2023 Annual Report

ENRICHING LIVES building better futures.

BOARD OF DIRECTORS

Stephen T. O’Rourke, Lead Director*

Matt R. Emerson

Pamela L. Feuerstein*

Brian G. Iverson*

Todd J. Kenner

Jason T. Love

Steve L. Steinheimer

Jay R. VanOrden*

*External Director

CORPORATE OFFICERS

Todd J. Kenner, Chief Executive Officer

Jason T. Love, President

Philip A. Welling, Chief Financial Officer & Treasurer

Jason D. Miller, Chief Information Officer

Karla R. Lipp, Corporate Secretary

Robyn A. Beaird, Controller

SENIOR VICE PRESIDENTS

Meagan L. Chaddick, Data & Technology Solutions

Matt R. Emerson, Infrastructure

Jay R. Nopola, Mining & Energy

Russell A. Persyn, Water & Natural Resources

VICE PRESIDENTS

Karen A. Brady

David Gallegos

Rick R. Moser

Denise J. Quick

Daniel T. Rauchenstein

Tabetha A. Stirrett *Also President

enriching lives. building better futures.

These words embodied 2023. As we reflect on our achievements in the last year, these accomplishments define our progress and illuminate our path moving forward.

In 2023, we developed our next strategic vision: Vision 2030. This sets the stage for us to become a Recognized North American Company, driven by our commitment to creating opportunities through market growth, establishing industry leadership, and developing every employee-owner.

But even with 2030 on the horizon, we have yet to sunset on Vision 2025. We are continuing to build a generational company through thoughtful succession. Last year, we successfully promoted three individuals to executive positions, marking another milestone in our strategic plan.

Our people set us apart. We continued leveraging our expertise in industry trends to advance in the marketplace, earning our people and projects industry-award recognition and exemplifying the impact of our work and the significance of our contributions.

RESPEC continues to advance in the marketplace. As the energy transition, digital innovation, and infrastructure resiliency projects ramp up, we’re leveraging our integrated services to offer sustainable solutions to our clients and communities. We reached $112 million in gross revenue and saw our share price grow for another consecutive year. With a solid financial base, we have great opportunities to invest in our future and continue supporting our communities.

Strong growth and performance create opportunities for giving back.

Last year, we celebrated the official launch of the RESPEC Foundation, which dedicated its inaugural year to establishing local charitable giving initiatives and two new STEM-based scholarships and donating through holiday giving. These collective efforts are driven by a purpose to create a meaningful impact.

Reflecting on 2023, I am proud of what we have accomplished together. As we enter the last stretch of our Vision 2025 strategic plan and look beyond, we’re building on this momentum, inspired by our achievements and motivated by the possibilities ahead. Thank you to all of our employee-owners and their families for the success we continue to enjoy!

Todd J. Kenner CHIEF EXECUTIVE OFFICER

Joel Pemble surveying on top of a mountain in southern Brooks Range, Alaska, for a major project.

vision 2030 //

In 2018, we rolled out Vision 2025, setting ambitious milestones.

Fast forward to 2023, and we’ve hit almost every milestone on the climb. Although we’ve nearly reached the top of Vision 2025, we know there’s always a new peak to explore. So, last year, we set our sights on our next ascent: Vision 2030.

achieving New Heights

By 2030, RESPEC will be a Recognized North American Company. We plan to be at the forefront of critical industries, driving progress in sustainable water management and contributing to the shift toward cleaner energy. We will focus on developing and implementing storage solutions and strategies to reduce carbon emissions, positioning ourselves as leaders in the energy transition.

In the technology sector, we intend to lead by example We will use advancements in artificial intelligence, robotic process automation, digital trust, and healthcare technology services to enhance our capabilities. Our geographic expansion strategy is clear and focused. We will establish a strong presence in major mining and energy hubs, expand our reach along the I-25 corridor and the West Coast of Florida, and grow our infrastructure services throughout the continental United States. We will also build a robust technology practice within our offices to stay ahead of the curve in innovation.

The Pillars of our 2030 Vision Are Built on Four Strategic Goals.

1

Develop Every Employee

We’re on a mission to make our team the best in the business. That means finding the brightest minds, keeping them around, and ensuring that they’re always growing with the training and mentorship they need to thrive. We’re building leaders who own their success and drive ours.

Dominate Our Markets

2 Build Our Brand, Live the PACT

We’re doubling down on setting the pace in our industry. We invest resources into business development to seize new opportunities. Our game plan is to use our strengths, like our integrated solutions platform, to deliver top-notch services. We’re giving our up-and-coming leaders the reins to build solid, lasting client relationships.

Our brand is our promise, and we live it every day. It’s about putting our heart and soul into our work and connecting with our communities. We want to get our name out there and show what we stand for. At our core, we’re a company that’s passionate, accountable, caring, and a team in every step. 3

The world’s always spinning, and we’re ready to spin with it. We stay flexible and financially ready so we can jump on the right chances at the right time. We’re thinkers and planners, always ready for whatever comes our way. That’s how we stay strong and keep moving forward, no matter what.

Woodmen Hills Wastewater Treatment Plant in Peyton, Colorado.

built on a solid foundation CULTURE //

At the heart of our operations is a simple yet powerful goal: enrich lives through our commitment to each other, our clients, and our communities.

We stand out not just for what we do, but how we do it. Success comes from creating the right environment— one where our team can thrive, innovate, and push the limits. Our PACT—our core values of Passion, Accountability, Caring, and Teamwork—guides this culture of innovation and quality, and promotes growth and opportunities. It shapes who we are, creating an environment that makes a difference.

Our PACT Measured

94% of employees are optimistic about our future 90% see RESPEC as a great place to work

Our commitment to creating opportunities, developing talent, and nurturing an inclusive and rewarding culture enhances employee satisfaction. The statistics above, taken from our Vision 2030 planning and company-wide engagement surveys, highlight some of the ways that employee-owners feel connected to our company culture and mission.

ORGANIC GROWTH 10.6% 68% OF INTERNS RETAINED

7.4 yearS

AVERAGE EMPLOYEE TENURE

feel we have the right amount of flexibility to work from home feel we have industrycompetitive benefits

RESPEC employee-owners engaging in the community through sponsorship and volunteer work at a free summer concert series in downtown Rapid City, South Dakota, creating connections and building relationships.

OUR

PEOPLE //

ELEVATING OUR PEOPLE

Implementing next-generation leadership is a core tenant in our Vision 2025.

In 2023, we continued that mission by promoting three individuals to executive positions. Through targeted development programs and internal support, we’re building a community of curious, ambitious, and innovative leaders.

MEAGAN

CHADDICK

SVP OF DATA & TECHNOLOGY SOLUTIONS

Since joining RESPEC in 2017, Meagan has driven DTS’s growth, staff development, and revenue increases. Meagan will focus on leveraging technology to enhance RESPEC’s services and engineering projects.

DAVID GALLEGOS

VP OF DATA

& TECHNOLOGY SOLUTIONS

Since 2018, David has led RESPEC projects across diverse markets that have led to significant growth. David’s vision includes transitioning DTS to a sales-driven entity, developing AI solutions, and fostering a strong team culture.

ROBYN BEAIRD CONTROLLER

Having joined RESPEC in 2012, Robyn’s knowledge of the company’s financial operations propelled her into this role. She aims to strengthen the Accounting department, bolster support for RESPEC’s people, and empower her team to excel.

RESPEC sponsors the Albuquerque International Balloon Fiesta—the largest balloon festival in the world with significant local impact.

our purpose is pretty simple. we’re here to create a better tomorrow for everyone we meet.

Achieving in the Marketplace //

OUR EMPLOYEE-OWNERS celebrated some

MAJOR achievements in 2023, and we’re pretty proud.

2023 APEGS Award: Closing Canada’s Oldest Potash Mine

Our Saskatchewan team was recognized for their exceptional work on decommissioning Canada’s oldest potash mine. Tackling the mine’s complex underground water conditions, they used detailed modeling to guide the closure process. Their hands-on approach covered everything from crafting a specialized concrete blend for the shaft seal to overseeing the construction details. RESPEC also teamed with the client to set up ongoing monitoring for ensuring that the site remains secure and stable long into the future.

2023 large business of the year: elevate rapid city

Our focus on meaningful contributions to our team and the areas we serve earned us

Elevate Rapid City’s 2023 Large Business of the Year award. This award shines a light on companies that genuinely make a difference in employee well-being and community growth.

2023 young professional of the year: erik walega

While some say lightning doesn’t strike twice, at RESPEC, our employee-owners are just that exceptional. Erik Walega’s win marks the second time in 3 years that a RESPEC engineer has been nationally recognized as ACEC’s Young Professional of the Year for outstanding contributions to the engineering profession and impact on society.

2023 alaska engineer of the year: Robert posma

Robert Posma, PE, was honored as the 2023 Institute for Electrical and Electronics Engineers (IEEE) Alaska Engineer of the Year for exceptional engineering achievements and community service in Alaska. At the head of projects like McMurdo Station’s data center and the Clear Space Force Station’s radar security, Robert’s work stands out for its adaptability to extreme environments. Beyond engineering, Robert’s more than 20 years of community leadership in Anchorage exemplifies his commitment to community improvement.

Leading in The Marketplace

Advancing in the marketplace is our key to building an opportunity-driven company.

The Energy Transition

Driving the shift toward cleaner energy, we're at the forefront of developing renewable sources and storage solutions. Our work spans hydrogen and solar projects to groundbreaking energy systems, all aimed at paving the way for a sustainable future.

INFRASTRUCTURE RESILIENCY

Our expertise lies in making infrastructure resilient against humancaused disasters and climate change. We offer detailed plans and smart strategies to reduce risks. By carefully evaluating and protecting vital infrastructure, we keep communities connected and safe.

Last year, we identified four megatrends that are redefining the landscape of our industry. As is the nature of trends, they never stand still. And these trends remain part of our strategic focus. In 2023, RESPEC continued to capitalize on our integrated solutions to drive innovation and progress across sectors. As a result, RESPEC saw a 3 percent jump in clients from 2022.

SUSTAINABLE SOLUTIONS

We’re passionate about sustainability and work in areas such as renewable energy, water management, and infrastructure resiliency. At RESPEC, our goal is to reduce harm to the environment and build strong, lasting spaces for people everywhere.

In 2023, RESPEC received the ACEC Award of Excellence for our innovative work on the Joint Base ElmendorfRichardson Boniface Visitor Control Center in Anchorage, Alaska. Using virtual reality and sustainable energy solutions, we were able to bring the U.S. Air Force’s vision to life by designing a modern, rustic, and sustainable facility that beautifully reflects its Alaskan backdrop.

GOING DIGITAL

RESPEC uses advanced technology to elevate efficiency. Our methods make operations smoother, compliant with regulations, and kinder to the environment. Our initiatives showcase the ability to boost operational effectiveness and transition clients to a digital future.

our projects // work with an IMpact

Our projects today impact the world tomorrow.

The following pages highlight a selection of our projects that are contributing to a more resilient, innovative, and sustainable world.

OYATE HEALTHCARE’S IT MODERNIZED

Securing Patient Data for Healthcare Independence

Our team facilitated a significant digital leap for the Oyate Healthcare Center (OHC) by helping them move their patient records to their own server and upgrading their IT systems. We now actively manage OHC’s systems by providing continued support to ensure that patient data remains safe and healthcare services run smoothly. Our watchful eye on security allows for quick identification and resolution of any technical issues to ensure that OHC maintains its digital healthcare autonomy.

Within 1 week, RESPEC reconfigured

With RESPEC's help, we were able to work through some setbacks that we may not have been able to resolve during our transition off the network. We are extremely happy with RESPEC's service and highly recommend them to anyone!”

LEZLEY KEMPF OYATE’S SENIOR DIRECTOR OF INFORMATION

RESILIENCY PLAN CREATED FOR ALASKAN AVIATION

Ensuring Connectivity for Remote Communities

Alaska’s aviation infrastructure is the lifeline of its remote communities, where rugged landscapes and extreme weather conditions challenge the very essence of connectivity and accessibility. RESPEC is working on the Alaska Aviation System Plan (AASP) to ensure that Alaska airports can withstand natural forces and climate change. Our Resilience Study encompasses a critical examination of 29 airports, analyzing the commonalities of airport failures and seeking innovative solutions. By integrating the expertise of planners and engineers, our team conducts rigorous risk analyses and forensic assessments to create actionable strategies. The team is also addressing policy and funding gaps to ensure that Alaska’s aviation infrastructure remains strong and safe for generations.

SUSTAINABLE WATER NETWORK ENGINEERED IN COLORADO

Securing Renewable Water for El Paso County Communities

, potentially saving the client more than $30,000 annually.

In Northern El Paso County, Colorado, the Triview Metropolitan District is taking a significant step toward securing its water future. The District partnered with RESPEC to develop the northern Delivery System (NDS), which brings renewable water from the Arkansas River to its residents and tapping into existing infrastructure to convey, treat, and deliver the water. By showcasing smart resource management, this approach sets a precedent for cost-effective environmental solutions and offers a sustainable model for other districts facing similar challenges.

RESPEC engineered a booster pump station and a network of pipelines to reliably deliver 4 million gallons of renewable water daily to Triview.

WATER & WASTEWATER SOLUTIONS STUDIED IN SOUTH DAKOTA

Strategizing Utility Solutions for South Dakota’s Growth

As the population in western South Dakota continues to grow, it is increasingly important to have strong and well-designed utility systems. Our work on the West River Regional Water and Wastewater Study provides insight and potential solutions to the region’s key utility challenges, serving as a starting point for collaborative efforts to enhance the region’s utility stability and resiliency for the next decade.

SOLAR SITES ESTABLISHED ON THE EAST COAST

Laying Groundwork for Innovative Energy Solutions

We supported a solar energy start-up with their ground-level solar installations across three sites on the East Coast. These installations stand out for their reduced environmental impact, simplified maintenance, and low cost. Our team worked with the regulatory agencies to design compliant water quality and detention basins on sites with challenging topographic constraints. RESPEC and the start-up’s shared vision for sustainable energy with community and environmental benefits is helping create a path toward a renewable energy future.

SMART AGRICULTURE ADVANCED IN COLORADO

Harnessing Drone Technology for Water Resource Management

Our multispectral study on Hill Ranch harnessed drones and light reflectance data to assess vegetative moisture, revealing critical water rights and resource management data. Using advanced aerial tools to compare the current dryness levels of 25 parcels with 2015 benchmarks, we proved a method traditionally reserved for airplane and satellite collection. This process will help us determine consumptive use credits for Pueblo West Metro District’s water rights at Hill Ranch. Our precise categorization further informed our understanding of the land’s health, opened the door for additional collection for revegetation efforts, and proved the method for 2024 recollection.

Our Hill Ranch study will save the client a potential $30k+ annually

GROUNDBREAKING ENERGY IN UTAH

Powering Urban Energy With a Microgrid Model

The small city of Vernal, Utah, is making big strides in clean energy with a study that could change how we approach heating and cooling in urban areas. The project focuses on a thermal microgrid system that uses the earth to store and provide energy. The heart of the system is the borehole thermal energy storage (BTES), which uses the ground as a natural insulator and energy reservoir and offers a way to manage the city’s heating and cooling demands without relying on traditional, carbonheavy energy sources. For more than a year, RESPEC has been hard at work analyzing energy use across 70 buildings in downtown Vernal and modeling for a microgrid that could lead to lower energy bills and a smaller carbon footprint for the city.

FROM DEVASTATION TO RESILIENCE

Reconstructing the Sanibel Fire Rescue Station Post-Hurricane Ian

In 2022, Hurricane Ian devastated Florida’s coast, including the Sanibel Fire Rescue Station. The Sanibel Fire Rescue Station Reconstruction project now focuses on rebuilding a new station that is resilient to future weather events. Our civil engineers worked on the development permit and civil design for sitework, which included water management and utilities that are essential for the station’s durability. The new station features elevated living quarters to withstand future floods, ensuring that emergency services remain operational. With the demolition of the old station, the project moves forward and sets a standard for future emergency facilities to be safe, functional, and adaptable to climate challenges.

Schenkelshultz’s rendering of the new Sanibel Fire Rescue Station.

INTEGRATING DIGITAL BILLING SOLUTIONS

Streamlining Financial Operations for the Digital Age

Partnering with Billing Platform, we’ve specialized in configuring and implementing their advanced Software as a Service billing system for a variety of clients. This partnership involves tailored projects, each designed to modernize our clients’ billing processes as part of their wider digital transformation efforts. Our deep understanding of billing intricacies, combined with our expertise in integrating essential financial and Customer Relationship Management systems, enables us to offer custom digital solutions that enhance operational efficiency and support our clients’ transition to the digital economy.

We help companies shift from outdated, manual processes to efficient, revenue-enhancing systems. Enabling businesses to monetize as they wish, free from the constraints of old technology, is rewarding.

MELANIE OWEN

BILLING PROGRAM MANAGER

VAST SALT DOME EXPLORED IN CANADA’S EAST COAST

Turning Newfoundland Into a Key Hydrogen Storage Hub

With its surplus wind energy, Newfoundland could become a leading hydrogen exporter, and RESPEC is helping bring this vision to life. The Fischell salt dome in Newfoundland has the potential to store more than 35 million cubic meters of compressed hydrogen, making it one of the largest confirmed domes on the East Coast. RESPEC is helping Triple Point Resources design and execute a full-scale drilling program to collect key engineering data and help plan the Fischell hydrogen storage facility. With this massive storage capacity, Newfoundland could become a key leader in hydrogen production, storage, and export, reinforcing its role in the global transition toward sustainable energy.

The Fischell salt dome can potentially store the equivalent of

FINANCIAL SUMMARY // growing success

In 2022, we celebrated surpassing $100 million in revenue. In 2023, we grew our top-line revenue again, achieving $112 million. New clients, exciting projects, and continuous revenue growth fuel success.

Building on this financial prosperity, RESPEC has placed an equal emphasis on the financial well-being of its employee-owners. In 2023, we marked another momentous occasion—our employee retirement value within our Employee Stock Ownership Plan (ESOP) and 401(k) Plan surpassed the $100 million threshold. With 546 employee-owners ready to participate in RESPEC’s retirement programs, we are taking proactive measures to secure their futures.

Our balance sheet remains strong with record cash of $6.7 million generated from operations. With our long-term debt (net of cash balances) at its lowest level of 5% of revenue since becoming 100% ESOP, we are well-positioned to invest in the market, invest in our employees, and achieving new heights in the marketplace. Our employee-owners’ hard work has made this possible, and we are excited about creating a better future for everyone involved.

88%

$80.4 MILLION of our clients with 100k+ in revenue were repeat clients in 2023

Contracted backlog going into 2024:

RESPEC FOUNDATION //

building a brighter future

That’s why, as part of our Vision 2025, we envisioned the RESPEC Foundation—a philanthropic initiative dedicated to uplifting communities and promoting STEM education. Our ultimate goal is to empower people to thrive and succeed in a world full of opportunities. In 2023, we turned that vision into a reality. The RESPEC Foundation is driven by a compelling vision—to make an imPACT. Rooted in a steadfast commitment to community and social responsibility, it is meant to be a powerful force for positive change in the communities where our professionals reside and serve.

RESPEC’s Grand Junction team volunteering to plant trees in their local community.

Local Giving and Community Engagement

For years, our community efforts have taken many forms: environment clean-ups, blood drives, supporting food banks, and supporting STEM learning. The Foundation builds on this legacy by offering our team paid time to volunteer and encouraging a handson approach in our communities to make a difference.

COMMITTING TO STEM Education

Access to education is necessary for societal progress. In support of this belief, the Foundation created two scholarship programs—the RESPEC STEM Scholarship Program and the Building Alaska Scholarship. Each program provides deserving students with financial support to pursue academic aspirations in STEM.

MAKING A Holiday Impact

Immediately after launching, the RESPEC Foundation wasted no time in making a difference. The Foundation donated $6,000 to Feeding America and Foodbanks Canada as part of our holiday giving initiative. Each dollar donated equated to ten meals provided.

“The Foundation’s focus on charity and education reflects our desire to make a differenceinourcommunities.We’rebuilding a legacy that aligns with our core values.”

RESPEC FOUNDATION BOARD OF ADVISORS CO-CHAIR

employee-owner hours donated to community support 1,000+

$120K+

awarded in RESPEC Undergraduate Research Grant at SD Mines

meals to families across the United States and Canada 60K

living the pact community impact //

Driving a positive impact is the center of our work.

It steers our day-to-day dealings and inspires a cooperative spirit that values both individual efforts and team achievements. We honor everyone’s role in upholding our core values of Passion, Accountability, Caring, and Teamwork—values that are the foundation of the PACT we’ve made with our communities.

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ANCHORAGE, AK

The Anchorage office volunteered to help East High School’s FIRST Robotics Team, assisting them with ideas and improvements before the competition.

2

DENVER, CO

The Denver office participated in Castle Rock’s annual Spring Up the Creek to improve and enhance the local creeks by removing trash and debris along the trails.

3

FAIRBANKS, AK

The Fairbanks office judged and sponsored an award for the Arctic Innovation Competition, which encourages innovative solutions that address Arctic issues.

4

GRAND JUNCTION, CO

The Grand Junction office volunteered with RiversEdge West and planted 85 native plants and bushes along the river near Las Colonias Park.

5

LEXINGTON, KY

The Lexington office canoed a local river to remove trash from the water.

6

RAPID CITY, SD

The Rapid City office donated $3,000 to OneHeart, a local organization focused on bettering the lives of those experiencing poverty.

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RICHARDSON, TX

The Richardson office participated in a blood drive to help their local communities.

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SARASOTA, FL

The Sarasota office supported a school supplies donation drive by collecting and distributing the supplies to local school children.

Our team facilitated a significant digital leap for the Oyate Healthcare Center (OHC) by helping them move their patient records to their own server and upgrading their IT systems.