My Turn: Plan brings Sealaska back to profitability
The Sealaska board of directors was pleased to distribute $1.82 per share to our urban and at-large shareholders and a prorata amount directly to the village corporations last Friday.
This distribution was mandated by Alaska Native Claims Settlement Act and followed an April 2002 distribution of $1.00 per share, completing 7(i) planned sharing from 2001 natural resource revenues from the 12 regions. Sealaska's policy is to distribute all of Sealaska's 7(i) and 7(j) monies in April each year; however, in 2002 we elected to split payments.
Sealaska initiated a new strategic plan early in the year. A key part of that plan was for Sealaska to both restructure and divest TriQuest in order to stop the cash losses. We have achieved our goals. Now Sealaska owns only a plastics manufacturing joint venture located Guadalajara, Mexico, and the operation is cash-flow positive. Further we have matured our Alaska Native Wireless investment and restructured our investment with the San Pasqual Tribe's Valley View Casino in November, in which we have fully recovered our original investment in each, plus an investment return. This substantially completes our recovery plan and returns Sealaska to profitability in 2002.
Sealaska's 7(i) obligation to other regional corporations from 2001 resource revenue was just over $8 million. Of that, Sealaska made a late payment of 50 percent in early November, followed by a payment on Dec. 4. This fulfills our entire 2001 7(i) obligation to the other regional corporations.
The Sealaska board of directors recently reaffirmed the company's new four-year strategic and operating plan. The plan establishes goals for annual business growth and profitability. These goals will be met through the development of business opportunities in government contracting, seeking opportunities in Indian Country gaming, continued evaluation of opportunities in the telecommunications industry, and utilization of our ANCSA natural resource base.
The board also committed to increasing Sealaska's Permanent Fund to $100 million by year-end 2009 and remains strongly committed to its Permanent Fund dividend policy. The board will decide the timing and amount of future dividends and distributions after the company's independent annual audit is completed in April 2003. Importantly, the board has increased its commitment to our culture and education by increasing the amount of its annual contribution to the Sealaska Heritage Institute.
I am grateful to our shareholders for their patience and support through the last couple of difficult years. The company is in a strong financial position to initiate our strategic plan. I am confident the management of the strategic plan will provide long-term benefit to shareholders through jobs, cultural programs and dividends. For additional information please refer to our new corporate Web site at www.sealaska.com. Sealaska shareholders will receive a shareholder newsletter in early January that will describe our new strategies in detail.
Chris E. McNeil Jr. is president and CEO of Sealaska Corp.