FORM 8-K/A 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) August 14, 1998.
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 principal
executive offices)
(316) 269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, Kansas - August 14, 1998 - High Plains Corporation today announced
4th quarter and fiscal 1998 results, including details of fiscal 1998 4th
quarter write-offs. These accelerated write-offs result in losses of $.32 per
share for the quarter, as shown in the following table. The Company's diluted
per share numbers are the same as its basic per share figures, both for the
quarter, and for the fiscal year ending June 30, 1998.
FINANCIAL HIGHLIGHTS
Three Months Ended Years Ended
June 30, June 30,
1998 1997 1998 1997
Sales $21,508,906 $24,422,505 $84,863,782 $63,121,509
Net (Loss) Earnings $(5,069,793) $ 130,897 $(3,592,930) $ 1,733,291
Diluted (Loss)
Earnings per share $ (.32) $ .01 $ (.22) $ .11
Diluted Shares
Outstanding 16,017,872 16,022,559 16,095,434 16,087,412
The year end financials include approximately $2 million in expense incurred
when the Company decided to liquidate grain future positions which were
committed in December and January of fiscal 1998. These positions were taken
on approximately 30% of the Company's projected grain needs as part of the
Company's risk management program. Grain prices have steadily declined since
that time, and are currently approaching record low levels. Gary R. Smith,
High Plains Chief Executive Officer, said "The Company is closely monitoring
both its price and basis positions to lock in advantageous prices for the next
12 months or longer. Management also elected to take certain additional write-
offs as a part of our year-end closing adjustments and we are pleased to begin
fiscal 1999 with a clean slate," said Mr. Smith. "By putting past problems
behind us, we can focus on the numerous opportunities ahead."
Smith further stated, "The ethanol industry has been recently strengthened by
the extension of it's Federal Excise Tax Credit to the year 2007, and by
continued progress of California state legislation which could significantly
expand ethanol marketing opportunities in that state. These positive events
allow us to focus on our own efficiencies and work toward more cost-effective
production."
Since Smith joined High Plains in April of 1998, the Company has adopted and
begun implementation of a strategic plan designed to control costs, and to
maximize profitability and long-term growth. One aspect of the plan focuses on
higher productivity and yields at each of High Plains' three ethanol
manufacturing facilities. As an example of these on going efforts, Smith cited
a pending agreement with Genencor International of Rochester, N.Y. to develop
an enzyme program which would maximize yields.
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Smith also voiced a renewed commitment to sales. "Sales are stronger going
forward and we are focusing more attention on personal meetings with customers
to better assess and serve their needs," Smith said. "After our planned annual
downtime in August and September for scheduled plant maintenance, we expect
better and more consistent sales margins." "While grain costs have gone down,
fuel ethanol prices have increased as we approach the winter oxygenate fuel
season" he continued. "At the same time recent additions to the Company's
primary product of fuel grade ethanol have included additional refined ethanol
products, and CO2. During fiscal 1998 High Plains introduced the sale of a
more highly distilled "Grain Neutral Spirits" product from its York, Nebraska
plant. In July of 1998, the Company also began to capture and sell the CO2 by-
product from the York plant. These changes, along with longer term contracts
and additional production from our new Portales, New Mexico plant, should lead
us to record sales in fiscal 1999." As the seventh largest U.S. producer of
ethanol, High Plains plans to convert 27 million bushels of corn and milo into
67.5 million gallons of ethanol this fiscal year.
"We believe our shareholders' confidence in High Plains will be rewarded,"
Smith said. "The need for efficient, environmentally sound alternative fuels
is strong. This industry need, coupled with our new products, more diversified
markets, and significantly lower grain costs, gives us the opportunity to
return to profitability."
"Although our internal budgets for fiscal 1999 project a breakeven first
quarter due to maintenance down-time and expenses at all 3 plants for their
annual refurbishment, second and third quarter earnings should be stronger.
Based upon ethanol prices which we are currently contracting and the continuing
decline in grain prices, we have the key elements in place for a profitable
1999."
A conference call is being held by High Plains at 4:00 Eastern Standard Time on
Monday, August 17, 1998, to discuss these issues and others relevant to the
Company. To participate in the call, dial 800-227-9428 approximately 15
minutes prior to its starting time, and ask for conference call ID# V532.
Based in Wichita, Kansas, High Plains Corporation (NASDAQ:HIPC) is among the
Nation's largest producers of ethanol. The Company operates production
facilities in Colwich, Kansas; York, Nebraska; and Portales, New Mexico.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including without limitation risks of fluctuations in
feedstock commodity prices, changes in the market prices or demand for motor
fuels and Ethanol, legislative changes regarding air quality, fuel
specifications or incentive programs, as well as general market conditions,
competition and pricing. The Company believes that forward-looking statements
made by it are based upon reasonable expectations. However, no assurances can
be given that actual results will not differ materially from those contained in
such forward-looking statements. Additional information concerning these and
other factors is contained in the Company's Securities and Exchange Commission
filings, including its annual 10K, Proxy Statement, and quarterly 10Q filings,
copies of which are available from the Company without charge.
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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 August 14, 1998 HIGH PLAINS CORPORATION
/s/Gary R. Smith
Chief Executive Officer
