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) June 30, 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)
<PAGE>
Item 5 Other Information
Wichita, Kansas - June 29, 1998 - High Plains Corporation's Chief Executive
Officer, Gary R. Smith, today announced that the Company will take charges for
grain hedging expenses, various contract accruals and other miscellaneous
write-offs, resulting in lower-than-forecasted Fourth Quarter earnings.
Mr. Smith, who joined the company on April 6th, noted that the action is
consistent with the mandate provided in his appointment by the Board of
Directors "to clear the decks and put behind us the negative factors that have
dampened our earnings, and to allow us to begin Fiscal Year 1999 with a clean
slate."
Mr. Smith did not elaborate on 1999 earnings projections, but did indicate that
a brightening business outlook, including the recent Congressional extension of
ethanol tax incentives through the year 2007, "provides High Plains with the
opportunity to focus our efforts on new business development and plant
efficiency improvements."
Smith cited two examples as early evidence that the plant efficiency initiative
is on track: the announcement of the long-awaited CO2 joint venture with EPCO
at the York ethanol plant; and the utilization of inexpensive landfill gas as
process gas at the Colwich, KS facility. The two agreements are expected to
generate approximately $1 million in added revenue and savings during Fiscal
Year 1999.
Additionally, Smith noted that anticipated moves in High Plains' risk
management program are expected to provide positive benefits for future
earnings. With the tax incentives in place and the establishment of efforts to
open new markets and to gain improved plant efficiencies, "we are well
positioned to deliver more positive results in Fiscal Year 1999," Mr. Smith
concluded.
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.
<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 June 30, 1998 HIGH PLAINS CORPORATION
/s/Gary R. Smith
Chief Executive Officer
