CIRI ended the 2004 fiscal year with pretax net income of $12.5 million, and post-tax net income of $8.4 million. As reported by CIRI President and Chief Executive Officer Margie Brown in the company’s 2004 Annual Report, this is higher than the budget approved at the outset of the year, but down substantially from prior years.

The company also finished the year with little debt and strong cash reserves available for investment. Throughout 2004, CIRI again maintained a focused, yet patient approach toward investment. In late 2004, the company took a significant step to re-deploy investment capital with a new joint venture with T-Mobile USA to acquire PCS wireless licenses, in which CIRI will invest $80 million. The CIRI-controlled joint venture was the successful bidder on 36 wireless licenses in 35 markets throughout the United States.

Also in 2004, CIRI expanded its Lower 48 resort portfolio when construction began on the Hyatt Regency Lost Pines Resort and Spa near Austin, Texas. CIRI’s partners in this project include resort developer Woodbine Development Corporation and The Oklahoma Publishing Company.

In Alaska, improved market conditions and better operating margins resulted in improved financial performance. Operating income from CIRI’s construction services division was down due to fluctuating contracting conditions on Alaska’s North Slope.

In 2004, CIRI profited from the sale of certain real estate properties under development as well as from the sale of the company’s interest in Alaska Communications Systems, Inc.

As CIRI President Margie Brown explains in this month’s president’s message, the company has focused on implementing a prudent investment plan and has the financial resources to take steps to build the company’s annual profitability in 2005 and beyond.