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 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)
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Item 5 Other Information
Wichita, Kansas, April 17, 2000 - High Plains Corporation (Nasdaq:HIPC) today
reported that the ethanol producer's earnings for the fiscal 2000 third
quarter ended March 31, 2000 rose to $1,194,532 or $.07 per share, almost
double the $707,478, or $.04 per share (restated) reported for the like
quarter ended March 31, 1999. Sales were $27,601,410 compared with
$23,920,821 for fiscal 1999's third quarter.
President and CEO Gary R. Smith stated the results are "especially
significant without the benefits of the Nebraska state subsidy which
contributed $1.7 million to the third quarter of fiscal 1999."
Smith pointed out that increase in profits were primarily due to higher
prices for fuel ethanol, increased industrial ethanol sales, and continued
cost-saving initiatives implemented by management.
Fuel ethanol prices increased significantly following gasoline prices, which
reached a peak in late March of this year. "Even though gasoline seems to
have decreased somewhat with OPEC agreements to increase oil production, the
higher demand of the upcoming summer driving season should continue to push
fuel demand, and most analysts project that neither gasoline nor ethanol
prices should decrease substantially in the near future" Smith continued.
Demand continues strong despite the higher prices, Smith said. "Our
production capacity is largely sold and we are purchasing additional gallons
on the open market to satisfy customers' needs. Recent announcements by the
Environmental Protection Agency proposing a phaseout of MTBE, ethanol's
principal rival oxygenate, has lead to much speculation that ethanol could be
the only viable substitute. Although oil company lobbyists still propose a
complete elimination of the Clean Air Act's oxygen requirement, even
compromise proposals that would substitute a renewable fuels requirement
should still increase the overall market and demand for ethanol."
Smith also was optimistic that the fourth quarter, which is traditionally
weak in gasoline additive's seasonal cycle, will show the robust character
exhibited in this year's second and third quarters. "Much of our grain
margins are set through forward contracting and hedging, and with just normal
grain plantings and weather impact, along with projected continued strength
in ethanol pricing, the first quarter of our next fiscal year (beginning
July 1) should continue to be strong."
The Chief Executive cited a number of events that support his positive
outlook.
- - Good pricing, with fuel prices holding higher while grain prices, the
company's feedstock, remain low.
- - Risk management techniques being further refined to maximize profit
margins.
- - Achieving product diversity and lessening the company's dependence on
ethanol though implementation of projects to produce other chemicals such
as glycerol.
- - Recent completion of ISO 9002 registration at the York, Nebraska facility,
further formalizing and standardizing procedures and processes for higher
quality control.
- - Increasing capacity with reasonable capital investment to yield additional
profitability.
A conference call with management to review the results of the third quarter
will take place Tuesday, April 18th, at 10:00 a.m. CDT and 11:00 a.m. EDT. To
participate in that teleconference, call 888-244-7406 about 10 minutes prior
to the call. The operator will ask for ID# J418.
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. Additional
information about the Company can be found at its Web site,
www.highplainscorp.com.
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.
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<TABLE>
<CAPTION>
Financial Highlights
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Net sales and revenue $27,601,410 $23,920,820 $75,619,229 $73,086,754
Net income 1,194,532 707,478 1,373,647 1,360,381
Earnings per share,
(diluted) $ .07 $ .04 $ .08 $ .08
Diluted shares
outstanding 16,316,561 16,014,717 16,169,130 16,012,508
</TABLE>
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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: April 17, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
