Greystone Logistics Inc

Good day, everyone, and welcome to today's Graystone Logistics Q1 Results Conference Call. At this time, all parts of this are in listening mode. Later, we'll have the 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 1 on your telephone keypad. Please note, this call is being recorded, and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Brendan Hopkins. Please go ahead.

Thank you. And thank you, everyone, for joining us, especially with the short notice. We have a brief safe harbor, and I'll hand it over to Warren. So, 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 Krueger, CEO of Greystone.

Good afternoon and welcome, everyone. Thank you very much for joining. This will be a relatively short call. We actually had the K call just, gosh, 30 days ago. But I do want to talk about the first quarter. We had $13,460,000 in revenue. We ended with operating income of $824,000. This is This is something that, well, I'll get into it in a moment. We had an income per share of a penny a share. So let me tell you where we are. If people were on the K call, we are really in a lull. I haven't experienced this really since 2020. And even in 2020, we were actually quite busy in 2020. This year, and I'm talking about the calendar year now, it has been really we are in a economic recession for the manufacturing sector and i'm in touch with a lot of people in the manufacturing side and we we are there orders are off across the board in the thermal forming industry the extrusion industry the injection industry uh it's it's just really i think that people are a little unsure as to where they are ford general motors those companies they're They're not really moving forward on some new models. We've had Stellantis close, I mean, layoff people. John Deere is moving some people. Walmart, who's a big customer, they're closing stores. Walgreens, CVS, Dollar Store. It's really been, I think, really hasn't been talked about enough, but it has affected us. Now, that being said... I'm not going to gloss over anything. I'm going to tell you how I believe it is. So I'm very disappointed with the numbers for the first quarter. And our sales were really off about $1.4 million under where I thought they'd be on a monthly basis. And that's a combination of things. Last year we have a new mold that we designed in concert with Walmart and and they made some ergonomic changes and some weight changes and that was about 120 days later than what we anticipated. But I was just in a DC, Walmart DC on Tuesday of this week. They love the product. We've put in about 44,000 pallets in that DC. They love them. They've had 44,000 and they had three broken ones. And while we walked around, We fixed two of the broken ones. So it wasn't broken. It was just a leg out of a slot. So it's a product they're really happy with, and I anticipate our growth with Walmart to continue to flourish. As a matter of fact, I'm so bold about that that I've actually ordered another tool, and we call it the warehouse tool. but it is a very good tool. Walmart has 35 different distribution centers. We've probably put pallets in three now. So we've got a long run with them ahead of us, and we're excited about that. I'm also disappointed in our extrusion business. We spent quite a bit of money acquiring the extrusion equipment quite some time ago now. So we're about nine months behind Walmart the the uh where i'd love to be there uh that uh we toyota we've actually made our our products for toyota our test sample products for toyota toyota loved it this is for their export and it's something that they looked at prior to us acquiring the equipment and changing the design on that extrusion palette and i encourage everyone to go to our website And look at our welding line. It's on, it's under investor relations, I believe. And if you go to the video, it's quite nice of our automatic line that will weld the extruded pallet for us. We are really excited about that. And we got in this business because Uline had requested a 48 by 96, a very large pallet. And Uline is a customer of ours, and we provide our 4848 product there for them. So we are having a welding equipment manufactured right now to go in concert with our line, our automated line. Our automated line can only go up to 60 by 60. So to accommodate the Ulines of the world and others that have any sizes over Over 60 inches, we have a welding line that is almost complete. They're actually doing some testing at the end of this month, so I'm excited about that. But be that as it may, we're not getting any revenue that we anticipated out of that. We've also shipped our 4456 can pallet back to our mold maker overseas because it had some adjustments that needed to be made. And so we have an old 4456 that we sold. Our new one is a much, much better tool. But we've got customers now that are probably about six months behind the curve. So it sounds like a lemony snicket, but it is. We've got orders that are down. We've got some products, some new products that I anticipated hitting the market that haven't hit the market. Uh, but, uh, the good news is we've got, uh, IGPS is very happy and where our relationship there's great. Our relationship with Walmart is on the uptick and it's very, very, very good. Uh, and we've got a Toyota and many others in ahead of us. So our pipeline is like a hundred million dollars in revenue. We've just got to get people ordering. So, uh, I want to open it up to questions now and, uh, hopefully I can answer one. One thing I do need to mention now at this point too, uh, we, I have been spoiled for 22 years. I had a wonderful, uh, CFO, Bill Ray Hall was a fan. He's not only a fantastic CFO, he's a fantastic human being. And at 83 years old, he said, Hey Warren, I, you know, I can't do this. Uh, my wife wants me out. So, uh, we did hire, uh, uh, our, our recent CFO was late on our queue was late on our K. So I've, I've, uh, we've actually released him and we're in, we're right now we're looking for a new CFO. So that's been a little stumble in our Giddy app as well. Uh, but I can answer most financial questions for you. Uh, and we'll just open it up for questions.