High Plains Corporation Announces Fourth Quarter and Fiscal Year
Results and Confirms Meeting Industrial Grade Odor and Taste Test
Specifications
WICHITA, Kan., Aug. 21 /PRNewswire/ -- High Plains Corporation (Nasdaq:HIPC) today announced net income of
$1,733,291 or $.11 per share on sales of $63,121,509 for the fiscal year ended June 30, 1997. This compares to net income
of $11,821,077 or $.74 per share on sales of $87,925,409 last year.
For the recent fourth quarter, the Company reported net income of $130,897 or $.01 per share on sales of $24,422,505
compared to net income of $8,590,360 or $.54 per share on sales of $21,870,226 for the same quarter last year. Included in
sales for the year ago quarter is $14,005,313 from the sale of grain contracts.
FINANCIAL HIGHLIGHTS
Three months Ended Years Ended
June 30, June 30,
1997 1996 1997 1996
Sales and Revenues $24,422,505 $21,870,226 $63,121,509 $87,925,409
Net Income $130,897 $8,590,360 $1,733,291 $11,821,077
Net Earnings per
Share $.01 $.54 $.11 $.74
Weighted Average
Shares Outstanding 16,022,559 15,882,079 16,023,480 15,927,954
``Our financial results for our fourth quarter were weaker than expected due to production interruptions at our York,
Nebraska plant, weak ethanol prices, and grain prices not declining as fast as anticipated. Production interruptions occurred
predominantly due to interference from ongoing modifications and tie in of our high quality industrial grade ethanol processing
equipment,'' said Raymond Friend, the Company's President.
``The good news is that the modifications and tie in of the high quality industrial grade ethanol processing equipment are now
finished, and beginning in July of this year we produced and shipped significant amounts of this product at higher prices than
fuel grade ethanol. Even better news is that on August 18th we received test results from the UNGDA, the influential French
testing agency that had previously ruled our product did not meet odor and taste specifications. The UNGDA has now
determined our current product meets all taste and odor requirements necessary to be sold for almost any industrial grade
application, including even beverage.''
``Our industrial grade distillation equipment has the capacity to upgrade a portion of our fuel grade production at an average
rate of 30,000 gallons per day. We now have the ability to switch production between fuel grade and industrial grade, and if
the industrial grade distillation equipment is operated all year, this would produce 10.5 million gallons of industrial grade
product. We are forming new relationships with both domestic and international customers, and hope to enter into contracts
which will help smooth out the volatility previously experienced in theme markets.''
``Our industry was successful in maintaining the partial Federal excise tax exemption for ethanol blenders through September
30, 2000, and intends to work towards an extension of this incentive until September 30, 2007 under the Highway
Reauthorization Bill. The current Highway Authorization Bill expires on September 30, 1997 and it will be addressed after the
summer Congressional recess.''
``Our plants are producing efficiently and near capacity. We have contracted for about five million bushels of grain at attractive
price levels, and we believe that the excellent crops surrounding both of our plants are indicative of good feedstock availability
and prices for the 1998 fiscal year. With the benefit of higher industrial grade ethanol margins, we look for a stronger year.
This should be especially true as we head into the fall and winter months, which are traditionally stronger due to the Federal
Oxygen Program, with both of our plants operating. Last year, both plants were idled during the first quarter due to
unavailability of economically priced grain.''
A conference call is being held by High Plains at 11:00 a.m. Eastern Time Friday, August 22, 1997. To participate in the call,
dial 800-280-2151 approximately 15 minutes prior to its starting time.
Based in Wichita, Kansas, High Plains Corporation is the only publicly traded company whose sole business is ethanol. It is
one of the largest producers of Ethanol with approximately 60 million gallons per year of current capacity. Clean burning
ethanol reduces pollutants in automotive gasoline and increases octane levels for better engine performance without increasing
gas pump prices.
``THE SAFE HARBOR STATEMENT'' UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to
risks detailed from time to time in the Company's Securities and Exchange commission filings.
SOURCE: High Plains Corporation
More news for referenced ticker symbols: HIPC, and related industries: oil/energy.
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