8-K
GREYSTONE LOGISTICS, INC. (GLGI)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
Current
Report
**PursuantTo Section 13 or 15 (**d)of the Securities Exchange Act of 1934
Date
of Report (date of earliest event reported):
May 3, 2022
GreystoneLogistics, Inc.
(Exactname of registrant as specified in its charter)
| Oklahoma | 000-26331 | 75-2954680 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission<br><br> <br>File Number) | (I.R.S. Employer<br><br> <br>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)
NotApplicable
(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<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| NONE | GLGI | NONE |
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. ☐
Item2.02. Results of Operations and Financial Condition.
On May 3, 2022, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for the nine months and three months ended February 28, 2022. A copy of the press release dated May 3, 2022 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.
Item7.01. 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 May 3, 2022. 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.
Item9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press Release dated May 3, 2022. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| 2 |
| --- |
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. | ||
|---|---|---|
| May 3, 2022 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer |
| 3 |
| --- |
EXHIBIT
INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated May 3, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| 4 |
| --- |
EXHIBIT99.1
GREYSTONELOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE NINE MONTHS AND THREE MONTHS ENDED FEBRUARY 28, 2022
GREYSTONE LOGISTICS, INC.
Tulsa, OK—05/03/2022—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports results of operations for the nine months and three months ended February 28, 2022.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for the nine months ended February 28, 2022, of $3,044,535, or $0.11 per share, compared to $2,366,837, or $0.08 per share, for the prior period. The three months ended February 28, 2022, resulted in net income available to common stockholders of $452,458, or $0.02 per share, compared to $633,456, or $0.02 per share, in the prior period. Net income was $3,496,217 and $603,244 for the nine months and three months ended February 28, 2022, respectively, compared to $2,814,728 and $782,497 in the prior periods, respectively. EBITDA for the nine months ended February 28, 2022, was $8,237,357 compared to $9,392,907 for the nine months ended February 28, 2021.
The gross profit margin was 9.7% on sales of $53,069,648 for the nine months ended February 28, 2022, compared to a gross profit margin of 18.1% on sales of $47,602,690 in the prior period. The paucity of profit margins for the current periods was principally due to the impact of inflationary factors on raw material pricing, machine downtime resulting from labor force shortages and inflationary labor costs.
“Greystone continues to perform well in a very difficult inflationary environment” stated CEO Warren Kruger. “Our current customer base is stable and demand is growing. To supplement production and future growth, Greystone is now manufacturing under contract at three other locations including Mexico. Two large tonnage injection machines are on order for additional capacity needs as well as plastic grinding and pelletizing lines to support the additional production. We were recently able to highlight two new products at the Modex show in Atlanta that the market has been demanding. Material costs for rods, grommets, and our recycled material continue to pressure margins and we anticipate the need to make additional adjustments.”
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, 2021.
Non-GAAPFinancial 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 28, 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| Net Income | $ | 3,496,217 | $ | 2,814,728 |
| Income Taxes | 99,000 | 1,257,000 | ||
| Depreciation and Amortization | 4,011,025 | 4,397,890 | ||
| Interest<br> Expense | 631,115 | 923,289 | ||
| EBITDA<br> (A) | $ | 8,237,357 | $ | 9,392,907 |
| (A) | EBITDA<br> represents income before income taxes plus interest, depreciation and amortization. The EBITDA<br> presented above, while considered the most common definition used by investors and financial<br> analysts, may not be comparable to similarly titled measures reported by other companies.<br> Greystone believes that EBITDA, while providing useful information, should not be considered<br> 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