GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE YEAR ENDED MAY 31, 2021
Rhea-AI Summary
Greystone Logistics, Inc. (OTCQB:GLGI) reported its fiscal year 2021 earnings, showing a net income of $3,030,165 ($0.11 per share), down from $4,301,585 ($0.15 per share) in 2020. Total sales decreased to $64,925,059 from $76,204,608, primarily due to a client supplying its own raw materials. EBITDA declined slightly from $12,152,793 in 2020 to $12,080,272. The company reduced its debt by approximately $5.9 million, and its $3 million loan under the CARES Act was forgiven, bolstering equity. The CEO cited strong demand for their pallets despite challenges from COVID-19 and rising plastic costs.
AI-generated analysis. Not financial advice.
Positive
- Net income available to common stockholders decreased only slightly to $3,030,165.
- Debt and financing leases were reduced by approximately $5,865,000.
- The loan under the CARES Act amounting to $3,034,000 was forgiven, increasing equity.
Negative
- Sales decreased by $11,279,549 to $64,925,059 due to a customer supplying its own raw materials.
- Net income decreased from $4,962,570 in 2020 to $3,625,526 in 2021, with prior year's income benefiting from a $1.4 million valuation allowance decrease.
News Market Reaction – GLGI
On the day this news was published, GLGI declined 14.53%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Tulsa, OK, Aug. 31, 2021 (GLOBE NEWSWIRE) -- GREYSTONE LOGISTICS, INC. (OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports earnings for the fiscal year ended May 31, 2021.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for fiscal year 2021 of
Sales for the fiscal year ended May 31, 2021 were
“I am overwhelmed by the strength of our year despite the debilitating effects from COVID-19, labor shortages and increases in the price of plastic.,” stated CEO Warren Kruger. Kruger continued, “Operational issues with new equipment occurred during the year but our maintenance personnel addressed the issues immediately to minimize downtime and recurrences from suppliers. Our employees worked overtime to keep the machines operating and navigate through this turbulent period. They deserve the credit for our accomplishments.”
“During fiscal year 2021, Greystone reduced its debt and financing leases by approximately
“The impact of COVID-19 continues to create much uncertainty in the workplace and prices for plastic. We anticipate that the first quarter of fiscal year 2022 will see the impact of these operational issues. However, the demand for our pallets has never been greater, and I am confident that the remaining portion of fiscal year 2022 will show positive results for Greystone and our shareholders.”
Greystone Logistics is a "Green" manufacturing company that reprocesses recycled plastic and designs, manufactures, sells high quality
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-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, the most comparable GAAP financial measure, to EBITDA 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, 2021 and 2020
| 2021 | 2020 | |||||||
| Net Income | $ | 3,625,526 | $ | 4,962,570 | ||||
| Income Taxes | 1,480,590 | 209,000 | ||||||
| Depreciation and Amortization | 5,796,357 | 5,275,872 | ||||||
| Interest Expense | 1,177,799 | 1,705,351 | ||||||
| EBITDA (A) | $ | 12,080,272 | $ | 12,152,793 | ||||
| (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
