FORM 8-K PRIVATE
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) October 20, 1997.
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HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
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(State or other jurisdiction of (Commission File
incorporation) Number)
200 W. Douglas
Suite #820
Wichita, Kansas 67202 #48-0901658
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(Address of prinicipal (IRS Employer
exeuctive offices) Identification No.)
(316)269-4310
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(Registrant's telephone number)
Item 5 Other Information
Wichita, KS, OCTOBER 16, 1997 -- High Plains Corporation (NASDAQ:HIPC) today
reported net earnings of $1,370,881 or $.09 per share on sales of
$22,570,837 for the fiscal first quarter ended September 30, 1997. This
compares to a net loss of ($1,838,238) or ($.11) per share on sales of
$1,339,233 for the same quarter last year.
Fiscal First Quarter
Ended September 30,
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1997 1996
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Sales $ 22,570,837 $ 1,339,233
Net Income (Loss) $ 1,370,881 $ (1,838,238)
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Earnings (Loss) per share $ .09 $ (.11)
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Weighted average shares
outstanding 16,051,411 15,988,379
"We are pleased to announce what we feel are significant earnings this
quarter in spite of delays encountered through July in eliminating the odor
problem from our Industrial Grade ethanol product," said Raymond G. Friend,
President. "With the help of our expert consultants, the odor problem has
been eliminated, and we can now concentrate on developing a consistent
presence in the Industrial Grade market. To date, Industrial Grade sales
have been on a spot market basis, and largely dependant on the volatility of
the market. Therefore, much of our Industrial Grade capacity was redirected
to Fuel Grade production, and we produced only 577,000 gallons of Industrial
Grade product during this quarter. However, we are working towards our goal
of developing extended contractual relationships, and becoming a steady,
long-term source of supply."
"We also experienced some capacity limitations this quarter due to problems
with the wastewater treatment system at our York, Nebraska plant. This
resulted in a temporary drop in production levels during the month of
September to approximately 85% of capacity. We have addressed those
problems, and are currently in the process of installing a new anaerobic
biomethanation system for wastewater treatment that is expected to provide
capacity not only for full current production, but also for future
expansions. The York plant is now back to running very near 100% of its
capacity, and the wastewater project should be completed within 90 to 120
days. Our Colwich, Kansas plant continues to run at full capacity."
"October 1997 Fuel Grade sales at Wintertime Oxyfuel Season prices are
somewhat higher than those of the September quarter, and this increase is
expected to help offset the lack of the Nebraska production incentive for
the remainder of this calendar year. The yearly maximum for this $.20 per
gallon incentive will be reached sometime this month, and will again be
available in January of 1998."
"The partial federal excise tax exemption for ethanol, currently scheduled
to expire in the year 2000, has also been the subject of recent debate in
Congress. The deadline for adoption of the Highway Re-authorization Bill
has been extended for six months from September 30, 1997, and both the
Senate and House have bills proposed that would extend this ethanol tax
incentive to the year 2007. We expect this legislation to be finalized in
early spring, and we are hopeful that this important ethanol incentive will
be extended."
In other news, the Company announced the retirement of its long time
Treasurer and director, Roger D. Skaer. Mr. Skaer has served on the
Company's board since 1985, and he is one of the Company's largest
individual shareholders. Elected in his place was Donald D. Schroeder, age
56, a food processing and packaging executive from Minneapolis, Minnesota.
Mr. Schroeder is a former officer of Hoemer Waldorf Corporation (a New York
Stock Exchange Company), and served as Vice President of Marketing and
Strategic Planning for the $1.2 billion Brown Kraft division of Champion
International Corporation. Since 1985, he has been a co-owner of The
Schroeder Group, which is a group of companies with diversified interests in
packaging, transportation and food processing.
A conference call is being held by High Plains at 11:00 a.m. Eastern
Standard Time on Tuesday, October 21, 1997, to discuss these issues and
others relevant to the Company. To participate in the call, dial 800-315-
8387 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 October 20, 1997 HIGH PLAINS CORPORATION
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/s/
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Raymond G. Friend
President
