Greystone Logistics, Inc. Reports First Quarter Results of Operations
18 October 2016 - 9:00PM
Marketwired
Greystone Logistics, Inc. Reports First Quarter Results of
Operations
TULSA, OK-(Marketwired - Oct 18, 2016) - (OTCQB: GLGI).
Tulsa-based Greystone Logistics, Inc. reported sales for the first
quarter ended August 31, 2016 of $7,844,261 compared to $5,569,981
for the prior period for an increase of $2,274,280. Pallet sales
were $7,657,259 or 98% of total sales, for the quarter ended August
31, 2016 compared to $5,566,868, or 100% of total sales, in the
prior period for an increase of $2,090,391.
Greystone's pallet sales to its two major customers during the
three months ended August 31, 2016 were 66% of total sales (36% and
30%, respectively) compared to 31% (31% and -0-%, respectively) in
the prior period. The increase in pallet sales is primarily
attributable to the addition of the second major customer, a pallet
leasing company.
For the three months ended August 31, 2016, Greystone recorded
net income of $27,008 compared to $48,396 in the prior period. For
the three months ended August 31, 2016, Greystone recorded a net
loss available to common stockholders of $(117,439), or $(0.00) per
share, compared to $(91,315), or $(0.00) per share, for the prior
period.
"The addition of the pallet leasing customer has had a
significant impact on Greystone's sales and operations," stated
Warren Kruger, President and CEO. "Greystone incurred substantial
costs necessary to achieve this growth including an approximately
68% increase in the number of employees over the prior period. The
pallet leasing company's demand for pallets is expected to be a
continuing major source of revenue for Greystone. To meet this
demand, we continued to invest in our company's future through the
addition of another injection-molding machine under a capital lease
during the quarter ended August 31, 2016 and a second machine in
September, 2016. Further, we will be focusing on improving the
returns for our shareholders through improvements in operating
efficiencies and cost containment to achieve better margins."
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 may be reprocessed for resale.
This press release includes certain statements that may be
deemed "forward-looking statements" within the meaning of the
federal securities laws. All statements, other than statements of
historical facts that address activities, events or developments
that the Company expects, believes or anticipates will or may occur
in the future, including the potential sales of pallets or other
possible business developments are forward-looking statements. Such
statements are subject to a number of assumptions, risks and
uncertainties, including the ability of the Company to continue as
a going concern. Actual results may vary materially from the
forward-looking statements. For a list of certain material risks
relating to the Company and its products, see Greystone Logistics'
Form 10-K for the fiscal year ended May 31, 2016.
Contact: Warren F. Kruger President/CEO Corporate Office 1613
East 15th Street Tulsa, Oklahoma 74120 (918) 583-7441 (918)
583-7442 (FAX) http://www.greystonelogistics.com
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