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) August 29, 1997.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction of (Commission File
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)
<PAGE>
Item 5 Other Information
Wichita, KS, August 21, 1997- High Plains Corporation (NASDAQ:HIPC) today
announced net income of $1,733,291 or $.11 per share on sales of $63,121,509
for the fiscal year ended June 30, 1997. This compares to net income of
$11,821,077 or $.74 per share on sales of $87,925,409 last year.
For the recent fourth quarter, the Company reported net income of $130,897
or $.01 per share on sales of $24,422,505 compared to net income of
$8,590,360 or $.54 per share on sales of $21,870,226 for the same quarter
last year. Included in sales for the year ago quarter is $14,005,313 from
the sale of grain contracts.
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Three Months Ended Years Ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Sales and Revenues $24,422,505 $21,870,226 $63,121,509 $87,925,409
Net Income $ 130,897 $ 8,590,360 $ 1,733,291 $11,821,077
Net Earnings per
Share $ .01 $ .54 $ .11 $ .74
Weighted Average
Shares Outstanding 16,022,559 15,882,079 16,023,480 15,927,954
</TABLE>
"Our financial results for our fourth quarter were weaker than expected due
to production interruptions at our York, Nebraska plant, weak ethanol
prices, and grain prices not declining as fast as anticipated. Production
interruptions occurred predominantly due to interference from ongoing
modifications and tie in of our high quality industrial grade ethanol
processing equipment," said Raymond Friend, the Company's President.
"The good news is that the modifications and tie in of the high quality
industrial grade ethanol processing equipment are now finished, and
beginning in July of this year we produced and shipped significant amounts
of this product at higher prices than fuel grade ethanol. Even better news
is that on August 18th we received test results from the UNGDA, the
influential French testing agency that had previously ruled our product did
not meet odor and taste specifications. The UNGDA has now determined our
current product meets all taste and odor requirements necessary to be sold
for almost any industrial grade application, including even beverage."
<PAGE>
"Our industrial grade distillation equipment has the capacity to upgrade a
portion of our fuel grade production at an average rate of 30,000 gallons
per day. We now have the ability to swith production between fuel grade and
industrial grade, and if the industrial grade distillation equipment is
operated all year, this would produce 10.5 million gallons of industrial
grade product. We are forming new relationships with both domestic and
international customers, and hope to enter into contracts which will help
smooth out the volatility previously experienced in these markets."
"Our industry was successful in maintaining the partial Federal excise tax
exemption for ethanol blenders through September 30, 2000, and intends to
work towards an extension of this incentive until September 30, 2007 under
the Highway Reauthorization Bill. The current Highway Authorization Bill
expires on September 30, 1997 and it will be addressed after the summer
Congressional recess."
"Our plants are producing efficiently and near capacity. We have contracted
for about five million bushels of grain at attractive price levels, and we
believe that the excellent crops surrounding both of our plants are
indicative of good feedstock availability and prices for the 1998 fiscal
year. With the benefit of higher industrial grade ethanol margins, we look
for a stronger year. This should be especially true as we head into the
fall and winter months, which are traditionally stronger due to the Federal
Oxygen Program, with both of our plants operating. Last year, both plants
were idled during the first quarter due to unavailability of economically
priced grain."
A conference call is being held by High Plains at 11:00 a.m. Eastern Time
Friday, August 22, 1997. To participate in the call, dial 800-280-2151
approximately 15 minutes prior to its starting time.
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 approximately 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.
"THE SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995. This press release contains forward-looking statements that
involve risks and uncertainties, including but not limited to risks detailed
from time to time in the Company's Securities and Exchange Commission
filings.
<PAGE>
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 August 29, 1997 HIGH PLAINS CORPORATION
Raymond G. Friend
President
