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Kookenaa is a Tlingit noun that means "messenger." Kookenaa is produced 4-6 times annually by Goldbelt, Incorporated for its shareholders. Goldbelt shareholders are encouraged to submit articles, poems, photographs, remembrances and notices for publication. Submit information to the Kookenaa Editor. Volume 7, No. 1. Mailed to shareholders
May 2001 Auk Nu Tours | CP Leasing | Annual Meeting | CEO Q&A | Directors Actions | 2001 Candidates | Shareholder Discounts | Cultural Committee | Summer Employment Goldbelt Sole
Owner of Auk Nu Tours "We are pleased that Operations Manager Jim Hammond is returning four his fourth year," said Goldbelt President and CEO, Gary Droubay. "Jim has developed an excellent relationship with our crew and community members. He will ensure that Auk Nu Tour's high customer service standards will continue under Goldbelt ownership." Auk Nu Tours passengers enjoy a spacious and comfortable catamaran, professional narration, excellent guest service personnel, complimentary snacks and beverages and spectacular scenery. The Tracy Arm Tour departs from the Seadrome dock, directly across from the Goldbelt Hotel, each day at 9:00 a.m. "We brake for wildlife," said Hammond. "Because the catamarans are fast and stable vessels, we have the flexibility in our schedule to stop for wildlife. Our passengers also spend more time at the head of Tracy Arm, viewing the Twin Sawyer Glaciers." Passengers bound for Gustavus, Glacier Bay National Park and Icy Straits depart from the Allen Marine dock at Auk Bay each day at 11:00 a.m. The ferry ride arrives in Gustavus in just over two hours. Many passengers remain on board for the Icy Strait Wildlife and Whale Watching Cruise. "The three-hour cruise is one of the best tours in Alaska," said Hammond. "The waters off Point Adolphus are rich with marine life and our naturalists are excited about sharing the sights and information." "Auk Nu Tours was recognized as 2000 Subsidiary of the Year," said Droubay. "The captains and crew maintain a commitment to safety and service. The company has excellent employee retention and very strong shareholder hire. The crew does a wonderful job of sharing our home, our Native people and culture." Goldbelt shareholders are invited to experience Auk Nu Tours products at a 50 percent discount. Contact the Goldbelt Tour Center, 586-8687 or toll free (800) 820-2628, for reservations and information. CP Leasing Delivers
148 Trucks to IRS The IRS agents using the vehicles are part of the Excise tax enforcement program for off-road diesel fuel according to Cooke. Their job is to ensure that off-road diesel fuel, normally used in construction equipment, which is exempt from federal excise tax, does not show up in on-road vehicles. The trucks, all of which are 4wd, XLT, quad-cab models with V-6 engines, will revert to CP Leasing after the 36-month lease is complete, and will be available for sale. The Company is also close to signing a $1.2 billion contract with the National Institute of Health (NIH) to lease computer equipment, medical equipment, and radio/telephone equipment to agencies operating under NIH's umbrella. Goldbelt entered the CP Leasing partnership in 1999 with Alaska Village Initiatives and the Native American Marketing & Development Corporation to specifically service the NIH accounts. "The relationship with the NIH has been almost two years in the making," said Goldbelt President & CEO, Gary Droubay. "I am confident in our ability to service NIH's needs and I expect a contract will be signed within 30 days." 27th Annual Meeting
of Shareholders At this year's meeting the three-year terms of directors Del Cesar, Carl Nelson and Edith McHenry will expire. Shareholders will elect three directors from the 10 candidates profiled on pages three and four of this newsletter. The three elected candidates will serve three-year terms expiring at the 30th Annual Meeting in 2004. Goldbelt is once again paying a one-time $50 voting incentive to all shareholders holding voting stock who submit a valid proxy on or before May 31 or at the annual meeting on June 2. Voting incentives will be mailed to eligible shareholders every Friday up until the annual meeting. "When shareholders vote for directors they are exercising their most primary and significant right to determine Goldbelt's future," stated Andrea Cadiente-Laiti, Nominations and Elections Committee Chair. Shareholders who have already voted are allowed to submit a new proxy if changes to their original vote are necessary. The last valid proxy submitted will be counted and all previously submitted proxies will be disregarded as explained in the Proxy Statement. Please exercise your right to vote and plan on attending the 27th Annual Meeting. CEO Q&A Q. What is Goldbelt's future strategy for it's largest subsidiary, Glacier Bay Tours & Cruises? A. Glacier Bay Tours & Cruises is Goldbelt's largest subsidiary, both in terms of revenue and employees. It was also Goldbelt's first investment in tourism, acquired in 1996. Last year, it generated over $14 million in Revenue from its' four small cruise ships and from the Glacier Bay Lodge. Additionally, it employs almost three hundred full and part time personnel. This is an exciting business, that focuses on delivering fun and adventure to vacationers in and around Glacier Bay National Park. We have grown the business from Revenues of $5.2 million in 1996 to almost $15 million in year 2000, but have been unable to realize any significant profits from that growth. The 1999 accident with the WAV was an unfortunate event that cost us over $3 million in lost profits, consumed most of Goldbelt's excess liquidity, and challenged a year in which we thought we would finally realize some of that potential. Going into the 2000 operating season, we were confident that in this year we would realize the potential that we have been expecting, however, we were again disappointed with the results. In spite of the scheduled cruises being made with most of the available cabins full, debt service costs, annual maintenance and overhaul costs for the boats, and high overhead costs offset the gross profit that was generated. We now have an additional challenge, as we look to the upcoming 2001 operating season, as it has become apparent that all of our business, especially Glacier Bay, will be adversely impacted by the weak economy in the lower 48, and the world. Cruise reservations for 2001 cruises are down 20 percent or more from last year. Because Goldbelt has over $18 million invested in Glacier Bay, it has become obvious that we cannot continue in this investment and accept no return on our investment. In that vein, with the concurrence of your Board of Directors, we have taken the following actions:
Although not part of our cost cutting program, we have completed of a $2.7 million upgrade of the Wilderness Discover, (our largest cruise ship) which improved its cabins, added some capacity, and converted her to an adventure product, carrying kayaks and inflatables. It will command higher cabin rates, and may be available to lease out during the winter months. This upgrade was approved and financed by the boat's lien holder, as a way of increasing her value and marketability. The new leadership at Glacier Bay has lifted morale and installed a new sense of excitement about the upcoming season. However, we are cautious about the ultimate effect of the weak economy on people's travel plans for this summer, and are preparing ourselves for reduced demand, and reduced revenues. Even with all of our cost cutting measures, it will be a challenge to turn a profit this year. In the long run, we are seeking to find an equity partner to participate with us in this investment, or if that is not feasible, we will sell the cruise division (the four cruise ships), and focus on operating the Glacier Bay Lodge. We will be watching closely the operational results of this season, and at the same time, looking for opportunities to exit partially, or completely from this investment. We have told you in the past, that if we cannot make an investment profitable after a reasonable period of time,that we would sell that investment. With Glacier Bay, we are close to the end of that reasonable period of time. Directors Taking
Action For Shareholders 12-2-00 Adopted Resolution 00-16 Adopted Resolutions 00-17 through 00-23 Adopted Resolution 00-24 and 00-25 3-24-01 Adopted Resolution 01-06 2001 Annual Meeting
Candidates
As a previous Board member I have seen the corporation face many challenges as we learned to survive in a new environment - "the corporate for profit business world." We made a deliberate decision to become involved in the tourism industry as a way to realize economic growth and provide employment for our shareholders. This has proven to be difficult for many reasons but I have faith in our ability to learn and succeed. We need to be prudent managers of our assets - for if we lose now - we won't have another chance. We have two resources that we can utilize to our advantage: our culture and our shareholders. We must continually increase shareholder hire at all levels and begin letting tourists know that they are visiting "Indian Country" when they use our boats, busses, and tram by showcasing our own culture and history. And most importantly we must return to a profitable company that can pay increasing dividends so as to benefit all shareholders. As a director I will represent the interests of all shareholders and will work to insure that Goldbelt does indeed have a "bright future."
As a member of the Board we negotiated an Off Admiralty Settlement that gave the Corporation more land than what we would have received from the Claims Act, thus increasing our net worth tremendously. As the Treasurer I worked very closely with the Board and President when we purchased the barge. At the recommendation of the President, the Board of Directors insured the barge. This proved to be a very wise move because after a series of accidents and a fire that destroyed the barge insurance claims paid to Goldbelt Inc. were worth more than the purchase price. With hard work from the Board and Management team we reached a settlement with our NOL's. From this the largest shareholder distribution was made ($16,000.00 per 100 shares). I have had the good fortune to work with Past Directors, Past Chairman of the Boards, and Past Presidents and Management staff who through their dedication, foresight and personal capabilities brought about the financial stability of Goldbelt Inc, and made it a leader among the Native Corporations. I would like your support in bringing my experience to the Board of
Directors. Therefore, I am requesting your support.
While obtaining an Associate of Arts degree I took a prerequisite expository writing course with Prof. Leslie Fields who taught me the skills I use today as an author. My first book, "Moose Racks, Bear Tracks, and other Alaska KIDSNACKS" became a #1 seller for my publisher in Seattle; a sequel is in the works; and I currently have a web site devoted to my third cookbook, "Sourdough for Starters" which will be my first self-published book. In true boomer fashion I've reached that stage in life where I'm ready to make a contribution, and being a Goldbelt board member would fulfill that desire in a profound way. I bring to the table a lifetime commitment to learning, a self-imposed adherence to a strict code of ethics, and the firm belief that everyone is accountable for their actions. I won't be mailing out vote solicitations to fellow Goldbelt shareholders because I personally don't like receiving unsolicited mail. Just know that it would be my honor to serve you as a Goldbelt board member, beginning in the year 2001.
Franklin Lee Jimmy (34)
Any commitment acted on should be in the best interest of the shareholders first, especially in profits.
Many of you know that I had breast cancer this past fall. I had surgery, and I'll complete chemotherapy in April, 2001. My five-year survival prognosis is +92 percent! My brush with cancer further emphasized to me the importance of a healthy Goldbelt, Inc. for current and future generations. These past few years have been challenging. Prior to my election, most of Goldbelt's cash had been invested. Many of those investments lacked synergy and contributed nothing to the bottom line. Your board and management have been evaluating corporate holdings towards selling off non-performing assets and consolidating functions that will reduce operating costs while strengthening our ability to succeed in our core tourism businesses. An example is we are moving Glacier Bay Tours & Cruises' accounting to Juneau. This translates to additional local employment opportunities, and a reduction of overhead. We also recently authorized management to negotiate the sale of the building that currently houses Glacier Bay Tours & Cruises and relocating the operation to cheaper office space. I feel I bring many positive attributes to the board and I sincerely hope that you will exercise your right to vote. I ask you for your support and vote so that I can continue the important work of bringing Goldbelt, Inc. to profitability. I am committed to the immediate and long-term success of Goldbelt. Gunalcheesh!
Politically, Goldbelt is a front runner in business which has built a strong relationship with our local, state and federal governments. This enables Goldbelt to have the valuable lines of communication with all levels of government so that we can accomplish our corporation's goals and objectives. Financially we are now focused on profitability with our companies. We anticipate that our companies will continue to grow and within three to five years we will demonstrate strong gains. Our board, management and staff with a "team approach," will produce results for our shareholders. I pledge my commitment and experience; a voice for all generations; equitable treatment for all; and finally for sound business planning with Goldbelt, Inc. I humbly ask for your support and your vote for my reelection to the Goldbelt Board of Directors. Gun al' cheesh
2001
Goldbelt Employee & Shareholder Discounts Alaska Cruises: Auk Nu Tours: Auk Ta Shaa Discovery: Glacier Bay Lodge: Glacier Bay Tours/Cruises: Goldbelt Hotel Juneau: Mt. Roberts Tramway: Board Seeks
Cultural Committee Nominations "We have such a unique and beautiful culture and visitors are eager to learn about our people," said Goldbelt director Kathy Polk. "We want to find new ways of educating patrons of our Goldbelt businesses. The board feels that an ongoing advisory committee made up of knowledgeable shareholders is the best way to do that." The Board is currently seeking nominations for the committee and will appoint members after the committee plan is complete in July. Committee members will participate on a voluntary basis and will not be financially compensated by the corporation. If you are interested in participating or know another shareholder that you would like to nominate please contact Goldbelt, Incorporated at (907) 790-4990 or call toll free at (800) 770-5866 to request a Nomination Form. Complete details regarding the Cultural Advisory Committee will be highlighted in the summer edition of the Kookenaa. Employment
Opportunities for Shareholders!
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