Tulsa, OK, Aug. 29, 2023 (GLOBE NEWSWIRE) -- GREYSTONE LOGISTICS, INC. (OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports results of operations for the year ended May 31, 2023.
Greystone recorded earnings per share of common stock for the year ended May 31, 2023, of $0.21 compared to $0.14 for the prior year. Net income was $6,388,108 and $4,546,600 for the years ended May 31, 2023 and 2022, respectively. EBITDA for the year ended May 31, 2023, was $15,234,836 compared to $11,283,711 for the year ended May 31,2022.
Sales for the year ended May 31, 2023, were $60,758,962 compared to sales of $74,170,351 in the prior year. Gross profit margins were 15.4% and 10.5% for the years ended May 31, 2023 and 2022, respectively. The profit margin for the current year showed significant improvement, while the prior year was principally impacted by inflationary factors on raw material pricing, machine downtime resulting from labor force shortages and inflationary labor costs.
“I am very proud of our teams focus on margins in the face of a slight downturn in our top line sales in fiscal year 2023,” stated CEO Warren Kruger. “Pricing for our main commodity HDPE forced large price adjustments upward last year causing a slight decrease in demand. Greystone’s sales pipeline and opportunities are compounding due to changes in pricing made possible from reductions in the cost of raw materials. Going forward, we have three additional machines - two new large tonnage injection molding machines and a robotic extrusion line to manufacture hollow extrusion pallets that we acquired this year. We anticipate sales volume on the extrusion line later in our year as we make adjustments to the tooling. We will be rolling out new products this year for the grocery, can, nut, cement, tech and beverage industries. We are confident we will fill our machines by aggressively marketing our creatively designed products to existing and new customers.”
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 - Tuesday, August 29, 2023, 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 Years Ended May 31, 2023 and 2022
| 2023 | 2022 | |||||||
| Net Income | $ | 6,388,108 | $ | 4,546,600 | ||||
| Income Taxes | 2,461,700 | 535,417 | ||||||
| Depreciation and Amortization | 5,195,994 | 5,359,993 | ||||||
| Interest Expense | 1,189,034 | 841,701 | ||||||
| EBITDA (A) | $ | 15,234,836 | $ | 11,283,711 | ||||
(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
http://www.greystonelogistics.com
