Greystone Logistics (GLGI) 17 Apr 232023 Q3 Earnings call transcript

Good day, everyone, and welcome to today's Q3 Financial Results. At this time, all participants are in a listen-only mode. [Operator Instructions]

It is now my pleasure to turn the conference over to Brendan Hopkins.

Thank you.

safe then brief get a have harbor we'll and started. We the the historical that this to XXXX. of information Act for Litigation statements Private are harbor Securities the contained pursuant statements Except of forward-looking herein, in Reform provisions are conference made safe call

our materially involve statements from cause forecasted unknown in future uncertainties that risks results. Forward-looking results and periods and may known actual to differ

of the said, call to over Greystone. I Kruger, Warren that With turn CEO would to like

just we'd want I'll call. with the business overall I to welcome just you, everyone very to the health much. Thank the talk let and Brendan, that to to We've more want speak talk exciting the today so about - review Rahhal I'll business. of you. third like numbers the a Bill just had today. quarter, and to I

of recycled - pounds product plastic our in into pallets, very to grinding It injected out - XXX% BDs product be turn, will We we it up making our it are grow. XX we granulating manufacture that probably And very, in plastic has of - then, our line a do center, continues a to well. shipping line. process we year, and recycling we're million

they customers to for containers. the international product also X nestable last X a that months, a and products Over with transportation bottom. is sizes our business for and shipping pallet in utilize the These like in help containers, the the more XXXXX XXXXX shipping nestable snaps with we've because different is a snaps with XXXXX deck flat together added together that of bottom XXxXX and

X,XXX-ton excited work our quite that quarters, we machines put well. anticipate those few about to that We've Missouri down over hand revenue - - glove. We've up filling added yet. line. They we add in at as these top significant next X these a these it We're a are the not and machines, in will of operational company that with couple

been Our other them years to is the for also a - active. that We've next facility, at - for DCs producing putting X pipeline again customer. the anticipating [ph] producing particular plastic great of one very over there's continues and next over be lot is are Walmart them be a we'll

out our are iGPS, Our customer, our and relationship was out in pallet red customer pallets. with pallets - is company, rented plastic large you'll industry - to it's you'll a there. which pallets and wooden pallets those iGPS in see wood pallets market, And the blue leasing see rents

out pallet you a go if That's power. a that and you Costco see utilized. plastic most to we So in likely the produce

we that and walkie now an that relationship, extra we $X them. [ph] concerns, product had a gotten have change when anticipated through over producing that are XXX management, be worth we'll will the next We've all million wasn't we actually we spell little XX to the of a for a and of relationship. was wonderful days, there So produce

that's set is in the announce and the product shipping line producing make and at the a of was Toyota. automated to in this of nice up - we've that this their to - end right line just also put an they line was completed are for 'XX We at Unfortunately, Indiana, acquisition extrusion company, a this extrusion pallets. time plastic end

the affected However, world and it then affected them. we all know that COVID

get the feet. could its company never on - back we So

sizes. and so opportunity to equipment And week, us we It last this excited. give add will purchased the I'm

$XXX,XXX and size just tool from to much. who's is injection asked customer a and And $XXX,XXX they anywhere XX,XXX of produce injection that piece. XX-inch a by molds to with us are XX-inch have molds equipment, too injection We our pounds cost an

There's produce we of kicked some odd-sized that some kind we excited be need we've do we're preparatory - bang excited work off extrusion to to a that. But so line. able die have and off work forth. this with So we'll and product about and are of we

She's a job General doing for great Operationally, us. Marilyn Carter our is Manager.

Ron of of working on world our service now to sales Our other is the helping and the and on out of Schelhaas, world Simplot's in manager, the large some me long-term help our Walmarts side and the customers the with side. customer

about excited that. we're So

an pallets mark that is I it to grow. $XXX that the eyes to when world people million We of roll positioned party Greystone out there it future. a with right I in in States in sometimes X that ask culture moving head know United of their portion the towards sounds plastic America. they is happy think but just The now. to There not-too-distant plastic. what dinner we're will well continues be are And in unbelievable our of part a pallets do, billion around

can it So open to you here, Bill to further without because going ado, go mind numbers? the Brendan, from over up I'm so questions taking it later. do

get Bill I Right. No. should now. think started Well,

Okay. at an you'll That's $X in was and the future financially Thank I property, of [ph] be decline to about able an group. - balance a to emphasis was important I in is is Greystone by on speak the that if like put deconsolidation spring and address, with Greystone. a of first statements, million investor - a this sheet you to entity party you, interconnected a It's growth. to little our I because because word just financial that million Warren. able platform And to that's pleasure $X there which owned forward that the a was items of third look plant couple spring for with would think notice want equipment.

- fiscal this past current That year. during terminated this

that those as see because is sheet. right-of-use asset, shown balance And a lease see you'll we the equipment so you'll and a on that that And now for have long-term buildings.

mentioned, plus operational equipment in equipment being going The fourth is adding plus additional of will that's Warren to that's other in part during the $X be that million And Missouri Indiana. thing of we be that's that's about quarter, that installed equipment. - this the

total is that, will along and XX% about fourth - a about keep But continue expecting $X.X So robust the the complete of through quarter to right million be equity debt. we're adding in end the the and with that assets, company year. because now, year that to will - we'll

the briefly statements. financial on Commenting

quarter in the and down Our variety back pallets XXXX. big various the pre-pandemic third bright pre-shutdown margin is for increase, because or manufacture we That's our to pallets affected went XXXX part in to XX, a materials XX.X% build sales of that the have which to these us that But of be to and resumed reasons, of were big raw February news that. gross - availability additional to product, of normal customers' able the 'XX to pricing, use from it provide pandemic primarily February because to has XX% in during period. material - was refineries that's our

costs is also margin, variable production our to improved able continue. to gross maintain that reducing be variable by that we during thing been costs and this we low expect profit and control to have other The our point to able

common had of $X.XX had So then profit the - $X.XX numbers. for income resulted are which that's quarter the million income profit we XXXX, with per And a XX, stock of in million, income $X.XX those big X net we share. a $X.XX. of And a net ended for the share months, about for of February -

to up and the on additional go and turn that is feel right pick back growth Greystone to for track we this future it equipment Warren. I'll So back and for,

Well, - now? questions Brendan, I just this just to want open can we appropriate, if up for

can you're ready, with we Operator, questions. start Sure. the if

comes question Anthony first from Our Instructions] [Operator Absolutely. Perala.

Your line is open.

Hi, is & Perala call. Associates. Punch my guys. This for Anthony taking with Thanks

like just Well, and to it broader I'd business. you way the there in looks say I it's also, quarterly doing to to and get appreciate really like a an audience. - Just out I story think great a the inflection calls,

the from First little just customers off, would could detail quarter? towards larger that delays around the if be speak Some helpful. more more you the bit in a

business, There country. Sure. down - which the South a across and of bottom up pipe, a like have South like ourselves. business. shut then poly but and sounds always with compete nutty, of We and in resin. the we and forth. freeze is the deviate big, granulated it, for terms in and sewer ourselves, February things material polypropylene Big pipe 'XX. grind clean it Texas bid, affected in freeze been buy a But it feeder polyethylene was [ph] to the pipe a We And big there in Texas, was so a production lot it and

I'm on recycled cost all has a of February per the - market stable through head. a much as And flipped its XX-pound XX-pound not XX-pound pound product was from And for a pound. of And relatively went when August product, your from the customers sudden dealing up to 'XX, like, what 'XX recycled been of your wow, $X.XX or $X.XX that well, product pay with a pallet. or a much as to going a you're

sales ability up pricing, affected were It So to us in because out which we go - affected. of some did. go our had up. to we of had in front we it to We get our

affected that sales to of some that so the going And on. were come

that Walmart. that, think affected I

of they're raw XX-pound extra a goes it's a iGPS up it year, your pound, that think I $X.XX and and of millions course, also, cost product. they amount a a massive when It's were, building material. pallets of for

off they somewhat So as well. held

are the finally mentioned polyethylene now And down. it's has production fallen, in the polypropylene world got kind it's overall Bill because - as polyethylene is previously, and And of dramatically commodities pricing sync. on market, back and recycling fallen we've

our think And coming we're our on that pricing not pricing, down so we now.

that your fall question. the increased So of the our and benefit then of that we're hope with materials. prices helps of our raw seeing I earlier

ability the definitely. capacity up you're new Yes, the bringing the And equipment on then fill with to on.

maybe quarters a being a of than matter of alluded to rather years. matter You

see the wanted time of new fill frame? to to the clarify kind capacity you XX to there to kind in this of Just able demand XX that be month

Well, it's they mean somewhat get cautious will say I people customers. need a with all the XXX,XXX never I I be need pallets. I immediate. from saying, but truly it away. Well, they is always time those ride I - is the things, reality calls not.

time Well, to are the and piece our they they a people the $XXX,XXX X $XXX,XXX so engineering somewhere want And have have tool, X right counting design plus because they something. and produce, the tools, to and I between be don't and time so forth. to take you tools our mentioned, cost we exactly months cautious pounds, if not as say XX,XXX

you produce and So a something out their lot thin think to that specifications. call exactly will of customers just of air, can

- that there. always there's So pause

other because to see wanting - it. pallets, consistent of of and The the world it's automated Everyone renting going a time, last wood. us side popping it, people of because same issues. over years, a wood, has we've for It's on to better heard turn the It's I product nail issue it's more the - say don't leasing our the care we It's there, the But plastic same away. future. XX automation - operation. pallets, world of off. falling the is the it's in world it's the not It for and that chips, nuts well what bodes for And you parts that is up. out

the because out FM must have in a management risk and that's - UL it's our the illogical but what's Well, done pallet - the impediments and is lower pallet has of retardant that's world plastic of a wood in plastic, the in tremendous temperature a than that's burns fire world. at dictating additive. lobby that there wood instances, for almost with One the many job us industry -

we'll times, So someone. of a with lot deal

Well, And they up of for brittleness retardant have anything want cost. from a you mandate, want a it - pallet might put that their fire says, in FM pallet. a When forth. the example, plastic system product but of use made that and and their millions in they affect pallets, the they pallet. Costco. They've Costco plastic so drives approved suppliers, we

and are don't entry they those those are issues customers they care. cases. there So matter. With don't to barriers care. that don't care. some they Miller are real most of are our With everyday customers, that things specific issues But in Brewing, that Walmart, With

your on end. most the retardant interview towards you the pallets, recent On mentioned fire had

curious one developing Greystone? on you Just a standpoint - at progress where at on are for

glad I'm question. asked you that

on different. We putting part, have pallet Missouri. into It's adding that's partner it it in product that a not material, it, but in the are as the And a now, - releases almost testing, on working we're we've bath and pallet, our rather fire which the the adding fire. with They we're retardant, working Right in where optimistic. quarter I've it than mentioned pallet of for call a us we're corners project. got a

fire the pass a cost of a you're - then - legs, whether the there's within so to your additive the course, or it with have involved. product also type cost what's associated using costs test final it's you forth, But of retardant and any there's of and

anticipate floodgates months demand able that So be not at will said, because meantime, retardant get I we're - headed they've once chemical - with they would big on I would to I like that up that we're we [ph] the that just and been production still, in I X past plastic another would really But probably we fire flow say, is pallets, I a open the have mean affecting are anticipate. - they way. all. said that's do people, proponent what Rubicon of our get Costco, cross once - we'll that It

We are get there. going to

all answers. queue. Thanks the Okay. That's great. in I'll jump for back your

Littlehale. from Instructions] Robert next [Operator question Our comes

is open. line Your

Good afternoon.

question you did announced, quick for acquisition just you finance The it? how a Just Bill.

loan We've our did balance is - worked with - annual of lender. of we financed on current and with was on cut lender amortization an really sheet substantially primary one It longer-term basis. our out back has a things our our we've our primary worked through helped notes, our out which the funding bank

and stepped for XXX% up the funding And that so of provided they equipment.

So is variable? it

again? that Say

rate? floating It's

Yes.

What's Okay. your headcount? current

Our current in operate. labors people company, about plus XX XX the XX have - a to in little that the over headcount is employ XXX plant contract we we about to total

Are you hiring veterans? still

to we're get limitations don't to We hiring, have I love veterans. don't on we hire - We'd Sure. any really people. love but think who real

to can As the years difficult past a to imagine, people. has a try real effort been X maintain just few you

So, yes.

in question company. your the reason Investor the for environment. for for you're part fairly the terms of for are Brendan, people company? the this new of able What in Brendan. was that Yes, effort question my to find Relations Final you're whether to plans good

releases making the - just which understands. the get think basics we public investing Well, I I out, down, events, that actually mean we press getting company when is sure have so

between that think tie even there I quiet we releases. is making are if progress, maybe a

So our get we public. a want maybe more to with communicative investing little

to We calls also are management. with go these forward people where opportunity Q&A with like have for to going get

again, ones, fresh get doing that this a and which XXX% once not would and management by all And to out we and then a but and is little getting yet, been developed I running smoothly like here people, possibly know bit do approved are doing qualified few of believe a conferences I which more than interactive more ones I with of crop investor there qualified others. start

of So that's the kind now. game right plan

and management on commit do qualified again, for And it, in is future the do frame as expands, this, don't company. I I a think with can the you I we to could but time now. uplift on the really we believe in company but check believe

than later. sooner rather hopefully So

Final rate question quarterly? preferred for dividend how was Warren. rate - shares calculated Warren, the the on the

in then that which Bill And It's early two, And prime don't address had have those an the in President. million of to put know, when for I million a was almost was just another member I I've all three investor I in. I could early that. Board the the the million, put a before and and days, tied cash another in myself, then in then and was business. $X $X in days, sudden,

of preferred. went in it as put about I've really of in as - common. $X.X was million rest it $X.X was million The and So just

to - a direct we it a conversion just it's the to was And in your tied somewhat think, maybe to question preferred alive price, Bill But be is prime. was so early And I strike that can. days. $X.XX, than long company more answer and the to at so got keep that of or specific trying I rate, $X.XX result a road about recall $X.XX have might

rates prime future. that benefits in happening and no up, us wish don't anticipate - cap down, start it a as anytime goes actually don't short but as So I but economist, out I I preferred. the would coming anticipate I'm

the That stockholders X.XX% to [ph] is share, prime. [ph] rate beneficial able converting, not this to $X.X a to preferred is Yes, which been has is Bill. be consider but above rate the conversion

Thank very much. you

[Operator Instructions] from next Our comes Joe Russo. question

is line Your open.

the Thanks the quarter. I for the wanted Guys. And about holding call. appreciate fourth question. Hey. ask to

the did ramp pretty for fourth strong in Warren, quarter. week, think interview, I a implied last you you

for million like said I $XX 'XX. revs million think you something to fiscal of $XX

maybe Maybe bit little So give what just that on It talk what Thanks. seeing far about so May iGPS. sounds color big of you're talked order from in like quarter. that's you the additional repeatable? a is order, and if a about

good? by Well, Joe, are you, way? Everything how the

doing good. Yes. Thanks, I'm Warren.

about was again, Well, been of - - relationship, X.X not. for or it has rocky we customers, it's it customers, from years. I most now really it Good. it's mentioned, believe fun with there iGPS the our have as been our about fun And like

with We we our customers. respond with working have and rapidly enjoy And good they working them. And relationships relatively with us them. to we generally enjoy

iGPS - if own they life. or affect concerned affected that long-term could a there they their needed - were something for Board they was could that - decided benefit, their their tornado that

plant It's the world So for Texas, produce plastic I've tough. getting good they down not a businesses seen put it's so in the and pallet they business. go to there. many It's in is this because hard product come industry a part. [ph] same difficult. Well,

for days. available XX And have issue, course, molds you some we of XXX machine more machine next can produce and have us time. their do we, had out - had Well, But iGPS and they their listen, share said, issues down And there. also extensive. is to has demand of customer own there we've - they've and the start-up us got product they came to a over the

world, broken of though. things pallets. that the to And So we of the we grind a do, have you be manufacturing the we careful, lot one - there's always in

of there. millions millions iGPS, they So to are back own broken, They they and of pallets have millions Well, when product. us. send when they out that them

in material broken raw form their sending us of to a pallet. they're So the back

we then so granulated we And we grind grind, and that make a pallet, BB.

that most - and now ordered Well, line many forth. delays with world, this so a of they've are things we been equipment to in operational life, the now that But year. with And in May, together. we And our just hoping and supposed has starting be had of equipment, will a up now that we'll so our equipment line the are pelletizing where delivered right in I really was I'm put end he's have in in morning, charge at to and there lot discussion gentleman last progress by and the the make of me they're all they of that available. telling a June, May. been And

that somewhat does we're to limited What ability mean? our with It means BB plastic.

our means $X.XX own and plastic to then in to go than marketplace per out $X.XX our operation. we that own we if more have in would the pay BB-ing pound [ph] were we So

my hey, lot in that And the So that to to we've had said, plastic these have we're temperate send we BB iGPS point more somewhat capacity. pallets. is didn't just on going a of because you recycled

we need in material is, have also raw their our help not So my will help as raw reprocessed BB to and product. that increase own but used point our we capacity, those we customers only their costs, our material will

that the us just in I company huge So will in amount. as this a a future, anticipate benefit as

some have into much and you're curious in sounded iGPS, out your like of next the continue you it helpful. Walmart this beer How guys May visibility fourth with in at you current customers the press put would release seeing from that's year. point? of do And that just morning, you beyond kind like sort existing strength larger guys. the Got this of quarter No, it. the thought I'm

gentleman I if done Berry to had to be Berry organization, had company-wise, use green their alluded up very just earlier, internal own is their And material out is with leading a day me a they great - be recycled, I me start they within that that picked Plastics. own let to have relationship this to that their reach as someone their will The is Berry, just That's things Berry with extrusion initiative. some today. up We initiative want week. product how equipment we've line my needs This Well, for operation. a have okay? company, already. Well, goes. last for large material in their who

Berry. that morning, us process Berry for And a the put this they back them. ability their was about Well, we excited resins very some had products into call of to it had with and for

thing of type day every that the like that's just it's that. So is

contract what was to we'd hey, [ph] got I a iGPS had And time called that being I've for to was he said we I customer be called listen, has Is at also time. who President known of want. a and delighted me he of be he produce. we product and want President an Australian one something at develop. XX and kind I've Chap it to happy, do guy years, said, of one that they need have, we'd And they it, he

working So this. you're on all just just always these And day, things it's these. something there's every like

sometimes, And years to take they blossom.

they for mentioned, guy years. really I can they him. that came the for ago. group the South with and never him said, iGPS, known time they're I've me assets done met bought us. them Well, met known I've I've management African of you guys. with for happened iGPS. of to I this a years, As original anything And product them, some XX when produce

doing in of this years things for So to take these just XX there's pipeline, been some but our I've - years. develop,

this? pipeline be on of how the out are wow. just placed can you they do be the the specific track They my we - basis fast an that there it's going reach to XX believe people So track ongoing going, me these can will customer say, And doing years, plastic We're is cellular that in track a and and there now. they'll for trace right pallet more that are to for pallets. units that temperature, can

Vegas, and Well, food that you XXX the a for your in want business degrees you Las if be truck monitor put unload would food people it it's ability you want that? the don't to food, companies. that, just food companies why very helps Well, and in to pharmaceutical you're of long. to logistics outside the outside, the Now do pallet

- a of as the And so see more in lot future. we're the that to going future

some else's can just Awesome. little people But talk injection you bit you're Last ask. - sounds for there. ask a about Missouri that question other me, and is, Is some sort and facility. guys the Just kind just like equipment It putting someone that facility, would molding down I'll like you planning equipment the about are you're maybe what be talk hosting there? relationship of there on making what great. down of

doing Yes. for X, That with know putting in them and needed us is is X, X They guys that's facility, I someone recycling when we product else's our are And been it even probably, - world. for years, numerous equipment these don't years. - there. the we've in product. produce their we produced They're business to

added to them was X show ago have at they facility. Chicago. I They're on for crane. people. a trade an They - in with space have ours - just their weeks with [ph] wonderful We overhead a put They

- our pretty crowded. if and are have space well. Iowa, - now this mean we came utilized - really, I our And to really, really we're facilities we you our in

- knows - to contracted we they probably those well facility? got that our determined going them They and It's great top all group - we to we're you've we leasing so discuss us and because And rods product make And for We the what decisions in we in at manufacture is call Do whatever our product, bottom. another - for world. Missouri be it's the that to Board the to so do which the build people. has the our we are the fiberglass that decision, MVP line, are will put there. the have time.

the structurally they're that - sound. are And there. probably product So be will we'll produced type of those very

you, appreciate Awesome. guys. Okay. Thank I Operator? answers. all the

Apologies.

question next from Valentine. Our comes Russell

is Your line open.

Hi, Greystone. there. the they with company to the invested been changed name before I've

now, pallets saw lot of as double-digit a Plastic to we always Today, share. done last not Stock that. I be in stock the a starting been years. while. just and and the would today. durable per going So around was price plastic. hasn't whole down But a as I've thought get all earnings cent double-digit we're the

about not hope the I I we thinking you're last increasing broadcast price when with a about earnings think exchange. reverse you don't about you're have higher price. know the get moving Comments I rise? do that, talking was, a But to per on splitting. that. when to hope the we different share

I'm shareholder out there. largest the Well, common

And think I million. will cooking. probably this probably so in I'm originally I those share eating had per in over my average call, And my is I I those say And - earlier phone $X.X that - my $X. cost own

on too, which I'm been motivated a I, good And pricing our that so And we been disappointed is thing. as well, have stock. that have not able climb to

head down knew American-made and And said, there there. things, and let's me money was we like was you. take do - I people know put landfill, years we make just the plastic green convert our world. - than I'm put an no and people Bill where we talk industry and - about actually it go like fill just product. much because other we ago term, to something let's we believer take I and doing out We green you make my just that sometimes, down the in what, it when out bigger long junk. can and We do in the going And heads

holdings. to, statement $X.XX I But many perhaps $X.XX. in it's make any me, can there. at thought I'm times, it. a diversified inappropriate At be I've that's and share, And [indiscernible] how and on So sense. I doesn't it To mean, bullish to very rise much my too I have need

that's So I'm sorry, that. I - said

the am how is how a I stock - that hope strategy. - said this I I out - can buy? cheap. is too not much have hoping where much is some And I'm can more. that to need so more too, and good that's And I, buy But go I and

our for other shareholders, and going - to I stock We do of you, just price make customers, out can and good employees than I but things our continue do are mentioned. our to the And control can't I I those that promise our exactly for to to do there to to money shareholders. much the strive try

years I appreciate Thank for forward you've Very good. I look all riding to future. and it. many you. done the been appreciate

sir. Thank very, you, very much. it, appreciate sir, I

Our next Perala. question comes from Anthony

Your line is open.

guys. Hey,

XX-Q? Just $X.X million of the line follow-ups. included a purchase in you guys in extrusion the that quick disclosed couple of Is the commitments

Yes. Yes, it is.

thinking fiscal nothing Okay. capital Excellent. thoughts kind as year, are like XXXX, of forward? And going CapEx the into then maintenance move we on no last or - what your of just on expansion kind the

Can Bill? you address that,

that. I address can

two doing These We bit will customers. year. a produce team are pallets will sales I'm outlook to able conversations what two will moratorium. a is per and for additional little be each on pallets depends lot the from comes to XXX,XXX be or machines all our these of solicitations of new a new and - Warren that produce sorry, it these look - to each there'll what And about up

additional capacity to close $XXX,XXX of per that's So year.

the XX little took new months. But far bit year. as we'll a a it were So off a of actually we delivered. they a XX, have almost [ph] we takes will It's the it's it CapEx Warren from little a a ordered two in need more - Actually, about year - year short as term. before so leveling these machines time

so getting major is equipment the now And a problem. right

and to continually this we've as and jump we have got we we'll fill be things. we that up additional pipeline thinking ahead see think to pick have, we or up again out available starting So

just set in the minimum of we're space where of right like additional now I start of doing we up, what will anything. our don't a end got horizon to X we filling goal. on as available for a And that capacity. being looking lot But well definitely But fill depends we up the X it I seeing us are. And months be and Missouri. looks we're think got, at we've months, the additional pretty that's of think we what major for But

the to concerned about occupy really So we're not space equipment.

there. shape good So we're pretty in

Okay...

just plus and the their line before they follow-up said, liquidate spent make can spent finally They right in that brand the $X company investors COVID. here extrusion line. have just equipment. back step million new on extrusion - comment just - on The I they're a If equipment the

have up, this of research third equipment development or XX we the picked only of generation we're And over years the not this product. so and and benefit we on the fourth

you that I'll hey, the is to want discount, good to wanted that is was we optimistic pallets relatively at that different the we're you new Uline a brand that feel about that? Can clarify and for was oddball - – and come some do us? that. picked buying we equipment, said, of it produce equipment can we line give the size So we company up acquisition. that now But us to and the name I for just has and about

ability The produce do have Mexico. other in thing about the we capacity, to

so will in of able be a have facility some too, have to outsourced that and We tools will Mexico down do in couple do couple in, have we we some do are but do And we we products, in product down a We a Mexico. produce a we Mexico sales down able down down people future. in there. that we'll the knocking and when orders not be doors, of that on lot full some production a there there, of to come sold line have have

Okay. And the then with execution...

capacity utilize me let that have we polished Missouri just to Warren we company we they can plus outsource [ph] need degree The that just Yes, probably and as to. add that. some through,

great. That's

still come with along the have extrusion assets kind buying? that line, Toyota they of that the Does relationship? you're the do On

Well, what happened Toyota relationship. the with

relationship, to you even down. But used or came can told only not industry The more. you it like well, going when the that. - raw us like X something industry they high pay back, XXXX not the - you the maybe get week, on - this owned - We're four to the week, Toyota days when pricing whole about we we've that Toyota going the price were so auto We it produce when in because have were says, materials at swoon originally. they anything in no, shut finally

margin going a need do where we in anything. don't I'm not that are I'm not that - So something make I sell terms below us - going to we to to. because don't know will happen

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me. then last one for And Okay.

once for million. about around being in talked you've service $XXX the Just this equipment revenue capacity

will capacity curious what kind march level? as be of towards Just you impact margin that

the cover and on addressed plus will substantial. the We improvement Bill keep that down towards it margin And our is that that improvement. and on we - just XX% fixed cost, fixed beautiful thing digit our costs, margin then upward dollars will earlier area. our incremental double want that that anticipate be once sales Well, we to on XX% drop stepping

Thanks right. all for All answers. the

questions It I or additional presenters for will over to appears we closing any further remarks. time. program at have this no now back the turn our

Well, this very I today. Kruger. thank you it. shareholder. appreciate is Warren everyone to listening being in I for much want I appreciate a

If you some buying shareholder. I and shareholder, shares you being a you're are not appreciate a if

you. to and hard going thank So work you, for we're

has concluded. conference Today's

at You may disconnect time. any