UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant To Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
November 5, 2019
Greystone Logistics, Inc.
(Exact name of registrant as specified in its charter)
| Oklahoma | 000-26331 | 75-2954680 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 1613 E. 15th, Tulsa, Oklahoma | 74120 | |
| (Address of principal executive offices) | (Zip Code) |
(918) 583-7441
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2019, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for Greystone Logistics, Inc. for the three months ended August 31, 2019. A copy of the press release dated November 5, 2019 is attached hereto as Exhibit 99.1.
The information being furnished hereunder discloses EBITDA, a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company believes that EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company’s results from operations before interest, income taxes, depreciation and amortization. EBITDA is utilized for internal analysis of the Company. EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation or as an alternative to other financial measures determined under GAAP. However, EBITDA is commonly used by investors, financial analysts and rating agencies as an alternative measure of evaluating, comparing and rating operating performance. EBITDA presented by the Company may not be comparable to similarly titled measures reported by other companies.
The information in this Form 8-K, including exhibits, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01. Regulation FD Disclosure.
As noted above in Item 2.02 of this Current Report on Form 8-K, the registrant issued a press release on November 5, 2019. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is being furnished pursuant to Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press Release dated November 5, 2019.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GREYSTONE LOGISTICS, INC. | ||
| November 5, 2019 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.1 | Press Release dated November 5, 2019. |
Exhibit 99.1
GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE QUARTER ENDED AUGUST 31, 2019
GREYSTONE LOGISTICS, INC.
Tulsa, OK—11/5/2019—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports record quarterly sales for the first quarter of fiscal year 2020.
Sales for the three months ended August 31, 2019 were $18,664,509 compared to $18,206,110 for the three months ended August 31, 2018 for an increase of $458,399. Greystone’s sales to major customers in the quarter ended August 31, 2019 were 87% of sales compared to 84% in the same period last year. Greystone’s net income was $619,299 in the three months ended August 31, 2019 compared to $764,908 in the same period last year. Greystone recorded net income available to common stockholders for the current quarter of $442,250, or $.02 per share, compared to $601,388, or $0.02 per share, in the same period last year. EBITDA for current quarter of fiscal year 2020 was $2,589,178 compared to $2,562,139.
“Sales during the first quarter of fiscal year 2020 were slightly ahead of the prior year pace”, stated CEO Warren Kruger. Kruger continued, “Sales to the pallet pooling company increased 43% over the prior period while one of our major customers rescheduled pallet shipments originally intended for the first quarter of the current year under an existing purchase order until later in the year. We anticipate record sales again for the year.
“Our quest to improve profit margins showed progress during this first quarter of the current year. We are focusing on margin management in four areas - 1) More throughput on existing machines; 2) Lower raw material costs by processing more material inhouse as opposed to outsourcing; 3) More efficiency for our great employees with automation; 4) Less machine downtime.”
A software program that controls the injection flow of plastic resin into molds and can control pressure changes in nano-seconds was installed on two machines and has resulted in substantial increases in pallet production. The software and related hardware have been ordered for installation on the other machines. Reductions in machine downtime have also shown improvement although during the quarter we had to retire one of the older pieces of equipment. This machine will be replaced in the first few months of calendar year 2020 with a large tonnage equipment line. Robot installation remains behind schedule and we are pushing hard for completion as we continue to push for more automation in our operation.”
Greystone Logistics is a “Green” manufacturing company that reprocesses 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 more rapidly 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.
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, 2019.
Non-GAAP Financial Measure
This press 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 net income to EBITDA, the most comparable GAAP financial measure, as well as additional information concerning EBITDA, are included at the end of this release.
Greystone Logistics, Inc.
Reconciliation of Consolidated Net Income to EBITDA
For the Three Months Ended August 31, 2019 and 2018
| 2019 | 2018 | |||||||
| Net Income | $ | 619,299 | $ | 764,908 | ||||
| Income Taxes | 185,000 | 331,600 | ||||||
| Depreciation and Amortization | 1,303,968 | 1,053,003 | ||||||
| Interest Expense | 480,911 | 412,628 | ||||||
| EBITDA (A) | $ | 2,589,178 | $ | 2,562,139 | ||||
| (A) | EBITDA represents income before income taxes plus interest, depreciation and amortization. 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. Greystone 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