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) January 26, 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 prinicipal
exeuctive offices)
(316)269-4310
(Registrant's telephone number)
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Item 5 Other Information
Wichita, KS, January 23, 1998 -- High Plains Corporation (NASDAQ:HIPC) today
reported net income of $405,408 or $.03 per diluted share on sales of
$21,660,983 for the fiscal second quarter ended December 31, 1997 . This
compares to net income of $3,012,711 or $.19 per diluted share on sales of
$16,788,867 for the same quarter last year.
The Company also reported net income of $1,776,289 or $.11 per diluted share
for the six month period ended December 31, 1997, on sales of $44,231,820.
This compares to net income of $1,174,472 or $.07 per diluted share on revenues
of $18,128,100 for the same six month period last year. The Company's diluted
per-share numbers are the same as its basic per share figures, both for the
quarter, and the six month period ending December 31, 1997.
<TABLE>
Financial Highlights
Three Months Ended Six Months Ended
December 31, December 31,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Sales $21,660,983 $16,788,867 $44,231,820 $18,128,100
Net Income $ 405,408 $ 3,012,711 $ 1,776,289 $ 1,174,472
Diluted earnings per
share $ .03 $ .19 $ .11 $ .07
Diluted shares
outstanding 16,020,735 16,118,299 16,033,290 16,098,487
</TABLE>
"High Plains is pleased to announce another profitable quarter, even though
profits were somewhat lower than expected due to production difficulties early
in the quarter," said Raymond G. Friend, President. "We believe those
production problems have now been resolved, and we are currently producing fuel
grade Ethanol at near capacity at both our York, Nebraska, and our Colwich,
Kansas plants. Installation of our bio-methanation unit in York was completed
this week, and it appears to be working even better than expected. This
eliminates the problem with wastewater treatment capacity that had recently
limited production capabilities at the York plant, and should provide us with
more than enough additional wastewater capacity to handle the discharge from
both the Industrial Grade distillation equipment, and the Carbon Dioxide plant
scheduled to come on line in May. This treatment system will also allow us to
consider other additional projects at the York plant that would require this
additional wastewater treatment capability."
"We have purchased and priced 60% of our projected grain needs for all three
plants through May of 1998, at prices which we consider favorable. These
purchases, combined with the grain price protection traditionally provided by
our feed byproducts, should operate to cover approximately 90% of our grain
price exposure through May."
<PAGE>
Mr. Friend further stated that, "Industrial Grade Ethanol sales have also been
strong since the beginning of December, allowing us to run the Industrial Grade
distillation equipment at full capacity, and sell all of that product into the
spot market at prices significantly higher than fuel grade. Although we still
do not have a long-term contract for our Industrial Grade Ethanol, our options
in that area are expanding."
"Our new plant acquisition in Portales, New Mexico is also on schedule for
first production in mid February, and we are targeting full production capacity
by the first of March. We have sold most of our fuel grade Ethanol production
through February, although our overall optimism for the spring and summer is
tempered by the fact that wholesale gasoline prices are currently weak, and the
price of wholesale gasoline is a traditional factor in fuel Ethanol pricing
formulas. However, with the Nebraska state Ethanol incentive resuming in
January, continued low grain prices, and our forecasts for continued strong
sales of Industrial Grade Ethanol through the current fiscal quarter, the
potential for a more profitable third quarter still looks good."
A conference call is being held by High Plains at 4:00 p.m. Eastern Standard
Time on Friday, January 23, 1998, to discuss these issues and others relevant
to the Company. To participate in the call, dial 800-451-7724 approximately 15
minutes prior to its starting time, and ask for conference call ID# Q223.
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.
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 January 26, 1998 HIGH PLAINS CORPORATION
/s/
Raymond G. Friend
President
