Alliance Grain official pleased with 2007 results
GIBSON CITY – Joe Thompson told Alliance Grain shareholders that his first year as general manager was “full of both challenges and rewards.”
Approximately 275 people attended the cooperative’s annual meeting held Tuesday evening at Gibson City’s North Park.
Formerly the chief financial officer, Thompson was named general manager at the 2007 annual meeting following former manager Steve Kelly’s appointment as president of One Earth Energy, the Gibson City-based ethanol plant scheduled to open in March 2009.
Thompson said last fall’s record corn crop in East Central Illinois meant the company also set several new records. He reported that a total of 12 million bushels, a threefold increase over the previous year, was delivered in September 2007 to the 13 elevators in the 12 communities that make up Alliance Grain.
He added that it was impossible for workers to move the grain out at the same rate it came in, resulting in a record 6 million bushels piled on the ground that took until April to clear out.
Another challenge was the substantial increase in commodity prices that caused a record $35.4 million payout for grain in January and ultimately saw a record need for a credit line of $120 million, a $40 million increase over initial estimates.
But those challenges resulted in a large reward, he said, since the company posted record after-tax income of $2.6 million. He said the company showed it could generate “sufficient revenue from operations, without relying on outside income we have no control over.”
He referred to the year’s patronage payout as “Alliance Grain’s own economic stimulus package” to shareholders since the company paid out $1.23 million in cash and stock.
Thompson admitted the company had deliberately limited fixed asset expenditures over the past year in order to increase its working capital.
“We will pick up that pace this next year,” he promised, with a budget of $1.2 million for such improvements as a storage addition at the Charlotte facility and a new conveyor at the Cropsey location.
“We’re very, very proud of the year we had,” Thompson concluded.
In an election of board members, Bob Provin of Gibson City and Doug Brucker of Sibley were re-elected to three-year terms. Bob Crego of Colfax was elected as the new member to replace Brian Dameron of Colfax, who received a plaque in recognition of his service. Crego will also serve a three-year term.