Transcript
Page 1: MicroCapClub Invitational: Greystone Logistics (GLGI)

www.greystonelogis�cs.com  

Recycled  Plas�c  Pallets  |  Plas�c  Resin  Processing  |  Pallet  Lease  and  Rental  Programs  

Page 2: MicroCapClub Invitational: Greystone Logistics (GLGI)

www.greystonelogis�cs.com  

Disclosures  Disclaimer:  This  material  has  been  prepared  by  the  company  described  and  is  being  

distributed  by  the  company.  The  company  prepared  the  facts  that  underlie  this  execu�ve  summary  and  addi�onal  informa�on  is  available  in  publicly  filed  documents.  Viewers  are  encouraged  to  review  informa�on  presented  herein  for  accuracy  or  completeness.  This  summary  is  not  an  offer  to  sell  neither  securi�es  nor  a  solicita�on  of  an  offer  to  by  securi�es.  

 Legal  Notes  &  Disclosures:  Greystone  Logis�cs,  Inc.  may  make  certain  forward-­‐looking  

statements  that  relate  to  future  events  or  future  business  and  financial  performance.  Such  statements  can  be  only  predic�ons  and  the  actual  events  or  results  may  differ  from  those  discussed  due  to,  among  other  things,  those  risks  described  in  Greystone  Logis�cs,  Inc.  reports  or  evident  on  Forms  10-­‐Q  and  10-­‐K.  Opinions  expressed  herein  are  subject  to  change  without  no�ce.  This  document  is  published  solely  for  informa�on  purposes  and  is  not  to  be  construed  as  an  offer  to  sell  or  the  solicita�on  of  an  offer  to  buy  any  security  in  any  state.  Past  performance  does  not  guarantee  future  performance.  Addi�onal  informa�on  is  available  upon  request.  

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Page 3: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Descrip�on  of  Business  

Who  We  Are:    Publicly  traded  company  (OTCBB:  GLGI)    Produc�on  plant  located  in  Be�endorf,  IA  ̶  24/7  Opera�ons  

  Experienced  management  team  

 

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Page 4: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Descrip�on  of  Business    

What  We  Do:    Manufacture  plas�c  pallets  made  from  recycled  plas�c  

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Page 5: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Descrip�on  of  Business    

What  We  Do:    Manufacture  plas�c  pallets  made  from  recycled  plas�c    Sell  processed  recycled  plas�c  

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Page 6: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Descrip�on  of  Business    

What  We  Do:    Manufacture  plas�c  pallets  made  from  recycled  plas�c    Sell  processed  recycled  plas�c    Rent  and  lease  plas�c  pallets  

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Our  Customers    Food  and  Beverage  Industry    Pharmaceu�cal  Industry    Automo�ve  Industry    Consumer  Product  Industry    Palle�zed  Exports    Agricultural  Industry  

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Business  Advantages    Innova�ve  Technologies  

  Patented  injec�on  molding  equipment    Proprietary  blend  of  recycled  petrochemical  resins    Patented  pallet  designs  

Compe��ve  Advantage    Proprietary  processed  plas�c  waste  resin  blend  allows  for  the  output  of  high  quality  pallets  more  quickly  and  less  expensively  then  compe��on    Greystone  is  the  industry  low-­‐cost  producer  

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Page 9: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Business  Advantages  Environmental  Friendly  

  Reduces  environmental  waste  by  repurposing    Posi�ve  image  in  an  environmentally  conscious  economy  

Leading  Beer  Industry  Pallet  Manufacturer    In  over  ten  years,  Greystone  has  become  the  leading  pallet  manufacturer  in  the  beer  industry  with  over  4  million  patented  recycled  plas�c  pallets  delivered  to  customers  including  Miller  Brewing  and  Coors  Brewing  

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Page 10: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Business  Highlights  Rapid  Growth  

  Greystone  has  grown  from  Research  and  Development  firm  to  projected  $25  million  in  revenue  (2013)  since  merging  into  public  shell  

One  of  the  Largest  Post-­‐Industrial  Users/Resellers  of  Plas�c  

  Greystone  is  one  of  the  country’s  largest  post-­‐industrial  users  and  resellers  of  plas�c  –  over  40  million  pounds  

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Business  Highlights  Pallet  Rental  Program  

  Greystone  is  poised  to  ini�ate  plas�c  pallet  rental  program      U.S.  wood  pallet  leasing  revenue  is  currently  over  $1.5  billion  annually    Only  one  other  plas�c  pallet  rental  provider  

Hundreds  of  Customers    Pfizer,  Apotex,  Omaha  Steaks,  Miller  Brewing,  Coors  Brewing    

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Page 12: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Market  Opportunity  

$9.5  Billion  Pallet  Industry    Pallets  are  used  in  virtually  all  industries  in  which  products  are  broadly  distributed.  The  600  million  to  1  billion  pallets  going  into  the  system  each  year  create  an  es�mated  $9.5  billion  dollar  industry.  While  wood  s�ll  dominates  the  market  today,  plas�c  pallets  are    gaining  in  total  share  of  pallets  in  use.      Greystone  is  the  only  publicly-­‐traded  company  focused  on  the  fast-­‐growing  plas�c  segment  of  the  $9.5  billion  industry.  

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Market  Opportunity  

  $5  Billion  Leasing  Industry    $5  Billion  HDPE  Recycling  Industry  

 

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Page 14: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Market  Opportunity  Shi�  to  Plas�c  from  Wood  

  Plas�c  more  durable  than  wood  pallets    Plas�c  pallet  sales  growing  at  double-­‐digit  rates  

  Disposal  issues  and  fumiga�on  costs  coupled  with  regulatory  mandates  on  pest,  biological,  and  chemical  infesta�on  with  wood  pallets  means  more  emphasis  on  alternate  solu�ons  

  As  a  result,  industry  is  rapidly  transi�oning  to  plas�c  pallets  

  The  opportunity  exists  for  hyper-­‐growth  in  leased  plas�c  pallets  and  excess  ground  and  reprocessed  resin  sales  

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Page 15: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Market  Opportunity  Shi�  to  Plas�c  from  Wood  

  A  Freedonia  Industrial  report  es�mated  the  demand  for  wood  pallets  to  exceed  $1  billion  in  2013.  At  the  same  �me,  the  demand  for  plas�c  pallets  was  projected  to  exceed  $100  million.  Freedonia  es�mates  that  the  demand  for  plas�c  pallets  will  con�nue  to  outpace  wood  as  percentage  of  the  market.  

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Market  Opportunity  Beverage  Industry  Opportunity  

  Greystone  is  leveraging  the  company’s  success  in  the  beverage  industry,  which  currently  represents  35%  of  the  plas�c  pallet  market    The  two  largest  U.S.  beer  breweries  total  80%  of  the  U.S.  beer  market  and  circulate  4-­‐6  million  pallets  within  their  distribu�on  system  annually.  Approximately  10-­‐20%  of  these  pallets  are  lost  or  damaged  per  year,  thus  requiring  consistent  replacement  orders    The  beer  industry  represents  just  5%  of  the  total  beverage  industry.  Greystone  is  the  sole  provider  of  recycled  plas�c  pallets  for  Miller  Brewing  and  Coors  Brewing,  and  is  working  to  capture  addi�onal  market  share  in  other  areas  of  the  beverage  sector  

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Page 17: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Key  Customer  Profiles  MillerCoors  Brewing  (Beer  Industry)  

  MillerCoors  is  the  second  largest  beer  brewery  in  the  U.S.  Greystone  Logis�cs  is  now  the  exclusive  recycled  plas�c  pallet  supplier  

Graphic  Packaging  Interna�onal    Graphic  Packaging  Holding  Company  (NYSE:  GPK),  is  a  leading  provider  of  packaging  solu�ons  to  food,  beverage  and  other  consumer  product  companies  

Pfizer,  Inc.    One  of  the  world’s  largest  research-­‐based  pharmaceu�cal  companies  

Apotex  Corp  (Pharmaceu�cal  Industry)    Founded  in  1974,  Apotex  Corp.  is  the  largest  Canadian-­‐owned  pharmaceu�cal  company  

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Business  Model  Organic  Growth  Within  Rapid-­‐Growing  Pallet  Industry    As  the  materials  handling  industry  con�nues  to  adopt  plas�c  pallets  for  environmental,  export,  safety,  health,  cost  and  efficiency  concerns,  Greystone  will  benefit  from    this  sustainability  trend.    Plas�c  is  becoming  the  shipping  pla�orm  of  choice  for  export  shipments  as  most  countries  require  extremely  stringent  and  expensive  requirements  for  wood  pallets  

 

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Page 19: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Business  Model  Capitalize  on  Resin  Processing  and  Sales  

 Increased  industrial  use  of  recycled  resin  has  allowed  profitable  sale  of  excess  recycled  resin.  Plas�cs’  recycling  is  an  established  na�onal  industry.  According  to  the  American  Chemistry  Council,  the  number  of  companies  handling  and  reclaiming  post-­‐consumer  plas�cs  (over  1,790)  is  nearly  six  �mes  greater  than  in  the  early  days,  1986  (310).  Over  �me,  the  recycling  of  plas�cs  will  con�nue  to  grow  and  become  a  more  efficient  and  conven�onal  segment  of  the  na�onal  economy.  

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Page 20: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Business  Model  Promote  Lease  Pallet  Management  Solu�ons  

  Lease  pallets  into  a  managed  rental  pool    Na�onal  beverage  and  regional  customers  will  drive  growth  in  this  mul�-­‐billion  dollar  market  dominated  by  wood  

Leverage  Miller  Brewing  &  Coors  Brewing  Success    Leverage  current  success  of  being  the  exclusive  supplier  of  100%  recycled  plas�c  pallets  for  MillerCoors  with  other  industry  giants  moving  from  wood  to  plas�c  

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Page 21: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Business  Model  Sales  and  Marke�ng  Support  of  Alliance  Partner  SONOCO  Transport  Packaging,  a  $4.5  billion  global  manufacturer  of  industrial  and  consumer  products,  u�lizing  their  reach  and  buying  power  to  grow  sales  while  fully  developing  our  extensive  distributor  network  

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Business  Model  Con�nue  to  Expand  Product  Line  

  Greystone  currently  has  mul�ple  product  lines  with  more  than  twenty  different  pallets  and  configura�ons  of  light,  mid,  and  heavy  duty  pallets  including:  

         Iden�ty  Accre�ve  Targets  

  Greystone  will  iden�fy  companies  that  would  accre�ve  acquisi�ons  

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37  x  32   48  x  48  

37  x  37   44x56  

40  x  32   IBC    Pallet  

48  x  40   Export  Nestable  

48  x  44   Beer  Keg  Pallets  

48  x  45   24x40  

Page 23: MicroCapClub Invitational: Greystone Logistics (GLGI)

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Key  Financials  Condensed  Income  Statements  (000)    

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FY  May   Revs   EBITDA   Net  Inc.   EPS  FY07  A   $12,454   -­‐$471   -­‐$2,600   -­‐$0.13  

FY08  A   $21,081   $2,836   $928   $0.02  

FY09  A   $16,691   $2,807   $842   $0.02  

FY10  A   $16,231   $2,349   $503   $0.0  

FY11  A   $20,502   $1,752   $13   $-­‐0.03  

FY12  A   $24,158   $3,890   $2,103   $0.07  

FY13  E   $25,000   $4,470   $2,250   $0.09  

FY14  E   $31,548   $5,647   $3,790   $0.14  

FY15E   $38,239   $7,647   $4,780   $0.18  

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Total  Sales:  $24,186,000  

Trademark  Plas�cs  

Plas�c  Pallet  &  Container  

Norleans  Technologies,  Inc.  

Fabricas  Monterrey  SA  

Sonoco  

Decade  Products  

Apotex  

Coors  Brewing  

Graphic  Packaging  Int'l  

Miller  Brewing  Co.  

1.9%  

2.0%  

2.9%  

2.9%  

3.8%  

4.9%  

7.1%  

9.4%  

16.8%  

29.6%  

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Financial  Performance  

 $(5,000)    $-­‐    

 $5,000      $10,000      $15,000      $20,000    

 $25,000    

 $30,000    

 $35,000    

 $40,000    

2009   2010   2011   2012   2013   2014   2015  

 $732      $422    

 $(770)  

 $1,934      $2,250      $3,790      $4,780    

 $2,807      $2,349    

 $1,254      $3,890      $4,470      $5,647      $7,647    

 $16,691      $16,231    

 $20,502      $24,186      $25,000    

 $31,548    

 $38,239    Net  Income  EBITDA  Revenues  

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Total  Projected  Revenue  and  Income  

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Year  End  May  31  ($000s)   2009   2010   2011   2012   2013   2014   2015  

Pallet  Revenue   $16,691     $16,230     $15,218    $20,371     $21,500     $24,234     $27,019    Cost  of  Goods  Sold   $13,385     $13,273     $12,968    $14,722     $16,573     $18,691   $20,256  Gross  Margin   $3,306     $2,957     $2,040     $5,649     $4,927     $5,543   $6,763  

Recycled  Plas�c  Revenue   $5,284     $3,786     $3,500     $7,350   $11,220  Cost  of  Goods  Sold   $5,389     $4,505     $3,325   $6,885   $9,537  Gross  Margin   $(105)     ($719)   $175   $465   $1,683  

Recycled  Resin  SGA  (Included  in  Plant  SGA)  

Leasing  Revenue  Cost  of  Goods  Sold  Gross  Margin  Leasing  SGA  Opera�ng  Profit  

NET  SALES   $16,691     $16,230     $20,502    $24,158     $25,000   $31,584   $38,239  Cost  of  Goods  Sold   $13,385     $13,273     $18,357    $19,228     $19,898   $25,576   $29,793  Opera�ng  Profit   $2,503     $2,002     $2,145     $4,930     $5,102   $6,008   $8,446  Corporate  SGA   ($1,078)   ($1,135)   ($1,921)   ($1,993)   ($2,200)   ($2,300)   ($2,400)  Interest   ($908)   ($750)   ($1,086)   ($897)   ($870)   ($696)   ($522)  EBITDA   $2,566     $2,139     $626     $3,890     $4,470     $5,647   $7,647  

Income  Taxes  (Tax  Loss  Carry  Forward  Used)  Net  Income   $732     $422     $(770)   $1,934     $2,250   $3,790   $4,780  

NET  SALES  GROWTH   -­‐3%   29%   30%   3%   21%   17%  Gross  Opera�ng  Profit   15.00%   12.34%   10.46%   20.40%   20.40%   19.02%   22.08%  Net  Income  to  Sales   4.39%   2.60%   0.00%   8.00%   9.00%   12.00%   12.50%  EBITDA  to  Sales   15.37%   13.18%   3.01%   16.10%   17.90%   17.90%   20.00%  G&A  to  Sales   6.46%   6.99%   9.37%   8.25%   8.80%   7.28%   6.28%  

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Management  Warren  F.  Kruger,  CEO  

  Over  35  years  experience  in  financial  services  and  manufacturing  industries    Co-­‐founded  MCM  Group,  Ltd.  In  1990  and  sold  to  Cendant  Corp.  in  1996  (NYSE:  CD)    Owned  and  operated  three  ice  factories  and  sold  to  Packaged  Ice,  Inc.  in  an  industry  rollup  

 SONOCO  PRODUCTS,  Sales  Alliance  Partner  Ron  Schelhaas,  Plant  Manager  Bill  Rahhal,  CFO  William  Pritchard,  General  Counsel    Greystone  Logis�cs  Online:  www.greystonelogis�cs.com    

Mailing  Address:      Plant  Loca�on:  1613  East  15th  Street      2601  Shoreline  Drive  Tulsa,  Oklahoma  74114    Be�endorf,  Iowa  52722  Office:  918.583.7411      Plant:  563.332.0052  Fax:  918.583.7442      

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