Greystone Logistics Inc. (GLGI)

[MrT11]

I enjoy reading the posts from you and Jimmyjohn,
Thanks

[Jimmyjohn1]

It’s at the option of the holder. https://www.sec.gov/Archives/edgar/data/1088413/000107261303001571/exh4-1_12224.txt

[Phaedrus77]

Assuming no hiccups, if they apply all the FCF to debt, they could have zero net debt in 12-18 months. If they're generating $15 million of EBITDA at that point, the current price would be 2x EV/EBITDA. If they are able to get closer to the $100 revenue mark and can maintain these margins, the multiple would obviously be even lower.

Do you know if the preferred has a mandatory conversion feature?

[heisagolfer]

stock should be 2 bucks a share with a normal 10 Price to earnings ratio.

[Phaedrus77]

That's good to know, thanks.

[Jimmyjohn1]

I think they’re redesigning the Walmart pallet so I’m not sure if wmt was in there or not - think it may be a few months before wmt comes back. But Wmt is no longer prepaying for orders is my understanding

[Phaedrus77]

Did you notice that their website's "about" section now discloses the total # of pallets produced?

17,566,126 pallets from 2003 - 2022
5,473,584 beverage pallets from 2003 - 2022

It'll be interesting to see how often they update it. Maybe they'll be the McDonald's of the pallet industry (billions & billions served).

[Phaedrus77]

Yep, nice to see. I haven't gone back and calculated the ttm EBITDA, but I'm guessing if you exclude the preferred, gross debt is now less than 1x EBITDA. Working capital is also positive and margins are fantastic....quite a turnaround from a few years ago.

That's with presumably no sales to Wal-Mart (unless Wal-Mart is no longer pre-paying for its pallets). If they can start closing on some of the deals they talk about in the conference calls and work their way up to $100 million in revenue, this thing could really run.

[Jimmyjohn1]

These margins look really nice. $4.2mn ebitda and $4.5mn fcf with some working cap benefit. Paid down 2mn debt. Ebitda margins hit 24%

[Phaedrus77]

Earnings will be released on Tuesday morning.

[Phaedrus77]

I'm not advocating for it. The only reason I mentioned raising capital was if they are determined to list on an exchange.

I don't think a $30 million market cap company with ~50% insider ownership belongs on an exchange. If you exchange debt for equity (and do so where shareholders can participate and not be diluted), then the market cap is $50 million. Perhaps the shares also trade up due to the stronger financial position as well, increasing the market cap even more.

I also think a merger with KFI is the ultimate end game.

[Jimmyjohn1]

I agree - don’t think being uplisted matters for interest in the name. It’s possible they would do share repo to get px up for listing rules - which could be short term catalyst but likely negative longer term. The other thing which is in the back of my mind is merging with Kruger Family Industries to take KFI public (reverse merger type transaction). Could see that being positive for how GLGI shareholders get treated.

On a standalone basis, 4mn ebitda/qrtr should translate to 2.5mn fcf/qrtr as I think capex will be low, and given working capital should be a source if anything. So they could generate 10mn fcf over the next year to pay down debt. Would be a decent ROI also to your point. So I don’t maybe see why they would need or want to raise equity capital to pay down debt

[Phaedrus77]

Conference call was a good listen. Let’s hope they can close on some of the sales leads.

The uplisting talk still baffles me. I don’t see a point in uplisting if you’re going to be continuously battling the $1 minimum share price requirement.

The float and trading volume are not big enough to do a meaningful reverse split (ie one that gets you above $5/share).

I’d rather see them go the other way and deregister with the SEC. Continue to provide audited financials so the stock doesn’t go to the expert market, but save on the SEC related fees. Re-register with the SEC in a few years when (if) the company is large enough to trade on an exchange. Maybe the cost to deregister & reregister make this impractical though.

Alternatively, do a rights offering now to boost the float and then do a reverse split to boost the share price. Use the proceeds to pay down debt. They’ve done a nice job of deleveraging, but rates are so high that interest expense is still > 25% of operating income.

[Jimmyjohn1]

Yeah the MD&A suggests igps had trouble shipping them their resin - so hopefully they’re delivering that volume now. And yeah the cares act relief payments are nice on gaap eps but I’m excluding that from ebitda here. Think they got to 9.4mn ltm on ebitda. . Spent a ton on capex in qrtr which dragged fcf but that leaves very little left on purchase order obligations at year end. So hopefully they can put head down, fill machines and pump some fcf.

[Phaedrus77]

Kruger was expecting $65-70 of revenue in FY 2023, so to only hit $60 had to be disappointing. If it’s just pushed to FY 2024, no big deal though.

The tax credits certainly helped this year. Unfortunately, those were a one-time deal.

[Jimmyjohn1]

Decent qrtr but looks like they didn’t start ramping the igps extra volume until late and more coming in fy24. 3.4mn ebitda. Solid gross/ebitda margins.

[Phaedrus77]

Website has been updated, sort of.

https://greystonepallets.com/

[heisagolfer]

earnings coming out tomorrow aug 29 at 7am est... i look for good things and i look for the stock to continue to move higher. GLTA

[Phaedrus77]

Form 3 filed by Lockard today, so I guess it’s officially official.

[Phaedrus77]

The OTC website shows Drew Lockard as a director. It seems odd that there was no public announcement.

[Phaedrus77]

New director too?

https://theorg.com/org/greystone-logistics/org-chart/drew-lockard

Not sure how reliable “theorg.com” is, but Drew Lockard wasn’t listed as a director in the last 10-k. There’s been no SEC filing…I’d figure a new director would be worthy of an 8-k, or at least a Form 3.

Greystone is making some changes (IR guy, quarterly cc’s, new CFO, new director). I wonder if they’re going to merge with Trienda (Kruger Family Industries) and try to uplist.

If that’s the case, I hope Kruger treats us fairly in terms of ownership of the combined company. He seems to treat shareholders well (low salary, no egregious stock grants, etc).

[Phaedrus77]

Looks like they may have hired a new CFO.

https://www.linkedin.com/in/curtiscrosier

An expired ad for the position:

https://www.ihirefinance.com/jobs/view/395544165

I wonder if Bill Rahhal retired or if the new guy is more of a controller for the plant. It looks like he’s based in Quad Cities and not Tulsa.

[heisagolfer]

not sure what your talking about jimmy.. i said it would be over a dollar per the conference call i was on a couple months ago. now that i was correct it did go over a dollar you calling me out? now im saying this isn't the end it will keep moving forward, why don't you go listen to the last conference call and i also asked a question on the call. i asked about reverse splits and the answer was no reverse splits.

[Jimmyjohn1]

Whatever you think you’re doing isn’t helpful. There was some constructive dialog on this thread. Now you’re just pumping and turning people off from participating in this thread and frankly turning people off from investing money in a stock where this kind of dialog is around.

[heisagolfer]

next stop 1.25 a share...... company knew the stock was going to be on the move in the last conference call.

[heisagolfer]

could very well see a dollar a share this week, ahead of qtr earnings report. at 5 price to earnings it still has a was to run. GLTA

[heisagolfer]

getting closer to a dollar a share still cheap with the price to earnings ratio. should be 1.50 a share. at 10 pe.

[heisagolfer]

just a matter of time before GLGI hits a dollar a share. its a gimmie... GLTA

[Phaedrus77]

Greystone is a non-accelerated filer, so it has 90 days to file its 10-k....so it's basically due at the end of August.

https://www.broadridge.com/resource/corporate-issuer/edgar-filing-calendar

[nsomniyak]

True, but that was a quarterly, for which the 10Q deadline is 45 days after quarter end. The deadeline for the annual report filing is 60 days after fiscal year end.

[Phaedrus77]

The next report is the 10-k, not 10-Q. It comes out in August.

https://www.sec.gov/edgar/browse/?CIK=1088413&owner=exclude

[heisagolfer]

clic on news then clic on the april 14,2023 10q that is the last quarterly earnings report... so the next one should come out july 14, 2023

[heisagolfer]

this came out april 14.... two weeks later will be the next 10q for qtr earnings....
Quarterly Report (10-q)
April 14 2023 - 05:13PM
Edgar (US Regulatory)
Print
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



Form 10-Q



(Mark One)



? QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended February 28, 2023



? TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from ___________ to ____________



Commission file number 000-26331



GREYSTONE LOGISTICS, INC.


(Exact name of registrant as specified in its charter)



Oklahoma 75-2954680
(State or other jurisdiction of

incorporation or organization)


(I.R.S. Employer

Identification No.)



1613 East 15th Street, Tulsa, Oklahoma 74120
(Address of principal executive offices) (Zip Code)


[phone]
(Registrant’s telephone number, including area code)





(Former name, former address and former fiscal year, if changed since last report)



Securities registered pursuant to Section 12(b) of the Act:



Title of each class Trading Symbol Name of each exchange on which registered
NONE GLGI NONE

[Phaedrus77]

If you're going to pump it, at least get your facts straight. Earnings won't be released until late August because May 31 was GLGI's fiscal year-end.

[heisagolfer]

you have two weeks to get in before quarterly earnings. should come out about july 14. stock should go
over a dollar a share. company expects better earnings than last year per the last conference call i was on. GLTA

[heisagolfer]

don't miss out on a undervalued GLGI stock price, get in before next quarters earnings. price to earnings is less than 5. average is atleast 10. thus stock should be 1.60 a share at a 10 pe ratio. GLTA

[heisagolfer]

greystone will be a dollar a share very soon. don't miss the boat. per the last earnings call the company is very optimistic on this years earnings. GLTA

[heisagolfer]

company makes 13 cents a share for the last quarter is is only 68 cents a share, greatly undervalued. this company will go higher, no problem, and company says this year is looking bright. im all in. good luck to all.

[MrT11]

You make a great point about uplisting. For years I have heard talk about a merge with Trienda
maybe they will merge, that would add a huge amount of revenue and hype could send us over $3. Just the fact they have a CC tells me something big is in the works. JMO

[Phaedrus77]

I don’t see how an uplisting makes sense. They’d probably have to do a 1-5 reverse split at a minimum, as there’s no sense uplisting if the share price is a buck.

If they do a 1-5, there’d be < 6 million shares o/s and probably < 3 million shares of float. The only way I see an uplisting happening is if they merge with Trienda first.

If I were him, I’d just keep trying to increase the co’s profits, and good things will eventually happen. Uplisting is a solution to a non-existent problem, imo.

I assume you also saw the conference call transcript. It is nice to finally get info from the company. Q4 sounds like it should be a profitable one.

[Phaedrus77]

I don’t see how an uplisting makes sense. They’d probably have to do a 1-5 reverse split at a minimum, as there’s no sense uplisting if the share price is a buck.

If they do a 1-5, there’d be < 6 million shares o/s and probably < 3 million shares of float. The only way I see an uplisting happening is if they merge with Trienda first.

If I were him, I’d just keep trying to increase the co’s profits, and good things will eventually happen. Uplisting is a solution to a non-existent problem, imo.

I assume you also saw the conference call transcript. It is nice to finally get info from the company. Q4 sounds like it should be a profitable one.

[MrT11]

Great interview , Thx for posting. Phone is ringing off the hook and they are moving to a higher exchange, Nasdaq?? 20 million mkt cap and soon to be 100 million in revenue..
This has a lot higher to go in my opinion.

[Phaedrus77]

Kruger is really trying to get the word out. Interview with him on Planet Microcap.

[Phaedrus77]

They hired an investors relation guy. It seems like a weird thing to issue a PR for...especially when they haven't issued an earnings release the last two quarters.

[Phaedrus77]

Fwiw

https://www.reuters.com/article/brambles-plastic-costco-wholesale/update-2-brambles-scraps-investment-in-plastic-pallets-for-costco-suppliers-idINL4N2YH1AI

[freddie me]

Acting very nicely - buyout coming?

[ZachBuffett]

Can’t believe that was a decade ago now.

[Phaedrus77]

Looks like he sold 5,956 shares in order to remain under 10% due to GLGI buying back some shares last year.

[freddie me]

Topline Capital amends filing w 10% holding https://www.sec.gov/Archives/edgar/data/1088413/000119312523034331/d463136dsc13ga.htm

[Phaedrus77]

Kruger says, “hold my beer” and goes in for another 5k shares.

His little purchases always make me chuckle.