CNB reports 17% YTD net income, announces utility-services investment

Cherokee Nation Businesses reported stronger-than-expected January results and said it is expanding into utility services with an investment in a Houston-based electric distribution and substation construction firm.

Mr. Bloch, who delivered the financial overview to the Executive Finance Committee, said net income on a year-to-date basis is up about 17% compared with the approved budget and that expense management helped offset softness in some revenue lines. He said tribal gaming produced an “exceptional month” but that a winter storm just before the last weekend of January prevented what otherwise would have been a record month. "Net income remains our top priority as net income is the direct driver of the dividend that we return to the nation," Bloch told the council.

Bloch described pressure in the government-contracting business tied to uncertainty around SBA contracting vehicles and said the new investment is intended to diversify revenue. He identified the partner and named Frontline Power Construction as the operating company engaged in distribution and substation construction, and said CNB expects long-term development opportunities in that sector. When a counselor raised concerns about transmission lines crossing parts of the Nation, Bloch clarified that the investment focuses on distribution and substation work — "think power poles, substations, not the interstate transmission," he said.

Councilors congratulated the acquisition team for months of work. Bloch said the team will continue to control expenses amid revenue uncertainty and that he expects further announcements about CNB’s diversification efforts.

The report was informational; no formal action was taken on the investment during the meeting. Bloch told the group he plans to return with additional announcements as details are finalized.