Replies to post #497 on Greystone Logistics Inc. (GLGI)

[MrT11]

For what it's worth.

Revenues and Earnings for Greystone Logistics, Inc.
Date : 05/03/2016 @ 5:00AM
Source : Marketwired
Stock : Greystone Logistics, Inc. (QB) (GLGI)
Quote : 0.23 0.02 (9.52%) @ 4:00PM
Revenues and Earnings for Greystone Logistics, Inc.
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Revenues and Earnings for Greystone Logistics, Inc.

TULSA, OK-(Marketwired - May 3, 2016) - Tulsa-based Greystone Logistics, Inc. (OTCQB: GLGI) reported sales for the third quarter ending February 29, 2016 of $5,280,480 compared to $3,685,044 for the prior period for an increase of $1,595,436. Pallet sales were $5,122,785 or 97% of total sales, in the quarter ended February 29, 2016 compared to $3,520,056, or 96% of total sales, in the prior period for an increase of $1,602,729.

Sales for the nine months ended February 29, 2016 were $15,270,671 compared to $13,676,492 in the nine months ended February 28, 2105 for an increase of $1,594,179. Pallet sales were $14,999,740, or 98% of total sales, in nine months ended February 29, 2016 compared to $12,466,944, or 91% of total sales, in prior period for an increase of $2,532,796.

Greystone's pallet sales to its major customer in the nine months ended February 29, 2016 were 31% of total sales (32% of pallet sales) compared to 40% of total sales (44% of pallet sales) in prior period. Pallet sales to the major customer decreased by approximately $0.7 million from nine months ended February 38, 2015 2015 to the nine months ended February 29, 2016, while pallet sales to new and existing customers provided the basis for the increase in pallet sales in the current fiscal year.

For the third quarter ended February 29, 2016, Greystone recorded a net loss available to common stockholders of $(200,528), or $(0.01) per share, compared to net income of $198,859, or $0.01 per share, in the prior period. For the nine months ended February 29, 2016, Greystone recorded a net loss available to common stockholders of $(314,263), or $(0.01) per share, compared to $(382,764), or $(0.01) per share, for the nine months ended February 28, 2015.

"During the third quarter, Greystone acquired an additional injection molding machine at a cost of $2.5 million to accommodate the needs of a new customer", stated Warren Kruger CEO. "There were substantial costs in preparation for full implementation of the new equipment which affected the margins for the third quarter. The equipment became fully operational in March 2016. We anticipate higher sales and better margins in the fourth quarter ending May 31, 2016. We continue to invest in our company's future."

Greystone Logistics is a "Green" manufacturing and leasing company that reprocesses and sells 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 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

[Phaedrus77]

I haven't sold. I thought the quarter was pretty good. Sales are up, finished inventory is up, # of employees increased from 90-something to 150. All of this happened before the new molding machine was installed. I'll be interested to see the level of sales in Q4.

There was another related party transaction (buying the wash line facility from Yorktown). I wish GLGI would disclose Yorktown's cost of the equipment...that way we'd know if the deal was at market terms. This could also be the reason for the large increase in the number of employees.

I think it's interesting that a couple years ago GLGI ran up to ~60 cents on the mere expectation of a deal with AB. Now, we have a confirmed deal with a new customer (which is large enough to necessitate the purchase of a new molding machine), and the stock is at 23 cents.