Alaska's 1993 native corporation profile.

• Author: Berger, Michael

Following the lean years of the late 1980s, Alaska Native Claims Settlement Act corporations began to make a comeback in 1992. Overall, corporate operations were streamlined by discontinuing unprofitable ventures, the settlement of Net Operating Loss (NOL) sales lawsuits, and further investment in specific spheres of influence like coal and oilfield services.

Only two of the 13 regional corporations, Cook Inlet Regional Inc. and Sealaska Corp., gained in total revenues. Of the two village corporations reported in this article, Klukwan Village Corp. lost over $24 million, and Ukpeagvik Inupiat Corp. posted an $8 million increase.

Sales of NOLs are still a hot topic. Lawsuits by the Internal Revenue Service (IRS) question the validity of selling losses to outside parties for cash. These sales rescued several Native corporations from near-bankruptcy and enabled the companies to negotiate from a stronger financial position. Proceeds from almost all of the sales were listed as corporate income before 1990, but the IRS maintained that the funds be kept in an escrow account until all suits are settled.

The information for this corporation listing and profiles was obtained directly from each company's 1992 annual report. Because fiscal years vary widely, research for this report used the fiscal year that most accurately reflects calendar year 1992. Other sources for information in the following pages came from personal interviews and mail surveys.

AHTNA INC.

Ahtna Corp., headquartered in Glennallen, reported revenues of $7.3 million for 1992, down slightly from $7.4 million in 1991. Subsidiary Ahtna Construction and Primary Products Corp. (AP&PPC) brought in $1.8 million, including $441,550 from its 30 percent participation in Price/Ahtna JV, a pipeline maintenance service under contract with Alyeska Pipeline Service Co. Another subsidiary, Barricades & Safety Equipment, posted revenues of $1.8 million, but expenses were over $2 million, resulting in a loss of about $165,000.

The company was also awarded $1.7 million plus expenses of $147,465 for a construction claim arbitration with EBASCO. Although the claim is on appeal, management has recorded the award in revenue for 1992, representing 48 percent of Ahtna Corp.'s total revenue. Professionally managed portfolios of stocks and bonds produced $739,690, for 24 percent of total revenues. Section 7(i) contributions and sub-surface resources accounted for another 14 percent, rental of office facilities made up 6 percent, and surface-rights comprised 4 percent.

Ahtna entered into a new venture by forming Ahtna Security, with subcontracting opportunities from Wackenhut Corp. to provide revenue along with more jobs for shareholders.

Another bright spot for Ahtna will be the potential harvest of 64,000 acres of beetle-killed spruce trees near Chitina. The trees will be harvested and sold as logs. Also, several road projects are slated for 1993 by AC&PPC.

ALEUT CORP.

Anchorage-based Aleut Corp. failed to turn a profit in total revenues for 1992. Down about $200,000 in profits from 1991's $10.4 million, the corporation blames this year's losses on several factors.

Aleut Corp.'s only resource incomes are its section 7(i) contribution of about $362,000 and $236,000 from sales of armor rock, sand and gravel.

Subsidiary Space Mark Inc., purchased in 1991 for the purpose of entering into federal government operations and maintenance contracting, reported a loss of over $330,000, attributed to substantial staff time and money invested in preparation of bids for federal contracts, a decline in professional consulting revenues and a loss in its service contract at Fort Rucker because of agreement bidding errors.

Construction firm Baidarka Corp., a wholly-owned subsidiary, also established in 1991, lost $370,000 due to large overhead costs.

The company transferred $173,000 to the Shareholder Permanent Fund, begun in 1992. The fund is designed to accumulate investments in marketable securities to provide a stable source of cash flow for...