Unidentified Analyst: That’s great and I just was curious like is there potential for this to be a bigger piece of revenue for you guys than it was prior — the prior part you were making for them?
Warren Kruger: Yes, I believe so.
Unidentified Analyst: Okay, that’s great. And then, congrats on announcing the share buyback authorization. I guess I just wanted to kind of understand your like philosophy about how you might want to put that money to work? Is it probable that you guys will want to be patient and wait for you know kind of the you know the right price or just wanted to hear how you guys were thinking about it?
Warren Kruger: Well, one of my — I have all these little quirky little sayings that just because I’m of my 67 years, and one of them is fast cash makes fast friends. And so if someone comes to me and says, hey, I have 50,000 shares or 100,000 shares or whatever, and I’m — here’s what I want to do, I’d rather sell them with discounts, sell them all at once or something. Those are the kind of opportunities that we’re looking for. We’ve had that happen in the past and I just want that authorization to be out there so that it makes it easy for us to do.
Unidentified Analyst: Perfect. No, that’s great. That’s it for me. But I appreciate all the answers and…
Warren Kruger: Thanks, Joe.
Operator: [Operator Instructions] We have another question at this time from Anthony Perala.
Anthony Perala: Thanks guys, just a couple more here. I’m just halfway through fiscal Q3 here, I’d just be curious on how any commentary you can give on the fiscal third quarter, and then how the pipeline is shaping up for the rest of this year?
Warren Kruger: I — there is a little weakness this quarter. We are — I know that I will be — I am not as pleased exactly at this moment where we are going through this quarter. So I don’t want to put in throw any cold water on it. But most certainly, it’s — we’ve had a couple of things on the sales side that have not happened, like putting the Walmart office one of them, additional revenue from other customers. There have been a couple of oddball things that just this quarter have kind of confounded me. I do see the fourth quarter coming in strong just because of what we have in our pipeline. And then we have a customer relationship management report that we put in potential revenue and sales. And our pipeline is — there’s a lot in our pipeline.
And it’s just sometimes in this sale, the sale cycle just sometimes is long. You know, for me, the first time I called on Walmart was probably 18-years ago and it took 15-years to get a contract. So, I mean, I don’t, this is a business that takes, you know, you just have to be diligent and stay out in front of it. The customer we had in today, they — 60-days ago, they were going to order up some product. Well, here we are today. They wanted to get into the facility before they ordered it up. And we had them here, I can’t even believe that they came in, but they came in on this cold day and we had a nice dinner last night and we talked today and we talked about the volume potential. The volume potential is huge, but it’s just getting them, you know, getting that first step.
And then after that, each step is another, and they’ve got a lot of opportunity to provide because they’re a very large U.S. customer.
Anthony Perala: That’s great color. And then I’d be curious just with this recent cold snap in Texas, if there’s any risk of HDPE prices spiking again here, just kind of your thoughts on that input to your process and business?
Warren Kruger: Well, I’m glad you mentioned that because never in my wildest dreams that I think the freeze in Texas in February of 2021 would have such a dramatic impact on the polyethylene and polypropylene market in the United States, because I’d been in this business for some time. So I was very surprised at what happened and it did affect generally the recycled prices just don’t go up and down that they’re steady. There’s movement, but they’re not sharp movements. And after that, when polyethylene became really shut down the industry, then the pipe industry went from more recycled plastic and divergent and it shot prices up. So I’m glad you mentioned it. I am not as concerned right now. We have a pretty good volume of recycled material.
We got our extra pelletizing line that I talked about in previous years, that pelletizing line’s up and running so we can pelletize a lot more product. Our grinding capacity’s really good. We actually have extra grinding capacity available. So we can take more parts and pieces in here and that’ll keep our pricing long-term in check, I believe. Much better than in 2021.
Anthony Perala: Okay. That’s good to hear. And then one final one here, sorry for dragging on. But I think on the last call, you had loosely said that you expected fiscal ‘24 revenues to be higher than fiscal ‘23. Is that still something that you see as possible as you look to the second-half of the year in the pipeline?
