Fri, Apr 11, 6:11 PM (16 days ago)
**Greystone Logistics, Inc. (GLGI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $14,315,798, a 2% increase from Q1 2024 ($13,980,009). However, nine-month revenue decreased by 15% to $39,911,692 due to reduced demand from significant customers. - **Profit Margins:** Q1 2025 gross profit margin improved to 19% from 13% in Q1 2024, driven by production efficiencies. However, the nine-month gross profit margin decreased to 15% from 19% due to lower production volumes. - **Net Income:** Q1 2025 net income was $965,665, a significant increase from $297,929 in Q1 2024. Nine-month net income decreased to $1,096,405 from $3,006,974 in the prior year. - **Cash Flow:** Operating cash flow for the nine months ended February 28, 2025, was $7,897,023, down from $9,272,967 in the prior year. Cash used in investing and financing activities was $5,063,300 and $4,835,317, respectively. **Earnings & Trends:** - **Earnings Changes:** Q1 2025 earnings per share (EPS) increased to $0.03 from $0.01 in Q1 2024. Nine-month EPS decreased to $0.02 from $0.09. - **Trends:** Greystone faces customer concentration risk, with a limited number of customers (2-4) accounting for approximately 76% of sales. The company is working to diversify its customer base. **Uncertainties & Future Operations:** - **Uncertainties:** Greystone's future performance may be impacted by raw material availability, competition, and regulatory changes. The company's ability to secure additional financing and retain key customers is also uncertain. - **Future Operations:** Greystone plans to retire the remaining 29,000 shares of preferred stock in Q4 2025, which will align net income and net income attributable to common stockholders. The company will continue to focus on increasing sales through marketing efforts and adding new customers. **Key Metrics:** - **Current Ratio:** As of February 28, 2025, Greystone had a working capital of $5,926,695. - **Debt:** Long-term debt, net of the current portion, was $9,499,020 as of February 28, 2025. - **Customer Concentration:** Approximately 76% of sales were derived from a limited number of customers during the nine months ended February 28, 2025. **Conclusion:** Greystone Logistics, Inc. faces challenges due to customer concentration and reduced demand from significant customers. However, the company has shown improvement in gross profit margins and is taking steps to diversify its customer base and strengthen its financial position. Investors should monitor Greystone's progress in securing additional financing and retaining key customers.