Tulsa-based Greystone Logistics, Inc., a manufacturer of plastic pallets made from 100% recycled resin, has reported results of operations for the six months and three months ended November 30, 2021.
Greystone recorded net income available to common stockholders (net income less preferred dividends and income from non-controlling interests) for the six months ended November 30, 2021 of $2,592,077, or $0.09 per share, compared to $1,733,381, or $0.06 per share, for the prior period. The three months ended November 30, 2021 resulted in a net loss to common stockholders of $(378,844), or $(0.01) per share, compared to net income available to common stockholders of $873,180, or $0.03 per share, in the prior period. Net income (loss) was $2,892,973 and $(229,485) for the six months and three months ended November 30, 2021, respectively, compared to $2,032,231 and $1,023,073 in the prior periods, respectively. EBITDA for the six months ended November 30, 2021 was $5,969,153 compared to $6,615,213 for the six months ended November 30, 2020.
The gross profit margin was 8.0% on sales of $30,618,966 for the six months ended November 30, 2021, compared to a gross profit margin of 18.3% on sales of $33,091,494 in the prior period. The paucity of profit margins for the current periods was principally due to the impact of inflationary factors on raw material pricing and machine downtime resulting from labor force shortages.
Greystone Logistics Faced Enormous Challenges and Uncertainty
“Greystone continued to face enormous challenges and uncertainty in the first six months of our corporate year with the continued impact of the pandemic and associated issues on the entire U.S. economy and mindset. However, management is emboldened about our products, opportunities, and future” stated CEO Warren Kruger.
“There was a catastrophic freeze in February in Texas shutting down refineries and skyrocketing virgin polyethylene resin prices which pushed costs in the recycled industry into territory never seen before,” he continued. “The labor market became unbelievably tight with many people staying at home to get paid government assistance through the end of September. Wage inflation occurred to retain quality employees and to compete with other employers in enticing new hires.
“Continued covid cases and scares prevented full staffing thus shutting down equipment when “no shows” occurred affecting the amount of product out the door. Gasoline, diesel and overall transportation costs soared. A lack of parts from suppliers caused major extrusion equipment issues. The inability to get trucks to show on time or at all for movement of goods continues to be a headache. Supply chain issues are real!
“Our quality management team pivoted and created solutions. Necessary price increases have been implemented which will bolster future financial results. A source was found for quality staffing and forty new people have been hired. Increased reprocessing of recycled material has allowed us to dampen the massive jump in commodity prices.
“Training of operators and new equipment ordered for delivery over the next ten months for expansion bode well for our future. New tools are arriving in the next few months for exciting new lines of business we anticipate will push top line and bottom-line growth. The recently reported new contract for $13,500,000 of recycled pallets to a national retailer is expected to have a definite impact. We appreciate the support of our shareholder base as we continue to be an environmental leader providing the best plastic recycled pallets in the market.”
Source: Globe Newswire