This sounds like a winner. EPS up to 0.50/sh from 0.01/sh last
year. Here's an article:
WICHITA, Kan., June 5 (Reuter) - High Plains Corp said Wednesday it expects record net income for the current fiscal fourth quarter of about $8.0 million or $0.50 a
share, up from net income a year ago of $108,363 or $0.01 a share.
High Plains said the income projection included unspecified payments to customers to settle almost all material ethanol and distillers' dried grain and solubles contracts,
which were cancelled after plants were idled in May. The projection also included estimated ongoing expenses that are anticipated for the remainder of the quarter, it added.
High Plains said it also expects to report net income for fiscal year ending June 30 of $11.2 million or $0.71 a share, up from $6.1 million or $0.39 a year ago.
The company said its projections are significantly higher than most analysts' earlier projections for both the quarter and the year, it added. These earnings also would increase
stockholders' equity to almost $53 million.
High Plans also said it received about $13.9 million, net of commissions, for the previously announced sale of forward grain contracts. With the cash flow from the grain
contracts, the company said it expects to prepay about $8.0 million in bank debt, reducing monthly interest expenses by about $65,000.
The debt prepayment would be part of a loan agreement modification being negotiated, which should allow the company to draw up to $2 million for working capital for an
anticipated plant start-up in September.
Another provision requested in the loan modification would provide for bank financing of equipment that would allow it to produce industrial grade ethanol, which it does
not now make. High Plains said the industrial grade product normally sells for a higher price than the fuel-grade ethanol it now makes and would give it an additional
market for its output.
"We remain very encouraged that we will be successful in finalizing an industrial grade ethanol contract," Stanley Larson, chief executive officer, said in a statement. "This
would justify the equipment additions to our York, Neb., facility and give us the ability to produce either an entirely fuel grade product, or any mixture of products
including fuel, cosmetic, medicinal or food grade ethanol."
He added that the exact date for the plant start-up depends on both ethanol and corn prices.
"With corn prices trending lower, many experts are predicting that corn prices at harvest will be at levels which will allow us to begin plant operations in September,
regardless of whether plant modifications for industrial grade product are completed or not," Larson said.
He added that a September start-up would be in time for the wintertime Federal Oxygen Program that traditionally has provided ethanol producers the highest prices of the
year.
Reuters Chicago Newsdesk - 312-408-8787 |
