EXHIBIT 99.1
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GREYSTONE LOGISTICS REPORTS UNAUDITED RESULTS FOR QUARTER ENDED AUGUST 31, 2007
Monday October 22, 7:00 am ET
TULSA, OK--(MARKET WIRE)--Oct 22, 2007 -- Greystone Logistics, Inc. (OTC
BB:GLGI.OB - News), announced today unaudited results for the quarter ended
August 31, 2007. Operating profit for the quarter ended August 31, 2007 was
$458,521 with net income before preferred dividends of $176,604. Net income
available to common shareholders after preferred dividends was $31,672, or $0.00
per share of common stock, compared to a net loss for the three months ended
August 31, 2006 of $(542,282), or $(0.02) per share of common stock.
Sales were $5,597,211 for the quarter ending August 31, 2007 compared to
$3,881,134 for the same period last year for an increase of 44%. The increase is
primarily attributable to production of the new 48x40 recycled plastic shipping
pallets for a national customer and a marked increase in sales from other
product lines. The new 48x40 molds were put into service in the last month of
the quarter ended May 31, 2007. Greystone's EBITDA (earnings before interest
(including preferred dividends), income taxes, depreciation and amortization)
for the quarter ended August 31, 2007 was $690,461, compared to $119,997 for the
three months ended August 31, 2006.
"Our entire team continues to work hard to achieve positive results as evidenced
by the fact that our company has attained positive EBITDA in each of the last
two completed quarters. Production manager Ron Schelhaas has the pallet
production and recycling facilities' humming and Bob Noland, our new Vice
President of Sales and Marketing, just completed the upgrade of our web site
www.greystonelogistics.com. Our pallet leasing software is in the testing phase
and our sales team is continuing to hear from existing and potential customers
seeking 'green,' environmental friendly and sustainable alternatives in their
logistics management," said Warren Kruger, CEO of Greystone. Kruger continued,
"Our 100% recycled plastic export and 48x40 pallets are a big hit with our
customers and we were able to show off our entire line of pallets at the recent
National Packaging Expo show in Las Vegas. We look forward to continue building
on our recent success for the benefit of our customers, employees and
shareholders."
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, 2007.
Greystone Logistics, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended August 31,
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2007 2006
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Sales $ 5,597,211 $ 3,881,134
Gross Profit 870,728 380,202
Operating Profit (Loss) 458,521 (73,778)
Net Income (Loss) 176,604 (401,378)
Preferred Dividends (144,932) (143,904)
Net Income (Loss) to Common Shareholders 31,672 (545,282)
Per Share of Common Stock,
Basic and Diluted (0.00) (.02)
Average Shares of Common Outstanding 26,061,201 26,061,201
Supplemental Statistical Information
Net Income (Loss) to Common Shareholders $ 31,672 $ (545,282)
Add Back:
Interest expense, including preferred
dividends 479,000 473,693
Provision for income taxes -- --
Depreciation and amortization 179,789 191,586
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EBITDA (A) $ 690,461 $ 119,997
(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:
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