GLGI 8-K
Greystone Logistics, Inc. (GLGI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant To Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
January 19, 2021
Greystone Logistics, Inc.
(Exact name of registrant as specified in its charter)
| Oklahoma | 000-26331 | 75-2954680 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 1613 E. 15th, Tulsa, Oklahoma | 74120 | |
| (Address of principal executive offices) | (Zip Code) |
(918) 583-7441
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 270.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 270.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 270.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| 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. [ ]
Item 2.02. Results of Operations and Financial Condition.
On January 19, 2021, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for the three months and six months ended November 30, 2020. A copy of the press release dated January 19, 2021 is attached hereto as Exhibit 99.1.
The information being furnished hereunder discloses EBITDA, a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company believes that EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company’s results from operations before interest, income taxes, depreciation and amortization. EBITDA is utilized for internal analysis of the Company. EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation or as an alternative to other financial measures determined under GAAP. However, EBITDA is commonly used by investors, financial analysts and rating agencies as an alternative measure of evaluating, comparing and rating operating performance. EBITDA presented by the Company may not be comparable to similarly titled measures reported by other companies.
The information in this Form 8-K, including exhibits, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01. Regulation FD Disclosure.
As noted above in Item 2.02 of this Current Report on Form 8-K, the registrant issued a press release on January 19, 2021. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is being furnished pursuant to Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Press Release dated January 19, 2021. |
| 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. | ||
| January 19, 2021 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer | ||
| 3 |
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated January 19, 2021. |
| 4 |
EXHIBIT 99.1
GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS ENDED NOVEMBER 30, 2020
GREYSTONE LOGISTICS, INC.
Tulsa, OK—01/19/2021—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports results of operations for the three months and six months ended November 30, 2020.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for the three months ended November 30, 2020 of $873,180, or $0.03 per share, compared to $304,428, or $0.01 per share, in the prior period. Net income available to common stockholders for the six months ended November 30, 2020 was $1,733,381, or $0.06 per share, compared to $746,678, or $0.03 per share for the prior period. EBITDA for the six months ended November 30, 2020 was $6,614,164 compared to $4,886,619 for the six months ended November 30, 2019. Sales for the three months and six months ended November 30, 2020 were $15,523,318 and $33,091,494, respectively, compared to $19,503,462 and $38,167,971 in the prior periods, respectively. Greystone’s net income was $1,023,073 and $2,032,231 for the three months and six months ended November 30, 2020, respectively, compared to $472,685 and $1,091,984 in the prior periods, respectively.
“Greystone achieved significant increases in earnings for both the three months and six months ended November 30, 2020 compared to the comparable prior periods,” stated CEO Warren Kruger. Kruger continued, “These increased earnings resulted primarily from restructuring the pricing for certain pallets. This restructuring of pricing resulting from changes in the manufacturing process led to the decline in dollar sales, despite comparable unit sales for the periods. A major beer customer has notified us that beginning January 1, 2021, they will be diversifying purchases of case pallets between Greystone and another vendor; however, Greystone will continue to be the sole provider for the keg pallet. We have evaluated this impact in conjunction with other adjustments that were made with the customer and do not expect that it will have a material adverse effect on Greystone’s consolidated financial statements.”
“During the six months ended November 30, 2020, Greystone continued to show substantial improvement in its ratio of equity to total assets from 17.6% as of May 31, 2020 to 24.3% as of November 30, 2020. The net reduction in debt and financing leases from May 31, 2020 to November 30, 2020 was $4.6 million. The debt includes $3,034,000 funding from the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“CARES”). The CARES act includes provisions to apply for forgiveness of the PPP loan, and Greystone plans to submit the application.”
“The impact of COVID-19 has created much uncertainty in the workplace. The major issue that Greystone has faced is maintaining adequate workforce to meet demand for pallets. The virus has affected the overall workforce in our operating area as well as our own workforce. Employees electing to say at home for protection from COVID-19 and reductions in recruitment of new employees continues to impact the Company’s pallet production. Going forward, we anticipate that the new COIVD-19 vaccine will have a positive impact but are unable to predict the stability of our workforce as long as the virus stays active.”
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, 2020.
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 Six Months Ended November 30, 2020 and 2019
| 2020 | 2019 | |||||||
| Net Income | $ | 2,032,231 | $ | 1,091,984 | ||||
| Income Taxes | 911,000 | 320,000 | ||||||
| Depreciation and Amortization | 3,017,873 | 2,557,936 | ||||||
| Interest Expense | 653,060 | 913,699 | ||||||
| EBITDA (A) | $ | 6,614,164 | $ | 4,883,619 | ||||
| (A) | EBITDA represents income before income taxes plus interest, depreciation and amortization. The EBITDA presented above, while considered the most common definition used by investors and financial analysts, may not be comparable to similarly titled measures reported by other companies. Greystone believes that EBITDA, while providing useful information, should not be considered in isolation or as an alternative to other financial measures determined under GAAP. |
Contact:
Warren F. Kruger
President/CEO
Corporate Office
1613 East 15th Street
Tulsa, Oklahoma 74120
(918) 583-7441
(918) 583-7442 (FAX)
http://www.greystonelogistics.com