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       2009 annual report
                                                      2009 annual report
                                                                           A Letter from our Chairman
                                                                           Dear Fellow Tribal Members:

                                                                           It is with great pleasure that we present to you the 2009 edition of the Potawatomi Business Development Corporation’s (PBDC) annual report.
                                                                           As in previous years, this report takes account of the financial progress of the PBDC during the course of 2009, offering you a snapshot of our
                                                                           most recent efforts.
                                                                           Our mission continues to focus on generating wealth and improving the quality of life for the Forest County Potawatomi Community (FCPC)
                                                                           by making strategic investments, acquisitions and prudent asset management and community development decisions. Through trust, support,
A Letter from our Chairman – Kevin J. Allis   3                            integrity, and mutual respect, PBDC is committed to building an economic engine that will support FCPC for generations to come.

A Letter from our CEO – Pepi Randolph         4                            The previous year negatively impacted most governments and businesses as the economic climate yielded dramatic declines. Unfortunately,
                                                                           we were not immune to the challenges of that market. However, with diligence and discipline, we prioritized operational streamlining, and in
                                                                           doing so, our yield increased in 2009. We cut our operating costs by a margin of 35 percent at PBDC. In addition, we made difficult decisions
Mission Statement                             5                            regarding previous investments leading us to divest in three companies. However, this allowed us to strengthen our balance sheet and increase
                                                                           our leverage in the marketplace.
PBDC Facts                                    6
                                                                           The composition of our team also saw changes in 2009. Pepi Randolph was appointed Chief Executive Officer, Kip Ritchie (FCPC Tribal Member)
                                                                           was named PBDC’s Chief Operating Officer, and three new board positions were filled by Phil Shopodock (Former FCPC Tribal Chairman), Kurt
2009 Investment Activity and Performance      7                            O’Brien (Former PBDC General Manager), and Manny Johnson (FCPC Tribal Member). I credit our 2009 success with those leadership changes
                                                                           as well as the unwavering support of our Community.
Subsidiary Company Highlights                 8-9
                                                                           As we move through 2010, I can say with assurance that we are poised for continued growth. From inception, the market value of the PBDC
                                                                           has nearly doubled the Tribe’s initial investment. Our growth has been steadily moving upward, and closer to the ultimate goal of producing
PBDC Deal Funnel                              10
                                                                           a revenue stream for our Community that is independent of gaming. However, to continue this growth, the Community must continue to be
                                                                           patient and supportive of the efforts and stated goals. Clearly this is not going to be an overnight accomplishment, but certainly one that is
Audit Letter                                  11                           obtainable with continued long-term vision, and concerns for the future generations of our Community.

Financial Statement                           12-15                        Moving forward, in a diligent and disciplined manner, we will further diversify our sources of income, conserve and develop our common
                                                                           resources, and strengthen the financial future for the PBDC. Through our experience and our success, we intend to become the preeminent
                                                                           tribally-owned economic development organization in the country.
Executive Council                             17
                                                                           In conclusion, let me say that I am proud to be associated with the PBDC, and a member of this Community, both who are leaders in economic
Board of Directors                            18                           development within Indian Country. Native American communities from across the country have marveled over our progressive and intelligent
                                                                           methods designed to safeguard and build the assets of our Tribe. We look forward to delivering another strong year for the Potawatomi
                                                                           Business Development Corporation in 2010, and along the way to our success, we welcome your comments and recommendations as we grow.
PBDC Staff                                    19

A Look Back / A Glimpse Ahead                 20-21                                                                    Mi-Gwéch

                                                                                                                       Kevin J. Allis | Forest County Potawatomi Community Tribal Member
                                                                                                                       Board Chair, Potawatomi Business Development Corporation

    A Letter from our CEO                                                                                                                         PBDC Mission Statement
    Welcome to the Potawatomi Business Development Corporation’s (PBDC) 2009 annual report. I am proud to deliver this report as your new
                                                                                                                                                  The mission of the Potawatomi Business Development Corporation (PBDC) is to generate wealth and improve the
    CEO and I hope you find it informative.
                                                                                                                                                  quality of life for the Forest County Potawatomi Community (FCPC) by making strategic investments, acquisitions and
    2009 was an important, yet gainful year for PBDC. Following one of the most economically challenging years in decades, we made changes        prudent asset management and community development decisions. Resources generated by PBDC and its holdings
    that trimmed our expenses, strengthened our management team and expertise, and rechanneled our efforts to make PBDC more profitable.          will help diversify the tribal economy that supports FCPC’s tribal government and help improve the lives of FCPC
                                                                                                                                                  tribal members. Through trust, support, integrity, and mutual respect, PBDC is committed to building an economic
    A large part of our improvement was a narrowing of our focus, and a more strict evaluation of the strategic roles of our investments,         engine that will support FCPC for generations to come.
    businesses and partners. As a result, we had to make difficult decisions this past year. We wrote down a number of real estate investments
    – including our interest in Key Lime Cove, LLC - and we divested our interest in the Potawatomi Design Group architectural company and
    HowlFire marketing firm. Additionally, we suspended operations of the Potawatomi Community Development Corporation in order to focus
    our resources on for-profit investment opportunities. Again, these were difficult decisions, but prudent given the economic landscape.
                                                                                                                                                  Roles of the PBDC
    Streamlining our strategic focus allowed us to concentrate on the two operating companies that remain in our portfolio – Advancia
    Corporation and One Prospect Technologies. Advancia Corporation remains our strongest and most successful endeavor to date. Through
    dedicated leadership, smart growth, and expertise in the Federal government contracting arena, Advancia has grown its revenues and
    market value tremendously in the three plus years that we have owned them.                                                                          management and                             investing                       communication
    One Prospect, headquartered in Crandon, Wisconsin, also saw a strong year in 2009 and is working to grow its revenues by strategically
    increasing its service lines and capabilities.                                                                                                     • Provide oversight to               • Subsidiary companies,               • Provide information to:
                                                                                                                                                         subsidiary companies                 new and existing                      - Executive Council
    The Tribe is wise to look to diversify its revenue streams by understanding that long-term dependence on gaming is not sustainable.
    PBDC was created by the Tribe to help diversify and grow the wealth of the Forest County Potawatomi by finding and executing on sound                                                                                           - General Council
    investment opportunities to grow for the long-term economic benefit of the Tribe. In our short history, we feel we have made progress. The         • Provide strategic                  • Passive Investments                   - Tribal Members
    Tribe’s initial $25 million investment in the PBDC has grown to over $42 million in market value since 2004. We feel fortunate to have come          management services to
    through the recent recession with strong numbers and we are anxious to continue the momentum we have generated.                                      subsidiary companies               • Partnerships                        • Intermediary for providing
                                                                                                                                                                                                                                    information between
    I am excited for the Tribe and PBDC as I look at 2010 and beyond. I see tremendous opportunity for economic growth through strategic               • Provide business                   • Joint Ventures                        subsidiary companies and
    investments, partnerships and acquisitions. I see the respect that other tribes around the nation have for the Forest County Potawatomi for
                                                                                                                                                         development services to                                                    the Tribe
    its foresight, aggressiveness and leadership. A common theme in Indian Country is commitment to future generations, but relatively few
                                                                                                                                                         subsidiary companies               • Manage deal flow
    tribes have been able to develop an effective strategy to make that happen. The Forest County Potawatomi have, and PBDC is proud and
    honored to be a part of that strategy. We look forward to your support and long-term commitment to allow PBDC to continue charting a                                                      (see deal funnel on                 • Promote FCPC, PBDC and
    path to wealth and prosperity for the Forest County Potawatomi Tribe.                                                                              • Manage overall investment            page 10)                              subsidiary companies locally
                                                                                                                                                         portfolio                                                                  and nationally

                                                                                                                                                       • Safeguard tribal assets

                                               Pepi Randolph | CEO, Potawatomi Business Development Corporation

4                                                                                                                                                                                                                                                                       5
    PBDC Facts                                                                                                             PBDC Assets and Revenues

    company name: Potawatomi Business Development Corporation (PBDC)

    established: 2002

    headquarters: Milwaukee and Crandon, WI                                                                                      totaL assets
    total employees: 250                                                                                                                                                                 $ 40,000,000

    subsidiary companies:

         • Advancia Corporation                                                • One Prospect Technologies                                                                               $ 30,000,000

              • Potawatomi Training
              • Potawatomi Test & Evaluation
              • Advancia Aeronautics                                                                                                                                                     $ 20,000,000
              • Securio

    Joint ventures:                                                                                                                                                                      $ 10,000,000

         • Four Fires LLC – Marriott Residence Inn – Hospitality {25%}
                                                                                                                                                      2005   2006   2007   2008   2009
    Limited Partnerships/investments:

    	    •		Commercial	Real	Estate:
              • Haley Associates LLC
              • Bradley Associates LLC                                         	    •		Hospitality:
              • Mammoth Associates LLC                                                    • Summit Hotel Properties LLC

    	    •		Ethanol	Plants/Manufacturing	Companies:                                 •		Software	Development:
               • Blue Stem Growth and Income Funds II & III
               • Waukesha Tool & Stamping LLC
                                                                                          • Brendan Technologies
                                                                                          • Embedded Control Systems
                                                                                                                                 totaL revenues                                          $ 50,000,000

               • Milwaukee Composites Inc
                                                                                    •		Logistics/Transportation	Service:
    	    •		Residential	Real	Estate:                                                      • HCI Logistics LLC                                                                            $ 40,000,000
               • Native American Housing LLC

                                                                                                                                                                                         $ 30,000,000
    Executive	Team:
               •   Pepi Randolph, CEO
               •   Kip Ritchie, COO                                                                                                                                                      $ 20,000,000

               •   Chris Meinecke, CFO
               •   Rebecca Guddie, Administration Manager
                                                                                                                                                                                         $ 10,000,000

    shareholders: Owned by the 1,400 approximate members of the Forest County Potawatomi Community

                                                                                                                                                      2005   2006   2007   2008   2009

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    Company Highlights                                                    businesses and                                                                                                                             This success included the
                                                                          governments. “Success in                                                                                                                   company’s Northwoods
                                                                          our Native-to-Native                                                                                                                       service team’s
                                                                          approach is seen in several                                                                                                                standing, which grew
                                                                          contracts in 2009, the most                                                                                                                to a profitable revenue
                                                                          significant being a base                                                                                                                   stream. According to
    Advancia	Corporation                                                  camp planning and training                                           One	Prospect	Technologies                                             Neilitz, “This is important
    Linking people and resources with the government, military            contract for the Unites                                              Business technology. Business results.                                because we are an
    and native corporations                                               States Army,” said Porter.                                                                                                                 essential part of the
                                                                          “With two Alaska Native                                              Founded in Crandon, Wisconsin in 2000, the One Prospect team          Northwoods receiving
    A 100 percent tribal-owned company, Advancia Corporation              Corporations who formed                                              is a technology solutions provider offering information technology    quality technology
    is headquartered in Oklahoma City and was purchased by the            a joint venture and, as a                                            (IT) management and service programs for companies throughout         services. 2009 was a
    Potawatomi Business Development Corporation in 2007. In 2008,         subcontractor, we secured                                            Wisconsin and beyond. Purchased by the Potawatomi Business            springboard year for
    the company established four sister companies, Potawatomi             a significant contract and                                           Development Corporation in 2006, the company holds numerous           the group to leap into
    Training, Potawatomi Test & Evaluation, Advancia Aeronautics          are providing housing                                                industry partnerships and certifications with companies like          the future and we look
    and Securio.                                                          management.”                                                         Microsoft, Cisco Systems, and Citrix.                                 forward to what we will
                                                                                                          renee Porter, President                                                                                                                   Jason neilitz, ceo
                                                                                                                                                                                                                     deliver in 2010.”
    The family of companies now operates in 30 locations                  Into 2010, Advancia continues to build its sister companies          In 2009, the company concentrated on returning to substantial
    nationwide and currently employs more than 225 people who             allowing them to further diversify into other government contracts   profitability and establishing a sound financial footing. “Our team   Some of the company’s project and contract highlights for the
    excel in engineering, logistics, information technology, training,    as well as diversifying their services offered to the government.    worked hard in 2009 identifying markets we wanted to serve,           year included a pilot site program for the federal government. The
    environmental and safety, and research and systems analysis                                                                                and then planning for job roles to address those markets,” said       Forest County Potawatomi (FCPC) Service team worked with FCPC
    services. Since 1982, Advancia won more than 650 state and                                                                                 Jason Neilitz, One Prospect Technologies CEO. “Our focus was on       Child Support to build a model system for tracking child support
    federal government contracts and continues to grow within the                                                                              controlled, organic growth which would resonate to the bottom         payments. “This was a major initiative for the service team as the
    defense, aviation and homeland security markets.                                                                                           line and I’m happy to say we succeeded in this goal.”                 work performed is a foundation to export our knowledge to other
                                                                                                                                                                                                                     Tribes. We have the know-how to install and maintain the system
    According to president, Renee Porter, 2009 was a significant year                                                                                                                                                and we expect future growth to stem from this effort,” said Neilitz.
    for Advancia and its sister companies. “Throughout the year, we
    focused a great deal of effort on building a strong foundation for                                                                                                                                               One Prospect further expanded its service lines in 2009 by
    the new companies allowing them to compete and win work in                                                                                                                                                       becoming a Master Lock distributor. The partnership has proven
    the federal marketplace. We were so focused on this goal that we                                                                                                                                                 successful and Master Lock considers the company an important
    secured a total of 58 contracts and booked $30 million of business                                                                                                                                               minority distributor. Additionally, One Prospect applied for a
    in September and October of 2009 alone.”                                                                                                                                                                         broadband stimulus grant and remains a driving force in a
                                                                                                                                                                                                                     campaign to deploy the much needed service throughout the
    Some of the major contracts awarded during the year included a                                                                                                                                                   Northwoods region.
    five-year contract for the United States Army to provide physicians
    to medical treatment facilities and a five-year contract to support                                                                                                                                              In 2010 the company celebrates its 10th anniversary and plans to
    the Army at Fort Sill, Oklahoma.                                                                                                                                                                                 continue core, organic growth through all if its service lines with
                                                                                                                                                                                                                     additional expansion coming from its newest markets.
    Another important area of growth for the companies was to
    further develop strategic partnerships with and for Native                                                                                                                                                                                       
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     The PBDC Deal Funnel                                                                                                                                               Audit Letter

     new oPPortunities                                                                - Meeting with companies, federal entities, Tribes, ANC’s and business networks
                                                                                      - Conferences, seminars, speaking engagements
                                                                                      - Teaming partnerships
                                                      Last 12
     review of oPPortunities                          months                          Technology, Energy, IT Services, Distribution, Biotech, Construction Mgmt,
                                                       deaL                           Real Estate, Hospitality, Environmental

     Presenting                                                                       Technology, Energy, Distribution, Construction Mgmt, Biotech, Real Estate,
                                                                                      Hospitality, Environmental

     due diLigence                                                                    Energy, Construction Mgmt, Biotech, Environmental

     investment                                                                       None: Construction Mgmt passed all criteria, but PBDC lacked necessary
                                                                                      capital to make investment

     Keeping our deal funnel full is essential to the mission and role of PBDC. Without a steady diet of potential acquisitions,
     partnerships, and ventures, an Indian Country holding company has to settle for whoever shows up.

     PBDC will look at more than one hundred investment opportunities annually. These are classified in three categories; unsolicited,
     solicited, and referred.

               • Unsolicited	 Deals that come off the streets. These deals have a low probability of meeting our strategic vision
               and may involve proponents looking for an easy mark in Indian Country. Consequently, we consider these through an
               internal protocol that measures them quickly against a high threshold before researching the project further.

               • Solicited	 Deals that PBDC seeks strategically to meet a specific investment or business development need. These
               deals start with a strategic fit and typically require a presentation and due diligence before investment.

               • Referred	 PBDC has many deal-flow resources through private equity groups, funds, and consultants that provide
               qualified opportunities. These groups understand our business strategy and will only send us deals that meet our
               investment criteria. These opportunities benefit from our eyes being the second set on the opportunity, but they still
               pass through a presentation and due diligence review.

     Our aim is to keep the solicited and referred pipelines full so we are not at the mercy of unsolicited proposals.
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     Financial                     Potawatomi Business deveLoPment corPoration and suBsidiaries                                        Potawatomi Business deveLoPment corPoration and suBsidiaries
                                                   consoLidated BaLance sheets                                                                    consoLidated statements of oPerations
     Statements                                       December 31, 2009 and 2008                                                                     Years Ended December 31, 2009 and 2008

                      assets                                                                 2009            2008

                        current assets                                                                                                                                                                        2009             2008
                             Cash and cash equivalents                                  $2,549,672      $ 1,572,632
                             Accounts receivable                                         5,696,271        5,051,637
                             Inventories                                                    71,211           62,366        net sales                                                                   $ 39,786,159     $ 37,312,039
                             Costs and estimated earnings in excess of billings          5,281,093        2,572,970
                             Notes receivable - current                                     60,918                –        Cost	of	Sales	                                                               29,253,444       29,830,937
                             Other current assets                                          209,466          192,530
                                                                                                                                Gross Profit                                                            10,532, 715       7,481,102
                                  Total Current Assets                                  13,868,631       9,452,135
                                                                                                                      	 	 Operating	Expenses                                                             6,932,017        7,551,565
                        Property and equipment                                             978,318       1,156,102
                                                                                                                                Operating Income (Loss) Before Impairment of Goodwill and
                        other assets                                                                                            Investment Holdings                                                      3,600,698          (70,463)
                             Investments in limited partnerships, net                    9,914,692      11,894,432
                             Investment – other                                            520,133         503,523    	 	 Impairment	of	Goodwill	and	Investment	Holdings                                (1,873,973)      (3,270,704)
                             Split dollar life insurance                                   235,650         288,918
                             Notes receivable                                              801,857               –              Operating Income (Loss)                                                  1,726,725       (3,341,167)
                             Other long-term assets                                         53,695          28,441
                             Goodwill                                                    5,530,566       5,745,833    	 	 Other	Income (Expense)
                                                                                                                              Interest and dividends                                                        727,752          954,412
                                         totaL assets                                 $ 31,903,542    $ 29,069,384
                                                                                                                              Realized gain on sale of investments                                                –          205,000
                                                                                                                              Interest expense                                                            (256,605)        (349,519)
                      LiaBiLities and stocKhoLder’s eQuitY                                                                    Other income (expense)                                                         (7,773)           7,915
                                                                                                                                  Net Other Income                                                          463,374          817,808
                        current Liabilities
                             Lines of credit                                             $ 127,448       $ 653,256                       Income (Loss) from Continuing Operations Before Interest in
                             Current maturities of long-term debt                          497,773         760,328                       Income of Joint Venture and Discontinued Operations             2,190,099       (2,523,359)
                             Accounts payable                                            4,169,013       2,258,510
                             Accrued expenses                                            2,347,608       2,341,002         Interest	in	Income	of	Joint	Venture                                             362,536          282,668
                             Deferred revenues                                                   –         586,163
                                                                                                                                         Income (Loss) from Continuing Operations                        2,552,635       (2,240,691)
                             Billings in excess of costs and estimated earnings            669,132       1,013,513
                                 Total Current Liabilities                               7,810,974       7,612,772         Loss	from	Discontinued	Operations                                                (6,576)        (427,678)

                      	 Long-term	Debt, net of current maturities                        1,187,637       1,427,467              net income (Loss)                                                      $ 2,546,059     $ (2,668,369)
                                  Total Liabilities                                      8,998,611       9,040,239

                  	   	 Stockholder’s	Equity
                             Common stock, no par value per share:                         145,938         145,938
                                1 share authorized, issued and outstanding
                             Additional paid-in capital                                 24,345,818      24,222,817
                             Accumulated deficit                                        (1,586,825)     (4,132,884)
                                                                                        22,904,931      20,235,871
                               Noncontrolling interest in subsidiary                             –        (206,726)
                                 Total Stockholder’s Equity                             22,904,931      20,029,145

                                         totaL LiaBiLities and stocKhoLder’s eQuitY   $ 31,903,542    $ 29,069,384
12                                                                                                                                                                                                                                     13
     Financial                        Potawatomi Business deveLoPment corPoration and suBsidiaries                                          Potawatomi Business deveLoPment corPoration and suBsidiaries
                                            consoLidated statements of stocKhoLder’s eQuitY                                                            consoLidated statements of cash fLows
     Statements                                     Years Ended December 31, 2009 and 2008                                                                Years Ended December 31, 2009 and 2008

                                                                                                                            Cash	Flows	from	Operating	Activities                                                                2009             2008
                                                                                                                                  Net income (loss)                                                                        $2,546,059     $(2,668,369)
                                                                                                                                  Adjustments to reconcile net income (loss) to net cash flows from operating activities
                                                                                                           total                      Depreciation of property and equipment                                                  298,416         315,140
                                                     common          Additional	      Accumulated	     Stockholder’s                  Loss on disposal of property and equipment                                               13,781          27,878
                  	                                   Stock	       Paid-in	Capital	      Deficit	         Equity                      Gain on disposal of investments, net                                                           –      (205,000)
                                                                                                                                      Provision for bad debts                                                                 (24,323)         17,323
                  Balances, December 31, 2007           $145,938     $22,445,821       $(1,464,515)      $21,127,224                  Decreased (increase) in spilt dollar life insurance                                      (5,413)         14,728
                                                                                                                                      Impairment of goodwill and investment holdings                                        1,873,973       3,582,260
                      2008 Net Loss                            –                –       (2,668,369)       (2,668,369)                 Interest in income of joint venture                                                   (362,536)       (282,668)
                                                                                                                                      Gain on sale of Howl Fire                                                             (122,173)                –
                                                                                                                                      Loss on sale of PDG                                                                     265,450                –
                      Contributions                            –        1,776,996                 –        1,776,996                  Noncontrolling interest in variable interest entity                                     (23,076)      (157,482)
                                                                                                                                      Changes in assets and liabilities
                  Balances, December 31, 2008           $145,938       24,222,817        (4,132,884)      20,235,871                       Accounts receivable                                                             (1,535,053)       1,012,295
                                                                                                                                           Inventories                                                                          (8,845)         (1,972)
                      2008 Net Income                          –                –         2,546,059        2,546,059                       Costs and estimated earnings in excess of billings                              (2,708,124)          24,586
                                                                                                                                           Other assets                                                                        (49,362)         12,304
                      Contributions                            –          123,001                 –          123,001                       Accounts payable                                                                  2,081,801         666,508
                                                                                                                                           Accrued expenses                                                                    102,115         461,007
                                                                                                                                           Billings in excess of costs and estimated earnings                                (344,381)     (3,194,362)
                  Balances, December 31, 2009         $ 145,938    $ 24,345,818       $ (1,586,825)     $ 22,904,931
                                                                                                                                           Deferred revenues                                                                 (203,551)         903,710
                                                                                                                                             Net Cash Flows from Operating Activities                                        1,794,758         527,886
                                                                                                                        	 Cash	Flows	from	Investing	Activities
                                                                                                                                  Capital expenditures                                                                       (240,078)       (348,904)
                                                                                                                                  Proceeds from sale of assets                                                                   9,986          35,698
                                                                                                                                  Returned capital from investment in limited partnership                                            –         648,879
                                                                                                                                  Proceeds from sale of investments                                                                  –         600,000
                                                                                                                                  Purchases of other long term investments                                                    (16,610)       (503,523)
                                                                                                                                  Collections on notes receivable                                                             237,225      (1,191,335)
                                                                                                                                  Cash included in sale of assets of Howl Fire and PDG                                      (429,722)                –
                                                                                                                                  Dividends received from joint venture                                                       362,536         282,668
                                                                                                                                      Net Cash Flows from Investing Activities                                                (76,663)      (476,517)
                                                                                                                        	 Cash	Flows	from	Financing	Activities
                                                                                                                                  Net payments on line of credit                                                             (435,243)     (1,421,666)
                                                                                                                                  Principal payments on long-term debt                                                       (487,494)       (772,298)
                                                                                                                                  Proceeds from long-term debt                                                                       –         614,890
                                                                                                                                  Loan on officer life insurance policy                                                              –         184,985
                                                                                                                                  Proceeds from surrender of officer life insurance policy                                     58,681                –
                                                                                                                                  Distributions to stockholders                                                                      –      (264,450)
                                                                                                                                  Contributions                                                                                123,001      1,513,000
                                                                                                                                      Net Cash Flows from Financing Activities                                               (741,055)      (145,539)
                                                                                                                                             Net Change in Cash and Cash Equivalents                                          977,040         (94,170)
                                                                                                                           Cash and Cash Equivalents - Beginning of Year                                                    1,572,632       1,666,802
                                                                                                                        	 CASH	AND	CASH	EQUIVALENTS	-	END	OF	YEAR	                                                         $2,549,672	    $1,572,632

                                                                                                                           Supplemental	cash	flow	disclosures
                                                                                                                             Cash paid for interest                                                                         $ 292,897      $ 363,991

                                                                                                                           Noncash	investing	and	financing	activities
                                                                                                                             Note payable forgiven in exchange for Howl Fire                                               $ 100,000              $ –
                                                                                                                             Note receivable received as consideration for sale of PDG assets                                700,000                 –
                                                                                                                             Conversion of limited partnership investment to note receivable                                 400,000                 –
14                                                                                                                           Note forgiven in exchange for limited partnership investment                                            –        500,000     15
                                                                                                                             Distribution payable forgiven by stockholder                                                            –        263,996
     Executive Council
     The Executive Council is a constitutionally created body composed of the elected officers of the tribe including the Chairman,
     Vice-Chairman, Secretary, Treasurer, and two Council Members. The duties of the Executive Council are stated in Article V, Section 1
     of the FCPC Constitution of 1982. The duties of the members of the Executive Council are enumerated in Article IX of the Constitution.

     Duties include the handling of any and all agreements with federal, state and local governments, or businesses and individuals. The
     Council is to advise the Secretary of the Interior on all projects that benefit the FCPC community.

     The Council is also charged with managing the economy of the tribe, the administration of all funds, regardless of their source.
     Members also develop ordinances and resolutions for the General Council and to develop policies, formulate plans and set objectives
     for the betterment of the tribe for consideration of the General Council.

     Finally, the Executive Council encourages preservation of Potawatomi arts, crafts, traditions, and culture.

     Gus	Frank            Angela	Moe               Lorna	Shawano   Joseph daniels      tom Boelter          John	Alloway
     Chairman             Vice Chairman            Secretary       Treasurer           Council Member       Council Member

                       Forest	County	Potawatomi
                    Community	Executive	Building
                           in	Crandon,	Wisconsin

16                                                                                                                                            17
     Board of Directors                                                                                                                        PBDC Management

                           Kevin	J.	Allis, Chairman                          currently the construction superintendent for Apple Tree Homes,                     Pepi randolph, Chief Executive Officer
                                                                             LLC, specializing in condominium home communities. Manny
                           Kevin J. Allis is a tribal member of the Forest   was formerly the owner of a residential remodeling company, he                      Pepi Randolph served as PBDC’s vice president of national sales and marketing before being promoted to Interim CEO,
                           County Potawatomi. He is an associate             helped teach a residential construction program with Fox Valley                     then CEO in 2008. He previously served as president of Forward Wisconsin, the state’s public-private marketing and
                           with Piliero Mazza PLLC, where he primarily       Technical College and is a former general manager of a $7M                          business recruitment organization. He also served as an Assistant Vice President in the investment division at M&I Bank
                           concentrates in management labor and              window and door replacement company.                                                and Assistant General Counsel for the Milwaukee Brewers Baseball Club. Pepi earned his Bachelor’s Degree in Journalism
                           employment law. Kevin works closely with
                                                                                                                                                                 and History and his Law Degree from the University of Wisconsin.
        several Native American tribes, tribal enterprises and Native        Immanuel received his Bachelor’s Degree from the University of
        American associations on labor and employment law issues             Wisconsin - Stevens Point.
        impacting Indian country. His work in this area has included
        active participation in a national workgroup sponsored by                                                                                                Kip	Ritchie, Chief Operating Officer
                                                                                                Kurt	L.	O’Bryan, Board Member
        several of the largest Native American associations in the
                                                                                                                                                                 Kip Ritchie is a member of the Forest County Potawatomi and completed a term as PBDC Board Member in 2008. He
        country.                                                                               Kurt O’Bryan is general manager of                                previously served as the Senior Vice President for PBDC before being appointed COO. Kip holds a Bachelor’s Degree in
                                                                                               technology, sales and product development
        Kevin received his Law Degree from the University of Baltimore.                                                                                          Communications from the University of Wisconsin. He serves as the Chair of the Forest County Potawatomi Community
                                                                                               for FLSmidth Excel, the leading US exporter
        He attended Louisiana State University and graduated with a                            of heavy duty rock crushing equipment,                            Foundation Advisory Board, on the Native American Finance Conference board of Directors, the Native American
        Bachelor’s of Science from the University of Baltimore.                                headquartered in Wales, Wisconsin. Kurt                           Contractors Association board, the American Indian Business Network board and the College Readiness 21 board. Kip also
                                                                             served as the PBDC’s Chief Operating Officer from 2003 to                           sits on the Froedert Hospital Foundation board and the Children’s Health Alliance board.
                           Brad	McClain, Board Member                        2006 and during his tenure, profitability showed consistent
                                                                             growth on a quarterly basis.
                          Brad McClain is a tribal member of the
                          Standing Rock Sioux Tribe in Fort Yates,                                                                                               Chris	Meinecke, Chief Financial Officer
                                                                             Kurt received his Masters of Business Administration degree
                          North Dakota. He is CFO for the University         from Marquette University, a Masters of Science degree from                         Chris Meinecke, CPA, is PBDC’s Chief Financial Officer. In this role, Chris is responsible for financial and accounting
                          of Wisconsin Credit Union in Madison. He           the University of Minnesota and a Bachelor’s degree from South
                          is primarily responsible for all accounting,                                                                                           oversight, deal flow review and due diligence, strategic analysis, planning and audit oversight. Chris most recently was a
                                                                             Dakota School of Mines.                                                             Senior Manager in the Milwaukee office of Grant Thornton, LLP. He graduated from the University of Wisconsin with a BBA
        finance, audit and real estate matters for the $1.1 billion credit
        union. Brad formerly was the CFO for the Potawatomi Bingo                                                                                                in Accounting, and he is a Certified Public Accountant in the State of Wisconsin.
        Casino in Milwaukee, Wisconsin. He also was a member of the                           Phil	Shopodock, Board Member
        Forest County Potawatomi Investment Committee. Brad has
        over 22 years of experience in the financial services industry.                       Phil Shopodock is tribal member of the Forest                      Rebecca	Guddie, Administration Manager
                                                                                              County Potawatomi. He recently completed
        Brad received his Bachelor’s Degree from the University of                            a two-year term as chairman of the Tribe’s                         Rebecca joined the Potawatomi Business Development Corporation in June of 2006. Rebecca
        Wisconsin - Platteville with majors in accounting and business                        executive council.                                                 brings with her 15 years of experience from prior administrative and financial positions in the Milwaukee area.

                           immanuel Johnson ii, Board Member

                           Immanuel Johnson II is a tribal member
                           of the Forest County Potawatomi. He is a
                           construction professional with 20 years
                           experience in the building trade and is

18                                                                                                                                                                                                                                                                                            19
     A Look Back /   The following chronology captures the major milestones achieved by the Potawatomi Business     2006
     A Glimpse       Development Corporation since it was conceived in 2002. We are proud to have accomplished
                     what PBDC was created to do according to our corporate charter, and we continually strive to       Changed from passive investments to strategic acquisitions
     Ahead           raise the bar in setting new goals for the Company.
                                                                                                                    •   Chief executive officer appointed
                                                                                                                    •   Began implementing an acquisition strategy and purchased Potawatomi Design Group,
                                                                                                                        One Prospect Technologies and Advancia Corporation
                                                                                                                    •   Dividend paid of $1.5 million
                          •   Resolution passed to create PBDC
                          •   Corporate charter and bylaws approved                                                 •   Opened Potawatomi Community Development Corporation as planned by corporate charter
                          •   FCPC/PBDC made first investment with Four Fires, LLC                                  •   Purchased 49 % ownership in Howl Fire, LLC
                                                                                                                    •   Formed strategic partnership with HCI Logistics

                                                                                                                    •   Obtained National Minority Supplier Development Council certification
                          •   Created board of directors with seven members,including three tribal members          •   Began work towards obtaining Small Business Administration Super 8(a) designation for
                          •   Developed corporate structure, strategic plan and pursued passive investments             subsidiary companies
                                                                                                                    •   Updated the corporate charter and bylaws
                                                                                                                    •   Improved financial reporting and communication with Executive Council and tribal members

                         2004                                                                                       2009

                          •   Chief operating officer appointed to provide day-to-day investment management,        •   Continued to operate effectively and efficiently, reducing PBDC’s operating expenses by 35 percent
                              deal flow analysis, further develop strategic plan and prepare for next phase         •   Market value of subsidiary companies grew by 68 percent since 2004
                              of growth                                                                             •   Retained legal support for future mergers and acquisitions
                                                                                                                    •   Evaluated and restructured the PBDC board of directors and management staff

                                                                                                                    2010 & Beyond
                                                                                                                    •   Maintain a transparent operation with open reporting to the Executive Council regarding activities,
                          •   Became the first FCPC tribal business entity outside of gaming to return a dividend
                                                                                                                        transactions and strategic plans
                              to tribal government and membership
                                                                                                                    •   Work to secure SBA 8(a) status for subsidiary companies to expand their opportunities in the
                          •   Opened hotel with Four Fires, LLC
                                                                                                                        lucrative government contracting market
                          •   Achieved net profit of $750,000
                                                                                                                    •   Continue developing business relationships and contacts, both inside and outside of Indian Country
                                                                                                                    •   At the direction of the Executive Council, PBDC will continue managing the Concordia Trust Property
                                                                                                                        in Milwaukee

20                                                                                                                                                                                                                            21
K   EEPERS OF THE   F   IRE.   B   UILDERS OF THE                   F   UTURE.

                               Potawatomi Business
                               Development Corporation

                               414-727-2041   office
                               414-727-2077   fax

                               320 East Buffalo Street, Suite 607
                               Milwaukee, Wisconsin 53202


Description: Business Development Activity Report Excel document sample