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):
August 25, 2020
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 | ||
| Common stock | GLGI | OTCQB |
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 August 25, 2020, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for Greystone Logistics, Inc. for the year ended May 31, 2020. A copy of the press release dated August 25, 2020 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 August 25, 2020. 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 August 25, 2020.
| 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. | ||
| August 25, 2020 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer | ||
| 3 |
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated August 25, 2020. |
| 4 |
Exhibit 99.1
GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE YEAR ENDED MAY 31, 2020
GREYSTONE LOGISTICS, INC.
Tulsa, OK—08/25/2020—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports record earnings for fiscal year ended May 31, 2020.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for fiscal year 2020 of $4,301,585, or $0.15 per share, compared to $1,376,636, or $0.05 per share, in fiscal year 2019. EBITDA for fiscal year 2020 was $12,152,73 compared to $8,767,769 in 2019. Sales for the fiscal year ended May 31, 2020 were $76,204,608 compared to $71,077,116 in the prior year for an increase of $5,127,492, a 7% increase. Greystone’s net income was $4,962,570 in fiscal year 2020 compared to $2,057,207 in fiscal year 2019.
“Greystone achieved record-breaking earnings of $0.15 per share of common stock for the corporate year ending May 31, 2020,” stated CEO Warren Kruger. Kruger continued, “Existing customers and new clients have driven sales of our top-line pallets. Price changes accompanied with a series of initiatives to improve efficiency have contributed to improved profit margins. Further, earnings were benefitted by a reduction in the provision for income taxes as Greystone was able to recognize additional deferred tax assets relating to a reduction in the valuation allowance for estimated utilization of our net operating losses for income tax purposes.”
“During fiscal year 2020, Greystone showed substantial improvement in its ratio of debt to equity from 13% in fiscal year 2019 to 29% in fiscal year 2020. The Company incurred additional debt of $2,180,000 for the purchase of production equipment and $3,034,000 funding from a Paycheck Protection Program (“PPP”) loan 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. Payments on outstanding debt and financing leases totaled approximately $6,560,000. It is our goal to continue to improve the relationship of debt to equity.”
“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 has impacted the Company’s pallet production resulting in an approximate 11% decline during the fourth quarter of fiscal year 2020. Going forward, we are unable to predict the stability of our workforce as the longer the virus stays active, the greater the uncertainty.”
Greystone Logistics is a “Green” manufacturing company that reprocesses recycled plastic and designs, manufactures, sells high quality 100% recycled plastic pallets that provide logistical solutions needed by 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 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 Years Ended May 31, 2020 and 2019
| 2020 | 2019 | |||||||
| Net Income | $ | 4,962,570 | $ | 2,057,207 | ||||
| Income Taxes | 209,000 | 435,677 | ||||||
| Depreciation and Amortization | 5,275,872 | 4,438,591 | ||||||
| Interest Expense | 1,705,351 | 1,836,294 | ||||||
| EBITDA (A) | $ | 12,152,793 | $ | 8,767,769 | ||||
| (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