Greystone Logistics Reports Results to November 30, 2019

Tulsa-based Greystone Logistics, Inc. has reported record quarterly sales for the second quarter of fiscal year 2020.

Tulsa, OK, Jan. 27, 2020 – Sales for the six months ended November 30, 2019 were $38,167,971 compared to $32,939,240 and for the six months ended November 30, 2018 for an increase of $5,228,731, or 16%. Sales for the three months ended November 30, 2019 were $19,503,462 compared to $14,733,130 for the comparable period of the prior year for an increase of $4,770,332, or 24%. Greystone’s sales to major customers in the six months ended November 30, 2019 were 88% of sales compared to 84% in the same period last year.

Greystone’s net income was $1,091,984 in the six months ended November 30, 2019 compared to $1,061,853 in the same period last year. For the three months ended November 30, 2019 and 2018, Greystone’s net income was $472,685 and $296,945, respectively. Greystone recorded net income available to common stockholders for the six months November 30, 2019 and 2018 of $746,678, or $0.03 per share, and $730,281, or $0.03 per share, respectively. For the three months ended November 30, 2019 and 2018, Greystone recorded net income available to common stockholders $304,428, or $.01 per share, compared to $128,893, or $0.00 per share. EBITDA for six-month period of the current year was $4,883,619 compared to $4,482,242 of the comparable prior period.

“Sales surged the first six months of our corporate year with three large customers driving the substantial increase”, stated CEO Warren Kruger. Kruger continued, “Sales to the pallet pooling company increased 31% over the prior period, while pallet deliveries to a new major customer started in the second quarter. The company had financing lease and bank debt principal reduction for the six-month period ended November 30, 2020, of $3,486,068. We anticipate continued record sales and overall debt reduction during the final months of the corporate year ending May 31, 2020. We can see our quest to improve profit margins showing progress, and I anticipate the results of these initiatives will be shown over the next two quarters. We are focusing on margin management in four areas: 1) More throughput on existing machines 2) Lower raw material costs by processing more material inhouse as opposed to outsourcing and customer delivery of their own recycled resins 3) More efficiency for our valued employees with automation 4) Less machine and mold downtime.”

“A software program that controls the injection flow of plastic resin into molds and can control pressure changes in nano-seconds was installed on two machines and has resulted in substantial increases in pallet production. The software and related hardware have been ordered for installation on the other machines. Reductions in machine downtime have also shown improvement although during the quarter we had to retire one of the older pieces of equipment. This machine will be replaced in the next few months with a large tonnage equipment line. Robot installation remains behind schedule and we are pushing hard for completion as we continue to push for more automation in our operation.”

Source: Greystone Logistics (www.greystonelogistics.com)