EXHIBIT 99.1
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GREYSTONE LOGISTICS REPORTS UNAUDITED RESULTS FOR FISCAL YEAR ENDING 2006
Tulsa, OK - July 20, 2006 - Warren F. Kruger, Vice Chairman of Greystone
Logistics, Inc. (OTCBB: GLGI), announced today unaudited results for fiscal year
ending May 31, 2006. Sales increased to $15,949,400 for the fiscal year ending
May 31, 2006 compared to $9,305,500 for fiscal year 2005 for an increase of
$6,643,900, or 71%. The increase is primarily attributable to sales from the
addition of one production line in fiscal year 2006.
Greystone also announced a net loss to common shareholders for the year ended
May 31, 2006 of ($2,758,500), or ($0.11) per share. Greystone's EBITDA (earnings
(loss) before interest (including preferred dividends), taxes, depreciation
(including impairments and amortization)) for the year ended May 31, 2006 is
($429,600) versus ($2,713,200) for the same period last year. The fourth quarter
resulted in a positive EBITDA of $218,500.
"We have established our physical capacities in production and in our plastic
grinding operation to meet expected demand and have continued to bring operating
costs inline with company established goals," said Warren Kruger, Vice Chairman
of Greystone. Mr. Kruger continued, "We expect the recent delivery of our
Grocery Manufacturer's Association standard size 48 inch x 40 inch rackable
pallet mold to contribute substantially to sales volume in the next year. The
addition expands the Company's product line to meet new inquiries for our unique
line of recycled plastic pallets, including significant requests for pallets by
cost conscious and environmentally sensitive corporations. "
NON-GAAP FINANCIAL MEASURE
This release contains disclosure of EBITDA, which is a non-GAAP financial
measure within the meaning of Regulation G promulgated by the Securities and
Exchange Commission. A reconciliation of EBITDA to net income (loss) available
to common shareholders before income taxes, the most directly comparable GAAP
financial measure, as well as additional information concerning EBITDA, are
included at the end of this release.
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 Greystone and its products, see Greystone's
Form 10-KSB for the period ended May 31, 2004, which was filed on August 31,
2004.
GREYSTONE LOGISTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED MAY 31,
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2006 2005
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Sales $ 15,949,400 $ 9,305,500
Gross Profit (Loss) 944,700 (267,500)
Operating Profit (Loss) (1,195,900) (9,791,600)
Net Loss (2,210,100) (10,421,800)
Preferred dividends (548,400) (404,600)
Net Loss to Common Shareholders (2,758,500) (10,826,400)
Per Share of Common Stock (0.11) (0.60)
Average Shares of Common Outstanding 24,061,201 17,950,000
SUPPLEMENTAL STATISTICAL INFORMATION
Net Loss to Common Shareholders $ (2,758,500) $(10,826,400)
Add Back:
Interest expense, including preferred
dividends 1,562,200 1,096,900
Provision for income taxes -- --
Depreciation and amortization,
Including impairments 766,700 7,016,300
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EBITDA (A) $ (429,600) $ (2,713,200)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MAY 31,
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2006 2005
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Sales $ 4,711,700 $ 2,717,200
Gross Profit (Loss) 484,800 (303,000)
Operating Profit (Loss) 78,100 (7,885,900)
Net Loss (244,500) (7,994,300)
Preferred dividends (138,800) (113,700)
Net Loss to Common Shareholders (383,300) (8,108,000)
Per Share of Common Stock (0.02) (0.34)
Average Shares of Common Outstanding 24,061,201 23,949,400
SUPPLEMENTAL STATISTICAL INFORMATION
Net Loss to Common Shareholders $ (383,300) $ (8,108,000)
Add Back:
Interest expense, including preferred
dividends 379,900 266,600
Provision for income taxes -- --
Depreciation and amortization,
Including impairments 221,900 6,668,600
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EBITDA (A) $ 218,500 $ (1,172,800)
(A) EBITDA represents income (loss) before income taxes plus interest,
depreciation and amortization. The Company has included preferred dividends
with interest expense. The EBITDA presented above while considered the most
common definition used by investors and financial analysts, may not be
comparable to similarly titled measures reported by other companies. The
Company believes that EBITDA, while providing useful information, should
not be considered in isolation or as an alternative to other financial
measures determined under GAAP.
CONTACT: Warren F. Kruger, Vice Chairman
Corporate Office
1613 East 15th Street
Tulsa, Oklahoma 74120
(918) 583-7441
(918) 583-7442
www.greystonelogistics-glgi.com
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