Greystone Logistics, Inc. (PNK:GLGI) Q3 2024 Earnings Call Transcript April 17, 2024
Greystone Logistics, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day everyone, and welcome to today’s Greystone Logistics’ Q3 Results. At this time all participants are in a listen-only mode. Later, you will have the opportunity to ask a question during the question-and-answer session. [Operator Instructions] And as a reminder, today’s call is being recorded. [Operator Instructions]. It’s now my pleasure to turn the conference over to Brendan Hopkins. Please go ahead.
Brendan Hopkins : Thank you. And thank you everyone for joining us today. We have a brief Safe Harbor and we’ll get started. Except for historical information contained herein, the statements in this conference call are forward-looking statements that are made pursuant to Safe Harbor provisions the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results and future periods to differ materially from forecasted results. With that said, I would like to turn the call over to Warren Kruger, CEO of Greystone Logistics.
Warren Kruger : Thank you, Brendan. I appreciate everyone being here today at the call. We look forward to taking questions a little later. I just want to talk a little bit about the last three months and the last nine months. The last three months have been a little weaker than what I would have hoped for. We have a very large retailer in America, that we’d had the tool about a month ago, but supply chain timing has not really benefited any of us in the manufacturing sector. It’s taking longer to get tooling, equipment, and so forth. We do have a tool that should be here in the next 30 days, and that tool, I would doubt, will stop running for the foreseeable future. We also have retooled our automobile pallet, and of course, we are now out with Tesla, General Motors, Ford, we’re showing that product.
And I’m very optimistic about that as well. We’re also looking to buy, our Nestable business has been up some, and we’re excited about that. In terms of the last nine months, there’s a little bit of confusion with the retained earnings credit we got from the government that helped not only earnings but retain employees. The credit we got really did help us retain our employees. It was something that benefited all of America, I think, and most certainly affected us. But it skewed our numbers somewhat. Our numbers are good this year. They are a little bit under-projected. I anticipate that we’ll get back on track very soon. So, I look forward to the questions a little later. And right now, I want to turn it over to Brice Dille, who will go over the numbers for us.
Brice Dille: Okay. Quickly, for the nine months, we made $0.09 a share. And as Warren was indicating, the previous nine months, we had a $3.2 million employee retention credit that comes back from the COVID days. That was $3.2 million. So when you look at the earnings per share, the $0.09 compared to the $0.16, if you took out the $3.2 million, the nine months was substantially better than the previous nine months. And if you look at the revenues for those comparable periods, it was $46 million compared to $44 million. And then if you look at the quarter-over-quarter, that employee retention credit was in the third quarter of 2023. So if you look over the quarter-by-quarter results, you have one chance per share compared to the $0.13.
Aerial view of a large warehouse loaded with pallets and crates of food products.
But if you take the effect of the $3.2 million out, and really, the quarter sales was stronger, earnings were about flat. And if you have any follow-up questions about employee retention credits, we can always answer that. But effectively, everybody knows this on the call. If the government gives them money, you retain your employee, and you got an employee retention credit. So when you look at EBITDA for the nine months. 2024, it’s essentially $9.6 million, I call it $10 million.
Warren Kruger : Hey, Brice, let me stop you for a second. Tommy, can you do something in the background for us?
Brendan Hopkins: It’s someone talking in the background on Brice’s line, I think.
Brice Dille: I don’t think it was on my line. Was there a question that somebody was asking?
Warren Kruger : No, it’s just there was some background. Brice, I’m sorry to interrupt you.
Brice Dille: Yeah, I did hear that background noise. Did everybody — was everybody able to catch the earnings per share and the sales and net income figure?
Warren Kruger : I could catch it, so if we need to follow up with questions later, we can do so.
Brice Dille: Okay.
Warren Kruger : I’m going to take it back from Brice at this point. We’re trying to get in rhythm here. Can we open it up to go ahead and ask questions and answers?
Operator: Yes, thank you. [Operator Instructions] And we’ll take our first question from Anthony Perala.
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