Greystone Logistics Inc

Hey, everyone, and welcome to today's Greystone Q4 Results conference call. At this time, all participants are in a listen-only mode. Later, you'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 everyone for joining us today. We have a brief blue sky statement and then we'll start. So, except for historical information contained herein, the statements in this conference call are forward-looking statements that are made pursuant to the Safe Hydrofissions, 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 Graystone.

Hello, everyone, and thank you so much for being on the call. These are the times that I wish that there was better news to present to you, but the news is the news, and you've all gone through our 10K, and you can see we had a very difficult year ending May 31. And again, I'll go back and I'll rehash the history so that those who don't know will have a fresh idea of what happened. We had an 11-year relationship with a company called IGPS. We started with them with one mold, one machine, and we went up to about a million, two pallets per year. And in... Last, it was in October last year, I got a call and they said today's our last day after an 11-year relationship. Well, it was most certainly unexpected because we were grinding about 400,000 broken pallets a year and reprocessing that resin. And these are things that are not easy. to do. They're difficult. You have to have the equipment. You have to have the knowledge. You have to have the personnel. And then we have to have the equipment to reprocess it, to put it in a BB form to reutilize it. And it's great because that's the world we live in. It is exactly as we present ourselves. We take waste plastic and we make new products. So it was a wonderful thing. And we never anticipated that they would leave us. And in fact, they did. They've decided to go out of the growth mode and go into just a more like reap what they've sown type of mode. And they did have an operation to produce pallets down in Dallas, Texas. So they dropped off about 800,000 pallets a year in their growth plans. So that lead left us in a situation that presented us, we had to jump on it. And we laid off about 140 people in December. And we have pared back dramatically. The good news is we immediately reached out to our bank, IDC Bank. They've been a fabulous, we've had a fabulous relationship with them over time. We said, hey, we need to go immediately into interest-only for 2026 for the year, and they agreed to do so. And part of what you'll see on our 10-K is everything's current. Well, our auditors make us show everything is current, but in fact, we're paying interest-only, and our banker has been He's been gracious enough to say, why is it all current when it's not due until the date of the note? But in fact, the auditors, the way we're structured is they have to put it all as current. So we feel comfortable with our banking relationship. We feel comfortable with our plan. We have had, let me just go to the financials. As you can see, we're off about $30 million. And that $30 million, it matters. It's once you cover those fixed costs and you put on the sales and everything drops to the bottom line. And so we have had really a tough year filling that void. And so I anticipate that it'll be in calendar year 27 before we're really fully back on board. We've had numerous discussions. We have a relationship with multiple firms that we're doing projects with now that will add revenue. We have a keg pallet for Yingling that we have produced, and Yingling said that they couldn't take it in the summertime, but I anticipate we'll be selling to them in the fall. Walmart, we've had a $50 million relationship with Walmart over the last five or six years. We continue to provide housing to the Walmart system, but we are behind our schedule with them. And there was some leadership change at the top at Walmart. And our contact who I had for about 20 years, a gentleman named Bill Greaton, he retired. and so we've been dealing with new folks. But all that being said, our team at Greystone continues to work diligently every day to fill the sales volume. And what we have done is during the period of time that IGPS was our customer, we were prohibited from going out and leasing pallets. We are now in full-scale mode. We are tracking and tracing pallets and doing that in multiple areas. We have a firm out of Philadelphia that's been a wonderful partner that is, they have their own tracking and tracing program, and they're testing our pallet with multiple customers. We have another firm out of California that they're testing our product with track and trace and their own track and trace program and that's been quite enlightening. We have another big leasing program that we quoted on and I anticipate that in the next 90 days that will come to fruition. It's a large Midwestern company that's been using wooden pallets for years and they generate plastic and they know that they should be on plastic and I anticipate that happened. We also have a double-decker pallet that we have designed. It's the same on the top as it is on the bottom. It will take – we're doing some of this in the concrete industry, and we've been tracking and tracing pallets that can carry the concrete. And it's been quite successful, and we also anticipate that we'll continue to get some more of that business. be that as it may, we have to replace revenue. And that's our focus right now is replacing revenue and managing our expenses and our capital. We've really limited any capital expenditures except for maintenance capex. So I'm proud of what our internal staff is doing in the Bettendorf area and our new equipment in Palmyra, Missouri. We've had some of that subleased. It was empty equipment, and we've subleased it so that we could get some revenue off those machines. And, again, I look forward to opening it up for questions because all I can do is answer your questions and say that we're working very hard every day for you. So at this time, I'd be happy to answer any questions that our shareholders might have.