Q4 2026 Greystone Logistics Inc Earnings Call Transcript
Key Points
- Greystone Logistics Inc (GLGI) has a strong banking relationship with IBC Bank, which agreed to interest-only payments for 2026, providing financial flexibility.
- The company is actively pursuing new revenue streams, including a keg pallet for Yuengling expected to sell in the fall and a double-decker pallet for the concrete industry.
- Greystone Logistics Inc (GLGI) has re-entered the plastic reprocessing business, contracting to grind and granulate plastic for other companies, which generates processing fees of $4,000 to $5,000 per day per machine.
- The company is exploring leasing opportunities with multiple firms testing its pallets with track-and-trace programs, and anticipates a large Midwestern company to finalize a leasing deal within 90 days.
- Greystone Logistics Inc (GLGI) is developing fire-retardant plastic pallets, having passed initial fire tests, and is pursuing large-scale testing to potentially supply Costco, which requires UL rating.
- Greystone Logistics Inc (GLGI) lost its largest customer, iGPS, in October, which accounted for about 1.2 million pallets per year and $30 million in revenue, significantly impacting financial performance.
- The company had a very difficult year ending May 31, with revenues down about $30 million, and it had to lay off approximately 140 employees in December to cut costs.
- Greystone Logistics Inc (GLGI) anticipates it will not fully recover until calendar year 2027, indicating a prolonged period of reduced revenue and profitability.
- The company is behind schedule with Walmart, a $50 million relationship over the past 5-6 years, due to leadership changes and the retirement of a key contact, creating uncertainty in that revenue stream.
- Greystone Logistics Inc (GLGI) has limited capital expenditures to maintenance only and subleased empty equipment in Palmyra, Missouri, to generate some revenue, highlighting constrained financial resources.
Good day, everyone, and welcome to today's Greystone Q4 results conference call. (Operator Instructions) 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 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 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.
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