A combination of hard work, wise investments and employing the right people to fulfill CIRI’s mission – these are the keys to maintaining a strong, prosperous company that can withstand challenges and seize new opportunities.
In January 2017, CIRI subsidiary North Wind Group took a big step when it acquired Portage Inc., one of its largest competitors in the environmental and radiological waste-management arena. The Portage acquisition brought important new contracts to North Wind and strengthened its capabilities nationwide.
The venture paid off. In 2017, thanks to the Portage acquisition and other factors, revenues for North Wind increased by 65 percent over a one-year period, from $161.7 million in 2016 to $266.7 million in 2017.
North Wind’s strong performance is but one example of how CIRI posted excellent results for the 2017 financial year. “CIRI marked 2017 as one of its most profitable in a decade,” said CIRI President and CEO Sophie Minich. “The challenge now is to continue the upward momentum and grow in a way that adds value to shareholders’ equity into the future. We can achieve this by identifying new opportunities and harnessing the strength CIRI has established both internally and with our expert partners.”
Other business segments that performed exceptionally well include real estate, which recovered from a loss of $4.5 million in 2016 to achieve $12.8 million in pre-tax net income in 2017 – an increase of more than 380 percent. This success can be attributed to a strong nationwide real estate market, which benefited the company’s Lower 48 real estate investments and development projects. Natural resources, energy and infrastructure, and private equity and investment securities also delivered strong performance.
CIRI acknowledges that certain circumstances outside its control contributed to our success in 2017. These include the passage of the Tax Cuts Job Act of 2017, which allowed CIRI to claim an additional $6 million in income and will yield future cash savings for the company, as well as historically high zinc prices, which contributed to significant ANCSA Section 7(i) payments.
“CIRI’s success would not be possible without our talented team of employees, the wisdom and guidance of our Board of Directors and the support of our shareholders,” Minich said. “I’m proud of our 2017 accomplishments and look forward to new opportunities that will drive continued strong financial results to our nearly 9,000 shareholders.”
A more detailed accounting of CIRI’s 2017 financial condition will be available in the 2017 CIRI Annual Report, which was mailed to shareholders this month.