EXHIBIT 99.1
------------
GREYSTONE LOGISTICS REPORTS UNAUDITED RESULTS FOR QUARTER AND FISCAL YEAR ENDING
MAY 31, 2007
TULSA, OK--(MARKET WIRE)--July 18, 2007 -- Greystone Logistics, Inc. (OTC
BB:GLGI.OB - News), announced today unaudited results for the quarter and fiscal
year ending May 31, 2007. Operating profit for the 4th quarter was $280,068 with
a net income before preferred dividends of $96,791. Net income available to
common shareholders after preferred dividends was $(69,128) or $.00 per share.
Sales were $12,454,293 for the fiscal year ending May 31, 2007 compared to
$15,956,386 for fiscal year 2006 for a decrease of $3,502,093. The decrease is
primarily attributable to seasonality of certain product lines, barrel and screw
work on an injection equipment line, and delayed production startup due to the
pushback of the delivery of the new 48x40 molds and the retooling of the 48x44
mold. The new 48x40 molds were put into service in the last month of the
quarter. The net loss to common shareholders for the year ended May 31, 2007 was
($3,048,396), or ($0.12) per share.
Greystone's EBITDA (earnings (loss) before interest (including preferred
dividends), income taxes, depreciation and amortization) for the year ended May
31, 2007 is ($440,048) versus ($552,885) for the same period last year. The
fourth quarter ended May 31, 2007 resulted in a positive EBITDA of $548,059
versus $83,719 for the same period last year.
"Last year, we announced the addition of the heavy duty 48x40 rackable pallet to
our growing product line. Previously announced customer purchase orders for this
product are now being filled taking all the capacity from the 48x40 molds on our
equipment," said Warren Kruger, CEO of Greystone. Kruger continued, "We are
maintaining production 24 hours per day 7 days per week to meet customer demand
as more companies look for creative solutions to industrial packaging and
material handling enhancements that allow them to discontinue use of wooden
pallets. The environmental award winning pallets with high coefficient of
friction and racking capabilities meet or exceed ASTM standards and are being
recognized for being their ease of use, cleanliness, and long lives in highly
automated warehouses. The added bonus is our product line consists of 100%
recycled plastic which can be reground for reuse at the end of their useful
life. We look forward to continued positive results based on current and pending
orders."
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, 2006.
Greystone Logistics, Inc.
Condensed Consolidated Statements of Operations
Year Ended May 31,
------------ ------------
2007 2006
------------ ------------
Sales $ 12,454,293 $ 15,956,386
Gross Profit (Loss) 866,236 925,696
Operating Profit (Loss) (864,227) (1,323,023)
Net Loss (2,472,848) (2,335,153)
Preferred Dividends (575,548) (513,938)
Net Loss to Common Shareholders (3,048,396) (2,849,091)
Per Share of Common Stock (0.12) (.12)
Average Shares of Common Outstanding 24,727,867 24,061,201
Supplemental Statistical Information
Net Loss to Common Shareholders $ (3,048,396) $ (2,849,091)
Add Back:
Interest expense, including preferred
dividends 1,761,089 1,527,768
Provision for income taxes -- --
Depreciation and amortization 847,259 768,438
------------ ------------
EBITDA (A) $ (440,048) $ (552,885)
Condensed Consolidated Statements of Operations
Three Months Ended May 31,
------------ ------------
2007 2006
------------ ------------
Sales $ 3,389,034 $ 4,718,649
Gross Profit (Loss) 641,629 465,796
Operating Profit (Loss) 280,068 (49,047)
Net Profit (Loss) 96,791 (369,539)
Preferred Dividends (146,507) (104,309)
Net Loss to Common Shareholders (49,716) (473,848)
Per Share of Common Stock 0.00 (0.02)
Average Shares of Common Outstanding 26,061,201 24,061,201
Supplemental Statistical Information
Net Loss to Common Shareholders $ (49,716) $ (473,848)
Add Back:
Interest expense, including preferred
dividends 379,027 345,394
Provision for income taxes -- --
Depreciation and amortization 218,748 212,173
------------ ------------
EBITDA (A) $ 548,059 $ 83,719
(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:
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