GREYSTONE LOGISTICS, INC.
For the period ended Feb 28, 2025. Filed Apr 11, 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.
Feb 28, 2025 · Filed Apr 11, 2025
GLGIStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2025-02-28; filed 2025-04-11.
0001437749-25-011753
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 76 previous paragraphs and 75 current paragraphs.
45 unchanged; 24 reworded; 6 added; 7 removed; 0 previous and 0 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 (6)
Current report
Nine months Ended February 28, 2025 Compared to Nine months Ended February 29, 2024
Current report
Net Income Attributable to Common Stockholders
Current report
The net income attributable to common stockholders for the nine months ended February 28, 2025, was $691,942, or $.02 per share, compared to $2,567,830, or $0.09 per share, for the nine months ended February 29, 2024, primarily for the reasons discussed above. As of February 28, 2025, the Company has retired 21,000 shares of preferred stock which has reduced the amount of preferred dividends owed. The Company intends to retire the remaining 29,000 shares of preferred stock during the fourth quarter of 2025 based on the liquidation preference shown on the consolidated balance sheet. Once extinguished, net income and net income attributable to common stockholders will align.
Current report
Net Income
Current report
Greystone recorded net income of $965,665 for the three months ended February 28, 2025, compared to $297,929 for the three months ended February 29, 2024, primarily for the reasons discussed above.
Current report
Net Income Attributable to Common Stockholders,
Removed paragraphs (7)
Previous report
Item 2. Management**’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous report
Six Months Ended November 30, 2024 Compared to Six Months Ended November 30, 2023
Previous report
Net Income (Loss) Attributable to Common Stockholders
Previous 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.
Previous report
Net Income (Loss)
Previous 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.
Previous report
Net Income (Loss) Attributable to Common Stockholders,
Reworded paragraphs (24)
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 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.
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 nine months ended February 28, 2025, 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 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.
Current wording
Greystone had full-time equivalents of approximately 181 and 167 regular employees as of February 28(29), 2025 and 2024, respectively, additionally at any point in time, the Company can have between 65-80 temporary employees. Full-time equivalent is a measure based on time worked.
Previous wording
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 wording
Sales for the nine months ended February 28, 2025, were $39,911,692 compared to $46,990,716 for the nine months ended February 29, 2024, representing a decrease of $7,079,024, or 15%. The reduction in sales for the nine months ended February 28, 2025, compared to the prior period is primarily attributable to an approximate 29% 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
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 wording
Greystone generally has a limited number of customers, generally 2 to 4, that accounted for approximately 76% and 83% of sales during the nine months ended February 28, 2025 and 2024, 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.
Previous wording
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 wording
The cost of sales for the nine months ended February 28, 2025, was $33,890,446, or 85% of sales, compared to $37,942,179, or 81% of sales, for the nine months ended February 29, 2024. The increase in the ratio of cost of sales to sales for the nine months ended February 28, 2025, 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 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 wording
Gross profit for the nine months ended February 28, 2025, was $6,021,246, or 15% of sales, compared to $9,048,537, or 19% of sales, for the nine months ended February 29, 2024. The principal reason for decrease in gross profit margin for the nine months ended February 28, 2025, over the prior period was the decline in production as discussed above.
Previous 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.
Current wording
During the nine months ended February 28, 2025, 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 $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.
Current wording
Selling, general and administrative expenses were $4,548,946, or 11% of sales, for the nine months ended February 28, 2025 compared to $3,863,975, or 8% of sales, for the nine months ended February 29, 2024, representing an increase of $692,087. The increase is primarily due to bonuses paid during the nine months ended February 28, 2025.
Previous wording
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 wording
Other income, generally from interest income and the sale of scrap material, was $115,956 and $180,004 for the nine months ended February 28(29), 2025 and 2024.
Previous wording
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 wording
Interest expense was $818,786 for the nine months ended February 28, 2025, compared to $982,592 for the nine months ended February 29, 2024, representing a decrease of $163,806. 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 $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 wording
The provision for income taxes was $407,770 and $1,375,000 for the nine months ended February 28(29), 2025 and 2024, 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
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.
Current wording
Greystone recorded net income of $1,096,405 for the nine months ended February 28, 2025, compared to $3,006,974 for the nine months ended February 29, 2024, primarily for the reasons discussed above.
Previous 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.
Current wording
Sales for the three months ended February 28, 2025, were $14,315,798 compared to $13,980,009 for the three months ended February 29, 2024, representing an increase of $335,789, or 2%. The increase in sales for the three months ended February 28, 2025, compared to the prior period is primarily attributable to an increase in demand from three of its significant customers of approximately $3.3M offset by $3M decrease in demand from two of its significant customers. The majority of the increase in demand is from one of the significant customers for approximately $2.4M, which was due to a newly designed plastic pallet to specifically meet the customer’s needs.
Previous wording
Greystone generally has a limited number of customers, generally 2 to 4, that accounted for approximately 76% and 85% of sales during the three 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 wording
Greystone generally has a limited number of customers, generally 2 to 4, that accounted for approximately 75% and 82% of sales during the three months ended February 28(29), 2025 and 2024, 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.
Previous 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.
Current wording
The cost of sales for the three months ended February 28, 2025, was $11,577,980, or 81% of sales, compared to $12,113,699, or 87% of sales, for the three months ended February 29, 2024. The decrease in the ratio of cost of sales to sales for the three months ended February 28, 2025, over the prior period was primarily the result of lower pricing on raw materials and overall improvement on production efficiencies.
Previous 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.
Current wording
Gross profit for the three months ended February 28, 2025, was $2,737,818 or 19% of sales, compared to $1,866,310 or 13% of sales, for the three months ended February 29, 2024. The principal reason for the increase in gross profit margin for the three months ended February 28, 2025, over the prior period was due to efficiencies in production as discussed above.
Previous wording
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 wording
Selling, general and administrative expenses were $1,367,798, or 10% of sales, for the three months ended February 28, 2025 compared to $1,277,001, or 9% of sales, for the three months ended February 29, 2024, representing an increase of $97,913. SG&A costs during the current period compared to the prior period was consistent with past performance.
Previous 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.
Current wording
Other income, generally from interest income and the sale of scrap material, was $45,486 and $176,851 for the three months ended February 28(29), 2025 and 2024, respectively.
Previous 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.
Current wording
Interest expense was $248,705 for the three months ended February 28, 2025, compared to $310,231 for the three months ended February 29, 2024, representing a decrease of $61,526. 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 $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.
Current wording
The provision for income taxes was $194,020 and $158,000 for the three months ended February 28(29), 2025 and 2024, 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 (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.
Current wording
The net income attributable to common stockholders for the three months ended February 28, 2025, was $849,867, or $0.03 per share, compared to $151,456 or $0.01 per share, for the three months ended February 29, 2024, primarily for the reasons discussed above. As of February 28, 2025, the Company has retired 21,000 shares of preferred stock which has reduced the amount of preferred dividends owed. The Company intends to retire the remaining 29,000 shares of preferred stock during the fourth quarter of 2025 based on the liquidation preference value shown on the consolidated balance sheet. Once extinguished, net income and net income attributable to common stockholders will align.
Previous wording
A summary of cash flows for the six months ended November 30, 2024, was as follows:
Current wording
A summary of cash flows for the nine months ended February 28, 2025, was as follows:
Previous 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.
Current wording
Greystone had a working capital of $5,926,695 as of February 28, 2025. To provide for the funding to meet Greystone's operating activities and contractual obligations as of February 28, 2025, 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.
Previous wording
Greystone has 50,000 outstanding shares of cumulative 2003 Preferred Stock with a liquidation preference of $5,000,000 and a preferred dividend rate of the prime rate of interest plus 3.25%. Greystone does not anticipate that it will make cash dividend payments to any holders of its common stock unless and until the financial position of Greystone improves through increased revenues, another financing transaction or otherwise. Pursuant to the IBC Restated Loan Agreement, as discussed in Note 6 to the unaudited consolidated financial statements, Greystone may pay dividends on its preferred stock in an amount not to exceed $1,000,000 per year.
Current wording
Greystone has 29,000 outstanding shares of cumulative 2003 Preferred Stock with a liquidation preference of $2,900,000 and a preferred dividend rate of the prime rate of interest plus 3.25%. Greystone does not anticipate that it will make cash dividend payments to any holders of its common stock unless and until the financial position of Greystone improves through increased revenues, another financing transaction or otherwise. Pursuant to the IBC Restated Loan Agreement, as discussed in Note 6 to the unaudited consolidated financial statements, Greystone may pay dividends on its preferred stock in an amount not to exceed $1,000,000 per year. The Company has determined that the remaining 29,000 shares of preferred stock will be fully extinguished during the fourth quarter of fiscal year 2025.