Greystone Logistics (GLGI) research, news, and more from GeoInvesting

Company description

Tue, 17 Jul 2012 04:00:00 GMT

Greystone Logistics, Inc., through its subsidiaries, engages in manufacturing and selling plastic pallets; and grinding, pelletizing, and selling recycled plastic resins primarily in the United States. It offers rackable, nestable, display, monoblock, and stackable pallets, as well as picture frame, Web-top pallets produced using a proprietary blend of recycled plastics. Pallets are primarily used in the automotive, chemical, consumer products, grocery, produce and food production, paper and forest products, retailing, and steel and metals industries. The company also sells recycled plastic that has been reprocessed into pellet form; and provides pallet leasing services. It primarily serves the beverage and pharmaceutical industries. Greystone Logistics, Inc. sells its products through direct sales staff and a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. on March 18 2005. Greystone Logistics, Inc. was founded in 1969 and is based in Tulsa, Oklahoma.

Comments & Business Outlook

Mon, 06 May 2013 04:00:00 GMT

Third Quarter 2013 Results

For the quarter ended February 28, 2013 Greystone recorded net income of $174,215 compared to $163,798 for the same period last year.
Greystone recorded net income of $1,227,759 for the nine months ended February 28, 2013 on sales of $16,705,437 compared to net income of $914,939 on sales of $16,872,981 for the comparable prior period.
Net income available to common stockholders for the nine months was $882,998, or $0.03 per share, compared to $657,996, or $0.03 per share for the prior period.

"I am pleased with the fiscal year to date results," stated Warren Kruger , CEO. "Our core pallet business was up 4% and pallet demand remains steady. Resin sales, however, were off due to unusual weather conditions affecting sales of plastic pipe-our major market for recycled plastic. While our total sales were flat, our income before income taxes was up 15% due to the increase in pallet sales and lower operating costs. Additionally, the recognition of a tax benefit from net operating losses in the current period resulted in our net income attributable to common stockholders being up 34% over the prior period."

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 Greystone and its products, see Greystone's Form 10-KSB for the year ended May 31, 2012.

Comments & Business Outlook

Tue, 16 Apr 2013 04:00:00 GMT

NT 10-Q for Third Quarter 2013

The net income for the nine-month and three-month periods ended February 28, 2013, is expected to be $1,277,759 and $174,215, respectively, compared to $914,939 and $163,798, respectively, for the nine-month and three-month periods ended February 29, 2012.

The net income to common stockholders for the nine-month and three-month periods ended February 28, 2013, is expected to be $882,998, or $0.03 per share, and $48,390, or $0.00 per share, compared to $657,996, or $0.03 per share, and $34,062, or $0.00 per share, respectively, for the nine-month and three-month periods ended February 29, 2012.

The increase in net income for the nine-month period ended February 28, 2013, when compared to the nine-month period ended February 29, 2012, is primarily related to an increase of approximately $136,000 in income before taxes plus the recognition of a benefit from income taxes of $226,900 for the nine-month period ended February 28, 2013 compared to no benefit recognized in the nine-month period ended February 29, 2012.

Second Quarter 2013 Results (10-Q filed on 1/18/2013)

Greystone Logistics, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Six Months Ended November 30,
	2012			2011


Sales	$	12,187,984		$	11,997,125

Cost of Sales		9,779,803			9,860,901

Gross Profit		2,408,181			2,136,224

General, Selling and Administrative Expenses		1,101,083			899,345

Operating Income		1,307,098			1,236,879

Other Income (Expense):
Other Income (Expense)		6,500			(6,841	)
Interest Expense		(419,354	)		(478,897	)
Total Other Expense, net		(412,854	)		(485,738	)

Income Before Income Taxes		894,244			751,141
Benefit From Income Taxes		209,300			—
Net Income		1,103,544			751,141

Income Attributable to Variable Interest Entities, net		(104,210	)		(46,180	)

Preferred Dividends		(164,726	)		(81,027	)

Net Income Available to Common Stockholders	$	834,608		$	623,934

Income Available to Common Stockholders:
Per Share of Common Stock - Basic	$	0.03		$	0.02
Per Share of Common Stock - Diluted	$	0.03		$	0.02

Weighted Average Shares of Common Stock Outstanding -
Basic		26,111,201			26,111,201
Diluted		27,241,970			26,111,201

Research

Wed, 13 Mar 2013 04:00:00 GMT

Alert Sent to Members on 8/31/2012

In our 7/17/2012 email to premium members we mentioned that we began tracking GLGI and referenced our 52 week high screen for our research note when the stock was trading at $0.17. One week later on 7/24/2012 in another email we mentioned that we established a position based on strong fourth quarter 2012 results but still had some due diligence to perform. After doing just that in recent weeks we have become even more intrigued about the GLGI story. We are very confident that the company will be able to report increased revenues and earnings for 2013 over 2012 with most of the growth coming in the first and fourth quarters. During our research, we learned that the second and third quarters are historically the weakest quarters and we are not totally confident that they will be able to show growth in them. Currently, wooden pallets make up of 97% of the $6 billion pallet industry. Thus, given that GLGI makes plastic pallets, there is significant upside potential to gain market share. Plastic pallets are expected to gain market acceptance as a more durable (longer shelf-life) and as a more environmentally friendly option. In fact, GLGI manufactures its pallets using recycled material and also has the manufacturing capacity to manufacture other recycled products besides pallets. GLGI currently has some big name customers, such as Miller and Coors brewing companies. The company is seeking new customers which should help smooth out quarterly seasonality. We would like to code GLGI a GeoBargain, but since we are unsure what the GeoPower Ranking will be due to uncertainty in the second and third quarters. We will leave GLGI as a GeoBargain on the radar. We have established a significant share position and believe GLGI is a few customers away from being able to maintain consistent profitability, taking it to a new level of growth.

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Comments & Business Outlook

Mon, 05 Nov 2012 05:00:00 GMT

First Quarter 2013 Results

Sales for the quarter ended August 31, 2012 were $7,128,866 compared to $5,783,624 for the quarter August 31, 2011 for an increase of $1,345,252 or 23%.
Net income available to common shareholders was $832,005, or $0.03 per share, compared to $479,735, or $.02 per share, for the quarters ended August 31, 2012 and 2011, respectively.

Bill Rahhal, CFO, commented, "Management is emboldened by the strong quarter but temper our enthusiasm for the next two quarters based on historically slower sales of beer case goods pallets. However, demand for our keg pallet and Intermediate Bulk Container (IBC) pallet continue to look good over the next six months. Additionally, one of the pelletizing lines which has been down for necessary maintenance will be placed back in service during next quarter and we may see resurgence in resin sales back to historical levels. All other product lines continue to hold steady and work also continues on promising new pallet opportunities with existing and new customers."

Comments & Business Outlook

Tue, 16 Oct 2012 04:00:00 GMT

Greystone Logistics, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three Months Ended August 31,
	2012			2011

Sales	$	7,128,866		$	5,783,624

Cost of Sales		5,604,017			4,627,974

Gross Profit		1,524,849			1,155,650

General, Selling and Administrative Expenses		558,639			411,987

Operating Income		966,210			743,663

Other Income (Expense):
Other Income (Expense)		10,000			(2,950	)
Interest Expense		(208,843	)		(265,353	)
Total Other Expense, net		(198,843	)		(268,303	)

Income before income taxes		767,367			475,360
Benefit from income taxes		199,400			—
Net Income		966,767			475,360

Loss (Income) Attributable to Variable Interest Entities, net		(51,954	)		4,375

Preferred Dividends		(82,808	)		—

Net Income Available to Common Stockholders	$	832,005		$	479,735

Income Available to Common Stockholders:
Per Share of Common Stock - Basic	$	0.03		$	0.02
Per Share of Common Stock - Diluted	$	0.03		$	0.02

Weighted Average Shares of Common Stock Outstanding -
Basic		26,111,201			26,111,201
Diluted		26,955,766			26,111,201

Comments & Business Outlook

Tue, 18 Sep 2012 04:00:00 GMT

TULSA, Okla., Sept. 18, 2012 /PRNewswire/ -- Greystone Logistics, Inc. (OTCBB: GLGI). Greystone Logistics announces that for the first time in corporate history the company has received an unqualified opinion from auditors on the recently filed May 31, 2012 consolidated financial statements.

Bill Rahhal, Greystone's CFO, stated "The unqualified opinion is a reflection of the financial growth that Greystone has achieved over the past several years including sales for the corporate year ending May 31, 2012 of $24,186,047 with net income attributable to shareholders of $2,103,268 or $.08 per share. Greystone's growth is the result of the efforts of our employees and their dedication to produce innovative, top quality, 100% recycled plastic pallets and reprocessed resin for resale while providing high quality service for our valued customers. We are proud to be a "green" company utilizing recycled materials and have a very positive attitude for our future and continued financial improvement for our shareholders."

Greystone Logistics is a "Green" manufacturing and leasing company that reprocesses and sells recycled plastic and designs, manufactures, sells and leases high-quality 100% recycled plastic pallets that provide logistical solutions needed by a wide range of industries such as food and beverage, agricultural, automotive, chemical, pharmaceutical and consumer products. The Company's technology, including that used in its injection molding equipment, proprietary blend of recycled plastic resins and patented pallet designs, allows production of high-quality pallets quickly and at lower costs than many processes. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin. Excess plastic not used in production of pallets is reprocessed for resale