Company Press Release
High Plains Corporation Reports Earnings and Announces Election of
New Director
WICHITA, Kan., Oct. 16 /PRNewswire/ -- High Plains Corporation (Nasdaq:HIPC) today reported net earnings of
$1,370,881 or $.09 per share on sales of $22,570,837 for the fiscal first quarter ended September 30, 1997. This
compares to a net loss of ($1,838,238) or ($.11) per share on sales of $1,339,233 for the same quarter last year.
Fiscal First Quarter
Ended September 3O,
1997 1996
Sales $22,570,837 $1,339,233
Net income (Loss) $1,370,881 $(1,838,238)
Earnings (Loss) per share $.09 $(.11)
Weighted average shares
outstanding 16,051,411 15,988,379
''We are pleased to announce what we feel are significant earnings this quarter in spite of delays encountered through July
in eliminating the odor problem from our Industrial Grade ethanol product,'' said Raymond G. Friend, President. ''With the
help of our expert consultants, the odor problem has been eliminated, and we can now concentrate on developing a
consistent presence in the Industrial Grade market. To date, Industrial Grade sales have been on a spot market basis, and
largely dependent on the volatility of the market. Therefore, much of our Industrial Grade capacity was redirected to Fuel
Grade production, and we produced only 577,000 gallons of Industrial Grade product during this quarter. However, we
are working towards our goal of developing extended contractual relationships, and becoming a steady, long- term source
of supply.''
''We also experienced some capacity limitations this quarter due to problems with the wastewater treatment system at our
York, Nebraska plant. This resulted in a temporary drop in production levels during the month of September to
approximately 85% of capacity. We have addressed those problems, and are currently in the process of installing a new
anaerobic biomethanation system for wastewater treatment that is expected to provide capacity not only for full current
production, but also for future expansions. The York plant is now back to running very near 100% of its capacity, and the
wastewater project should be completed within 90 to 120 days. Our Colwich, Kansas plant continues to run at full
capacity.''
''October 1997 Fuel Grade sales at Wintertime Oxyfuel Season prices are somewhat higher than those of the September
quarter and this increase is expected to help off set the lack of the Nebraska production incentive for the remainder of this
calendar year. The yearly maximum for this $.20 per gallon incentive will be reached sometime this month, and will again be
available in January of 1998.''
''The partial federal excise tax exemption for ethanol, currently scheduled to expire in the year 2000, has also been the
subject of recent debate in Congress. The deadline for adoption of the Highway Re-authorization Bill has been extended
for six months from September 30, 1997, and both the Senate and House have bills proposed that would extend this
ethanol tax incentive to the year 2007. We expect this legislation to be finalized in early spring, and we are hopeful that this
important ethanol incentive will be extended.''
In other news, the Company announced the retirement of its long time Treasurer and director, Roger D. Skaer. Mr. Skaer
has served on the Company's board since 1985, and he is one of the Company's largest individual shareholders. Elected in
his place was Donald D. Schroeder, age 56, a food processing and packaging executive from Minneapolis, Minnesota. Mr.
Schroeder is a former officer of Hoemer Waldorf Corporation (a New York Stock Exchange Company), and served as
Vice President of marketing and Strategic Planning for the $.1.2 billion Brown Kraft division of Champion International
Corporation. Since 1985, he has been a co-owner of The Schroeder Group, which is a group of companies with
diversified interests in packaging, transportation and food processing.
A conference call is being held by High Plains at 11:00 a.m. Eastern Standard Time on Tuesday, October 21, 1997, to
discuss these issues and others relevant to the Company. To participate in the call, dial 800-315-8387 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.
Additional news and quotes: Champion International Corp - CHA.
listen to conference call on tues |
