As Filed with the Securities and Exchange Commission on
September 20, 1994
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13
of the Securities Exchange Act of 1934
For the Fiscal Year Ended June 30, 1994
MIDWEST GRAIN PRODUCTS, INC.
1300 Main Street
Box 130
Atchison, Kansas 66002
Telephone: (913) 367-1480
Incorporated in the State of Kansas
COMMISSION FILE NO. 0-17196
IRS No. 44-0531200
The Company has no securities registered pursuant to Section
12(b) of the Act. The only class of common stock outstanding
consists of Common Stock having no par value, 9,765,172 shares of
which were outstanding at June 30, 1994. The Common Stock is
registered pursuant to Section 12(g) of the Act.
The aggregate market value of the Common Stock of the
Company held by non-affiliates, based upon the last sales price
of such stock on July 26, 1994, was $269,937,144.
The Company 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, and has been subject to such filing
requirements for the past 90 days.
As indicated by the following check mark, disclosure of
delinquent filers pursuant to Rule 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of
registrant's knowledge in a definitive proxy or information
statement incorporated by reference in Part III of this Form
10-K: [X].
The following documents are incorporated herein by
reference:
(1) Midwest Grain Products, Inc. 1994 Annual Report to
Stockholders, pages 17 through 36, and the inside back cover
[incorporated into Part II and contained in Exhibit 10(c)].
(2) Midwest Grain Products, Inc. Proxy Statement for the
Annual Meeting of Stockholders to be held on October 6, 1994,
dated September 12, 1994 [incorporated into Part III) and
contained in Exhibit 10(c)].
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MIDWEST GRAIN PRODUCTS, INC.
FORM 10-K
For the Fiscal Year Ended June 30, 1994
CONTENTS
PAGE
PART I
Item 1. Business ..........................................4
General Information................................4
Vital Wheat Gluten.................................5
Premium Wheat Starch...............................6
Alcohol Products...................................7
Flour and Other Mill Products......................9
Transportation....................................10
Raw Materials.....................................10
Energy............................................10
Employees.........................................10
Regulation........................................11
Item 2. Properties........................................11
Item 3. Legal Proceedings.................................11
Item 4. Submission of Matters to a Vote of Security
Holders..........................................11
PART II
Item 5. Market for the Registrant's Common Equity and
Related Stockholder Matters......................12
Item 6. Selected Financial Data...........................12
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations..............12
Item 8. Financial Statements and Supplementary Data.......12
Item 9. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure...........13
PART III
Item 10. Directors and Executive Officers of
the Registrant.................................13
Item 11. Executive Compensation...........................15
Item 12. Security Ownership of Certain Beneficial
Owners and Management...........................15
Item 13. Certain Relationships and Related Transactions...15
PART IV
Item 14. Exhibits, Financial Statement Schedules
and Reports on Form 8-K.........................16
SIGNATURES....................................................18
FINANCIAL STATEMENT SCHEDULES................................S-1
Report of Independent Public Accountants on Schedules.....S-2
Schedule I. Marketable Securities - Other Investments....S-3
Schedule V. Property, Plant and Equipment................S-4
Schedule VI. Accumulated Depreciation of Property,
Plant and Equipment......................................S-5
Schedule VIII. Valuation and Qualifying Accounts.........S-6
Schedule IX. Short-term Borrowings.......................S-7
Schedule X. Supplementary Income Statement Information...S-8
________________________
The calculation of the aggregate market value of the Common
Stock of the Company held by non-affiliates is based on the
assumption that non-affiliates do not include directors. Such
assumption does not constitute an admission by the Company or any
director that any director is an affiliate of the Company.
3
PART I
Item 1. Business.
General Information
Midwest Grain Products, Inc. (the Company) is a Kansas
corporation headquartered in Atchison, Kansas. It is the
successor to a business founded in 1941 by Cloud L. Cray, Sr.
The Company is a fully integrated producer of vital wheat
gluten, premium wheat starch, and alcohol products. These grain
products are processed at plants located in Atchison, Kansas, and
Pekin, Illinois. Wheat is purchased directly from local and
regional farms and grain elevators and milled into flour. The
flour is processed with water to extract vital wheat gluten which
is dried into a tan powder and sold in packaged or bulk form.
The resulting starch slurry is further processed to extract
premium wheat starch which is also dried into a powder and sold
in packaged or bulk form. The remaining slurry is mixed with
corn or milo and water and then cooked, fermented and distilled
into alcohol. The residue of the distilling operations is dried
and sold as a high protein additive for animal feed. Carbon
dioxide which is produced during the fermentation process is
trapped and sold. As a result of these processing operations,
the Company sells approximately 95% (by weight) of grain
processed.
To complement its integrated production facilities, the
Company also provides transportation services to its customers
through a fleet of truck-tractors, trailers and rail cars and
barge loading facilities on the Missouri and Illinois Rivers.
The table below shows the Company's sales from continuing
operations by product group for each of the five years ended June
30, 1994, as well as such sales as a percent of total sales. The
table does not reflect the sales of McCormick Distilling Company,
a business that was sold as of December 31, 1992.
PRODUCT GROUP SALES
Year Ended June 30,
_______________________________________________________________________________________
1994 1993 1992 1991 1990
------------- ------------- ------------- -------- --- ------- ---
(thousands of dollars)
Amount % Amount % Amount % Amount % Amount %
________ ___ ________ ___ _______ ___ ________ ___ ________ ___
Vital Wheat Gluten $70,966 38.2 $ 54,156 33.1 $ 46,941 30.1 $ 27,833 20.9 $ 31,375 23.9
Premium wheat starch 21,110 11.3 18,423 11.3 17,578 11.3 16,068 12.1 14,907 11.3
Alcohol Products:
Beverage Alcohol 29,536 15.9 27,142 16.6 26,437 17.0 25,994 19.5 26,600 20.2
Industrial and Fuel
Grade Alcohol 41,858 22.5 41,591 25.5 39,043 25.1 35,088 26.3 26,447 20.1
Alcohol by-products 18,146 9.8 19,288 11.8 17,791 11.4 17,010 12.8 16,602 12.6
------- ---- ------ ---- ------ ---- ------ ---- ------ ----
Total alcohol
products 89,540 48.2 88,021 53.9 83,271 53.5 78,092 58.6 69,649 52.9
------- ---- ------ ---- ------ ---- ------ ---- ------ ----
Flour and other mill
products (1) 4,352 2.3 2,826 1.7 8,004 5.1 11,127 8.4 15,668 11.9
------- ---- ------ ---- ------ ---- ------ ---- ------ ----
Net sales(1) $185,968 100.0 $163,426 100.0 $155,794 100.0 $133,128 100.0 $131,559 100.0
======== ===== ======== ===== ======== ===== ======== ===== ======== =====
_________________________
(1) Sales of flour and other mill products, as well as all other sales in the table, refer only to sales to
third parties and do not reflect intra-company transactions.
The Company's $22.5 million increase in net sales for the
year ended June 30, 1994, resulted primarily from increased
demand for vital wheat gluten and increased production of all
three of the Company's principal products due to increased
capacities. The $2.7 million increase in pre-tax income from
continuing operations was due primarily to increased volumes and
demand for vital wheat gluten offset by reduced prices for food
grade industrial and fuel grade alcohol and increased grain
costs. For a more detailed discussion of the results of the
4
Company's operations for 1994 and the two prior years see "Item
7. Management's Discussion and Analysis of Financial Condition
and Results of Operations."
The bulk of the Company's sales are made under informal
arrangements direct to large institutional food and beverage
processors or distributors with respect to which the Company has
longstanding relationships. Under these arrangements products
are usually ordered, produced, sold and shipped within 30 days.
As a consequence, the Company's backlog of orders at any time is
usually less than ten percent of annual sales.
Generally, the Company's sales are not seasonal except for
minor variations affecting beverage alcohol and gluten sales.
Beverage alcohol sales tend to peak in the fall as distributors
order stocks for the holiday season, while gluten sales tend to
increase during the second half of the fiscal year as demand
increases for hot dog buns, hamburger buns, and similar bakery
products. Seasonal demand for the Company's fuel grade alcohol
may also be affected in the future by EPA regulations mandating
the use of ethanol in certain reformulated gasoline which is
expected to be strongest during October through March of each
year. See "Alcohol Products-Industrial and Fuel Grade Alcohol."
During fiscal 1994 the Company commenced the construction
of the largest expansion program in its history at its Pekin
plant. The new facilities are expected to be completed in the
second half of fiscal 1995, to be more efficient than the
existing plant and to double total alcohol production capacity;
increase by 40% total vital wheat gluten capacity; increase by
70% total premium wheat starch production capacity; more than
double total distillers' feeds production capacity; and provide
the Pekin plant with a new and more efficient steam and
electricity generating plant. The $62 million project is being
financed from operations, the proceeds of the sale of McCormick
and the proceeds of a $25 million, fifteen year 6.68% term loan.
The Company expects that it may take several years to develop
markets for all of the added capacity.
During fiscal 1994, the Company also completed the bulk of
the expansion of its flour mill in Atchison, the construction and
renovation of new and existing quality control laboratory at the
Pekin plant, and the installation of new wastewater treatment
equipment at the Atchison plant.
For further information, see the Consolidated Financial
Statements of the Company and Management's Discussion and
Analysis of the Company's Financial Condition and Results of
Operations which appear at pages 18 through 36 of the Annual
Report.
Vital Wheat Gluten
Vital wheat gluten is a light tan powder which contains
approximately 75% to 80% protein. It is the only commercially
available high protein food additive which possesses vitality.
The vitality of the Company's vital wheat gluten results from its
elastic and cohesive characteristics when added to dough or
otherwise reconstituted with water.
Vital wheat gluten is added by bakeries and food processors
to baked goods such as wheat breads, and to pet foods, cereals,
processed meats, fish, and poultry to improve the nutritional
content, texture, strength, shape, and volume of the product.
The neutral flavor and color of wheat gluten also enhances, but
does not change, the flavor and color of food. It has been
increasingly used in breads and pet foods. The cohesiveness and
elasticity of the gluten enables the dough in wheat and other
high protein breads to rise and to support added ingredients such
as whole cracked grains, raisins and fibers. This allows the
baker to make an array of different breads by varying the gluten
content of the dough. Vital wheat gluten is also added to white
breads, and hot dog and hamburger buns to improve the hinge
strength and cohesiveness of the product.
The Company ships its vital wheat gluten throughout the
continental United States in bulk and in 50 to 100 pound bags.
Approximately 37% of fiscal 1994 gluten sales were made to a
distributor for the bakery industry, the Ben C. Williams Bakery
Services Company, which in turn distributes vital wheat gluten to
independent bakeries. The remainder is sold directly to major
food processors and bakeries such as Kellogg Co., Continental
Baking Company, Inc. and H. J. Heinz Co.
5
The vital wheat gluten market is occupied primarily by the
Company, two other domestic producers and a number of foreign
importers. Foreign importers provide significant competition
from time to time due to low U.S. tariffs and export incentives
provided by foreign countries to their wheat starch producers.
Based on industry data, the Company believes that in terms of
fiscal 1994 sales it is the largest producer of vital wheat
gluten in the United States.
Competition in the vital wheat gluten industry is based
primarily upon price, quality, and service. Historically, gluten
prices have been affected by grain prices, grain quality, excess
foreign capacity and by subsidies provided to certain European
exporters by their host governments.
The Company's vital wheat gluten processing operations are
believed to produce a quality of vital wheat gluten that is equal
to or better than that of any other wheat gluten on the market.
The Company's location in the center of the United States grain
belt, together with its production capacity, fleet of
transportation equipment and years of operating experience,
enable it to provide a consistently high level of cost effective
service to customers.
The Company's sales of vital wheat gluten increased by $16.8
million during fiscal 1994, due primarily to increased demand
during the second half of the year and increased production
capacity. The increased demand resulted partially from increased
market needs, principally in the baking industry where more
gluten was required to fortify flour due to the poor quality of
available wheat following the extremely wet weather in the spring
and summer of 1993. Due to increased competition from foreign
imports and reduced needs in the baking industry the demand for
the Company's vital wheat gluten began to return to more normal
levels during the end of fiscal 1994.
During the last half of fiscal 1992 the Company completed
capital improvements projects at the Atchison and Pekin
facilities which increased the productive capacity of the
Company's vital wheat gluten operations by 50% over 1991 levels
of production. In the last half of 1994 the Company commenced an
expansion of the vital wheat gluten production facilities at its
Pekin Plant. The expansion is expected to be completed during
the second half of fiscal 1995 and increase by 40% the Company's
total vital wheat gluten production capacity over that capacity
at June 30, 1994. The combination of these expansion programs
will more than double the capacity that existed at June 30, 1991.
Premium Wheat Starch
Wheat starch constitutes the carbohydrate-bearing portion of
wheat flour. The Company produces a pure white premium wheat
starch powder by extracting the starch from the starch slurry
substantially free of all impurities and fibers and then by
spray, flash or drum drying the starch. Premium wheat starch
differs from low grade or B wheat starches which are extracted
along with impurities and fibers and are used primarily as a
binding agent for industrial applications such as the manufacture
of charcoal briquettes. The Company does not produce low grade
or B starches since its integrated processing facilities are able
to process the remaining slurry after the extraction of premium
wheat starch into alcohol, animal feed and carbon dioxide.
Premium wheat starch differs from corn starch in its granular
structure, color, granular size and name identification.
An increasing portion of the Company's premium wheat starch
is also chemically altered during processing to produce certain
unique modified wheat starches designed for special applications.
The Company's premium wheat starches are used primarily as
an additive in a variety of food products to affect their
appearance, texture, tenderness, taste, palatability, cooking
temperature, stability, viscosity, binding and freeze-thaw
characteristics. For example, the Company's starches are used to
improve the taste and mouth feel of cream puffs, eclairs,
puddings, pie fillings, breadings and batters; to improve the
size, symmetry and taste of angel food cakes; to alter the
viscosity of soups, sauces and gravies; to improve the
freeze-thaw stability and shelf life of fruit pies and other
frozen foods; to improve moisture retention in microwavable
foods; and to add stability and to improve spreadability in
frostings, mixes, glazes and sugar coatings. The Company's
specialty starches are also sold for a number of industrial and
non-food uses, such as an ink bearing coating in carbonless
paper.
6
The Company's premium wheat starch is sold nationwide to
food processors, such as International Multi-Foods Corp.,
Pillsbury Company and Keebler Company, to distributors, and for
export to countries, such as Japan, Mexico and Malaysia which do
not have wheat-based economies.
The Company believes that it is the largest producer of
premium wheat starch in the United States. Although wheat starch
enjoys a relatively small portion of the total United States
starch market, the market is one which is continuing to grow.
Growth in the wheat starch market reflects a growing appreciation
for the unique characteristics of wheat starch which provide it
with a number of advantages over corn and other starches for
certain baking and other end uses. The Company has developed a
number of different modified wheat starches and continues to
explore the development of additional starch products with the
view to increasing sales of higher margin modified starches.
Premium wheat starch competes primarily with corn starch,
which dominates the United States market. Competition is based
upon price, name, color and differing granular and chemical
characteristics which affect the food product in which it is
used. Premium wheat starch prices usually enjoy a price premium
over corn starches and low grade wheat starches. Wheat starch
price fluctuations generally track the fluctuations in the corn
starch market, except in the case of modified wheat starches. The
wheat starch market also usually permits pricing consistent with
costs which affect the industry in general, including increased
grain costs. The Company's strategy is to market its premium
wheat starches in special market niches where the unique
characteristics of premium wheat starch or one of the Company's
modified wheat starches are better suited to a customers
requirements for a specific use.
Starch sales increased during fiscal 1994 by approximately
$2.7 million due primarily to higher volumes and increased sales
of modified wheat starches. The volume increases reflect added
starch production capacity installed in fiscal 1992 and 1993.
During the fourth quarter of fiscal 1994, the Company commenced
the addition of starch production facilities at the Pekin plant
in order to satisfy customers' needs from two locations and to
capitalize on the expansion of the gluten and alcohol production
facilities at that location. The new starch facility is expected
to be operational in the second half of fiscal 1995 and is
planned to increase the Company's total June 30, 1994, starch
production capacity by 70%.
Alcohol Products
The Company's Atchison and Pekin plants process corn and
milo, mixed with the starch slurry from gluten and starch
processing operations, into beverage, industrial and fuel grade
alcohol, animal feed and carbon dioxide.
Beverage Alcohol
Beverage alcohol consists primarily of grain neutral
spirits. Grain neutral spirits is alcohol made from grain that
has been further refined to remove all impurities. Grain neutral
spirits is sold in bulk or processed into vodka and gin and sold
in bulk quantities at various proof concentrations to bottlers
and rectifiers, such as Heublein, Inc. and James B. Beam
Distilling Co., which further process the alcohol for sale to
consumers under numerous labels.
The Company believes that in terms of fiscal 1994 net sales,
it is one of the two largest bulk sellers of grain neutral
spirits, vodka and gin in the United States. The Company's
principal competitors in the beverage alcohol market are Grain
Processing Company of Muscatine, Iowa and Archer Daniels Midland
of Decatur, Illinois. Competition is based primarily upon price
and service, and in the case of gin, formulation. The Company
believes that the centralized location of its Illinois and Kansas
distilleries, the capacity of its dual production facilities and
the versatility and availability of its transportation fleet and
barge facilities combine to provide the Company with a customer
service advantage that is unique within the industry.
7
Beverage alcohol sales increased by approximately $2.4
million during fiscal 1994 due primarily to an increase in price.
Industrial and Fuel Grade Alcohol
Grain alcohol which is not sold as beverage alcohol is
marketed as food grade industrial alcohol or processed into fuel
grade alcohol ("Industrial Alcohol"). Fuel grade alcohol, which
is commonly referred to as "ethanol" is added to gasoline to
increase octane ratings and as an oxygenate to reduce carbon
dioxide emissions to satisfy EPA and Clean Air Act requirements.
Food grade industrial alcohol is sold as an ingredient in foods
(e.g., vinegar and food flavorings), personal care products
(e.g., hair sprays and deodorants), cleaning solutions, biocides,
insecticides, fungicides, pharmaceuticals, and a variety of other
products. Although grain alcohol is chemically the same as
petroleum-based or synthetic alcohol, certain customers prefer a
natural grain-based alcohol. In addition, gasoline refiners and
marketers who blend grain alcohol with gasoline in qualifying
proportions are charged lower excise taxes on the blend compared
to unblended gasoline. This lower tax rate is not available for
synthetic alcohol. Food grade Industrial alcohol is sold in tank
truck or rail car quantities direct to a number of industrial
processors, such as Integrated Ingredients, a division of Burns
Philp Foods, Inc., 7-Up Company, and Lehn & Fink, a producer of
Lysol based household cleaners, from both the Atchison and Pekin
plants. The Company is a minor competitor in the total United
States market for food grade industrial and fuel grade alcohol.
The Fuel grade market is dominated by Archer Daniels Midland and
the food grade industrial market is dominated by petroleum-based
alcohol. Fuel alcohol prices traditionally follow the movement of
gasoline prices, and food grade industrial alcohol prices are
normally consistent with prices for synthetic industrial alcohol.
Effective September 1, 1994, the Environmental Protection
Agency ("EPA") adopted a final rule ("Rule") which generally
requires that reformulated gasoline ("RFG") mandated by the Clean
Air Act contain an amount of "renewable oxygenate" that, on
average, is equal to or greater than 15% of the required oxygen
content from December 1, 1994 through December 31, 1995, and 30%
for each calendar year thereafter. Under the RFG program, RFG is
required to be sold in nine of the smoggiest metropolitan areas
in the United States, which are San Diego, Los Angeles-Anaheim-
Riverside, Houston-Galveston-Brazoria, Chicago-Gary, Milwaukee-
Racine, Philadelphia-Wilminton-Trenton, New York-Northern New
Jersey-Long Island, Greater Connecticut and Baltimore, as well as
in other metropolitan areas that elect to be covered by the
program. The regulation defines a renewable oxygenate as an
oxygenate that is derived from non-fossil fuel feedstocks such as
petroleum, coal or gas or an ether that is derived from non
fossil fuel feedstocks. Although the definition of renewable
oxygenate covers a variety of renewable biomass and waste product
sources the EPA release ("Release") announcing the Rule indicates
that Ethanol and ethyl tertiary butyl ether ("ETBE") are expected
to be the primary renewable oxygenates with ethanol being the
dominant oxygenate during the winter months in the initial years
since it is the "only renewable oxygenate currently produced in
large quantities." According to the Release, ethanol's
volatility is expected to make it difficult for refiners to
satisfy the RFG requirements in the summer months (May 1 through
September 15) with a blend of gas and pure ethanol. Hence, the
Release indicates that the use of ethanol in the RFG program is
expected to be concentrated during the winter months, except to
the extent that ETBE is used as the renewable oxygenate. ETBE is
an ether derived from ethanol and isobutylene that has a lower
volatility than pure ethanol that is expected to enable its use
during the summer months to satisfy the renewable oxygenate
requirement.
On July 13, 1994, two groups representing the petroleum
industry filed suit against the EPA seeking to have the Rule set
aside on the grounds that the EPA lacked the legal authority
necessary to issue the Rule. On September 13, 1994, the U.S.
Court of Appeals for the District of Columbia Circuit issued an
order staying implementation of the Rule in order to permit the
parties and other interested parties time to brief and orally
argue the issues raised in the suit. Although the Court set an
expedited schedule that requires that final briefs be submitted
by January 12, 1995, it is uncertain as to when or if the stay
will be lifted.
If the Rule is ultimately implemented, a matter which is
presently uncertain due to the pending litigation, the Company
expects that the effect of the regulation will be to increase the
demand for the Company's fuel grade
8
alcohol. However, the Company's total ethanol production is
expected to be a relatively small part of a very competitive
ethanol market.
During fiscal 1994 sales of food grade industrial and fuel
grade alcohol remained relatively constant with the same results
for fiscal 1993 in spite of significantly increased volumes due
primarily to reduced gasoline prices.
Alcohol By-Products
The bulk of fiscal 1994 sales of alcohol by-products consist
of distillers feeds. Distillers feeds are the residue of corn,
milo and wheat from alcohol processing operations. The residue
is dried and sold primarily to processors of animal feeds as a
high protein additive. The Company competes with a number of
producers of animal food additives in the sale of distillers
feeds and mill feeds.
The balance of alcohol by-products consists primarily of
carbon dioxide. During the production of alcohol, the Company
traps carbon dioxide gas that is emitted in the fermentation
process. The gas is purchased and liquified on site by two
principal customers, one at the Atchison Plant and one at the
Pekin Plant, who own and operate the carbon dioxide processing
and storage equipment under long term contracts with the Company.
The liquified gas is resold by these processors to a variety of
industrial customers and producers of carbonated beverages.
Alcohol Products Capital Improvements
During the last half of fiscal 1993 the Company commenced
the construction of an expansion of its alcohol production
facilities at its Pekin plant. The expansion, which is planned
for completion in the second half of fiscal 1995, is expected to
double the Company's entire alcohol production capacity and more
than double the Company's capacity to produce distillers feeds as
such capacities existed at June 30, 1994.
On December 31, 1992, the Company sold the operations of
McCormick Distilling Company for an after-tax gain of
approximately $1.0 million. McCormick was primarily engaged in
the business of bottling alcohol beverages at a plant in Weston,
Missouri. The business was sold to increase the Company's
concentration on the marketing of alcohol in bulk and to generate
cash for the expansion of the Pekin Plant.
Flour and Other Mill Products
At the Atchison plant, the Company owns and operates a flour
mill which was purchased from Pillsbury in 1986. All of the
mill's output of flour is used internally for the production of
vital wheat gluten and premium wheat starch. In 1993 the Company
completed the first of a two-phase expansion of the flour milling
facilities. The second phase of the expansion is expected to be
substantially complete during the first quarter of fiscal 1995.
The entire project is expected to increase the mill's total
production by approximately 80%. All of the additional output of
the mill is expected to be used internally to satisfy existing
requirements for the production of gluten and starch and the
additional requirements of the gluten and starch facilities that
are being added to the Pekin plant.
In addition to flour, the wheat milling process also
generates mill feeds or midds and a small quantity of wheat germ.
Midds are sold to processors of animal feeds as a feed additive.
Wheat germ is sold primarily for use in vitamin E production.
Sales of flour and other mill products declined since 1990
due to the increased usage of the flour mill's output for the
production of other grain products.
9
Transportation
To provide its customers with timely delivery and service,
the Company maintains its own fleet of 32 tank and van trailers
and 12 truck-tractors. The Company leases 126 rail cars which
may be dispatched on short notice. Shipment by barge is also
offered to customers through barge loading facilities on the
Missouri and Illinois Rivers. The barge facility on the Illinois
River is adjacent to the Pekin plant and owned by the Company.
The facility on the Missouri River, which is not company-owned,
is approximately one mile from the Atchison plant. Quick
response enables customers to reduce inventory costs and still
satisfy unanticipated production requirements and is an important
marketing tool for the Company. The Company also has a contract
for backhauls under certificate No. NC 148479.
Income from trucking operations is included in Other
Operating Income shown in the Statements of Income. See in
particular Note 8 in the Notes to Consolidated Financial
Statements in the Annual Report.
Raw Materials
The Company's principal raw material is grain, consisting of
wheat which is processed into all of the Company's products and
corn and milo which are processed into alcohol, animal feed and
carbon dioxide. Grain is purchased directly from surrounding
farms, primarily at harvest time, and throughout the year from
grain elevators. Historically, the cost of grain is subject to
substantial fluctuations depending upon a number of factors which
affect commodity prices in general, including crop conditions,
weather, government programs, and purchases by foreign
governments. Although significant variations in grain prices may
temporarily affect positively or negatively the results of the
Company's operations, the Company has usually, but not always,
been able to compensate for such variations through adjustments
in prices charged for the Company's grain products.
Historically the Company has not engaged in the purchase of
commodity futures to hedge economic risks associated with
fluctuating grain and grain products prices. However, due to the
significantly increased volumes of grain and grain products that
are expected as a result of the expansion of the Company's
production facilities, the Company expects to make limited
investments in commodity futures, including wheat, corn and
gasoline futures.
Energy
Because energy comprises a major cost of operations, the
Company seeks to assure the availability of fuels for the Pekin
and Atchison plants at competitive prices.
At present a substantial portion of the natural gas demand
for the Atchison plant is transported by a wholly-owned
subsidiary which owns a gas pipeline. The subsidiary procures the
gas in the open market from various suppliers and from gas
reservoirs in an adjoining county. The Atchison boilers may also
be oil fired.
In the past, the Company's Pekin plant generated the bulk of
its energy needs from coal and gas fired boilers. However, due to
the expansion of the Pekin plant, the Company has entered into a
long-term arrangement with an Illinois utility to satisfy the
energy needs of the entire plant with a new gas fired plant.
Under the arrangement, the utility will construct on Pekin plant
ground leased from the Company a gas powered electric and steam
generating facility and sell to the Company steam and
electricity, generally at fixed rates, using gas procured by the
Company. At such time as the new power plant becomes operational,
Pekin's existing plant will be kept as an emergency standby.
Employees
As of June 30, 1994, the Company had 460 employees, 317 of
whom are covered by three collective bargaining agreements with
two labor unions. The collective bargaining agreements expire on
various dates from June 30, 1995, through August 30, 1996. In
September 1993, the Company successfully renegotiated a major
labor
10
agreement covering 199 employees at the Atchison Plant. The
Company considers its relations with its personnel to be good and
has not experienced a work stoppage since 1978.
Regulation
The Company's beverage and industrial alcohol business is
subject to regulation by the Bureau of Alcohol, Tobacco and
Firearms ("BATF") and the alcoholic beverage agencies in the
States of Kansas and Illinois. Such regulation covers virtually
every aspect of the Company's alcohol operations, including
production facilities, marketing, pricing, labeling, packaging,
and advertising. Food products are also subject to regulation by
the Food and Drug Administration. BATF regulation includes
periodic BATF audits of all production reports, shipping
documents, and licenses to assure that proper records are
maintained. The Company is also required to file and maintain
monthly reports with the BATF of alcohol inventories and
shipments.
Item 2. Properties.
The Company maintains the following principal plants,
warehouses and office facilities:
Plant Tract
Area Area
(in sq. (in
Location Purpose ft.) acres)
-------- ------- ------- -------
Atchison, Kansas Principal Executive
offices, grain processing,
warehousing, and research
and quality control
laboratories. 494,640 25
Pekin, Illinois Grain processing,
warehousing, and quality
control laboratories 452,395 49
Except as otherwise reflected under Item 1. the facilities
mentioned above are generally in good operating condition, are
currently in normal operation are generally suitable and adequate
for the business activity conducted therein, and have productive
capacities sufficient to maintain prior levels of production.
Except as otherwise reflected under Item 1, all of the plants,
warehouses and office facilities are owned. None are subject to
any major encumbrance. The Company also owns transportation
equipment and a gas pipeline described under Transportation and
Energy.
Item 3. Legal Proceedings.
There are no material legal proceedings pending as of June
30, 1994. Legal proceedings which are pending consist of matters
normally incident to the business conducted by the Company and
taken together do not appear material.
Item 4. Submissions of Matters to a Vote of Security Holders.
No matters have been submitted to a vote of stockholders
since the last annual meeting of stockholders on October 8, 1993.
11
PART II
Item 5. Market for Registrants Common Equity and Related
Stockholders Matters.
The Common Stock of the Company has been traded on the
NASDAQ National Market System under the symbol MWGP since
November 1988. The Company has paid regular cash dividends on
its Common Stock in each year since its inception in 1957.
The following table reflects the cash dividends paid and the
high and low closing prices of the Common Stock for each quarter
of fiscal 1994 and 1993:
Sales Prices
Quarterly Cash ------------------------
Dividends High Low
-------------- -------- -------
1993:
First Quarter...........$ .125 $ 25.25 $ 21.50
Second Quarter.......... .125 25.25 21.25
Third Quarter........... .125 30.50 22.50
Fourth Quarter.......... .125 29.75 24.75
------
$ .50
======
1994:
First Quarter...........$ .125 $ 27.00 $ 22.25
Second Quarter........... .125 29.75 22.75
Third Quarter............ .125 32.75 26.25
Fourth Quarter........... .125 36.00 29.25
-------
$ .50
=======
At June 30, 1994, there were approximately 1,000 holders of
record of the Company's Common Stock. It is believed that the
Common Stock is held by more than 2,000 beneficial owners.
Item 6. Selected Financial Data.
Incorporated by reference to the information under Selected
Financial Information on page 17 of the Annual Report, a copy of
which page is included in Exhibit 10(c) to this Report.
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Incorporated by reference to the information under
Managements Discussion and Analysis of Financial Condition and
Results of Operations on pages 18 through 24 of the Annual
Report, copies of which pages are included in Exhibit 10(c) to
this Report.
Item 8. Financial Statements and Supplementary Data.
Incorporated by reference to the consolidated financial
statements and related notes on pages 25 through 36 of the Annual
Report, copies of which pages are included in Exhibit 10(c) to
this Report.
12
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
Not applicable.
PART III
Item 10. Directors and Executive Officers of the Registrant.
The directors and executive officers of the Company are as
follows:
Name Age Position
- - ---- --- --------
Cloud L. Cray, Jr. 71 Chairman of the Board and
Director
Laidacker M. Seaberg 48 President, Chief Executive
Officer and Director
Sukh Bassi, Ph.D. 53 Vice President - Vital
Wheat Gluten Marketing,
Research and Development
and Corporate Technical
Director
Robert G. Booe 57 Vice President -
Administration,
Controller, Treasurer and
Chief Financial Officer
Norma C. Ewbank 60 Secretary
Tom V. Herriage, Jr. 49 Vice President - Beverage
Alcohol Sales
Howard W. Hinton 48 Vice President -
Distillery Marketing
Gerald Lasater 56 Vice President - Wheat
Starch Marketing
Raymond Miller 60 Vice President -
Purchasing and Energy and
President of Midwest Grain
Pipeline, Inc.
Anthony J. Petricola 58 Vice President -
Engineering
Randy M. Schrick 44 Vice President -
Operations and Director
Kenneth Smith 57 Vice President -
Transportation
Michael Braude 58 Director
Richard J. Bruggen 68 Director
Tom MacLeod, Jr. 46 Director
Robert J. Reintjes 62 Director
Eleanor B. Schwartz, D.B.A. 57 Director
13
Mr. Cray, Jr. has been a Director since 1957, and has served
as Chairman of the Board since 1980. He served as Chief
Executive Officer from 1980 to September, 1988, and has been an
officer of the Company and its affiliates for more than thirty
years.
Mr. Seaberg, a Director since 1979, joined the Company in
1969 and has served as the President of the Company since 1980
and as Chief Executive Officer since September, 1988. He is the
son-in-law of Mr. Cray, Jr.
Dr. Bassi has served as Vice President of Research and
Development since 1985, Technical Director since 1989 and Vice
President - Vital Wheat Gluten Marketing since 1992. From 1981
to 1992 he was Manager of the Vital Wheat Gluten Strategic
Business Unit. He was previously a professor of biology at
Benedictine College for ten years.
Mr. Booe has served as Vice President, Treasurer and Chief
Financial Officer of the Company since 1988. He joined the
Company in 1966 as its Treasurer and became the Controller and
Treasurer in 1980. In 1992 he was assigned the additional task
of Vice President - Administration.
Mrs. Ewbank has served as corporate secretary since 1987.
She joined the Company in 1981.
Mr. Herriage, Jr. joined the Company in 1980. He has served
as Vice President in charge of beverage alcohol sales since 1986,
and was responsible for the Whiskey Strategic Business Unit from
1986 to 1989. Prior to that time he was responsible for
personnel and public relations.
Mr. Hinton joined the Company in 1976. He has served as
Vice President - Distillery Marketing since 1992. Between 1982
and 1992 he served as Vice President in charge of the Distilling
Strategic Business Unit.
Mr. Lasater joined the Company in 1962. He has served as
Vice President - Starch Marketing since 1992. Previously he
served as Vice President in charge of the Wheat Starch Strategic
Business Unit.
Mr. Miller joined the Company in 1956. He has served as
Vice President - Purchasing and Energy since 1992, President of
Midwest Grain Pipeline, Inc. since 1987, and as Vice President of
the Company since 1967.
Mr. Petricola joined the Company in 1985. He has served as
Vice President - Engineering since 1992. Previously he served as
Corporate Director of Engineering.
Mr. Schrick, a Director since 1987, joined the Company in
1973. He has served as Vice President - Operations since 1992.
From 1984 to 1992 he served as Vice President and General Manager
of the Pekin plant. From 1982 to 1984 he was the Plant Manager of
the Pekin Plant. Prior to 1982, he was Production Manager at the
Atchison plant.
Mr. Smith has served as Vice President - Transportation
since 1987. Prior to that time he was manager of truck services.
Mr. Bruggen has been a Director since 1976 and is a member
of the Audit and Nominating Committees. He was Senior Vice
President of Atchison Casting Corporation from 1991 until his
retirement in 1992. Previously he was the General Manager of
Rockwell International Plants at Atchison, Kansas and St. Joseph,
Missouri.
Mr. Braude has been a Director since 1991 and is a member of
the Audit and Human Resources Committees. He has been the
President and Chief Executive Officer of the Kansas City Board of
Trade, a commodity futures exchange , since 1984. Previously he
was Executive Vice President of American Bank & Trust Company of
Kansas City.
14
Mr. MacLeod, Jr. has been a Director since 1986 and is a
member of the Audit and Human Resources Committees. He has been
the President and Chief Operating Officer of Iams Company, a
manufacturer of premium pet foods, since 1989. Previously, he
was President and Chief Executive Officer of Kitchens of Sara
Lee, a division of Sara Lee Corporation, a food products company.
Mr. Reintjes has been a Director since 1986, and is a member
of the Audit and Nominating Resources Committees. He has served
as President of Geo. P. Reintjes Co., Inc., of Kansas City,
Missouri, for the past 23 years. The Geo. P. Reintjes Co., Inc.
is engaged in the business of refractory construction.
Dr. Schwartz has been a director since June 3, 1993. She is
also a member of the Audit and Human Resources Committees. She
has been the Chancellor of the University of Missouri-Kansas City
since May 1992, and was previously the Vice Chancellor for
Academic Affairs.
The Board of Directors is divided into two groups (Groups A
and B) and three classes. Group A directors are elected by the
holders of Common Stock and Group B directors are elected by the
holders of Preferred Stock. One class of directors is elected at
each annual meeting of stockholders for three-year terms. The
present directors' terms of office expire as follows:
Group A Term Group B Term
Directors Expires Directors Expires
--------- ------- --------- -------
Mr. Bruggen 1994 Mr. Cray, Jr. 1995
Mr. MacLeod 1995 Mr. Reintjes 1995
Dr. Schwartz 1996 Mr. Braude 1994
Mr. Schrick 1996
Mr. Seaberg 1996
Item 11. Executive Compensation.
Incorporated by reference to the information under
"Executive Compensation" on pages 5 through 9 of the Proxy
Statement.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
Incorporated by reference to the information under
"Principal Stockholders" beginning on page 9 of the Proxy
Statement.
Item 13. Certain Relationships and Related Transactions.
None.
15
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on
Form 8-K.
The following documents are filed as part of this report:
(a) Financial Statements:
Auditors Report on Financial Statements.
Consolidated Balance Sheets at June 30, 1994 and 1993.
Consolidated Statements of Income - for the Three Years
Ended June 30, 1994, 1993 and 1992.
Consolidated Statements of Stockholders Equity for the
Three Years Ended June 30, 1994, 1993 and 1992.
Consolidated Statements of Cash Flow - for the Three
Years Ended June 30, 1994, 1993 and 1992.
Notes to Consolidated Financial Statements.
The foregoing have been incorporated by reference to
the Annual Report as indicated under Item 8.
(b) Financial Statement Schedules:
Auditors Report on Financial Statement Schedules:
I. Marketable Securities - Other Investments
V - Property, Plant and Equipment
VI - Accumulated Depreciation, Depletion and
Amortization of Property, Plant and Equipment
VIII - Valuation and Qualifying Accounts
IX - Short Term Borrowings
X - Supplementary Income Statement Information
All other schedules are omitted because they are not
applicable or the information is contained in the
Consolidated Financial Statements or notes thereto.
(c) Exhibits:
Exhibit No. Description
----------- -----------
3(a) Articles of Incorporation of the Company
(Incorporated by reference to Exhibit 3(a) of the
Company's Registration Statement No. 33-24398 on
Form S-1).
3(b) Bylaws of the Company (Incorporated by reference to
Exhibit 3(b) of the Company's Registration
Statement No. 33-24398 on Form S-1).
4(a) Copy of Note Agreement dated as of August 1, 1993,
providing for the issuance and sale of $25 million
of 6.68% term notes ("Term Notes", incorporated by
reference to Exhibit 4.1 to the Company's Report on
Form 10-Q for the quarter ended September 30,
1993).
4(b) Copy of Term Notes dated August 27, 1993
(incorporated by reference to Exhibit 4.2 to the
Company's Report on Form 10-Q for the quarter ended
September 30, 1993).
9(a) Copy of Cray Family Trust (Incorporated by
reference to Exhibit 9(a) of the Company's
Registration Statement No. 33-22600 on Form S-4).
16
10(a) Summary of informal cash bonus plan (incorporated
by reference to the summary contained in the
Company's Proxy Statement dated September 12, 1994,
which is incorporated by reference into Part III of
this Form 10-K).
10(b) Executive Stock Bonus Plan as amended June 15, 1992
(incorporated by reference to Exhibit 10(b) to the
Company's Form 10-K for the year ended June 30,
1992).
10(c) Information contained in the Midwest Grain
Products, Inc. 1994 Annual Report to Stockholders
that is incorporated herein by reference.
22 Subsidiaries of the Company other than
insignificant subsidiaries:
State of
Incorporation
Subsidiary or Organization
---------- ---------------
Midwest Solvents Company of Illinois, Inc. Illinois
Midwest Grain Pipeline, Inc. Kansas
Midwest Grain Products of Illinois, Inc. Illinois
Midwest Purchasing Company, Inc. Illinois
25 Powers of Attorney executed by all officers and
directors of the Company who have signed this
report on Form 10-K (incorporated by reference to
the signature pages of this report).
27 Midwest Grain Products Financial Data Schedule as
at June 30, 1994 and for the year then ended.
No reports on Form 8-K have been filed during the quarter
ended June 30, 1994.
17
SIGNATURES
Pursuant to requirements of Section 13 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, in the city of Atchison, State of Kansas, on this
19th day of September, 1994.
MIDWEST GRAIN PRODUCTS, INC.
By /s/ Laidacker M. Seaberg
------------------------
Laidacker M. Seaberg, President
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose
signature appears below constitutes and appoints Cloud L. Cray,
Jr., Laidacker M. Seaberg and Robert G. Booe and each of them,
his true and lawful attorneys-in-fact and agents, with full power
of substitution and re-substitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all
reports of the Registrant on Form 10-K and to sign any and all
amendments to such reports and to file the same with all exhibits
thereto, and other documents in connection therewith, with the
Securities & Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and
authority to do and perform each and every act and thing
requisite or necessary to be done in and about the premises, as
fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their or his
substitute or substitutes, may lawfully do or cause to be done by
virtue hereof.
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant in the capacities indicated
on the dates indicated.
Name Title Date
/s/ Laidacker M. Seaberg President (Principal
--------------------- Executive Officer)
Laidacker M. Seaberg and Director September 19, 1994
/s/ Robert G. Booe Vice President,
-------------------- Treasurer and
Robert G. Booe Controller (Principal
Financial and
Accounting
Officer) September 19, 1994
/s/ Michael Braude
--------------------
Michael Braude Director September 19, 1994
/s/ Richard J. Bruggen
--------------------
Richard J. Bruggen Director September 19, 1994
/s/ Cloud L. Cray, Jr.
--------------------
Cloud L. Cray, Jr. Director September 19, 1994
/s/ Eleanor B. Schwartz
--------------------
Eleanor B. Schwartz Director September 19, 1994
/s/ Tom MacLeod, Jr.
--------------------
Tom MacLeod, Jr. Director September 19, 1994
/s/ Robert J. Reintjes
--------------------
Robert J. Reintjes Director September 19, 1994
/s/ Randy M. Schrick
--------------------
Randy M. Schrick Director September 19, 1994
18
MIDWEST GRAIN PRODUCTS, INC.
Consolidated Financial Statement Schedules
(Form 10-K)
June 30, 1994, 1993 and 1992
(With Auditors' Report Thereon)
S-1
Report of Independent Accountants
On Financial Statement Schedules
Board of Directors and Stockholders
Midwest Grain Products, Inc.
Atchison, Kansas
In connection with our audit of the financial statements of
MIDWEST GRAIN PRODUCTS, INC. for each of the three years in the
period ended June 30, 1994, we have also audited the following
financial statement schedules. These financial statement
schedules are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial
statement schedules based on our audits of the basic financial
statements. The schedules are presented for purposes of
complying with the Securities and Exchange Commission's rules and
regulations and are not a required part of the consolidated
financial statements.
In our opinion, the financial statement schedules referred
to above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information required to be included therein.
/s/ Baird, Kurtz & Dobson
BAIRD, KURTZ & DOBSON
Kansas City, Missouri
August 11, 1994
S-2
MIDWEST GRAIN PRODUCTS, INC.
I. MARKETABLE SECURITIES - OTHER INVESTMENTS
(In Thousands)
Market
Value at Balance
Name of Issuer and Number of Balance at end of
Title of Each Issue Shares Cost Sheet Date Period
------------------- --------- ---- ---------- ---------
YEAR ENDED JUNE 30, 1994
Tax-Free Obligations
Fund (an investment
portfolio of Money
Market Obligations
Trust) 14,504 $14,504 $14,504 $14,504
======= ======= ======= =======
S-3
MIDWEST GRAIN PRODUCTS, INC.
V. PROPERTY, PLANT AND EQUIPMENT
Balance Transfers
at of Balance
Beginning Additions Retire- Completed at End
of Year at Cost ments Projects of Year
_________ __________ _______ _________ _________
(In Thousands)
YEAR ENDED JUNE 30, 1994
Land, buildings and improvements $ 18,262 $ 2,290 $3,662 $ 16,890
Transportation equipment 3,354 5,212 1,327 7,239
Machinery, equipment, etc. 102,263 6,739 3,198 105,804
Construction in progress 11,882 49,660 $ 9,028 52,513
________ _______ ______ _______ ________
$135,761 $63,901 $8,187 $ 9,028 $182,446
======== ======= ====== ====== ========
YEAR ENDED JUNE 30, 1993
Land, buildings and improvements $ 19,584 $ 437 $1,759 $ 18,262
Transportation equipment 3,732 89 467 3,354
Machinery, equipment, etc. 97,287 8,851 3,875 102,263
Construction in progress 6,708 14,542 $ 9,368 11,882
________ ________ ______ ______ ________
$127,311 $ 23,919 $6,101 $ 9,368 $135,761
======== ======== ====== ======= ========
YEAR ENDED JUNE 30, 1992
Land, buildings and improvements $ 19,352 $ 1,122 $ 890 $ 19,584
Transportation equipment 3,541 278 87 3,732
Machinery, equipment, etc. 89,788 9,698 2,199 97,287
Construction in progress 3,275 13,608 $10,175 6,708
________ ________ ______ _______ ________
$115,956 $24,706 $3,176 $10,175 $127,311
======== ======= ====== ======= ========
S-4
VI. ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
Balance Additions
at Charged Balance
Beginning to at End
of Year Expenses Retirements of Year
__________ __________ ___________ _______________
(In Thousands)
YEAR ENDED JUNE 30, 1994
Land, buildings and improvements $ 6,239 $ 966 $ 481 $ 6,724
Transportation equipment 2,631 289 1,249 1,671
Machinery, equipment, etc. 56,796 5,905 1,208 61,493
________ _______ ______ ________
$ 65,666 $ 7,160 $ 2,983 $ 69,888
======== ======= ====== ========
YEAR ENDED JUNE 30, 1993
Land, buildings and improvements $ 4,715 $ 2,324 $ 800 $ 6,239
Transportation equipment 2,610 360 339 2,631
Machinery, equipment, etc. 55,373 3,517 2,094 56,796
________ ________ _______ ________
$ 62,698 $ 6,201 $ 3,233 $ 65,666
======== ======== ======= ========
YEAR ENDED JUNE 30, 1992
Land, buildings and improvements $ 4,900 $ 672 $ 857 $ 4,715
Transportation equipment 2,238 438 66 2,610
Machinery, equipment, etc. 51,297 6,126 2,050 55,373
________ ________ _______ ________
$ 58,435 $ 7,236 $ 2,973 $ 62,698
======== ======= ======= ========
S-5
MIDWEST GRAIN PRODUCTS, INC.
VII. VALUATION AND QUALIFYING ACCOUNTS
Additions
__________________________
Balance, Charged to Charged Balance,
Beginning Costs and to Other Deductions End of
of Period Expenses Accounts Write-Offs Period
_________ ___________ ___________ ___________ ___________
(In Thousands)
YEAR ENDED JUNE 30, 1994
Allowance for doubtful accounts $ 25 $ 59 $ 59 $ 25
===== ==== ==== ====
YEAR ENDED JUNE 30, 1993
Allowance for doubtful accounts $ 200 $375 $550 $ 25
===== ==== ==== ====
YEAR ENDED JUNE 30, 1992
Allowance for doubtful accounts $175 $197 $197 $175
==== ==== ==== ====
S-6
MIDWEST GRAIN PRODUCTS, INC.
IX. SHORT-TERM BORROWINGS
(In Thousands)
Amount
Weighted Outstanding Weighted
Balance at Average During Period Average
Category of Aggregate End of Interest --------------- Interest Rate
Short-Term Borrowings Period Rate Maximum Average During Period
---------- -------- ------- ------- -------------
Notes payable - Banks, unsecured $-0- N/A $-0- $-0- .00%
June 30, 1994 -0- N/A -0- -0- .00
June 30, 1993 -0- N/A -0- -0- .00
June 30, 1992 -0- N/A -0- -0- .00
S-7
MIDWEST GRAIN PRODUCTS, INC.
X. SUPPLEMENTARY INCOME STATEMENT INFORMATION
YEARS ENDED JUNE 30, 1994, 1993 AND 1992
1994 1993 1992
---- ---- ----
(In Thousands)
Excise taxes $ 0 $26,133 $52,542
Other taxes 940 1,935 813
Maintenance
and repairs 9,191 9,900 8,667
S-8