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, 2001.
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, KS, January 18, 2001 -- High Plains Corporation (Nasdaq: HIPC) today
announced a $1.6 million improvement in fiscal second quarter earnings over
the same quarter of last year.
The ethanol producer's earnings for the quarter ended December 31, 2000 rose
to $2,343,984 or $.14 per share, versus the $792,735, or $.05 per share
reported for the like quarter ended December 31, 1999. After the strong
second quarter results, year to date earnings are $3,641,581, or $.22 per
share for the six months ended December 31, 2000, compared with only
$179,115, or $.01 per share for the same six month period ended December 31,
1999. Revenues for the quarter rose 43 percent to $36,078,563 compared with
$25,314,167 for the prior year's fiscal second quarter. Revenues for the six-
month period were 36 percent higher than prior year. Additional financial
details for the periods are shown in the table below.
"We are pleased with our performance this quarter, and the strong increase in
profitability," said Gary Smith, President and CEO. "Strong ethanol markets
have also helped, and continue to benefit our forward sales. While ethanol
prices usually weaken in the summertime months, we have been able to contract
over half of our summertime (April through September) volumes at prices
averaging more than the wintertime contracts we now have. We also reached
our goal of selling over three million gallons of industrial alcohol this
quarter compared with only one and one-half million in the prior quarter.
This is in accordance with our stated intention of diversifying our sales by
building an industrial grade market presence. We still believe in the
importance of creating and maintaining a presence in these markets even
though margins in the fuel grade markets have increased so substantially,"
continued Smith. "We chose to enter into long term contracts with major
industrial customers even though this created a shortage in our fuel ethanol
supplies for the quarter. Fuel ethanol was purchased on the spot market to
cover these shortages, resulting in a one-time expense. No similar charges
are expected for our fiscal third quarter," he stated.
Smith also praised the Company's advances in commodity price risk management.
"While fundamentals have been favorable for the industry, grain prices have
increased somewhat, and spot natural gas prices have more than tripled over
the prior year. Efforts to improve our risk management programs have shown
their value in helping to stabilize these costs and achieve more predictable
earnings. Improved risk management has helped us avoid the majority of these
increased costs, and even though some price increases for these commodity
inputs will be reflected in fiscal third quarter earnings, continued strong
fuel ethanol prices are expected to offset these cost increases."
Smith also commented on the Company's proposed expansion of its York,
Nebraska ethanol facility which was announced in late December. "We were
pleased to complete an amendment to our original production incentive
agreement with the state of Nebraska during this second quarter. This
allowed us to recover the remaining incentive available under that initial
program, which contributed significantly to our earnings for the quarter.
While the benefits from that original program are now completed, we believe
that the re-investment of those proceeds (approximately $1.1 million after
tax) in the proposed expansion project will allow us to qualify for
additional incentives in those expanded gallons under the new Nebraska
incentive program adopted approximately two years ago," he said.
"We are optimistic about grain prices remaining low, and ethanol prices
staying strong through the remainder of our fiscal year. Although we may not
see earnings quite this high in our next quarter, we still expect good
profitability. Earnings for even the historically weaker fiscal fourth
quarter should be much better than prior years, as fundamentals look
favorable compared to our typical fiscal fourth quarter. With half our year
behind us and a continued outlook for strength in the second half of our
fiscal year, we are positioned to have an excellent 2001," Smith concluded.
A conference call with management to review these results will take place
Monday, January 22, 2001 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# Q517. A replay of the call will be available for approximately one week
thereafter by dialing 800-695-2533.
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. 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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High Plains Corporation
Unaudited Statement of Operations
Three and Six Months Ended December 31, 2000 and 1999
Three Months Ended Six Months Ended
December 31, December 31,
2000 1999 2000 1999
Net sales and revenues $36,078,563 $25,314,167 $65,260,359 $48,017,818
Cost of goods sold 31,013,216 23,280,182 56,922,558 45,331,650
Gross profit 5,065,347 2,033,985 8,337,801 2,686,168
Selling, general and
administrative expenses 950,359 750,750 1,755,172 1,653,538
Operating income 4,114,988 1,283,235 6,582,629 1,032,630
Other income/(expense):
Interest expense (476,897) (410,453) (966,199) (800,098)
Interest and other income 112,284 19,034 210,100 33,664
Gain on sale of assets 0 (1,612) 0 20,388
(364,613) (393,031) (756,099) (746,046)
Net income before
income taxes 3,750,375 890,204 5,826,530 286,584
Income tax (expense)/
Benefit (1,406,391) (97,469) (2,184,949) (107,469)
Net earnings $ 2,343,984 $ 792,735 $ 3,641,581 $ 179,115
Basic and diluted
earnings per share $ .14 $ .05 $ .22 $ .01
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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, 2001 HIGH PLAINS CORPORATION
/s/Gary R. Smith
President & CEO
