Greystone Logistics, Inc. Reports First Quarter Results of
Operations
TULSA, OK-(Marketwired - Jan 24, 2017) - Tulsa-based Greystone
Logistics, Inc. (OTCQB: GLGI) reported sales for the three months
ended November 30, 2016 totaled $9,221,711 compared to $4,420,210
for the prior period for an increase of $4,801,501, or 108%. Sales
for the six months ended November 30, 2016 of $17,065,972 compared
to $9,990,191 for the prior period for an increase of $7,075,781,
or 71%.
Net income before preferred dividends for the three months and
six months ended November 30, 2016, were $258,826 and $212,434,
and, respectively, compared to $115,151 and $165,547, respectively,
for the prior periods. Greystone recorded a net income for the
three months ended November 30, 2016, available to common
shareholders after preferred dividends of $41,109 compared to a net
loss available to common shareholders of $(22,420) for the prior
period. Greystone recorded a net loss available to common
stockholders after preferred dividends of $(76,330), compared to
$(113,735) for the six months ended November 30, 2016.
Greystone's EBITDA (net income before stock compensation costs,
interest expense, income taxes, depreciation and amortization) for
the six months ended November 30, 2016 was $2,004,389 compared to
$1,294,750 for the prior period.
"The addition of the previously announced pallet leasing
customer continues to have a significant impact on Greystone's
sales and operations," stated Warren Kruger, President and CEO.
"The second quarter of our fiscal year 2017 began to show a
turnaround in earnings and this trend is expected to continue
throughout the remaining part of this year. Unfortunately, our two
newest machines were not operating at full capacity and our two
oldest injection machines were down awaiting parts during this
quarter. These unexpected delays affected our efficiency and margin
goals for the quarter. To meet the increasing demand for our
pallets, we have ordered a Milacron injection-molding machine to
add to the three similar machines acquired during the past year. We
anticipate this machine will become operational during the latter
part of this year. Improving the returns for our shareholders is a
continuing major goal for Greystone as we review operations for
improvements in operating efficiencies and cost containment to
achieve better margins."
Greystone Logistics is a "Green" manufacturing and leasing
company that reprocesses and sells recycled plastic and designs,
manufactures, sells high quality 100% recycled plastic pallets that
provide logistical solutions needed by a wide range of industries
such as the food and beverage, automotive, chemical, pharmaceutical
and consumer products. The Company's technology, including that
used in its injection molding equipment, proprietary blend of
recycled plastic resins and patented pallet designs, allows
production of high quality pallets quickly and at lower costs than
many processes. The recycled plastic for its pallets helps control
material costs while reducing environmental waste and provides cost
advantages over users of virgin resin. Excess plastic not used in
production of pallets may be reprocessed for resale.
This press release includes certain statements that may be
deemed "forward-looking statements" within the meaning of the
federal securities laws. All statements, other than statements of
historical facts that address activities, events or developments
that the Company expects, believes or anticipates will or may occur
in the future, including the potential sales of pallets or other
possible business developments are forward-looking statements. Such
statements are subject to a number of assumptions, risks and
uncertainties, including the ability of the Company to continue as
a going concern. Actual results may vary materially from the
forward-looking statements. For a list of certain material risks
relating to the Company and its products, see Greystone Logistics'
Form 10-K for the fiscal year ended May 31, 2016.
This release contains disclosure of EBITDA, which is a non-GAAP
financial measure within the meaning of Regulation G promulgated by
the Securities and Exchange Commission. A reconciliation of EBITDA
to net income, the most directly comparable GAAP financial measure,
as well as additional information concerning EBITDA, are included
at the end of this release.
Greystone Logistics, Inc.
Supplemental Statistical Information
Six Months Ended November 30,
2016 2015
-------- --------
Supplemental Statistical Information:
Net Income $ 212,434 $ 165,547
Adjustments to Net Income to calculate
EBITDA -
Stock Compensation Costs - 26,712
Interest Expense 542,800 387,376
Provision for Income Taxes 54,550 28,650
Depreciation and Amortization 1,194,602 686,465
-------- --------
EBITDA (A) $ 2,004,386 $ 1,294,750
(A) Greystone's EBITDA represents net income before stock
compensation
costs, interest expense, provision for income taxes and
depreciation and
amortization. The Company has included stock compensation costs
as it is a
non-cash transaction. The EBITDA presented above while
considered the most
common definition used by investors and financial analysts, may
not be
comparable to similarly titled measures reported by other
companies. The
Company believes that EBITDA, while providing useful
information, should not
be considered in isolation or as an alternative to other
financial measures
determined under GAAP.
Contact: Warren F. Kruger President/CEO Corporate Office 1613
East 15th Street Tulsa, Oklahoma 74120 (918) 583-7441 (918)
583-7442 (FAX) http://www.greystonelogistics.com
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