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) October 19, 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 - October 19, 1998 - High Plains Corporation (NASDAQ:HIPC)
today reported 1st Quarter results for fiscal 1999, recording a modest profit
of $129,613, or $.01 earnings per diluted share.
The Company's diluted-per-share and basic-per-share earnings are the same both
for the quarter ending September 30, 1998 and 1997, as shown in the following
table.
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
Net Sales and Revenues $26,389,859 $22,570,837
Net Earnings $ 129,613 $ 1,370,881
Diluted and Basic Earnings
per share $ .01 $ .09
</TABLE>
President and Chief Executive Officer, Gary R. Smith, stated that the first
quarter results are better than expected. "We completed our annual maintenance
turnarounds at all three production facilities during this quarter, and should
now be on track to meet this year's financial objectives," he said.
Smith predicted that favorable conditions for the ethanol industry will
continue into 1999. "The feedstock price outlook is favorable, and ethanol
prices, while lower than historical wintertime levels, have been locked in
through December, 1998," stated Smith. Although recent grain prices have
trended slightly higher, High Plains anticipates the opportunity to lock in
grain during and after harvest that should allow the Company to continue
production into 1999 with average grain prices near the $2.00 per bushel level.
Lower grain prices also bring lower prices for the Company's distiller's grains
by-product (DDG) as near record crops provide for inexpensive livestock feed
proteins. Additionally, low gasoline and oil prices have dampened ethanol
sales prices. "As a result of these factors, we see a continuation of our
profitable performance, but with no near-term windfall," Smith concluded.
Smith also noted the Company's continued work on improving ethanol yields from
grain feedstock. Smith indicated that the largest High Plains production
facility (the York, Nebraska plant) will be the first to implement new enzyme
controls and process changes. The Company's initial goals from these
advancements are to improve yields up to 4.5% from the current 2.4 gallons per
bushel rate within the 1999 fiscal year.
<PAGE>
A conference call will be held by High Plains this afternoon, October 19, 1998,
at 4:00 p.m. EDT to discuss these issues and others relevant to the Company.
Individuals interested in participating in the call should dial 888-244-7405
approximately 15 minutes prior to the starting time, and ask for conference
call ID# J678. Additional information will also be available at the Company's
Annual Stockholders' Meeting that is scheduled on Tuesday November 17, 1998, at
the Wichita Airport Hilton, Wichita, Kansas beginning at 10:00 a.m. CST.
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 October 19, 1998 HIGH PLAINS CORPORATION
/s/Gary R. Smith
Chief Executive Officer
