Greystone Logistics, Inc. (PNK:GLGI) Q1 2024 Earnings Call Transcript

Now this is a really good tool. And I say, it wasn’t a good tool. It wasn’t a good design. The tool is fine. But the new design we have is really — we worked with people in the industry, and we have a really good product. And I am excited about that. And the can industry, you can’t even believe how many billions of cans are produced in the United States. And so they are all — once we fill a machine with the 44×56, that’s what I want to do. I want to put that on the machine and be able to produce that around the clock, throughout the year. We also have a couple of other products we brought on last year, 48×40 flat deck nestable, the top and the bottom, they are shipped together, and they are put together at the end of the — when they arrive.

And that allows more product on the shipment. It is a lightweight product. We are getting some good feedback there. We are doing some testing there. We are excited about it. And we had a 45×45, same thing. It nets when it’s shipped but that can be put together at the end. And both of those products are selling well. So that’s what I see in the next six months is some of our existing tooling and new products filling some of our pipeline. And then at the end of the year, I anticipate some of these big things, we will have tooling done for them, and we will be able to start our next year in full scale with machinery in — I mean, with tools in the machinery and producing.

Anthony Perala: Okay. That’s very helpful. This kind of sounds like you have enough to fill up that capacity with new machines. And then my last one would just be, you mentioned, a couple of questions ago just that you are pretty confident being able to surpass last year’s number of $61 million of revenue, given kind of where the costs are that should lead to a pretty net sizable amount of cash flow generated. Just I would be curious to hear some of your thoughts about priorities for that cash flow, as it comes in the door?

Warren Kruger: I would anticipate that we are going to — there is a fine line. I mean I think some leverage is good. We were really pounding down debt a few years ago, and then we added the CapEx. I want to get back down. I want to pound down some debt a little bit. We have got — it’s kind of surprising. I looked at the cash report daily. It is refreshing to see a lot of cash on the cash report daily. But we are going to utilize some of that cash to pay down debt, because it is more expensive this year. I mean everybody on this phone realize this. I mean, these rates are — we are paying 5 points, probably 4 or 5 points more than we were two years go or whatever. So we want to pound down the debt a little bit, and of course, it will save us interest costs and plus it will make us — put us in a position that we can take advantage of opportunities that may arise.

Operator: We will now take our next question from [Robert Edwards]. Robert, your line is now open.

Unidentified Analyst: Great job. The website looks good. Question, did I understand that you said you are going to start refurbishing — not refurbishing, but grinding down cans, aluminum cans?

Warren Kruger: No, no, no. We are — in the — our new — it’s not a new, I would say it’s a new tool. It’s a 44×56 inch mold, which is a — it’s designed for the PET, for the bottling industry, canning and bottling industry. And so it’s just — that’s what we were talking about. It’s just for the aluminum can industry so that they put their aluminum cans on these pallets and they use them in their facilities.