GREYSTONE LOGISTICS, INC.
For the period ended Nov 30, 2024. Filed Jan 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2024 · Filed Jan 14, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-08-31; filed 2024-10-18.
0001437749-24-031556
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-11-30; filed 2025-01-14.
0001437749-25-001073
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 76 current paragraphs.
41 unchanged; 14 reworded; 14 added; 1 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Six Months Ended November 30, 2024 Compared to Six Months Ended November 30, 2023
Current report
Interest expense was $570,081 for the six months ended November 30, 2024, compared to $672,361 for the six months ended November 30, 2023, representing a decrease of $102,280. This decrease is due to the continuing payments on the principal of outstanding debt as well as a reduction in the prime rate.
Current report
Net Income (Loss) Attributable to Common Stockholders
Current report
The net income (loss) attributable to common stockholders for the six months ended November 30, 2024, was $(157,295), or $(0.01) per share, compared to $2,416,374, or $0.09 per share, for the six months ended November 30, 2023, primarily for the reasons discussed above.
Current report
Sales
Current report
Cost of Sales
Current report
Gross Profit
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses were $1,360,957, or 11% of sales, for the three months ended November 30, 2024 compared to $1,374,024, or 9% of sales, for the three months ended November 30, 2023, representing a decrease of $13,067. SG&A costs during the current period compared to the prior period was consistent with past performance.
Current report
Other Income (Expenses)
Current report
Provision for Income Taxes
Current report
Net Income (Loss)
Current report
Greystone recorded net loss of $(204,714) for the three months ended November 30, 2024, compared to $964,826 for the three months ended November 30, 2023, primarily for the reasons discussed above.
Current report
Net Income (Loss) Attributable to Common Stockholders,
Removed paragraphs (1)
Previous report
Net Income Attributable to Common Stockholders
Reworded paragraphs (14)
Previous wording
This Quarterly Report on Form 10-Q includes certain statements that may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that Greystone expects, believes or anticipates will or may occur in the future, including decreased costs, securing financing, the profitability of Greystone, 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. The forward-looking statements contained in this Quarterly Report on Form 10-Q could be affected by any of the following factors: Greystone's prospects could be affected by changes in availability of raw materials, competition, rapid technological change and new legislation regarding environmental matters; Greystone may not be able to secure additional financing necessary to sustain and grow its operations; and a material portion of Greystone's business is and will be dependent upon a few large customers and there is no assurance that Greystone will be able to retain such customers. These risks and other risks that could affect Greystone's business are more fully described in Greystone's Annual Report on Form 10-K for the fiscal year ended May 31, 2024, which was filed with the Securities and Exchange Commission on September 13, 2024, as the same may be updated from time to time. Actual results may vary materially from the forward-looking statements. The results of operations for the three months ended August 31, 2024, are not necessarily indicative of the results for the fiscal year ending May 31, 2024. Greystone undertakes no duty to update any of the forward-looking statements contained in this Quarterly Report on Form 10-Q.
Current wording
This Quarterly Report on Form 10-Q includes certain statements that may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that Greystone expects, believes or anticipates will or may occur in the future, including decreased costs, securing financing, the profitability of Greystone, 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. The forward-looking statements contained in this Quarterly Report on Form 10-Q could be affected by any of the following factors: Greystone's prospects could be affected by changes in availability of raw materials, competition, rapid technological change and new legislation regarding environmental matters; Greystone may not be able to secure additional financing necessary to sustain and grow its operations; and a material portion of Greystone's business is and will be dependent upon a few large customers and there is no assurance that Greystone will be able to retain such customers. These risks and other risks that could affect Greystone's business are more fully described in Greystone's Annual Report on Form 10-K for the fiscal year ended May 31, 2024, which was filed with the Securities and Exchange Commission on September 13, 2024, as the same may be updated from time to time. Actual results may vary materially from the forward-looking statements. The results of operations for the six months ended November 30, 2024, are not necessarily indicative of the results for the fiscal year ending May 31, 2025. Greystone undertakes no duty to update any of the forward-looking statements contained in this Quarterly Report on Form 10-Q.
Previous wording
Greystone had full-time equivalents of approximately 168 and 177 regular employees and 72 and 116 temporary employees as of August 31, 2024 and 2023, respectively. Full-time equivalent is a measure based on time worked.
Current wording
Greystone had full-time equivalents of approximately 161 and 181 regular employees as of November 30, 2024 and 2023, respectively, additionally at any point in time, the Company can have between 65-70 temporary employees. Full-time equivalent is a measure based on time worked.
Previous wording
During the three months ended August 31, 2024, the Company and the insurer agreed on the amount of settlements on certain casualty losses occurring in fiscal years 2024 and 2023. As of August 31, 2024, the outstanding balance on the receivable from the insurer is $1,781,836 as shown in Other receivable on the consolidated balance sheet. The payments resulted in a gain of $741,821.
Current wording
During the six months ended November 30, 2024, the Company and the insurer agreed on the amount of settlements on certain casualty losses occurring in fiscal years 2024 and 2023. The payments resulted in a gain of $741,821.
Previous wording
Selling, general and administrative expenses were $1,820,191, or 13.5% of sales, for the three months ended August 31, 2024 compared to $1,212,951, or 7.0% of sales, for the three months ended August 31, 2023, representing an increase of $607,240. The increase is primarily due to bonuses paid during the three months ended August 31, 2024.
Current wording
Selling, general and administrative expenses were $3,181,148, or 12% of sales, for the six months ended November 30, 2024 compared to $2,586,974, or 8% of sales, for the six months ended November 30, 2023, representing an increase of $594,174. The increase is primarily due to bonuses paid during the six months ended November 30, 2024.
Previous wording
Greystone recorded net income of $498,733 for the three months ended August 31, 2024, compared to $1,744,219 for three months ended August 31, 2023, primarily for the reasons discussed above.
Current wording
Greystone recorded net income of $130,740 for the six months ended November 30, 2024, compared to $2,709,045 for the six months ended November 30, 2023, primarily for the reasons discussed above.
Previous wording
Sales for the three months ended August 31, 2024, were $13,460,647 compared to $17,413,671for the three months ended August 31, 2023, representing a decrease of $3,953,024, or 23%. The reduction in sales for the three months ended August 31, 2024, compared to the prior period is primarily attributable to an approximate 43% decrease in demand from one of its significant customers, which was offset somewhat by an increase in demand from another of its significant customers. The increase in demand from the latter customer was due to a newly designed plastic pallet to specifically meet the customer’s needs.
Current wording
Sales for the three months ended November 30, 2024, were $12,135,247 compared to $15,597,036 for the three months ended November 30, 2023, representing a decrease of $3,461,789, or 22%. The reduction in sales for the three months ended November 30, 2024, compared to the prior period is primarily attributable to an approximate 33% decrease in demand from one of its significant customers, which was offset somewhat by an increase in demand from another of its significant customers. The increase in demand from the latter customer was due to a newly designed plastic pallet to specifically meet the customer’s needs.
Previous wording
The cost of sales for the three months ended August 31, 2024, was $11,557,753, or 86% of sales, compared to $13,368,909, or 77% of sales, for the three months ended August 31, 2023. The increase in the ratio of cost of sales to sales for the three months ended August 31, 2024, over the prior period was primarily the result of an approximate 30% decrease in production of plastic pallets. Due to Greystone’s inflexible manufacturing costs, the gross profit margin is directly affected by variations in the quantity of plastic pallets produced.
Current wording
The cost of sales for the three months ended November 30, 2024, was $10,754,713, or 89% of sales, compared to $12,459,570, or 80% of sales, for the three months ended November 30, 2023. The increase in the ratio of cost of sales to sales for the three months ended November 30, 2024, over the prior period was primarily the result of an approximate 30% decrease in production of plastic pallets. Due to Greystone’s inflexible manufacturing costs, the gross profit margin is directly affected by variations in the quantity of plastic pallets produced.
Previous wording
Gross profit for the three months ended August 31, 2024, was $1,902,894, or 14% of sales, compared to $4,044,762, or 23% of sales, for the three months ended August 31, 2023. The principal reason for decrease in gross profit margin for the three months ended August 31, 2024, over the prior period was the decline in production as discussed above.
Current wording
Gross profit for the three months ended November 30, 2024, was $1,380,534 or 11% of sales, compared to $3,137,466 or 20% of sales, for the three months ended November 30, 2023. The principal reason for decrease in gross profit margin for the three months ended November 30, 2024, over the prior period was the decline in production as discussed above.
Previous wording
Other income, generally from interest income and the sale of scrap material, was $19,389 and $1,599 for the three months ended August 31, 2024 and 2023.
Current wording
Other income, generally from interest income and the sale of scrap material, was $51,081 and $1,554 for the three months ended November 30, 2024 and 2023, respectively.
Previous wording
Interest expense was $294,709 for the three months ended August 31, 2024, compared to $342,191 for the three months ended August 31, 2023, representing a decrease of $47,482. This decrease is due to the continuing payments on the principal of outstanding debt.
Current wording
Interest expense was $275,372 for the three months ended November 30, 2024, compared to $330,170 for the three months ended November 30, 2023, representing a decrease of $54,798. This decrease is due to the continuing payments on the principal of outstanding debt as well as a reduction in the prime rate.
Previous wording
The provision for income taxes was $216,750 and $747,000 for the three months ended August 31, 2024 and 2023, respectively. The effective tax rate differs from federal statutory rates due principally to state income taxes, charges (income) which have no tax benefit (expense), and changes in the valuation allowance.
Current wording
The provision for income taxes was $0 and $470,000 for the three months ended November 30, 2024 and 2023, respectively. The effective tax rate differs from federal statutory rates due principally to state income taxes, charges (income) which have no tax benefit (expense), and changes in the valuation allowance.
Previous wording
The net income attributable to common stockholders for the three months ended August 31, 2024, was $350,651, or $0.02 per share, compared to $1,598,020, or $0.06 per share, for the three months ended August 31, 2023, primarily for the reasons discussed above.
Current wording
The net income (loss) attributable to common stockholders for the three months ended November 30, 2024, was $(345,297), or $(0.01) per share, compared to $818,354, or $0.03 per share, for the three months ended November 30, 2023, primarily for the reasons discussed above.
Previous wording
A summary of cash flows for the three months ended August 31, 2024, was as follows:
Current wording
A summary of cash flows for the six months ended November 30, 2024, was as follows:
Previous wording
Greystone had a working capital of $7,321,684 as of August 31, 2024. To provide for the funding to meet Greystone's operating activities and contractual obligations as of August 31, 2024, Greystone will have to continue to produce positive operating results or explore various options including additional long-term debt and equity financing. However, there is no guarantee that Greystone will continue to create positive operating results or be able to raise sufficient capital to meet these obligations.
Current wording
Greystone had a working capital of $6,986,685 as of November 30, 2024. To provide for the funding to meet Greystone's operating activities and contractual obligations as of November 30, 2024, Greystone will have to continue to produce positive operating results or explore various options including additional long-term debt and equity financing. However, there is no guarantee that Greystone will continue to create positive operating results or be able to raise sufficient capital to meet these obligations.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Sales for the six months ended November 30, 2024, were $25,595,894 compared to $33,010,707 for the six months ended November 30, 2023, representing a decrease of $7,414,813, or 23%. The reduction in sales for the six months ended November 30, 2024, compared to the prior period is primarily attributable to an approximate 38% decrease in demand from one of its significant customers, which was offset somewhat by an increase in demand from another of its significant customers. The increase in demand from the latter customer was due to a newly designed plastic pallet to specifically meet the customer’s needs.
Current report — wording carried from elsewhere
Greystone generally has a limited number of customers, generally 2 to 4, that accounted for approximately 76% and 83% of sales during the six months ended November 30, 2024 and 2023, respectively. Greystone is not able to predict the future needs of these major customers and will continue its efforts to increase sales through the addition of new customers developed through Greystone’s marketing efforts.
Current report — wording carried from elsewhere
The cost of sales for the six months ended November 30, 2024, was $22,312,466, or 87% of sales, compared to $25,828,480, or 78% of sales, for the six months ended November 30, 2023. The increase in the ratio of cost of sales to sales for the six months ended November 30, 2024, over the prior period was primarily the result of an approximate 30% decrease in production of plastic pallets. Due to Greystone’s inflexible manufacturing costs, the gross profit margin is directly affected by variations in the quantity of plastic pallets produced.
Current report — wording carried from elsewhere
Gross profit for the six months ended November 30, 2024, was $3,283,428, or 13% of sales, compared to $7,182,227, or 22% of sales, for the six months ended November 30, 2023. The principal reason for decrease in gross profit margin for the six months ended November 30, 2024, over the prior period was the decline in production as discussed above.
Current report — wording carried from elsewhere
Other income, generally from interest income and the sale of scrap material, was $70,470 and $3,153 for the six months ended November 30, 2024 and 2023.
Current report — wording carried from elsewhere
The provision for income taxes was $213,750 and $1,217,000 for the six months ended November 30, 2024 and 2023, respectively. The effective tax rate differs from federal statutory rates due principally to state income taxes, charges (income) which have no tax benefit (expense), and changes in the valuation allowance.
Current report — wording carried from elsewhere
Based upon a review of its income tax filing positions, Greystone believes that its positions would be sustained upon an audit by the Internal Revenue Service and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded.