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 17, 2000.
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, KS, October 17, 2000 -- High Plains Corporation (Nasdaq: HIPC) today
announced a $1.9 million improvement in fiscal first quarter earnings over
the same quarter of last year.
Pre-tax operating income for the fiscal quarter ended September 30, 2000 was
$2,467,641, or $.15 per share, compared to a loss of ($250,605), or ($.02)
per share for the first quarter of the prior fiscal year. After taxes, the
company reported net earnings of $1,297,597, or $.08 per share on revenues of
$29,181,796, compared with a net loss of ($613,621), or ($.04) per share on
revenues of $22,051,469, for the quarter ended September 30, 1999.
Additional financial details for the quarters are shown in the table below.
"We are pleased to see these positive results from our hard work both at the
plants and our corporate offices," said Gary Smith, CEO. "Operational
improvements implemented by plant personnel and our new Vice President of
Operations, Tim Newkirk, have made our plants more efficient, and allowed us
to make the most out of this quarter's favorable grain and ethanol market
prices. Ethanol prices have remained strong since the dramatic increase in
oil prices last December. Future pricing also appears favorable, due not
only to OPEC's stated intention to maintain oil prices at $25 to $28 per
barrel, but also due to growing unrest in the middle east. At the same time,
we are now entering the wintertime oxygenate season, which historically has
provided higher ethanol prices than for summertime sales. While ethanol
pricing for summer 2000 was higher than in previous years, we still feel
there will be some additional price strengthening for the wintertime season,"
continued Smith.
High Plains previously announced that it has sold most of its ethanol
production through March 2001, and that much of its grain needs for that
period are either priced or covered by basis contracts. The Company is also
aggressively buying cash grain, and hopes to store between 500,000 and
750,000 bushels on the ground at its Colwich, Kansas facility. Smith
commented that, "Buying grain now and storing it on the ground helps local
farmers with their storage problems, and allows us to take advantage of
current low prices. This is all part of our ongoing risk management plan.
While these positions might limit our ability to gain from a significant
favorable market swing, they also limit our downside risk in the event of
adverse market movement. We are very happy with the ethanol and grain
pricing we have locked in, and even though grain markets have moved upward
recently, crop projections still favor continued low grain prices for our
uncommitted needs in comparison to prior years."
"Market prices for natural gas have doubled over the past year, and our prior
decision to enter into a long term contract to acquire gas from our local
landfill to power our Colwich, Kansas plant is looking better and better.
Initial indications are that this landfill gas could also supply an electric
cogeneration project at Colwich, and we are currently evaluating that
possibility. We have also contracted for a majority of the natural gas needs
through March for our York, Nebraska plant at rates under current market, so
the effect of increased gas prices on our operations should be limited," said
Smith.
"Fundamental market conditions are excellent for the ethanol industry right
now. Production is being maximized by virtually all producers, and there is
a ready market for everything we can make. We are pleased to still have the
production from our Portales, New Mexico facility, even though it remains
under a pending contract for sale. The closing of that sale is now scheduled
for late November, in order to allow us to complete the technical
modification of one of the operating permits for the site. We look forward
to updating our shareholders on the status of this sale, as well as the
results of the pilot plant test for our proposed glycerol project, at our
annual shareholders' meeting scheduled for November 28, 2000," concluded
Smith.
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A conference call with management to review these results will take place
Wednesday, October 18, 2000 at 10:00 a.m. CDT and 11:00 a.m. EDT. To
participate in that teleconference, call 800-540-0559 approximately 10
minutes prior to the call. Tell the operator you wish to participate in call
ID# J391.
Based in Wichita, Kansas, High Plains Corporation is among the nation's
largest producers of ethanol. The company operates 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 10-K, Proxy Statement
and quarterly 10-Q filings, copies of which are available from the Company
without charge.
FINANCIAL HIGHLIGHTS ON FOLLOWING PAGE
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<TABLE>
High Plains Corporation
Statement of Operations
(Unaudited)
Three Months Ended September 30, 2000 and 1999
<CAPTION>
Three Months Three Months
ended ended
September 30, 2000 September 30, 1999
<S> <C> <C>
Net sales and revenues 29,181,796 22,703,652
Cost of goods sold 25,814,985 22,051,469
Gross profit 3,366,811 652,183
Selling, general and
administrative expenses 899,170 902,788
Operating income/(loss) 2,467,641 (250,605)
Other income/(expense):
Interest and other income 97,816 14,630
Interest expense (489,302) (389,646)
Gain on sale of equipment - 22,000
Sub-Total (391,486) (353,016)
Net earnings/(loss)
before taxes 2,076,155 (603,621)
Income tax (expense)/benefit (778,558) (10,000)
Net earnings 1,297,597 (613,621)
Earnings per share
Basis 0.08 (0.04)
Diluted 0.08 (0.04)
</TABLE>
<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 17, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
