Greystone Logistics Inc

Please stand by. Your program is about to begin. If you should need any audio assistance today, please press star zero. Good day, everyone, and welcome to today's annual results call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to Brendan Hopkins.

Thank you, Anthony, and thank you all for joining us today. We have a brief safe harbor, and then 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 the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in 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.

Thank you, Brendan, so much. I just want to welcome everyone to the call. We want to talk about last year. It already seemed so far in the past that May 31 was our year end. But we will go over, Bill Rahal will be going over the financial results very shortly. I just want to kind of give you a global view of where I see the company going and, and I'm very proud. We've got our press release. Yes. Very proud of the, the margin. We really strive to work on the margins. We had a horrible period, you know, 2021 to 22. I'm sure everybody on the call has their own stories about the, those, that time period, but 2020 was so surreal. And, and then the 21 week, the freeze down in Texas, the, polyethylene market was turned on its ear. And from about January of 2021 until about, oh, August of 2022, we'd never experienced a price increase in the recycled polyethylene market like we did during that period. It was a very, very strange thing. And it forced Greystone to adjust its prices up dramatically. And when you have a 50-pound part or a 40-pound part and and all of a sudden you're saying to your customer, well, it's 30 cents more a pound. They say, okay, we'll put off ordering. So we had a lot of that during our last year. And then in about August of 22, things turned around, and it's been great since then. Prices have come down, and we've actually lowered some of our pricing to get people to order. We have things. I've been in Walmart. Walmart continues to be a very viable customer. A great deal of product to them. And we are working on a grocery store pallet for a large U.S. grocery customer. We have a mirror pallet we're bringing on that is the same on the top as it is on the bottom, basically. And that product is for The quick-create type industry is something that the nut industry, where you have to have exactly the same on the top and bottom. We're excited about that. We have a brand-new can palette that would work for aluminum can manufacturers that need large platform size. So we've been working on that. We also, during last year, we bought an extrusion company that had a robotic extrusion line. made hollow plastic boards and we're very excited about their they had a few issues that the company has been really about 20 years worth of research and development and they they had toyota and honda that were testing for about a year and a half and they were approved and pick off in 2020 and of course everyone knows that covid affected everything and pricing went crazy and They just ran out of gas, and so we were fortunate enough to pick up that business. And we have a very, very capable gentleman that we also put on board that has over 20 years' worth of knowledge in the pallet industry, and we're very excited about having him on board. We're making some adjustments to the dyes on that particular product. We want to flatten it out. They had some quality things that I wanted to straighten out before we really went to market. We're also working on a different base for it. So I won't get complicated getting the weeds here, but we're very excited about it. And why? Our molds on the injection side weigh about 40,000 pounds, and they cost somewhere between $200,000 and $400,000 apiece. So if someone says, I need a special size pallet, it's not for the faint of heart. You need to write about it because it's expensive. Yet on the extrusion side, if someone says, hey, I need 3,043 inch by 32 inch, that's something that we just cut the boards to that size. So we're very excited about that. We believe that there's a, in the neighborhood on that equipment, five to $10 million worth of revenue just on the existing line. I'm not promising it aid, but I do think in the, by year end or corporate year end, we will have, we will have a lot of orders in hand and be producing. And it's a very, very cool process and it's robotically driven. And of course for the future with employee issues, We believe that robotics are really going to help all industries. As a matter of fact, in many, many of our customers, because they're going to robotic warehousing, they're turning to plastic. They need something that is exactly the same every single time. It doesn't have nails poking up. It doesn't have lead boards falling off. And that's why plastic just continues to be a very, very, very exciting product. And, of course, everyone on the call has to remember, most of our product is recycled. And so we are a very great business. We just don't talk the talk. We walk the walk. We grind and granulate probably 100,000 to 150,000 pounds a day of plastic, of polyethylene. So this is a real industry. It's fun to watch. That all being said, again, I'm very, very excited about where we are in the future. Let me talk about our biggest customer, IGPS. If you go into a Costco in America and you see a plastic pallet in the rack there instead of a blue or a red pallet, we probably, chances are, we made that product. And IGPS is a wonderful customer. They buy products from us, and then they rent. They go out to people like Procter & Gamble. or Niagara Water, and they would rent their pallet on a per-trip basis. We probably provided them well, well in excess of 5 million pallets over time, and they continue to grow, and they continue to be a great customer for us. We also take all their broken pallets in, we grind them, we granulate them, we make new BBs to inject into a new product for them. So it's a win-win for both of our companies and I invite anyone who ever wants to view the facilities in Bentendorf, Iowa. It's about two and a half hours west of Chicago. I welcome you. I also want to point out that in Palmyra, Missouri, we've got a couple new machines that we're filling, and I'm very excited about that because we're out of space in Bentendorf, Iowa, so we're extending our reach. The extrusion line, that particular product is manufactured in Jasper, Indiana. So with that being said, I want to go over the numbers, and I'm going to turn the call over to Bill Rahal.