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 31, 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 | None | 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 August 31, 2021, Greystone Logistics, Inc. (the “Company”) issued a press release regarding results of operations for Greystone Logistics, Inc. for the year ended May 31, 2021. A copy of the press release dated August 31, 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 August 31, 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 August 31, 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. | ||
| August 31, 2021 | By: | /s/ William W. Rahhal |
| William W. Rahhal | ||
| Chief Financial Officer | ||
| 3 |
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Press Release dated August 31, 2021. |
| 4 |
Exhibit 99.1
GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE YEAR ENDED MAY 31, 2021
GREYSTONE LOGISTICS, INC.
Tulsa, OK—08/31/2021—(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 $3,030,165, or $0.11 per share, compared to $4,301,585, or $0.15 per share, in fiscal year 2020. EBITDA for fiscal year 2021 was $12,080,272 compared to $12,152,793 in 2020. Greystone’s net income was $3,625,526 in fiscal year 2021 compared to $4,962,570 in fiscal year 2020 noting that net income in fiscal year 2020 included the effect of a decrease in the valuation allowance for net operating losses of approximately $1.4 million.
Sales for the fiscal year ended May 31, 2021 were $64,925,059 compared to $76,204,608 in the prior year. The decrease of $11,279,549 in sales from the prior year was primarily due to lowered pricing resulting from a customer delivering a portion of their own raw materials used in the manufacturing process of certain pallets.
“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 $5,865,000. In June 2021, Greystone’s loan under the Coronavirus Aid, Relief and Economic Security Act in the amount of $3,034,000 was forgiven resulting in a like increase in the company’s equity. As a result, we believe that Greystone is well-positioned to provide capital for future growth.”
“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 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, 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