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):
April 14, 2020
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 270.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 270.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 270.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common stock | GLGI | OTCQB |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On April 14, 2020, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for Greystone Logistics, Inc. for the nine months and three months ended February 29, 2020. A copy of the press release dated April 14, 2020 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 April 14, 2020. 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 April 14, 2020. |
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. | ||
| April 14, 2020 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated April 14, 2020. |
Exhibit 99.1
GREYSTONE
LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE
QUARTER AND NINE MONTHS ENDED FEBRUARY 29, 2020
GREYSTONE LOGISTICS, INC.
Tulsa, OK—4/14/20—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports record quarterly sales and earnings for the third quarter of fiscal year 2020.
For the quarter ended February 29, 2020, Greystone recorded net income available to common stockholders $.06 per share compared to $0.00 per share in the prior period. Net income available to common stockholders for the nine months ended February 29(28), 2020 and 2019 was $0.09 per share and $0.03 per share, respectively.
Greystone’s net income was $1,964,942 and $231,430 for the quarters ended February 29, 2020 and February 28, 2019, respectively. Net income was $3,056,926 for the nine months ended February 29, 2020 compared to $1,293,283 in the same period last year. For the nine months ended February 29, 2020, Greystone’s EBITDA, earnings before interest, taxes and depreciation and amortization, was $9,109,657 compared to $6,417,907 for the comparable prior year.
Sales for the nine months ended February 29, 2020 were $57,906,777 compared to $50,163,707 for the prior period for an increase of $7,743,070, or 15%. Sales for the three months ended February 29, 2020 were $19,738,806 compared to $17,224,467 for the comparable period of the prior year for an increase of $2,514,339, or 15%. Greystone’s sales to major customers in the nine months ended February 29, 2020 were 87% of sales compared to 85% in the same period last year.
“Greystone had a tremendous third quarter of the current year recording earnings of $0.06 per share of common stock compared to $0.00 in the prior period”, stated CEO Warren Kruger. Kruger continued, “Earnings per share of common stock for the nine months ended February 29, 2020 were $0.09 compared to $0.03 in the prior period. The Company had financing lease and bank debt principal reduction for the nine-month period ended February 29, 2020, of $4,038,357. Sales price increases on certain pallet lines along with improvements in production costs were attributable to the increased earnings in the current quarter. We will be adding one new machine to replace an older machine during the fourth quarter which will increase our pallet production. We are striving to maintain our momentum during the fourth quarter but are uncertain as to the economic impact evolving from the COVID-19 virus. We anticipate some decrease in our production rates because of the impact to our workforce from some employees electing to stay home and declines in recruitment. We believe that the Company will have a solid quarter for sales and earnings despite the hardships created by the COVID-19.”
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 of8 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 Nine Months Ended February 29(28), 2020 and 2019
| 2020 | 2019 | |||||||
| Net Income | $ | 3,056,926 | $ | 1,293,283 | ||||
| Income Taxes | 807,000 | 520,400 | ||||||
| Depreciation and Amortization | 3,911,904 | 3,255,939 | ||||||
| Interest Expense | 1,333,827 | 1,348,285 | ||||||
| EBITDA (A) | $ | 9,109,657 | $ | 6,417,907 | ||||
| (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