Greystone Logistics, Inc. (OTCQB:GLGI)

Greystone Logistic (OOTC:GLGI) ($1.00; $30.1M market cap) reported Q2 2024 results:

• Sales of $15.6 million vs $12.1 million in the prior year
• EPS of $0.03 vs a loss of $0.01 in the prior year

“The company experienced yet another great quarter, marked by impressive financial performance and significant milestones,” stated CEO, Warren Kruger. Greystone Logistics has expanded its sales team by adding two in-house salesmen. This strategic move enables the company to enhance its sales efforts, provide personalized service, and cater to the evolving needs of its customers. While Greystone Logistics has traditionally relied on stocking and nonstock distributors to support its sales, the addition of in-house salesmen reflects the company's commitment to delivering exceptional customer service and building strong relationships. Greystone Logistics is also pleased to announce the order for a new tool for an existing customer that is under a three-year contract further strengthening Greystone's relationship with its valued customers and underscoring its dedication to adapt and provide innovative cutting-edge solutions.”

Greystone Logistic (OOTC:GLGI) ($0.78; $22.0M market cap) a manufacturer of recycled plastics reported Q3 2023 results, only via an SEC filing:

• Sales of $13.5 million vs $22.4 million in the prior year
• GAAP EPS of $0.01 vs $0.02 in the prior year

“Greystone continues to show improvements in its operations, stated CEO Warren Kruger. Gross profit margins demonstrate significant improvements. The company’s top line was partially impacted by a large customer providing their own raw materials and other customers delaying deliveries. We are anticipating a robust fourth quarter continuing to the next fiscal year. We believe the company is well positioned for growth as demonstrated by equity equal to approximately 40% of total assets as of February 28, 2023.”

CEO Warren Kruger recently appeared on a Planet MicroCap interview with Bobby Kraft. In the video he stated that they expect to report $65 to $70 million for the current fiscal year implying Q4 sales to be in a range of $20 to $25 million vs $21.1 million in Q4 2022. 

Greystone Logistic (OOTC:GLGI) ($0.85; $24.2M market cap), a manufacturer of recycled plastic, announced a major contract win. The company announced it has begun shipping pallets for a recent $13.5 million purchase order. 

Greystone is pleased to have the opportunity to continue to provide this highly respected worldwide corporation our recycled pallets” said Warren Kruger CEO of Greystone. “The retailer’s focus on recycled pallets demonstrates a commitment to environmental, social and governance standards. Companies are looking at sustainable solutions that provide for efficiencies in storage, safety, cleanliness, and longevity of product. The cost benefit of buying 100% recycled plastic pallets versus buying wood pallets is being recognized by businesses across the world. The value proposition with recycled plastic pallets is tangible and helps the circular economy as even broken recycled pallets can be ground and used again.”

The contract value is near a full quarter's worth of revenues. However, GLGI does not disclose the expected duration or time to completion. Furthermore, it should be noted that last year a major customer reduced it’s orders, which led to a decrease in quarterly sales during the last few quarters. However, according to SEC filings, it is possible that this customer resumed its orders with GLGI. 

As it seems the market’s focus is finally shifting towards value stocks, GLGI’s P/E of only ~12 is enough reason for us to  schedule a follow up interview with management.  We have not spoken with them in several years.

Greystone Logistic (OOTC:GLGI) a manufacturer of recycled plastics reported Q1 2022 results:

• Sales of $14.7 million vs $17.5 million in the prior year

• Non-GAAP EPS $0.00 vs $0.03 in the prior year

“Greystone is working with its customers to effect price increases, where possible, to mitigate the impact of material and labor price increases as discussed below under Cost of Sales. Based on new orders and relationships, Greystone believes that the demand for its pallets is increasing which is primarily expected to have a positive impact on operations during the last half of the current fiscal year as well as future years.”

Greystone Logistic (OOTC:GLGI) ($1.02; $28.9M market cap), a manufacturer of recycled plastics, announced Q4 2020 results:

• Sales of $18.3 million vs $20.9 million in the prior year
• Adjusted EPS of $0.04 vs $0.02 in the prior year
• Significantly reduces debt
• Decrease in revenue for the quarter was not due to demand issues, but due to labor issues

We still believe in the long term growth opportunities for the company. Currently we feel shares are worth between $1.50 and $2.25 in the near term based on trailing EPS. 

Greystone Logistic (OOTC:GLGI) ($0.57; $16.1M market cap), a manufacturer of recycled plastics, announced Q3 2018 results:

• Sales of $18.2 million vs $10.2 million
• EPS of $0.02 vs $0.01

“The continuation of record-breaking sales in the first quarter of our fiscal year 2019 was expected based on the burgeoning development of our customer base”, stated CEO Warren Kruger. Kruger continued, “The number of customers with over 15% sales volume increased from two to three over the prior period. Our margins have not developed consistently with the increase in sales as front loading of costs continue to remain high. These costs include equipment, facilities, infrastructure, training, and maintenance costs. Our dedicated employees work daily to flatten out these costs, maximize production and implement cost saving initiatives.”

GLGI ($0.46) - Yesterday we highlighted the strong Q4 2017 earnings results and stated the results were via 10-K with no press release issued. This morning, GLGI issued a press release. Comments from management included:

"This past year, management has been diligent in zeroing in on reducing costs while being very aggressive paying down principal on our debt. We closed a plastics recycling facility in Sand Springs, OK, moving the equipment to Iowa for better equipment utilization, management oversight, and cost control. The company acquired two buildings with 52,000 square feet storage capacity for recycling equipment and pallets. We will continue to work hard for our shareholders and look forward to the opportunities and challenges in fiscal year 2018.

Going forward, our team will focus on automation that leverages our ability to consistently produce quality pallets while providing our employees additional tools to do their jobs. Another new machine was recently delivered with an additional machine on order. These machines are projected to be in production in September 2017 and January 2018. We anticipate steady growth in top line sales during fiscal year 2018. Additionally, our staff continues to monitor machine and mold depreciation to ensure the correct allocation of capital is available to maintain top production levels and maximize efficiencies."

GLGI ($0.44) reported Q4 2017 results late in the trading day friday.

• Sales of $14.3 million vs. $11.1 million in the prior year

• EPS of $0.04  vs $0.02 in the prior year

Results were via 10-k only; no press release has been issued.

TULSA, OK--(Marketwired - Feb 5, 2014) - Greystone Logistics, Inc. (OTCBB: GLGI) (OTCQB: GLGI), (the "Company") announced that the Company and Greystone Manufacturing, L.L.C. ("GSM"), a wholly-owned subsidiary of the Company, entered into a Loan Agreement on January 31, 2014 with International Bank of Commerce ("IBC"), pursuant to which IBC will provide the Company and GSM with a revolving line of credit of up to $2,500,000 and term loan of $9,200,000. The exact amount which can be borrowed under the revolving line of credit from time to time depends upon the amount of the borrowing base, but can in no event exceed $2,500,000. 

The revolving line of credit bears interest at the higher per annum rate of (i) the New York Prime Rate, plus 0.5%, and (ii) 4.0%. The borrowers are required to pay all interest accrued on the outstanding principal balance of the revolving line of credit on February 28, 2014, and continuing on the last day of each month thereafter until January 31, 2016. The borrowers are required to pay the outstanding principal balance of the revolving line of credit on January 31, 2016. Any principal on the revolving line of credit that is prepaid by the borrowers may be reborrowed by the borrowers.

The term loan bears interest at 4.5% per annum. The borrowers are required to make equal payments of principal and interest in an amount sufficient to amortize the principal balance of the term loan over five years, commencing on February 28, 2014, and continuing on the last day of each month thereafter until January 31, 2019.

The revolving line of credit will be used for general working capital purposes. The term loan was used to repay the borrowers' obligations to The F&M Bank & Trust Company, to pay preferred dividends and to finance the acquisition of certain equipment.

Bill Rahhal, Chief Financial Officer of the Company, stated that these two new loans provided necessary capital to support the Company's current and future growth as well as improving the capitalization of the Company's debt. Bill Rahhal also stated "We are very excited about the new relationship with IBC Bank and look forward to working with them."

First Quarter 2014 Results

• Sales for fiscal year 2014 first quarter were $6,510,917 compared to $7,128,866 in fiscal year 2013 for a decrease of $617,949. 
• Net income available to common stockholders for fiscal year 2014 was $1,448,652, or $0.06 per share, compared to $832,005, or $0.03 per share, in fiscal year 2013

GeoBargain on the radar GLGI files a SC 13E-3 "Going Private Transaction" for $0.50 per share. We first added GLGI to our 52 week high screen on 7/17/2012 when the stock was trading at $0.17. The stock reached a high of $0.71 on April 2, 2013 or 317% higher than our first mention.  The buyout of $0.50 would translate into gains of 194%.  However, we believe the buyout price undervalues the company and we are looking at options to prevent management from making moves that ignore minority shareholder interest.

Third Quarter 2013 Results

• For the quarter ended February 28, 2013 Greystone recorded net income of $174,215 compared to $163,798 for the same period last year.
• Greystone recorded net income of $1,227,759 for the nine months ended February 28, 2013 on sales of $16,705,437 compared to net income of $914,939 on sales of $16,872,981 for the comparable prior period.
• Net income available to common stockholders for the nine months was $882,998, or $0.03 per share, compared to $657,996, or $0.03 per share for the prior period.

"I am pleased with the fiscal year to date results," stated Warren Kruger , CEO. "Our core pallet business was up 4% and pallet demand remains steady. Resin sales, however, were off due to unusual weather conditions affecting sales of plastic pipe-our major market for recycled plastic. While our total sales were flat, our income before income taxes was up 15% due to the increase in pallet sales and lower operating costs. Additionally, the recognition of a tax benefit from net operating losses in the current period resulted in our net income attributable to common stockholders being up 34% over the prior period."

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 Greystone and its products, see Greystone's Form 10-KSB for the year ended May 31, 2012.

NT 10-Q for Third Quarter 2013

The net income for the nine-month and three-month periods ended February 28, 2013, is expected to be $1,277,759 and $174,215, respectively, compared to $914,939 and $163,798, respectively, for the nine-month and three-month periods ended February 29, 2012.

The net income to common stockholders for the nine-month and three-month periods ended February 28, 2013, is expected to be $882,998, or $0.03 per share, and $48,390, or $0.00 per share, compared to $657,996, or $0.03 per share, and $34,062, or $0.00 per share, respectively, for the nine-month and three-month periods ended February 29, 2012.

The increase in net income for the nine-month period ended February 28, 2013, when compared to the nine-month period ended February 29, 2012, is primarily related to an increase of approximately $136,000 in income before taxes plus the recognition of a benefit from income taxes of $226,900 for the nine-month period ended February 28, 2013 compared to no benefit recognized in the nine-month period ended February 29, 2012.

Second Quarter 2013 Results (10-Q filed on 1/18/2013)

First Quarter 2013 Results

• Sales for the quarter ended August 31, 2012 were $7,128,866 compared to $5,783,624 for the quarter August 31, 2011 for an increase of $1,345,252 or 23%.
• Net income available to common shareholders was $832,005, or $0.03 per share, compared to $479,735, or $.02 per share, for the quarters ended August 31, 2012 and 2011, respectively.