Greystone Logistics Inc

Good day everyone and welcome to today's Greystone Logistics Q2 results conference call. At this time all participants are in a listen-only mode. Later you have an opportunity to ask questions during the Q&A, 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'll be standing by if you should need assistance. It is now my pleasure to turn the conference over to Brendan Hopkins. Please go ahead sir.

Thank you and thank you all for joining us for our Q2 results. We have a brief safe harbor and then we'll be getting started on the call. 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 Logistics.

Thank you, Brendan. Hello everyone and welcome to the call. First off, I'd like to start with my friend and investor Joel Marcus, unfortunately, passed away. And he's a great friend of ours and many of you may or may not have known anybody. He's a really good person and very bright guy. And I'm just, I'm sorry that we won't be able to participate with him anymore. So and after that, let me talk about what's going on with Greystone. I've been disappointed in the first six months top line, but we are, as I mentioned last quarter, things are falling into place as I wanted them to. Our extrusion, we've actually sold some of our extrusion line. It's the hollow lumber that we refabricated and made into what looks like a wooden pallet, but it's a hollow plastic extruding pallet. And Toyota has, we are still awaiting a good size order from Toyota. So we're excited about that. I was with Gary Morris, who runs that end of it this week in Indianapolis. And he has, he has a lot of other opportunities that are now working. He's actually at the plant in Jasper today. So he was also in Jasper, Indiana. He also is, we've done some things with Berry Plastics, and he was there yesterday at Berry, and Berry wants to take all their plastic from their operations, the waste plastic, and they want to put it back into plastic pallets. And we've been doing some of that for them, and they're going to, it looks like they're going to increase that with us. So that's fun in that regard. I also mentioned last quarter that we were waiting on some good news from our Walmart, and we've been filling some import facilities. Well, I'm pleased to say that we have another import facility in California that we have been supplying for. We supplied some. We went out there to December 15th and got a purchase order for a relatively less than a half million dollars, but we started there, and I just got an email today that they're going to get on a regular schedule of taking units out there. So we're excited about that. It's a big, big, big import facility, and so we're excited to continue to work with Walmart. They've been a fabulous customer, and I think we're going to continue to do a lot more with them. We have been waiting for a can and bottle pallet that we made of tool that came in, and I've mentioned this previously. The tool was, there were some adjustments that needed to be made, so we had to send it back overseas to make those adjustments. That tool is back in, so we are now, it's a large pallet, so 44 by 56 pallet for aluminum cans and PET bottles, that type of product. And so we have had some people waiting for us to have the tool back, so I think that we'll start getting some orders on that product as well in the second half of the year. We've, our big customer, IGPS, they're a big pallet leasing company, so as you know, if you go into a Costco and you see a plastic pallet, that's a rented pallet, and that's one that we've manufactured for IGPS. They've been a good customer, and they continue to be a good customer. They're a good group. They have a good model, and I've, my only push with them is, I'd like them to take another million dollars a month from us, so I'm working on that as well. Again, I'm sorry about the softness of the first half of the year. There's a lot of movement within the industry. It was really almost, as I've said in the past, it was a weird year, soft year. No one was spending money, and I will tell you that it's been busy. And I had a call from a consultant who took us into Nestle on the December the 18th, so it's weird that I rarely do I go on calls from the December 15th on, and in this call, there were probably, oh gosh, a dozen people associated with it, either online or in the room. So Nestle is looking to do something. Again, they want to get away from wood. I was at a closure company up in Indianapolis yesterday. The closure company, again, they send 300,000 pallets out a year on wood, and again, they're ready for a change. So we were talking about how best to serve them and what type of product they need, and could they do a closed loop? And in this world, I think we'll see a lot more closed loops within organizations where we manage a small pool for them, not like an open pool like IGPS, but a closed pool. But other than that, we feel good about our operations. We've got a beautiful new rating for our safety and efficiency, so we're excited about that. I'll put out a press release on that. And operationally, I'm happy. I mentioned Mexico in my press release, and we have got some orders from Mexico, and we're considering moving a piece of equipment down to Mexico. We've manufactured under contract down there two years ago, and we did okay, but I just wasn't satisfied with the supplier we had. And I've got someone who would operate our own equipment down there if we decide to send some down there, because we have some opportunities with AB and Constellation brands, and those are the type of people you would move equipment for because they need pallets on an ongoing basis. Other than that, I'd love to open it up for questions and be happy to answer anyone's question that may have.