Greystone Logistics, Inc. (GLGI) research, news, and more from GeoInvesting

Company description

Tue, 17 Jul 2012 04:00:00 GMT

Greystone Logistics, Inc., through its subsidiaries, engages in manufacturing and selling plastic pallets; and grinding, pelletizing, and selling recycled plastic resins primarily in the United States. It offers rackable, nestable, display, monoblock, and stackable pallets, as well as picture frame, Web-top pallets produced using a proprietary blend of recycled plastics. Pallets are primarily used in the automotive, chemical, consumer products, grocery, produce and food production, paper and forest products, retailing, and steel and metals industries. The company also sells recycled plastic that has been reprocessed into pellet form; and provides pallet leasing services. It primarily serves the beverage and pharmaceutical industries. Greystone Logistics, Inc. sells its products through direct sales staff and a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. on March 18 2005. Greystone Logistics, Inc. was founded in 1969 and is based in Tulsa, Oklahoma.

Research

Wed, 02 Jul 2025 15:39:37 GMT

Greystone Logistics, Inc. (OTCQB:GLGI) ($1.34; $37.2M market cap) announced the completion of its share buyback program:

"We are committed to maximizing shareholder value, and the completion of this buyback program underscores our dedication to that goal," said Warren Kruger, CEO of Greystone Logistics. "As we move forward, we will continue to assess opportunities to further enhance our financial position and deliver value to our shareholders."

Key highlights:

Completed previously authorized share buyback program totaling 1 million shares
Board of directors is evaluating the potential to increase the buyback amount in the future

Greystone Logistics, Inc. manufactures and sells plastic pallets and recycled plastic resins, offering a range of pallet types for industries such as beverage and pharmaceuticals.

Research

Tue, 15 Apr 2025 20:52:09 GMT

Greystone Logistic (OOTC:GLGI) ($1.04; $28.9M market cap) - Yesterday the company released its 10-Q filing for its Q3 2025 results which we covered here.

Sales of $14.3 million vs $13.9 million in the prior year
EPS of $0.03 vs EPS of $0.01 in the prior year

The 10-Q had limited comments, today the company issued a press release with comments from management and guidance for Q4:

“During the quarter the board authorized $2.1 million to redeem a portion of the $5 million preferred stock outstanding out of cash on hand. The company has also now purchased over 500,000 common shares in the previous announced stock buyback. These buybacks of preferred and common stock are an indication of the commitment to enhancing shareholder value. The board has confidence in the company's future performance and our proactive approach to managing the Company capital structure and optimizing returns for investors. I expect similar results in our 4th quarter."

Research

Mon, 14 Apr 2025 15:43:53 GMT

Greystone Logistic (OOTC:GLGI) ($1.04; $28.9M market cap) reported Q3 2025 results:

Sales of $14.3 million vs $13.9 million in the prior year
EPS of $0.03 vs EPS of $0.01 in the prior year

“The increase in sales for the three months ended February 28, 2025, compared to the prior period is primarily attributable to an increase in demand from three of its significant customers of approximately $3.3M offset by $3M decrease in demand from two of its significant customers. The majority of the increase in demand is from one of the significant customers for approximately $2.4M, which was due to a newly designed plastic pallet to specifically meet the customer’s needs.”

There is no press release issued, comments are limited, nor are there any forward looking commentary in the 10-Q filing.

Research

Tue, 21 Jan 2025 18:56:50 GMT

Greystone Logistic (OOTC:GLGI) ($1.05; $29.6M market cap) reported Q2 2025 results via 10-Q on January 14, 2025 which we covered here. At that time we highlighted from the 10-Q comments on why the quarter was down due to decreased demand from a large customer.

This morning the company issued a press release with more color from management:

“Greystone saw lower top line revenue during the last quarter as a significant customer hit their budget for expenditures for their fourth quarter. Greystone anticipates a strong third and even better fourth quarter as revenues ramp up from existing accounts and new customers. As of the end of the quarter, the company continued a strong working capital position with significant cash on hand. We are seeing increased optimism and buying signs from a broad range of customers both in the US and Mexico”.

One thing investors need to watch is the possibility of Trump imposing 25% tariffs on Mexico and Canada.

Research

Wed, 15 Jan 2025 21:23:18 GMT

Greystone Logistic (OOTC:GLGI) ($1.02; $28.8M market cap) reported Q2 2025 results:

Sales of $12.1 million vs $15.5 million in the prior year
Loss per share of $0.01 vs EPS of $0.03 in the prior year

“The reduction in sales for the six months ended November 30, 2024, compared to the prior period is primarily attributable to an approximate 38% decrease in demand from one of its significant customers, which was offset somewhat by an increase in demand from another of its significant customers. The increase in demand from the latter customer was due to a newly designed plastic pallet to specifically meet the customer’s needs.”

There is no press release issued, comments are limited, no forward looking commentary in the 10-Q filing.

Research

Fri, 18 Oct 2024 04:00:00 GMT

Greystone Logistic (OOTC:GLGI) ($1.41; $37.8M market cap) reported Q1 2025 results:

Sales of $13.4 million vs $17.4 million in the prior year
EPS of $0.01 vs EPS of $0.05 in the prior year

“The reduction in sales for the three months ended August 31, 2024, compared to the prior period is primarily attributable to an approximate 43% decrease in demand from one of its significant customers, which was offset somewhat by an increase in demand from another of its significant customers. The increase in demand from the latter customer was due to a newly designed plastic pallet to specifically meet the customer’s needs.”

No press release issued at this time.

Research

Tue, 17 Sep 2024 14:07:24 GMT

Greystone Logistic (OOTC:GLGI) ($1.45; $41.0M market cap) - Yesterday we highlighted its Q4 and full year results which showed strong EPS growth on down sales and highlighted comments from the press release where management stated it anticipates “a robust 2025.” We also mentioned:

“We are eager to see how fast earnings may be able to accelerate if sales start to increase. We think it’s time to bring the CEO, Warren Kruger, on for a Fireside Chat Skull Session”.

However, we were a bit confused that the conference call offered some cautious comments, not at all aligned with the extremely bullish comments in the press release:

“I am out there every single week, and I will tell you that in the manufacturing sector it is soft. And we have a lot of orders in the pipeline, but people are holding off. And I think that it's just the side of the economy right now. And I think there's some uncertainty about what's happening this year in the political spectrum. So I'm not going to make this a political call, but I do believe that there is almost a recession-like feeling out there in the marketplace.”

We will definitely address this conundrum if the company agrees to be a guest on our next Fireside Chat with the company.

Greystone Logistics Inc is engaged in the business of manufacturing and selling plastic pallets utilizing recycled plastic.

Research

Mon, 16 Sep 2024 14:36:51 GMT

Greystone Logistic (OOTC:GLGI) ($1.34; $37.8M market cap) reported Q4 and full year 2024 results:

Q4 sales of $14.8 million vs $16.1 million in the prior year
Q4 EPS of $0.04 vs EPS of $0.01 in the prior year
Full year sales of $61.7 million vs $60.7 million in the prior year
Full year non-GAAP EPS of $0.13 vs non-GAAP EPS of $0.03

Management comments reflect on a successful year, highlighting the strong revenue from a new warehouse pallet product, a promising sales pipeline, a solid cash position, and upcoming product developments.

“We’ve had a tremendous year, demonstrating our ability to adapt and thrive even in the face of economic uncertainty. Our new 48x40 warehouse pallet is already generating sales at a pace of $5 million per year in revenue and with over $50 million in our sales pipeline, I anticipate a robust 2025. Cash on hand at year end was $5,798,641 ensuring a level of safety and sufficient funds for our previously announced share buyback. We have now received the new tooling for our extruded hollow lumber pallet with product launch in the next 90 days and introduction at Pack Expo in Chicago in November. Our innovative approach to recycling plastic into durable shipping pallets not only supports our clients’ logistics needs but also helps reduce environmental impact. We are committed to providing sustainable solutions that benefit both our customers and the planet.”

It might be time to start getting a little more excited about GLGI finally turning the corner to consistent growth. Over the last four years, management has taken steps to streamline operations and add higher margin capacity (partly via an acquisition). We are eager to see how fast earnings may be able to accelerate if sales start to increase. We think it’s time to bring the CEO, Warren Kruger, on for a Fireside Chat Skull Session. For now, you can view my discussion with Kruger at the Planet Microcap Conference in Vegas in early May 2024.

GLGI Is trading a trailing P/E of 10x. Debt level, related party transactions and a history of inconsistent growth are part of the reasons for the low P/E. (please keep in mind that a good deal of debt and related party transactions were necessary to help the company grow. We actually view this “insider” support as a positive). Management has also been a pretty consistent buyer of the stock on the open market throughout the years

Greystone Logistic manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States.

*By the way, if you are new to GeoInvesting, you can view all of our Skull Session events with management teams and related clips at Geoinvesting’s Portal at the Video Menu Tab. From there, you can select Fireside Chat and Mgmt. Briefing.

Research

Tue, 16 Apr 2024 14:07:26 GMT

Greystone Logistic (OOTC:GLGI) ($1.35; $38.1M market cap) reported Q3 2024 results:

Sales of $13.9 million vs $13.5 million in the prior year
EPS of $0.01 vs EPS of $0.02 in the prior year

The results are via a 10-Q, and the company plans to issue a press release tomorrow morning and hold a conference call on Wednesday at 2PM EST.

GLGI is struggling to consistently report meaningful EPS and related growth. We are also wondering why the May 2023 acquisition of Paradigm Plastics Pallets has not resulted in more meaningful revenue growth. On a positive note, it was nice to see the company reduce its long-term debt to $11.6 million from $14.9 million.

The more pressing issue that the company has been unable to address is its inability to reduce customer concentration.

“Greystone’s principal customers, ranging from two to four customers, accounted for approximately 82% and 65% of sales for the nine months ended February 29(28), 2024 and 2023, respectively. Greystone is not able to predict the future needs of these principal customers and will continue its efforts to increase sales through the addition of new customers developed through Greystone’s marketing efforts.”

Maj will be interviewing GLGI at the Planet Microcap Conference taking place from April 30 to May 2 and will make sure to bring up these concerns.

Research

Wed, 17 Jan 2024 15:23:16 GMT

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.”

Research

Wed, 18 Oct 2023 12:34:46 GMT

Greystone Logistic (OOTC:GLGI) ($1.02; $28.8M market cap), a manufacturer of recycled plastics reported Q1 2024 results:

Sales of $17.4 million vs $18.9 million in the prior year
EPS of $0.06 vs $0.04 in the prior year

“The profit margin for the current period showed significant improvement over the prior period which was principally impacted by lower raw material costs.

Credit goes to our employees for the robust start in the current fiscal year,” stated CEO Warren Kruger. “Our sales team is working diligently filling our pipeline with business from existing and new customers. The Company’s capital investment in two new large tonnage injection molding machines and a robotic extrusion line to manufacture hollow extrusion pallets, were well timed in preparing Greystone for our next growth cycle. New tooling for expansion of our products for selected markets - grocery, can, nut, cement, tech and beverage industries – is in process. We remain confident that we will fill our machines with aggressive marketing of our creatively designed products.”

Over the last several quarters, we’ve been discussing how we wanted to see if GIGI's moves to make its operations more efficient were going to start paying off.

The fact that the company is more profitable than it has in the past, on a lower revenue, is encouraging.

Even though the decline in revenue doesn’t look favorable on paper, we need to find out if actual units sold increased. This will give us an indication of the overall strength in demand for their products.

Research

Mon, 01 May 2023 13:24:58 GMT

Greystone Logistic (OOTC:GLGI) a manufacturer of recycled plastics announced the acquisition of Paradigm Plastics Pallets, plastic pallet manufacturing equipment and reinstating production capabilities in Jasper, IN.

“This acquisition will provide Greystone with access to world class manufacturing support, a deeply researched and developed product line, an experienced and robust nationwide sales network and highly respected leadership. We are very excited to be able to add plastic extrusion capability to the Greystone family of pallets and are looking forward to a very bright future for the product line.”

There were no details of the cost of the acquisition and/or the sales/earnings figures of the acquired company.

The key takeaways are:

We don’t know what the word tested and approved means. So it’s hard to tell if there’s actually revenue from most customers that comes from the acquisition.
However it’s encouraging in some respects because the current revenue for GLGI is highly concentrated amongst a few customers.
Diversification has always been a part of the catalyst that we thought the company needed to achieve order to accelerate revenue growth and increase the valuation multiples

Research

Mon, 17 Apr 2023 17:37:08 GMT

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.

Research

Mon, 17 Oct 2022 15:23:20 GMT

Greystone Logistic (OOTC:GLGI) ($0.78; $22.0M market cap) a manufacturer of recycled plastics reported Q1 2023 results, only via an SEC filing:

Sales of $18.9 million vs $14.7 million in the prior year
GAAP EPS of $0.04 vs $0.09 in the prior year
Non-GAAP EPS of $0.04 vs $0.00 in the prior year

The company discusses the cost of good decreasing as a % of sales in its 10-Q:

“Cost of sales in fiscal year 2023 was $16,490,453, or 87% of sales, compared to $13,312,305, or 90% of sales, in fiscal year 2022. The decrease in cost of sales to sales in fiscal year 2023 was primarily the result of improvements in productivity. Management anticipates further improvements in the ratio of cost of sales to sales as the cost of raw materials are expected to show declines in the remainder of fiscal year 2023.”

There is a bit of Information Arbitrage in the Q1 numbers. The company only filed a 10-Q, which won’t adjust the GAAP numbers for one time charges to net income that occurred in the quarter. It’s probably going to take time for investors to figure that out, perform the calculations and realize that this was a really good quarter for the company. Hopefully, a press release will be issued to discuss the adjusted earnings per share number and give us some guidance about the rest of its fiscal year. However, it’s encouraging that the filing mentioned that pressures on gross margins should improve moving forward.

At the current run-rate of adjusted earnings per share, the company is trading at a price to earnings ratio of only 4.9x. We think it’s time to track the story closely again to monitor if sustained momentum in its financial results can be achieved. The company’s 2022 adjusted EPS was $0.03.

The caveats to the story remain to be high customer concentration risk and high related party debt.

Research

Mon, 24 Jan 2022 16:06:27 GMT

Greystone Logistic (OOTC:GLGI) ($0.92; $26.2M market cap) a manufacturer of recycled plastics reported Q2 2022 results:

Sales of $15.8 million vs $15.5 million in the prior year
Loss per share of $0.01 vs EPS of $0.03 in the prior year

"Greystone continued to face enormous challenges and uncertainty in the first six months of our corporate year with the continued impact of the pandemic and associated issues on the entire U.S. economy and mindset. However, management is emboldened about our products, opportunities, and future…

…Necessary price increases have been implemented which will bolster future financial results. A source was found for quality staffing and forty new people have been hired. Increased reprocessing of recycled material has allowed us to dampen the massive jump in commodity prices. Training of operators and new equipment ordered for delivery over the next ten months for expansion bode well for our future. New tools are arriving in the next few months for exciting new lines of business we anticipate will push top line and bottom-line growth. The recently reported new contract for $13,500,000 of recycled pallets to a national retailer is expected to have a definite impact."

We are in the process of setting up a follow up call with management.

Research

Mon, 10 Jan 2022 17:19:25 GMT

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.

Research

Mon, 18 Oct 2021 11:26:34 GMT

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.”

Research

Mon, 23 Aug 2021 04:00:00 GMT

Greystone Logistic (OOTC:GLGI) ($1.37; $39.0M market cap), a manufacturer of recycled plastics. announced Q4 2021 results:

Sales of $17.3 million vs $18.3 million in the prior year
EPS of $0.02 vs $0.04 in the prior year

Sales for fiscal year 2021 were $47,602,690 compared to $57,906,777 in fiscal year 2020 for a decrease of $10,304,087, or 18%. The decrease in sales from fiscal year 2020 to fiscal year 2021 is the result of changes in pallet pricing resulting from modifications to the manufacturing process for certain pallets, approximately 10%, and a decline in the number of pallets sold, approximately 8%. Greystone considers the decline in the number of pallets sold predominantly as a timing issue due to purchase orders for pallets received subsequent to the end of the current quarter from one major customer totaling approximately $7.8 million and informal communications from one of our long-time major customers, from which we had previously reported an expected decline, that we believe indicates an increased allocation of purchases from Greystone. Further, despite the legal proceedings disclosed in Part II, Item 1, Legal Proceedings, Greystone continues to manufacture and ship pallets to iGPS Logistics, LLC.

As we pointed out in previous research updates:

Effective January 1, 2021, Greystone’s major customer in the beer industry notified Greystone that the customer will be diversifying its purchases of pallets for case goods with another vendor, but Greystone will continue to be the sole provider of the keg pallet to the customer. However, as noted above, Greystone unexpectedly received a call from the customer regarding the need for additional case pallets. A new case pallet purchase order was received from the customer in March 2021 with an expectation that additional purchases orders may follow.

Again, while the loss in revenue is not a significant portion of total sales, this situation highlights the potential risk that exists if GLGI's top 4 customers that account for 83% of total revenue choose other vendors.

Some things to note from the 10K:

Pricing/Cost of Goods Environment

“A decrease in supply of plastic resulted in prices increasing during the fourth quarter of fiscal year 2021, which is expected to carry into fiscal year 2022.”

COVID-19 Consideration

“The impact of COVID-19 has created much uncertainty in the marketplace. To date, the demand for Greystone’s products has not been affected as Greystone’s pallets are generally used logistically by essential entities. The major issue for Greystone has been maintaining an adequate workforce to meet demand for pallets. It is unclear the forces that are creating the labor shortage, whether it is from the pandemic or other causes. As a result, Greystone has not been able to maintain full operation. Management is unable to determine how long this labor shortage will last.”

Research

Thu, 15 Apr 2021 17:25:00 GMT

Greystone Logistic (OOTC:GLGI) ($1.24; $35.1M market cap), a manufacturer of recycled plastics announced Q3 2021 results:

Sales of $14.5 million vs $19.7 million in the prior year
EPS of $0.02 vs $0.06 in the prior year

The decrease in the quarterly financial results seems to be primarily the result of the reduction of pallet demand from one of its customers that wanted to diversify its source of supply, something we had previously reported on. The good news is that it seems like this customer might be backing off from this goal.

Large customer impact:

“The decrease in sales from fiscal year 2020 to fiscal year 2021 is primarily due to a decline in the number of pallets sold resulting from a reduction in demand from major customers including reduced purchase orders from a beer manufacturer.

Effective January 1, 2021, Greystone’s major customer in the beer industry notified Greystone that the customer will be diversifying its purchases of pallets for case goods with another vendor, but Greystone will continue to be the sole provider of the keg pallet to the customer. However, Greystone unexpectedly received a call from the customer regarding the need for additional case pallets. A new case pallet purchase order was received from the customer in March 2021 with an expectation that additional purchases orders may follow.”

New legal proceeding:

"On February 1, 2021 iGPS Logistics filed a lawsuit against GLGI alleging breach of certain manufacturing supply agreements. The lawsuit seeks damages in excess of $500,000. GLGI denies the allegations and intends to vigorously defend itself."

We obviously need to dig into this development to understand the potential financial impact, if any, to the company

Research

Fri, 15 Jan 2021 05:00:00 GMT

Greystone Logistic (OOTC:GLGI) ($0.94; $26.9M market cap), a manufacturer of recycled plastics announced Q2 2021 results:

Sales of $15.5 million vs $19.5 million in the prior year
EPS of $0.03 vs $0.01 in the prior year

While customer concentration has slightly improved over the last several years, it has always been a concern for us, with 4 customers accounting for the majority of its revenues (86%).

On January 1, 2021, one of its major customers notified the company it will use another vendor for pallets for case goods, while continuing to use Greystone for keg pallets. The full text from the 10-Q states:

“Effective January 1, 2021, Greystone’s major customer in the beer industry notified Greystone that the customer will be diversifying its purchases of pallets for case goods with another vendor, but Greystone will continue to be the sole provider of the keg pallet to the customer. This change is expected to decrease Greystone’s annual revenues in the range of about 4% to 5%. Greystone will continue to purchase damaged pallets from the customer. Management has evaluated this impact in conjunction with other contractual adjustments that were made with the customer, and management does not expect that this impact will have a material adverse effect on Greystone’s consolidated financial statements.”

While the loss in revenue is not a significant portion of total sales, this situation highlights the potential risk that exists if GLGI's top 4 customers choose other vendors.

Research

Tue, 25 Aug 2020 16:40:49 GMT

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.

Research

Wed, 15 Apr 2020 17:16:46 GMT

Established A Long Position in GLGI on the heels of strong earnings per share growth. Adding to our Run to One Model Portfolio. (R21) (Special shout out to Geoinvesting premium Dennis Bottjen for stressing that we should revisit the company’s story).

Greystone Logistic (OOTC:GLGI) ($0.71; $20.1M market cap), a manufacturer of recycled plastics (mainly plastic pallets), reported Q3 2020 results:

Sales of $19.7 million vs $17.2 million in the prior year
EPS of $0.06 vs $0.00 in the prior year period

This is not our first go around with GLGI. We were long in 2012 to 2014 when the stock ran from $0.09 to $0.70. The company was going to go dark, but then decided against it after we, along with other investors put pressure on the company not to do so. Customer concentration, production issues, inconsistent growth and high debt are some of the caveats that have faced the company. These issues led us to sell our shares. Furthermore, we felt the company was in the early stages of capital investment initiatives, some of which were going to take time to bear fruit.

While still high, customer concentration has slightly improved over the last several years, with 4 customers accounting for 87% of the sales in 2020 thus far vs. 71% from 2 customers a few years ago.

CEO Warren Kruger has been a steady buyer of the stock in the open market and is the majority owner, with a 31% stake. When we did interview the company years ago, we were very impressed with Kruger's confidence that GLGI could manage its debt level in the long run, his unwavering belief that their short term investments into the company would pay off and his strong handle on industry dynamics.

While long term debt stands at nearly $20 million, if the company can remain solidly profitable, we believe the debt would be more than manageable. In fact, the company paid off $2.9 million in long term debt during the quarter.

We plan on reconnecting with management to determine if the company has turned the corner to grow profitably and more quickly expand its customer base. Overall, we like the plastic pallet industry growth story due to the long-term cost savings over wood pallets.

Press release commentary:

“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…

...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.”

The 10-Q offers a little more color on the COVID-19 impact, which could be viewed as neutral:

“The recent global outbreak of COVID-19 has created much uncertainty in the marketplace, and the full economic impact, duration and spread of the COVID-19 virus is uncertain and difficult to predict at this time considering the rapidly evolving landscape. To date, the demand for Greystone’s products has not been affected as Greystone’s pallets are generally used logistically by essential entities. Going forward, the major issue that Greystone has incurred is maintaining adequate work force to meet demand for pallets. While there has not been a reported case of COVID-19 at Greystone, the virus has impacted the overall workforce in the area as recruiting new employees has slowed, and a portion of the employees have opted to remain home for protection.”

However, like most companies, the severity of a long lasting impact could have adverse effects:

“Management is currently unable to estimate the impact of this economic event on its future financial position, results of operations and cash flows. Therefore, Greystone can give no assurances that this event will not have a material adverse effect on its financial position or results of operations. If the COVID-19 outbreak continues to evolve causing disruption to our workforce, customers and vendors, this economic event could have a material adverse effect on Greystone’s business, results of operations, financial condition and cash flows.”

Research

Mon, 22 Oct 2018 15:37:45 GMT

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.”

Comments & Business Outlook

Tue, 29 Aug 2017 15:03:47 GMT

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."

Research

Mon, 28 Aug 2017 15:16:05 GMT

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.

Going Private News

Thu, 06 Feb 2014 05:00:00 GMT

TULSA, OK--(Marketwired - Feb 5, 2014) - Greystone Logistics, Inc. (OTCBB: GLGI) (OTCQB: GLGI),(the "Company") announced today that it will not proceed with the proposed one for ten thousand (1-10,000) reverse stock split of the Company's Common Stock and a cash payment per share for resulting fractional shares equal to $0.50. The Company had previously filed a Preliminary Proxy Statement on Schedule 14A with the United States Securities and Exchange Commission relating to a Special Meeting of Shareholders of the Company to vote on an amendment to the Company's Certificate of Incorporation that would authorize the proposed reverse stock split. The Company also announced today that the Special Meeting of Shareholders of the Company relating to the proposed reverse stock split will not be held. The primary purpose of the proposed reverse stock split was to reduce the number of holders of record of the Company's Common Stock to fewer than 300, in order for the Company to be able to terminate the registration of its Common Stock under the Securities Exchange Act of 1934, as amended. Bill Rahhal, the Company's Chief Financial Officer, said that the cost associated with the proposed reverse stock split was the primary reason for the decision of the Company's Board of Directors to not proceed with the proposed reverse stock split, as the estimated cost of effecting the proposed reverse stock split has increased substantially since the Preliminary Proxy Statement was filed.

Deal Flow

Thu, 06 Feb 2014 05:00:00 GMT

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."

Comments & Business Outlook

Wed, 16 Oct 2013 04:00:00 GMT

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

Going Private News

Wed, 19 Jun 2013 04:00:00 GMT

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.

Comments & Business Outlook

Mon, 06 May 2013 04:00:00 GMT

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.

Comments & Business Outlook

Tue, 16 Apr 2013 04:00:00 GMT

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)

Greystone Logistics, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Six Months Ended November 30,
	2012			2011


Sales	$	12,187,984		$	11,997,125

Cost of Sales		9,779,803			9,860,901

Gross Profit		2,408,181			2,136,224

General, Selling and Administrative Expenses		1,101,083			899,345

Operating Income		1,307,098			1,236,879

Other Income (Expense):
Other Income (Expense)		6,500			(6,841	)
Interest Expense		(419,354	)		(478,897	)
Total Other Expense, net		(412,854	)		(485,738	)

Income Before Income Taxes		894,244			751,141
Benefit From Income Taxes		209,300			—
Net Income		1,103,544			751,141

Income Attributable to Variable Interest Entities, net		(104,210	)		(46,180	)

Preferred Dividends		(164,726	)		(81,027	)

Net Income Available to Common Stockholders	$	834,608		$	623,934

Income Available to Common Stockholders:
Per Share of Common Stock - Basic	$	0.03		$	0.02
Per Share of Common Stock - Diluted	$	0.03		$	0.02

Weighted Average Shares of Common Stock Outstanding -
Basic		26,111,201			26,111,201
Diluted		27,241,970			26,111,201

Comments & Business Outlook

Mon, 05 Nov 2012 05:00:00 GMT

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.

Bill Rahhal, CFO, commented, "Management is emboldened by the strong quarter but temper our enthusiasm for the next two quarters based on historically slower sales of beer case goods pallets. However, demand for our keg pallet and Intermediate Bulk Container (IBC) pallet continue to look good over the next six months. Additionally, one of the pelletizing lines which has been down for necessary maintenance will be placed back in service during next quarter and we may see resurgence in resin sales back to historical levels. All other product lines continue to hold steady and work also continues on promising new pallet opportunities with existing and new customers."

Comments & Business Outlook

Tue, 16 Oct 2012 04:00:00 GMT

Greystone Logistics, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three Months Ended August 31,
	2012			2011

Sales	$	7,128,866		$	5,783,624

Cost of Sales		5,604,017			4,627,974

Gross Profit		1,524,849			1,155,650

General, Selling and Administrative Expenses		558,639			411,987

Operating Income		966,210			743,663

Other Income (Expense):
Other Income (Expense)		10,000			(2,950	)
Interest Expense		(208,843	)		(265,353	)
Total Other Expense, net		(198,843	)		(268,303	)

Income before income taxes		767,367			475,360
Benefit from income taxes		199,400			—
Net Income		966,767			475,360

Loss (Income) Attributable to Variable Interest Entities, net		(51,954	)		4,375

Preferred Dividends		(82,808	)		—

Net Income Available to Common Stockholders	$	832,005		$	479,735

Income Available to Common Stockholders:
Per Share of Common Stock - Basic	$	0.03		$	0.02
Per Share of Common Stock - Diluted	$	0.03		$	0.02

Weighted Average Shares of Common Stock Outstanding -
Basic		26,111,201			26,111,201
Diluted		26,955,766			26,111,201

Comments & Business Outlook

Tue, 18 Sep 2012 04:00:00 GMT

TULSA, Okla., Sept. 18, 2012 /PRNewswire/ -- Greystone Logistics, Inc. (OTCBB: GLGI). Greystone Logistics announces that for the first time in corporate history the company has received an unqualified opinion from auditors on the recently filed May 31, 2012 consolidated financial statements.

Bill Rahhal, Greystone's CFO, stated "The unqualified opinion is a reflection of the financial growth that Greystone has achieved over the past several years including sales for the corporate year ending May 31, 2012 of $24,186,047 with net income attributable to shareholders of $2,103,268 or $.08 per share. Greystone's growth is the result of the efforts of our employees and their dedication to produce innovative, top quality, 100% recycled plastic pallets and reprocessed resin for resale while providing high quality service for our valued customers. We are proud to be a "green" company utilizing recycled materials and have a very positive attitude for our future and continued financial improvement for our shareholders."

Greystone Logistics is a "Green" manufacturing and leasing company that reprocesses and sells recycled plastic and designs, manufactures, sells and leases high-quality 100% recycled plastic pallets that provide logistical solutions needed by a wide range of industries such as food and beverage, agricultural, 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 is reprocessed for resale