GREYSTONE LOGISTICS, INC. REPORTS RESULTS OF OPERATIONS FOR THE YEAR ENDED MAY 31, 2020
GREYSTONE LOGISTICS, INC.
Tulsa, OK—08/25/2020—(OTCQB:GLGI). Tulsa-based Greystone Logistics, Inc. reports record earnings for fiscal year ended May 31, 2020.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for fiscal year
2020 of $4,301,585, or $0.15 per share, compared to $1,376,636, or $0.05 per share, in fiscal year 2019. EBITDA for fiscal year 2020 was $12,152,73 compared to
$8,767,769 in 2019. Sales for the fiscal year ended May 31, 2020 were $76,204,608 compared to $71,077,116 in the prior year for an increase of $5,127,492, a 7%
increase. Greystone’s net income was $4,962,570 in fiscal year 2020 compared to $2,057,207 in fiscal year 2019.
“Greystone achieved record-breaking earnings of $0.15 per share of common stock for the corporate year ending May 31, 2020,” stated CEO Warren Kruger.
Kruger continued, “Existing customers and new clients have driven sales of our top-line pallets. Price changes accompanied with a series of initiatives to improve
efficiency have contributed to improved profit margins. Further, earnings were benefitted by a reduction in the provision for income taxes as Greystone was able to
recognize additional deferred tax assets relating to a reduction in the valuation allowance for estimated utilization of our net operating losses for income tax
purposes.”
“During fiscal year 2020, Greystone showed substantial improvement in its ratio of debt to equity from 13% in fiscal year 2019 to 29% in fiscal year 2020. The
Company incurred additional debt of $2,180,000 for the purchase of production equipment and $3,034,000 funding from a Paycheck Protection Program (“PPP”)
loan under the Coronavirus Aid, Relief and Economic Security Act (“CARES”). The CARES act includes provisions to apply for forgiveness of the PPP loan and
Greystone plans to submit the application. Payments on outstanding debt and financing leases totaled approximately $6,560,000. It is our goal to continue to
improve the relationship of debt to equity.”
“The impact of COVID-19 has created much uncertainty in the workplace. The major issue that Greystone has faced is maintaining adequate workforce to meet
demand for pallets. The virus has affected the overall workforce in our operating area as well as our own workforce. Employees electing to say at home for
protection from COVID-19 and reductions in recruitment of new employees has impacted the Company’s pallet production resulting in an approximate 11%
decline during the fourth quarter of fiscal year 2020. Going forward, we are unable to predict the stability of our workforce as the longer the virus stays active, the
greater the uncertainty.”
Greystone Logistics is a “Green” manufacturing company that reprocesses recycled plastic and designs, manufactures, sells high quality 100% recycled plasti
