Greystone Logistics, Inc. reported a significant decline in financial performance for the three months ended August 31, 2024, compared to the same period in 2023. Sales decreased by 23%, falling to $13.5 million from $17.4 million, primarily due to a 43% reduction in demand from a major customer, although this was partially offset by increased demand from another customer for a newly designed plastic pallet. The cost of sales rose to $11.6 million, representing 86% of sales, up from 77% in the prior year, which negatively impacted gross profit margins. Gross profit for the quarter was $1.9 million, down from $4.0 million in the previous year.
Operating income also saw a sharp decline, dropping to $824,524 from $2.8 million, while net income fell to $335,454 compared to $1.7 million in the prior year. Net income attributable to common stockholders was $187,372, down from $1.6 million, resulting in basic and diluted earnings per share of $0.01, down from $0.06 and $0.05, respectively.
The company’s total current assets decreased to $13.9 million from $16.8 million, while total assets slightly declined to $51.5 million from $52.3 million. Total current liabilities also decreased to $6.6 million from $7.2 million, leading to an increase in total equity to $24.2 million from $24.0 million.
Greystone recognized a gain of $741,821 from settlements on casualty losses related to a fire incident in February 2024, which damaged inventory and a building. The company recorded an insurance receivable of $1.8 million as of August 31, 2024, which was fully funded on September 13, 2024.
Selling, general, and administrative expenses increased to $1.8 million from $1.2 million, largely due to bonuses. Interest expenses decreased to $294,709 from $342,191, reflecting principal payments on outstanding debt. The provision for income taxes also decreased to $216,750 from $747,000.
As of August 31, 2024, Greystone had approximately 168 full-time employees, down from 177 a year earlier, and 72 temporary employees, a decrease from 116. The company continues to focus on its primary product, plastic pallets made from recycled materials, with a significant portion of sales derived from a limited number of customers.
About GREYSTONE LOGISTICS, INC.
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