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 18, 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, January 18, 2000 - High Plains Corporation (Nasdaq:HIPC)
today reported that the ethanol producer's earnings for the fiscal 2000
second quarter ended December 31, 1999 rose to $792,735, or $.05 per share,
compared with $523,290, or $.03 per share for the like quarter ended
December 31, 1998. Sales reached $24,936,070 versus $22,776,074 for fiscal
1999's second quarter.
President and CEO Gary R. Smith stated the results are "especially
significant, considering ethanol prices were at a decade low beginning the
quarter and the York, Nebraska plant is performing well despite the
expiration of producers' tax credits from that state."
For the first six months of the current fiscal year, net income was $179,115,
equal to $.01 per share, compared with $652,903, or $.04 per share, realized
in fiscal 1999's first half. The comparative fiscal 2000 year-to-date
results primarily reflect soft fuel ethanol prices that were experienced
throughout the first quarter and the beginning of the second quarter, as
previously mentioned.
Smith emphasized that favorable grain prices prevail and are expected to
continue into the next crop year. "We expect to change our buying formula in
2000 and pursue local purchases more aggressively. We feel this is the best
strategy for High Plains and will help bolster the local farm economies."
"In the second quarter our cost-control projects in the plants continue to
have a favorable impact on the bottom line," Smith continued. "We enter the
new century with many positives from last quarter:
1. A new financial arrangement with Bank of America that restructures our
balance sheet positively and adds financial flexibility and liquidity.
2. Our industrial/beverage grade ethanol sales from our York facility are
ahead of prior-year sales. A new supply contract with Monsanto for their
Muscatine, Iowa plant was a highlight.
3. Fuel ethanol prices took a big jump in December. Due to this increase and
the need to fill long-term contracts, the Portales, New Mexico plant will
be kept on stream for the third quarter. While we continue to negotiate
other options for Portales, it is profitable now and we need the
production to meet current demand.
4. We are making progress in determining the scope of our glycerol side-
stream pilot project and will report separately on this diversification
effort in February," Smith concluded.
A conference call with management to review the results of the second quarter
will take place today, January 18th, at 11:00 a.m. EST. To participate in
that teleconference, call 888-245-1808 about 10 minutes prior to the call.
The operator will ask for ID# Q245.
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 website,
www.highplainscorp.com.
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<TABLE>
Financial Highlights
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net sales and revenue $24,936,070 $22,776,074 $45,883,702 $44,165,933
Net income 792,735 523,290 179,115 652,903
Earnings per share,
basic and diluted $ .05 $ .03 $ .01 $ .04
Diluted shares
outstanding 16,149,681 16,004,582 16,125,326 16,009,202
</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: January 18, 2000 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
