Greystone Logistics Inc (QB) (GLGI) Quote

I don't think the selloff is due to the ERC comparison, but rather worries about the gross margin....going from >20% to 13% in Q3.

I'd guess there's also worry about the missed deadlines with regards to the Wal-Mart tool and the extrusion pallet line. Maybe some other worries about the new CFO leaving only after 9 months....I'm surprised there wasn't a question about that on the call.

My feeling is that the market is in show-me mode. I'm happy to hold though, as margins are still 19% for the year, and the other issues are presumably just speed bumps. I'm guessing the pipeline is still filled with the opportunities that Kruger was talking about on the Q2 call.

$4.25 million of sales for a single distribution center is also not too shabby....Wal-Mart has 210 of those things in the US.

If they're serious about buying back stock, this selloff is actually a good thing.

if the stock goes any lower will have to reload... during the earning report they actually had a better qtr than the comparison qtr. just got some covid money in the previous qtr. good luck to all

Greystone Logistics, Inc. Reports Results of Operations for the Nine and Three Months Ended February 29, 2024
Press Release | 04/17/2024
TULSA, Okla., April 17, 2024 (GLOBE NEWSWIRE) -- Greystone Logistics, Inc. (OTCQB:GLGI) Tulsa-based Greystone Logistics, Inc. reports results of operations for the nine months and the three months ended February 29, 2024.

Greystone reported earnings per share of common stock for the nine months ended February 29, 2024 of $0.09 compared to $0.16 for the prior period. Net income was $3,006,974 for the nine months ended February 29, 2024 compared to $4,881,990 for the nine months ended February 28, 2023 which included other income of approximately $3.2 million from realization of federal tax credits and a gain from deconsolidation of a variable interest entity. EBITDA for the nine months ended February 29, 2024, was $9,660,949 compared to $10,109,572 for the nine months ended February 28, 2023.

Earnings per share of common stock for the three months ended February 29, 2024 were $0.01 per compared to $0.13 per share. Net income for the three months ended February 29, 2024 and 2023 was $297,929 and $3,695,496, respectively.

Sales for the nine months ended February 29, 2024, were $46,990,716 compared to sales of $44,633,542 in the prior period. Gross profit margins were 19.2% and 13.5% for the nine months ended February 29, 2024 and 2023, respectively.

Sales for the three months ended February 29, 2024, were $13,980,009 compared to sales of $13,578,269 in the prior period.

“Credit goes to our employees for the continued progress 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. Unexpected delays in delivery of new molds have created a delay in fulfilling purchase orders for customers. Delivery of the new molds is expected to occur in the latter part of the year thus realizing the utilization of the two new large tonnage injection molding machines and the robotic extrusion line to manufacture hollow extrusion pallets. Greystone is well positioned for our continued growth cycle, including our products for selected markets - grocery, can, nut, cement, tech and beverage industries.”

Greystone Logistics is a "Green" manufacturing company that reprocesses recycled plastic and designs, manufactures and sells high quality 100% recycled plastic pallets that provide logistical solutions for a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company's technology, including a proprietary blend of recycled plastic resins used in the injection molding equipment and patented pallet designs, allows production of high quality pallets more rapidly and at lower costs than many other processes. The recycled plastic for Greystone’s 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, 2023.

Conference Call - Wednesday, April 17, 2024, at 2:00 PM ET, hosted by Warren Kruger, President and CEO. Conference ID is Greystone. Dial-in information is Toll-Free Number, 800-579-2543, or Direct or International Number, 785-424-1789. A Q&A session will be available.

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, 2024 and 2023
2024
2023
Net Income $ 3,006,974 $ 4,881,990
Income Taxes 1,375,000 452,000
Depreciation and Amortization 4,296,383 3,954,444
Interest Expense 982,592 821,138
EBITDA (A) $ 9,660,949 $ 10,109,572

(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:

Brendan Hopkins
Investor Relations
Email: investorrelations@greystonelogistics.com
Phone: (407) 645-5295
https://www.greystonepallets.com



Primary Logo

The new CFO resigned on April 1 to "pursue other opportunities." Bill Rahhal resigned at the end of 2023, so the new CFO was only in charge for 3 months? Hopefully some light will be shed on the call (presumably) next week.

Looks like one of Greystone’s warehouses used to store inventory was destroyed by fire last month.

https://www.ourquadcities.com/news/local-news/camanche-warehouse-destroyed-by-fire/

There are hardly any shares short. I'm guessing someone put in a market order rather than a limit order.

The only news I've seen / noticed is that the 44 x 56 pallet that Kruger mentioned on the Q1 call is now up on Greystone's website, so they're presumably selling it. That's hardly earth shattering news though.

There has been a rash of low float runs happening in the last few days. This is likely another.

It looks like a short squeeze. There was a size of 1.20 and he pulled it up

Is this a fat finger or is there some news out there?

Wal Mart loves Greystone's pallets and a new applications in 70 to 90 days to even more profits from Wal Mart, just a matter of time before this stock gets to 2 dollars. don't miss the boat!

I was surprised to see this trade down during / after the conference call. Maybe I'm misreading it, but Kruger basically announced a 3-year contract with Wal-Mart, discussions with another "huge" customer (going as far as saying he thought they were going to place an initial order 60 days ago), and seemed confident on margins remaining high. They never put out a release regarding Simplot, but I imagine they're one of the 3 current "major customers."

I'm guessing people sold because of a "softer" Q3 and because he wasn't as confident now that FY 2024 sales would beat FY 2023. Seems a bit short-sighted to me.

I don't put a lot of stock (no pun intended) in the stock buyback announcement (volume's not high enough to buy in the market and who knows if any shareholders will offer to sell shares...maybe if Bill, the old CFO, wants to sell his shares now that he's retired), but it's definitely not a negative.

Yeah, if Kruger is correct about the 2nd half of the year being better than the first, then things are looking good.

Hoping to hear updates on Wal-mart, Ball and the beverage & fire retardant pallets.

Also, did you know that Cabka is publicly traded? It's nice to have another comparable company to look at. Kruger mentioned them as a tough competitor in one of the prior conference calls.

https://investors.cabka.com/

$3.2mn ebitda in November qrtr. Better than I was thinking given commentary about slower qrtr and Walmart not in there. Hoping to hear on tomorrows quarter that wmt pallet has been redesigned and ordered to see that rev uplift

Doesn’t mean anything. Year end adjustments or perhaps last minute loss capture. ‘Tis the season to not take much serious.

in a couple weeks will have an earnings report.. can't wait !!!

What's with the selloff today??

about a 50 pct run up in the stock price for 2023, not too bad. i expect good news from the company in 2024. should make the stock run to 2 bucks a share.

I enjoy reading the posts from you and Jimmyjohn,
Thanks

It’s at the option of the holder. https://www.sec.gov/Archives/edgar/data/1088413/000107261303001571/exh4-1_12224.txt

Assuming no hiccups, if they apply all the FCF to debt, they could have zero net debt in 12-18 months. If they're generating $15 million of EBITDA at that point, the current price would be 2x EV/EBITDA. If they are able to get closer to the $100 revenue mark and can maintain these margins, the multiple would obviously be even lower.

Do you know if the preferred has a mandatory conversion feature?

stock should be 2 bucks a share with a normal 10 Price to earnings ratio.

That's good to know, thanks.

I think they’re redesigning the Walmart pallet so I’m not sure if wmt was in there or not - think it may be a few months before wmt comes back. But Wmt is no longer prepaying for orders is my understanding

Did you notice that their website's "about" section now discloses the total # of pallets produced?

17,566,126 pallets from 2003 - 2022
5,473,584 beverage pallets from 2003 - 2022

It'll be interesting to see how often they update it. Maybe they'll be the McDonald's of the pallet industry (billions & billions served).

Yep, nice to see. I haven't gone back and calculated the ttm EBITDA, but I'm guessing if you exclude the preferred, gross debt is now less than 1x EBITDA. Working capital is also positive and margins are fantastic....quite a turnaround from a few years ago.

That's with presumably no sales to Wal-Mart (unless Wal-Mart is no longer pre-paying for its pallets). If they can start closing on some of the deals they talk about in the conference calls and work their way up to $100 million in revenue, this thing could really run.

These margins look really nice. $4.2mn ebitda and $4.5mn fcf with some working cap benefit. Paid down 2mn debt. Ebitda margins hit 24%

Earnings will be released on Tuesday morning.

I'm not advocating for it. The only reason I mentioned raising capital was if they are determined to list on an exchange.

I don't think a $30 million market cap company with ~50% insider ownership belongs on an exchange. If you exchange debt for equity (and do so where shareholders can participate and not be diluted), then the market cap is $50 million. Perhaps the shares also trade up due to the stronger financial position as well, increasing the market cap even more.

I also think a merger with KFI is the ultimate end game.

I agree - don’t think being uplisted matters for interest in the name. It’s possible they would do share repo to get px up for listing rules - which could be short term catalyst but likely negative longer term. The other thing which is in the back of my mind is merging with Kruger Family Industries to take KFI public (reverse merger type transaction). Could see that being positive for how GLGI shareholders get treated.

On a standalone basis, 4mn ebitda/qrtr should translate to 2.5mn fcf/qrtr as I think capex will be low, and given working capital should be a source if anything. So they could generate 10mn fcf over the next year to pay down debt. Would be a decent ROI also to your point. So I don’t maybe see why they would need or want to raise equity capital to pay down debt

Conference call was a good listen. Let’s hope they can close on some of the sales leads.

The uplisting talk still baffles me. I don’t see a point in uplisting if you’re going to be continuously battling the $1 minimum share price requirement.

The float and trading volume are not big enough to do a meaningful reverse split (ie one that gets you above $5/share).

I’d rather see them go the other way and deregister with the SEC. Continue to provide audited financials so the stock doesn’t go to the expert market, but save on the SEC related fees. Re-register with the SEC in a few years when (if) the company is large enough to trade on an exchange. Maybe the cost to deregister & reregister make this impractical though.

Alternatively, do a rights offering now to boost the float and then do a reverse split to boost the share price. Use the proceeds to pay down debt. They’ve done a nice job of deleveraging, but rates are so high that interest expense is still > 25% of operating income.

Yeah the MD&A suggests igps had trouble shipping them their resin - so hopefully they’re delivering that volume now. And yeah the cares act relief payments are nice on gaap eps but I’m excluding that from ebitda here. Think they got to 9.4mn ltm on ebitda. . Spent a ton on capex in qrtr which dragged fcf but that leaves very little left on purchase order obligations at year end. So hopefully they can put head down, fill machines and pump some fcf.

Kruger was expecting $65-70 of revenue in FY 2023, so to only hit $60 had to be disappointing. If it’s just pushed to FY 2024, no big deal though.

The tax credits certainly helped this year. Unfortunately, those were a one-time deal.

Decent qrtr but looks like they didn’t start ramping the igps extra volume until late and more coming in fy24. 3.4mn ebitda. Solid gross/ebitda margins.

Website has been updated, sort of.

https://greystonepallets.com/

earnings coming out tomorrow aug 29 at 7am est... i look for good things and i look for the stock to continue to move higher. GLTA

Form 3 filed by Lockard today, so I guess it’s officially official.

The OTC website shows Drew Lockard as a director. It seems odd that there was no public announcement.

New director too?

https://theorg.com/org/greystone-logistics/org-chart/drew-lockard

Not sure how reliable “theorg.com” is, but Drew Lockard wasn’t listed as a director in the last 10-k. There’s been no SEC filing…I’d figure a new director would be worthy of an 8-k, or at least a Form 3.

Greystone is making some changes (IR guy, quarterly cc’s, new CFO, new director). I wonder if they’re going to merge with Trienda (Kruger Family Industries) and try to uplist.

If that’s the case, I hope Kruger treats us fairly in terms of ownership of the combined company. He seems to treat shareholders well (low salary, no egregious stock grants, etc).

Looks like they may have hired a new CFO.

https://www.linkedin.com/in/curtiscrosier

An expired ad for the position:

https://www.ihirefinance.com/jobs/view/395544165

I wonder if Bill Rahhal retired or if the new guy is more of a controller for the plant. It looks like he’s based in Quad Cities and not Tulsa.

not sure what your talking about jimmy.. i said it would be over a dollar per the conference call i was on a couple months ago. now that i was correct it did go over a dollar you calling me out? now im saying this isn't the end it will keep moving forward, why don't you go listen to the last conference call and i also asked a question on the call. i asked about reverse splits and the answer was no reverse splits.

Whatever you think you’re doing isn’t helpful. There was some constructive dialog on this thread. Now you’re just pumping and turning people off from participating in this thread and frankly turning people off from investing money in a stock where this kind of dialog is around.

next stop 1.25 a share...... company knew the stock was going to be on the move in the last conference call.

could very well see a dollar a share this week, ahead of qtr earnings report. at 5 price to earnings it still has a was to run. GLTA

getting closer to a dollar a share still cheap with the price to earnings ratio. should be 1.50 a share. at 10 pe.

just a matter of time before GLGI hits a dollar a share. its a gimmie... GLTA

Greystone is a non-accelerated filer, so it has 90 days to file its 10-k....so it's basically due at the end of August.

https://www.broadridge.com/resource/corporate-issuer/edgar-filing-calendar

True, but that was a quarterly, for which the 10Q deadline is 45 days after quarter end. The deadeline for the annual report filing is 60 days after fiscal year end.

The next report is the 10-k, not 10-Q. It comes out in August.

https://www.sec.gov/edgar/browse/?CIK=1088413&owner=exclude

clic on news then clic on the april 14,2023 10q that is the last quarterly earnings report... so the next one should come out july 14, 2023

this came out april 14.... two weeks later will be the next 10q for qtr earnings....
Quarterly Report (10-q)
April 14 2023 - 05:13PM
Edgar (US Regulatory)
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



Form 10-Q



(Mark One)



? QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended February 28, 2023



? TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from ___________ to ____________



Commission file number 000-26331



GREYSTONE LOGISTICS, INC.


(Exact name of registrant as specified in its charter)



Oklahoma 75-2954680
(State or other jurisdiction of

incorporation or organization)


(I.R.S. Employer

Identification No.)



1613 East 15th Street, Tulsa, Oklahoma 74120
(Address of principal executive offices) (Zip Code)


(918) 583-7441
(Registrant’s telephone number, including area code)





(Former name, former address and former fiscal year, if changed since last report)



Securities registered pursuant to Section 12(b) of the Act:



Title of each class Trading Symbol Name of each exchange on which registered
NONE GLGI NONE