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) April 19, 1999.
HIGH PLAINS CORPORATION
(Exact name of registrant as specified in its charter)
Kansas #1-8680
(State or other jurisdiction (Commission File Number)
of incorporation)
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>
FOR IMMEDIATE RELEASE
CONTACT: Gary R. Smith
President and CEO
High Plains Corporation
(316) 269-4310
HIGH PLAINS ANNOUNCES PROFITABLE THIRD QUARTER
Wichita, Kansas - April 19, 1999 - High Plains Corporation (NASDAQ: HIPC)
today reported its third consecutive quarter of profitability, recording a
Third Quarter profit of $1,295,268, or $.08 per diluted share versus a net
loss of $(299,425) or $(.02) per diluted share for the comparable period last
year. The Company's diluted-per-share and basic-per-share earnings are the
same both for the quarter and for the nine month year-to-date periods ending
March 31, 1999 and 1998.
A comparison of the Company's financial results for the first three quarters
of fiscal year 1999, and fiscal year 1998 is shown in the following table:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31 March 31
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net sales and
revenues $23,920,820 $19,123,056 $73,086,754 $63,354,876
Net Income $ 1,295,268 $ (299,425) $ 1,948,171 $ 1,476,864
Diluted earnings
per share $ .08 $ (.02) $ .12 $ .09
Diluted shares
outstanding 16,014,717 16,009,802 16,012,508 16,018,715
</TABLE>
President and Chief Executive Officer, Gary R. Smith, stated that the
operational profits in our Third Quarter results "are the direct result of
our ongoing efforts to improve production efficiencies at our three plants."
"The efficiency improvements and low grain prices help to offset the adverse
effect of continuing historically-low oil and gasoline prices," Smith
continued. In addition to the profits from operations, the net income
reported above included approximately $587,800 in non-recurring after tax
profits from the sale of equipment.
<PAGE>
Smith noted that recent increases in gasoline prices and projections that
gasoline prices will continue to rise is favorable news for High Plains and
the rest of the ethanol industry. Also, California's decision to ban MTBE as
a fuel additive may provide a new, large market for fuel-grade ethanol.
"While there are still significant hurdles to clear before the replacement of
MTBE with ethanol becomes a California reality, recent developments suggest
progress is being made in this regard," Mr. Smith concluded.
Mr. Smith points to the pre-tax Third Quarter earnings of $2.06 million as
another sign of High Plains' success in growing its markets. The Company
recently announced strategic changes in the marketing of its dried
distiller's grain (DDG) and industrial beverage products, and has recently
completed an agreement to capture and market its carbon dioxide byproduct
from its Colwich, KS plant. These developments, along with the existing
carbon dioxide recovery and marketing efforts at the Company's York, Nebraska
plant provide significant revenue streams for High Plains.
The Company recorded net cash provided by operating activities of $1.28
million for the Third Quarter. Depreciation and capital expenditures were
$0.97 million and $0.59 million, respectively, for the quarter. Total debt
outstanding, including capital lease obligations, at the end of the Third
Quarter was $19.53 million with long term debt, including capital lease
obligations, consisting of $10.16 million of the $19.53 million. Interest
expense was $0.4 million for the quarter ended March 31, 1999.
A conference call will be held by High Plains on Tuesday, April 20, 1999, at
10:00 AM Central Daylight Time to discuss these issues and other matters
relevant to the performance of the Company. Individuals interested in
participating in the call should dial 800-905-0392 approximately fifteen
minutes prior to the starting time, and ask for Conference Call ID#D748.
Based in Wichita, Kansas, High Plains Corporation 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 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 are contained in the Company's Security and Exchange
Commission filings, including its annual 10K, Proxy Statement, and quarterly
10Q filings, copies of which are available from the company without charge.
