a shortage of qualified candidates, particularly in project management and skilled crafts. This issue is widespread, leading to longer hiring times. To mitigate this, we are intensifying our recruitment efforts, partnering with staffing agencies, and enhancing employee training and development programs. Safety remains a top priority as we ensure a secure and health-conscious work environment. Shareholders interested in training and development opportunities should reach out to our Shareholder Enrichment staff.

Following the National 8(a) Alaska Regional Conference in Anchorage, we hosted SBA training at our Anchorage office, led by Holland & Knight Government Contracting Partners Bob Tompkins and Leila George-Wheeler. Bob and Leila provided comprehensive training on a range of critical topics and the session was highly successful, with over a hundred of our project managers and senior employees in attendance. We are committed to navigating the complexities of government contracting and enhancing our operational expertise.

We are excited to announce that Ahtna has acquired Link Technologies, Inc., a company specializing in nuclear engineering and environmental management. We are currently transitioning Link Technologies under the Ahtna umbrella; further details about this acquisition are available here.

We have made significant progress in implementing GPS technology across our company vehicle fleet. We have successfully installed the latest GPS systems in vehicles across our office locations in Alaska, with plans to extend this to our fleets in the contiguous United States. This effort underscores our commitment to innovation and regulatory compliance.

Our subsidiaries continue to demonstrate resilience and adaptability. The Ahtna Federal group is managing 10 major projects nationwide, each valued at over $10M, with several extending into 2025. Notably, they have secured a $7.3M contract for fuel systems repair at Eareckson Air Force Base on the Aleutian Chain, contributing to a $10M project backlog for Alaskan projects in 2025.

Ahtna Construction & Primary Products Company is nearing completion of the Palmer Airport project, which was delayed last year due to weather. The new Apron E is finished, and work on the final infiltration basin is nearly complete. The guardrail project for the Alaska Department of Transportation (DOT) in the North Central area is also progressing well, with positive feedback from the client.

Ahtna Integrated Service Holdings President Brenda Rebne’s group is working on securing an 8(a) sole source opportunity with NASA’s Glenn Research Center in Ohio for custodial support services. The project is expected to start on October 1st.

Ahtna Global has been awarded Phase II of the REC Accra, Ghana Renovation project by the U.S. Agency for International Development, valued at $8.8M. This project, running through November 2025, will be managed under ADH’s International Special Projects/Outside the Continental United States (OCONUS) division.

Ahtna Marine & Construction Company has secured a $21.7M dredging and beach nourishment project from the City of Fort Myers, Florida. This project involves hydraulic dredging and beach restoration efforts to recover from 2022 hurricane damage that severely eroded the coastline.

As we move through 2024, we are focused on making our operations more resilient and adaptable. We are investing in reliable equipment, enhancing our supply chain management, and providing growth opportunities for our workforce. We are determined to overcome current challenges and optimistic about our future prospects.

Thank you for your continued support,
Roy Tansy Jr., Chief Executive Officer

Ahtna Netiye’, LLC