<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1997 - Commission File No. 0-17196
MIDWEST GRAIN PRODUCTS, INC.
(Exact Name of Registrant as Specified in Its Charter)
KANSAS 48-0531200
------ ----------
(State or Other Jurisdiction of IRS Employer
Incorporation or Organization) Identification No.
1300 Main Street, Atchison, Kansas 66002
----------------------------------------
(Address of Principal Executive Offices and Zip Code)
(913) 367-1480
--------------
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to the filing
requirements for at least the past 90 days.
X YES NO
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common stock, no par value
9,700,172 shares outstanding
as of November 1, 1997.
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Page
Item 1. Financial Statements
---------------------
Independent Accountants' Review Report...................2
Condensed Consolidated Balance Sheets as of
September 30, 1997 and June 30, 1997.....................3
Condensed Consolidated Statements of Operations for
the Three Months Ended September 30, 1997 and 1996.......5
Condensed Consolidated Statements of Cash Flows for
the Three Months Ended September 30, 1997 and 1996.......6
Notes to Condensed Consolidated Financial Statements.....7
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations.................. 8
-----------------------------------
PART II. OTHER INFORMATION
Item 2. Legal Proceedings.................................... 12
-----------------
Item 4. Submission of Matters to a Vote of Security Holders.. 12
---------------------------------------------------
Item 6. Exhibits and Reports on Form 8-K..................... 12
--------------------------------
-1-
<PAGE>
Baird City Center Square
Kurtz & 1100 Main Street, Suite 2700 http://www.bkd.com
Dobson Kansas City, MO 64105-2112 Member of
Certified Public Accountants 816 221-6300 Fax: 816 221-6380 Moores Rowland
International
Independent Accountants' Review Report
--------------------------------------
Board of Directors and Stockholders
Midwest Grain Products, Inc.
Atchison, Kansas 66002
We have reviewed the condensed consolidated balance sheet of MIDWEST
GRAIN PRODUCTS, INC. and subsidiaries as of September 30, 1997, and the related
condensed consolidated statements of operations for the three month periods
ended September 30, 1997 and 1996, and the related condensed consolidated
statements of cash flows for the three month periods ended September 30, 1997
and 1996. These financial statements are the responsibility of the Company's
management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet as of June 30, 1997, and the
related consolidated statements of operations, stockholders' equity, and cash
flows for the year then ended (not presented herein); and, in our report dated
August 8, 1997, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying condensed consolidated balance sheet as of June 30, 1997, is fairly
stated in all material respects in relation to the consolidated balance sheet
from which it has been derived.
s/Baird, Kurtz & Dobson
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
October 22, 1997
-2-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
ASSETS
September 30, June 30,
------------- --------
1997 1997
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 412 $ 6,005
Receivables 26,485 26,276
Inventories 16,960 15,000
Prepaid expenses 1,496 988
Deferred income taxes 1,688 1,688
Income taxes receivable 1,138 227
------------ ------------
Total Current Assets 48,179 50,184
------------ ------------
PROPERTY AND EQUIPMENT, At cost 214,857 213,813
Less accumulated depreciation 102,560 99,099
------------ ------------
112,297 114,714
------------ ------------
OTHER ASSETS 432 432
------------ ------------
$ 160,908 $ 165,330
============ ============
See Accompanying Notes to Condensed Consolidated
Financial Statements
- 3 -
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(In Thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, June 30,
1997 1997
---- ----
(Unaudited)
CURRENT LIABILITIES
Current maturities of long-term debt $ 2,273
Note payable--bank $ 1,000
Accounts payable 9,206 8,196
Accrued expenses 3,117 4,408
------------ ------------
Total Current Liabilities 14,596 13,604
------------ ------------
LONG-TERM DEBT 24,660 29,933
------------ ------------
POST-RETIREMENT BENEFITS 6,339 6,245
------------ ------------
DEFERRED INCOME TAXES 6,987 6,987
------------ ------------
STOCKHOLDERS' EQUITY
Capital stock
Preferred, 5% noncumulative, $10 par
value; authorized 1,000 shares;
issued and outstanding 437 shares 4 4
Common, no par; authorized 20,000,000
shares; issued 9,765,172 shares 6,715 6,715
Additional paid-in capital 2,485 2,485
Retained earnings 99,914 100,149
------------ ------------
109,118 109,353
Treasury stock, at cost
Common; 1997 - 65,000 shares (792) (792)
------------- -------------
108,326 108,561
------------ ------------
$ 160,908 $ 165,330
============ ============
See Accompanying Notes to Condensed Consolidated
Financial Statements
- 4 -
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ -------
(in thousands, except
per share amounts)
NET SALES $ 57,623 $ 53,173
COST OF SALES 55,012 51,110
---------- ----------
GROSS PROFIT 2,611 2,063
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,644 2,163
---------- ----------
(33) (100)
OTHER OPERATING INCOME 14 102
---------- ----------
INCOME (LOSS) FROM OPERATIONS (19) 2
OTHER INCOME (EXPENSE)
Interest (455) (725)
Other 78 148
---------- ----------
LOSS BEFORE INCOME TAXES (396) (575)
CREDIT FOR INCOME TAXES (161) (229)
----------- -----------
NET LOSS $ (235) $ (346)
=========== ===========
EARNINGS (LOSS) PER COMMON SHARE $(.02) $(.04)
====== ======
See Accompanying Notes to Condensed Consolidated Financial
Statements and Independent Accountants' Review Report
- 5 -
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------- --------
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (235) $ (346)
Items not requiring (providing) cash:
Depreciation 3,460 3,506
Gain on sale of equipment (20)
Changes in:
Accounts receivable (209) (6,353)
Inventories (1,960) (1,430)
Prepaid expenses (508) (452)
Accounts payable 1,146 1,094
Accrued expenses (1,197) (429)
Income taxes receivable (911) 154
----------- ----------
Net cash used in operating activities (414) (4,276)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (1,179) (62)
Proceeds from sale of equipment 31
---------- ----------
Net cash used in investing activities (1,179) (31)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net advances (payments) on notes payable (4,000) 2,000
Net proceeds from issuance of long-term debt 2,000
---------- ----------
Net cash provided by (used in) financing
activities (4,000) 4,000
----------- ----------
DECREASE IN CASH AND CASH EQUIVALENTS (5,593) (307)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 6,005 3,759
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 412 $ 3,452
========== ==========
See Accompanying Notes to Condensed Consolidated Financial
Statements and Independent Accountants' Review Report
- 6 -
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
NOTE: GENERAL
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments necessary to present
fairly the Company's condensed consolidated financial position as of September
30, 1997, and the condensed consolidated results of its operations and its cash
flows for the periods ended September 30, 1997 and 1996, and are of a normal
recurring nature.
See Independent Accountants' Review Report
-7-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1997
RESULTS OF OPERATIONS
General
- -------
The Company's net loss of $235,000 in the first quarter of fiscal 1998
principally resulted from a continued decrease in selling prices of vital wheat
gluten due to severe competitive pressures from the European Union (E.U.) This
decrease represented a 22% decline from the average selling price of gluten in
the first quarter of fiscal 1997 and a nearly 6% drop from the average selling
price in the fourth quarter of fiscal 1997. Due to the predatory pricing
practices of subsidized E.U. producers, the Company has been unable to adjust
the price of its gluten to levels that offset production costs.
Profits from their highly subsidized and protected wheat starch business allow
E.U. producers to unload huge surpluses of gluten, a co-product, at prices below
U.S. production costs. Low U.S. tariff rates on wheat gluten make this country
an attractive market for those surpluses, while high tariffs in Europe
effectively prohibit non- E.U. member countries from competing in the wheat
gluten and wheat starch markets there. In an effort to stem the tide of gluten
imports from the E.U., the Wheat Gluten Industry Council of the U.S. has sought
corrective action through various diplomatic measures and legal proceedings. The
Council's latest initiative, which occurred on September 19, 1997, was the
filing of a petition with the International Trade Commission (ITC) under Section
201 of the Trade Act of 1974. The Section 201 petition alleges serious injury to
the U.S. wheat gluten industry from the increasing volume of subsidized imports.
It asks for, among other things, the establishment of a four-year quota on a
country-by country basis on all exports of wheat gluten to the U.S., allocated
yearly and based on the average market share percentage for the years 1990-1992.
Under Section 201, the ITC is required to complete an investigation and hearings
and make a recommendation to President Clinton by March 19, 1998. The President
is then required to act within 60 days after receipt of the ITC recommendation.
While the Company is hopeful that the actions of the Wheat Gluten Industry
Council will ultimately result in the creation of a more level playing field, no
assurance can be given as to when or if any relief will be granted. Due to the
intensity of current competitive conditions, the Company has strategically
limited its production of wheat gluten to amounts necessary to maintain a stable
customer base and for the production of other wheat products. In addition, the
Company has intensified efforts to develop additional modified wheat gluten
products that may be marketed in niches that will be less affected by foreign
competition. In the event the ITC and the President fail to provide the U.S.
wheat gluten industry with any relief pursuant to the section 201 petition, and
if the E.U. continues to export gluten at current or lower price levels and in
the quantities anticipated by new E.U. production facilities that are under
construction and that have been announced, then the Company believes that (a)
the Company will not be able to profitably market current wheat gluten products,
(b) that it will continue to produce only that amount of gluten necessary to
produce premium and modified wheat starches profitably, (c) that losses
generated from the unprofitable production of gluten are expected to be absorbed
by the Company's other operations, although there is no certainty that the
Company will be successful in that regard, and (d) that other U.S. gluten plants
will probably be forced to suspend operations or be permanently shut down.
-8-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
THREE MONTHS ENDED SEPTEMBER 30, 1997
Conditions in the Company's premium wheat starch market remained favorable in
the first quarter, resulting in increased production and sales. The largest
percentage of this increase occurred in sales of regular wheat starch, which
generally is sold at a lower value than the Company's modified and specialty
varieties. As a result, the average per unit sales price for wheat starch during
the first quarter was down compared to the same period a year ago.
Favorable conditions also continued to exist in the Company's alcohol markets in
the first quarter, resulting in increased production of both food grade and fuel
grade alcohol compared to the first quarter of fiscal 1997. Alcohol prices
decreased, however, due primarily to the effects of lower prices for corn and
milo, the principal raw materials used in the Company's alcohol production
process. The production increase was realized as the result of greater
utilization of distillery capacity at the Company's Pekin, Illinois plant.
Alcohol production at that facility was halted for a time during last year's
first quarter due to a maintenance and repair shutdown. As the result of this
year's first quarter rise in alcohol production, unit sales of distillers feed,
the principal by- product of the distillation process, grew substantially
compared to a year ago.
With consistently lower grain costs, a realization of stable energy costs and
improved production efficiencies, the Company expects to strengthen its
competitive abilities and improve profitability in the alcohol and wheat starch
markets going forward.
Sales
- -----
Net sales in the first quarter of fiscal 1998 were approximately $4,450,000
higher than sales in the first quarter of fiscal 1997. The increase principally
resulted from increased sales of fuel grade alcohol due to an over 420% rise in
units sold. The realization of higher sales in this category occurred from
increased utilization of distillery capacity at the Company's Pekin, Illinois
plant, where production was temporarily halted during a maintenance and repair
shutdown during the last year's first quarter. Sales of beverage alcohol in this
year's first quarter were approximately even with sales for the same period a
year ago. Although unit sales of beverage alcohol increased nearly 26%, the
selling price of this product dropped as the result of lower raw material costs
for corn and milo. Sales of food grade industrial alcohol fell below last year's
first quarter level due to a reduction in the selling price and a 33% decline in
units sold. Sales of distillers' feeds, a by-product of the alcohol production
process, rose approximately 17% due to a substantial increase in units sold.
Wheat gluten sales declined approximately 15% from sales in the first quarter of
fiscal 1997 despite a modest increase in unit output. Selling prices for this
product fell substantially in the face of extreme competitive pressures from the
European Union. Sales of wheat starch increased just slightly compared to a year
ago, although the amount of units sold rose by nearly 28%. The higher volume
sales of wheat starch were largely offset by reduced selling prices due
principally to a higher proportion for non-specialty, commodity-type
applications.
-9-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
THREE MONTHS ENDED SEPTEMBER 30, 1997
Cost of Sales
- -------------
The cost of sales in the first quarter of fiscal 1998 increased by approximately
$3.9 million compared to the cost of sales in the first quarter of fiscal 1997.
This occurred primarily as the result of higher energy costs as the per unit
cost of natural gas increased and more energy was required to satisfy increased
production needs. Higher maintenance and repair costs, principally associated
with the Company's distillery operation in Pekin, Illinois, also contributed to
the cost of sales increase. Raw material costs in the first quarter of fiscal
1998 were approximately even with the raw material costs for the same period in
the prior year as the larger volume of grain required for increased production
was offset by lower per unit grain prices.
In connection with the purchase of raw materials, principally corn and wheat,
for anticipated operating requirements, the Company enters into commodity
contracts to reduce the risk of future grain price increases. These contracts
are accounted for as hedges and, accordingly, gains and losses are deferred and
recognized in cost of sales as part of product cost when contract positions are
settled and as related products are sold. For the first quarter of fiscal 1998,
raw material costs included a net gain of $606,000 on contracts settled during
the quarter compared to a net loss of $649,000 for the same period in fiscal
1997.
Selling, General and Administrative Expenses
- --------------------------------------------
Selling, general and administrative expenses in the first quarter of fiscal 1998
increased by approximately $481,000 due mainly to employee-related costs. These
costs were partially offset by reduced commissions.
The consolidated effective income tax rate is consistent for all periods.
The general effects of inflation were minimal.
Net Loss
- --------
As the result of the foregoing factors, the Company experienced a net loss of
$235,000 in the first quarter of fiscal 1998 compared to a net loss of $346,000
in the first quarter of fiscal 1997.
-10-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
THREE MONTHS ENDED SEPTEMBER 30, 1997
LIQUIDITY AND CAPITAL RESOURCES
The following table is presented as a measure of the Company's liquidity and
financial condition:
September 30, June 30,
1997 1997
-----------------------
(in thousands)
Cash and cash equivalents $ 412 $ 6,005
Working capital 33,583 36,580
Amounts available under lines of credit 33,000 29,000
Note payable and long-term debt 26,933 30,933
Stockholders' equity 108,326 108,561
The Company continues to maintain a strong working capital position and a
relatively low debt-to-equity ratio. Continued strong cash flows have allowed
the Company to further reduce its debt by $4 million during the first quarter.
The cash management measures adopted two years ago, including stringent cost
controls, suspended quarterly dividends to stockholders and flexible production,
purchasing and marketing strategies, remain in effect.
At September 30, 1997, the Company had $3.3 million committed to improvements
and replacements of existing equipment.
Management believes its strong financial position and available lines of credit,
combined with the strategies which continue to be implemented, position it to
take advantage of a return to more favorable conditions.
FORWARD-LOOKING INFORMATION
This report contains forward-looking statements as well as historical
information. Forward-looking statements are identified by or are associated with
such words as "intend," "believe," "estimate," "expect," "anticipate," "hopeful"
and similar expressions. They reflect management's current beliefs and estimates
of future economic circumstances, industry conditions, Company performance and
financial results and are not guarantees of future performance. The
forward-looking statements are based on many assumptions and factors including
those relating to grain prices, energy costs, product pricing, competitive
environment and related market conditions, operating efficiencies, access to
capital and actions of governments. Any changes in the assumptions or factors
could produce materially different results than those predicted and could impact
stock values.
-11-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
PART II
OTHER INFORMATION
Item 2. Legal Proceedings
The Wheat Gluten Industry Council of the United States has filed a Petition with
the United State Trade Representative (the "USTR") under Section 301 of the
Trade Act of 1974 and a petition with the International Trade Commission of the
United States (the "ITC," a commission appointed by the President) under section
201 of the Trade Act of 1974. The petitions seek to alleviate alleged damage to
the U.S. wheat gluten industry by Subsidized foreign imports of wheat gluten
from the E.U. The proceedings are described under 'Vital Wheat Gluten --
Competition-Vital Wheat Gluten' under Item 1 in the Company's Form 10-K for the
year ended June 30, 1997, and under "RESULTS OF OPERATIONS - General" in Item 2
of Part I of this report .
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of stockholders of the Company was held on October 9,
1997. The following actions were taken at the meeting:
1. F. D. "Fran" Jabara was elected to the office of Group A Director for a
term expiring in 2000 with 8,719,261 votes for his election and 133,300
votes withheld.
2. Daryl R. Schaller, Ph.D. was elected to the office of Group A Director for
a term expiring in 2000 with 8,739,533 votes for his election and 113,028
votes withheld.
3. Michael Braude was elected to the office of Group B Director for a term
expiring in 2000 with 423 votes for his election and 0 votes withheld. Item
6. Exhibits and Reports on Form 8-K
(a) Exhibits
(15) Letter from independent public accountants pursuant
to paragraph (d) of Rule 10-01 of Regulation S-X
(incorporated by reference to Independent
Accountants' Review Report at page 2 hereof).
(20) Letter to stockholders for the three months ended
September 30, 1997.
(27) Financial data schedule.
(b) Reports on Form 8-K
The Company has filed no reports on Form 8-K during the quarter ended
September 30, 1997.
-12-
<PAGE>
MIDWEST GRAIN PRODUCTS, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MIDWEST GRAIN PRODUCTS, INC.
s/ Ladd M. Seaberg
By _________________________________
Date: November 13, 1997 Ladd M. Seaberg, President
and Chief Executive Officer
s/Robert G. Booe
By _________________________________
Date: November 13, 1997 Robert G. Booe, Vice President
and Chief Financial Officer
-13-
<PAGE>
Exhibit 20
November 11, 1997
Dear Stockholder:
While our earnings for the first quarter of fiscal 1998 were negatively affected
by a further decline in wheat gluten selling prices, our cash position was
bolstered by increased sales of alcohol products. As a result, we were able to
reduce our debt to approximately $26 million during the quarter. Since the end
of the quarter, debt has been reduced an additional $1 million.
The fall in gluten prices was caused by the predatory pricing practices of
subsidized producers from the European Union (E.U.), who continue their program
of unloading excess gluten in the U.S. market. Due principally to this factor,
our Company experienced a first quarter net loss of $235,000, or $0.02 per
share, on sales of $57,623,000. For the first quarter of fiscal 1997, we had a
net loss of $346,000, or $0.04 per share, on sales of $53,173,000.
To reduce the severity of E.U.'s damaging tactics, and yet maintain a stable
customer base, we have stayed with our strategy to limit our production of wheat
gluten until conditions allow otherwise. At the same time, we are taking part in
a recently launched initiative under Section 201 of the Trade Act of 1974 in an
effort to help put an end to this unfair situation.
On September 19, the Wheat Gluten Industry Council of the United States filed a
petition with the International Trade Commission (ITC) that asks for the
establishment of a four-year quota for each country exporting gluten to the U.S.
The ITC has up to four months from September 19 to review the situation and make
an injury determination. Within six months of the filing, the ITC must deliver
its remedy recommendation to President Clinton. The President then must act on
the ITC recommendation by May 18, 1998.
Although the establishment of quotas under Section 201 would provide only
temporary relief, it would give us and other U.S. wheat gluten producers time to
bring stability back to the marketplace while seeking a more lasting solution.
This conceivably could be accomplished through U.S. government consultations
with the E.U. pursuant to the 1996 Grains Agreement, as well as the GATT
negotiations in the year 2000.
As we wage our battle on the gluten front, we are continuing to make strides in
optimizing our alcohol production capabilities at both of our plants. This is
reflected by the increased alcohol production and sales we experienced in the
first quarter compared to the same period a year ago. We also experienced
increased sales of our premium wheat starch, with the largest percentage of that
increase occurring in sales of our non-modified varieties. Sales of our modified
wheat starches, which have been developed for unique, value-added uses, remain
steady and we continue to work with customers in matching these special
ingredients to functional needs in new product formulations.
Much time and effort are being spent as well toward the development and
marketing of our modified wheat gluten products, which can be used to replace
other grain-based and/or animal-based proteins in both food and non-food
applications. We expect these ingredients to eventually become very important
products for Midwest Grain, both in terms of revenue and in helping to shape our
Company into a less commodity-oriented, more value-added producer.
Sincerely,
s/Ladd M. Seaberg
Ladd M. Seaberg
President and CEO
<PAGE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
EXHIBIT 27
MIDWEST GRAIN PRODUCTS, INC.
FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM MIDWEST GRAIN PRODUCTS, INC. CONSOLIDATED STATEMENT OF
INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND
CONSOLIDATED BALANCE SHEET AS AT SEPTEMBER 30, 1997, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000835011
<NAME> MIDWEST GRAIN PRODUCTS, INC.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-1-1997
<PERIOD-END> SEP-30-1997
<CASH> 412
<SECURITIES> 0
<RECEIVABLES> 26,485<F1>
<ALLOWANCES> 285
<INVENTORY> 16,960
<CURRENT-ASSETS> 48,179
<PP&E> 214,857
<DEPRECIATION> 102,560
<TOTAL-ASSETS> 160,908
<CURRENT-LIABILITIES> 14,596
<BONDS> 24,660
<COMMON> 6,715
0
4
<OTHER-SE> 101,607<F2>
<TOTAL-LIABILITY-AND-EQUITY> 160,908
<SALES> 57,623
<TOTAL-REVENUES> 57,623
<CGS> 55,012
<TOTAL-COSTS> 57,656<F3>
<OTHER-EXPENSES> 14
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (455)
<INCOME-PRETAX> (396)
<INCOME-TAX> (161)
<INCOME-CONTINUING> (235)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (235)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
<FN>
<F1> Reflects Receivables less Allowances.
<F2> Reflects retained earnings and additional paid in captial
less cost of Treasury Stock.
<F3> Reflects cost of sales and selling, general & administrative expenses.
</FN>
</TABLE>
