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) May 15, 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, April 25, 1997 -- High Plains Corporation (NASDAQ:HIPC) today
reported net income of $427,922 or $.03 per share on sales of $20,570,905 for
the fiscal third quarter ended March 31, 1997 . This compares to net income
of $950,359 or $.06 per share on sales of $22,398,551 for the same quarter
last year.
The Company also reported net income of $1,602,394 or $.10 per share for the
nine month period ended March 31, 1997, on sales of $38,699,005. This
compares to net income of $3,230,717 or $.21 per share on revenues of
$66,055,183 for the same nine month period last year
<TABLE>
Financial Highlights
<CAPTION>
Three-Months Nine-Months
Ended March 31 Ended March 31,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Sales $20,570,905 $22,398,551 $38,699,005 $66,055,183
Net Income $ 427,922 $ 950,359 $ 1,602,394 $ 3,230,717
Net earnings per share $ .03 $ .06 $ .10 $ .21
Weighted average shares
outstanding 15,996,347 15,816,709 15,953,591 15,683,221
</TABLE>
"In this quarter, we were affected by reductions in ethanol prices, higher
feedstock costs, and some plant production interruptions at our York,
Nebraska plant which reduced our profitability," said Raymond G. Friend, the
Company's President. "The prices on the portion of ethanol gallons we were
unable to pre-sell dropped earlier than normal for the wintertime Oxyfuel
Season period. Spot prices dropped as low as $1.02, but have now rebounded
and appear to have stabilized at approximately $1.10 per gallon."
"Both plants are currently operating at capacity, producing fuel grade
ethanol only. Our engineers are working on process changes for our
industrial grade production unit. They are confident that small process
changes should allow us to eliminate the slight odor that we have been so far
unable to remove. The cost of these process changes is expected to be
minimal."
"We expect to begin limited shipments of the Industrial Grade product by
month end, at sales prices which should yield higher net margins than the
fuel grade product. We are continuing to pursue supply agreements with
several other potential industrial grade ethanol customers as well."
In other news, the Company reported the extension of the Kansas Agricultural
Ethanol Production Incentive Program which contributes approximately $.08 per
gallon to the Company's profitability on ethanol produced at their Colwich,
Kansas plant. The Kansas Ethanol Production Incentive Program was extended
to July 1, 2001.
<PAGE>
Mr. Friend stated, "We are pleased that Kansas Legislators recognize the
economic and environmental benefits that ethanol provides for all of our
citizens, including Kansans."
A conference call is being held by High Plains at 2:30 p.m. Eastern Standard
Time today. To participate in the call, dial 800-967-7134 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.
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 May 15, 1997 HIGH PLAINS CORPORATION
Raymond G. Friend
President
