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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.
Date of Report (Date of earliest event reported) April 26, 1996.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction (Commission File
of incorporation) Number)
200 W. Douglas #48-0901658
Suite #820 (IRS Employer
Wichita, Kansas 67202 Identification No.)
(Address of prinicipal
exeuctive offices)
(316) 269-4310
(Registrant's telephone number)
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FOR IMMEDIATE RELEASE
Contact: Raymond G. Friend
High Plains Corporation
HIGH PLAINS CORPORATION PROJECTS
INCREASED PROFITS FOR FOURTH QUARTER
Wichita, KS, April 26, 1996 -- High Plains Corporation (NASDAQ:HIPC) today
announced that it was projecting increased earnings per share for the fourth
quarter ending June 30, 1996. This profitability is being achieved by the
sale of the Company's grain contracts for the month of May, 1996, in
conjunction with the sale of the June and July contracts which were
previously announced.
The Company intends to temporarily suspend operations at both its York and
Colwich facilities within one week and is projecting to have both plants idle
through July 1996. During this period, the Company plans to complete
modifications at one or both of our plants, which would enable us to produce
industrial grade ethanol.
Total net revenue generated from the sale of the grain contracts covering
this three month period is projected to be $5.6 million. As a result, the
Company projects increased earnings for both the current quarter and the
fiscal year and projects that it will have the cash flow to pay for the cost
of plant modifications as well as to cover other ongoing cash requirements.
Stanley E. Larson, the Company's Chairman and Chief Executive Officer stated,
"Modification of our plants to enable us to produce industrial grade ethanol
should allow us to increase our revenues from a product that yields a higher
price and reflects an expanding market.
We have determined that the sale of these contracts and the temporary idling
of our facilities will provide more profit and hence more value to our
shareholders. Also, the ability of the Company to choose between producing
fuel grade or industrial ethanol should likewise enhance profitability and
shareholder value.
The Company still maintains forward grain contracts for over 20 million
bushels covering 80 percent of the Company's total production capability over
the period from August 1996 through August 1997. If industrial grade
contracts are completed as anticipated, it is the Company's intention to
complete all modifications necessary to produce industrial grade ethanol and
to renew plant operations in August 1996. Corn prices and our remaining
forward grain contracts will dictate the exact date of reopening."
Based in Wichita, Kansas, High Plains Corporation is the only publicly traded
company whose sole business is Ethanol. It is one of the largest producers
of Ethanol with 60 million gallons per year of current capacity. Clean
burning Ethanol reduces pollutants in automotive gasoline and increases
octane levels for better engine performance without increasing gas pump
prices.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date April 26, 1996 HIGH PLAINS CORPORATION
Raymond G. Friend
Executive Vice President
- Chief Financial Officer
