2019 BBNC Annual Report - Page 27

MANAGEMENT’S DISCUSSION AND ANALYSIS The Management Discussion and Analysis (MD&A) section is a narrative of Bristol Bay Native Corporation’s (BBNC or the Corporation) financial condition from management’s perspective. The MD&A is intended to provide readers of BBNC financial statements with a clear understanding of how BBNC has done over the past fiscal year and should be read together with the Consolidated Financial State- ments and accompanying Notes that are included in the Annual Report. The MD&A contains projections based on current information and management’s expectations of future events. Readers should note that all projections are subject to change, risk and uncertainties. Any projections included in the MD&A are based on reasoned assumptions as of the date of this MD&A and could materially change at any time. CORPORATE PROFILE FISCAL YEAR 2019 2018 2017 BBNC revenues $ 1,689,014,000 1,659,345,000 1,525,181,000 Net earnings attributable to BBNC $ 53,148,000 103,063,000 41,021,000 Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 89,390,000 84,480,000 99,371,000 Cash provided by operating activities $ 69,097,000 45,687,000 94,985,000 Regular dividends declared $ 10,910,000 20,200,000 18,796,000 Contributions to settlement trusts $ 12,847,000 — — 540,100 540,100 540,100 227 198 202 Regular shares outstanding Average shareholder hire BBNC is an Alaska Native Regional Corporation created pursuant to the Alaska Native Claims Settlement Act of 1971 (ANCSA). Congress enacted ANCSA to resolve longstanding conflicts surrounding aboriginal land claims in Alaska and to open oilfield development. The Corporation was incorporated as a for-profit corporation to benefit Alaska Natives with ties to the Bristol Bay region and as of March 31, 2019, the Corporation had 10,868 shareholders. ANCSA provided the Corporation with a monetary settlement from the federal government of $32.7 million and the title to 3,079,553 acres of land. At March 31, 2019, stockholders’ equity retained by the Corporation has grown to $513.0 million, and cash distributions to shareholders have exceeded $244.6 million. BBNC is primarily a holding company and derives substan- tially all of its cash flow from its subsidiaries and its portfolio of passive investments which are the Corporation’s primary two asset allocations. BBNC relies on profits from both to repay creditors, to fund shareholder benefits and share- holder education opportunities, and to pay for corporate general and administrative costs. BBNC’s ability to fund each of these cash uses and to simultaneously grow the Corporation’s assets are subject to the profitability of its subsidiary businesses and the portfolio. The BBNC Board of Directors approved a five-year stra- tegic plan for FY2017 through FY2021. The plan and the Corporation’s efforts focus on the pursuit of the following six strategic goals: • Build the financial strength of BBNC. • Pay predictable and increasing shareholder dividends. • Balance responsible development and protection of our lands, fisheries and resources. • Increase shareholder employment and development opportunities. • Support educational, cultural and social initiatives that positively affect shareholders and descendants. • Help to develop economic opportunities in the Bristol Bay region. M anagement ' s D iscussion and A nalysis 25