Revenue and Core Category Resilience
Total revenue was $8.3M in Q1 FY2026, down 7% from $9.3M a year ago, while the core metal fence business — the company's largest category — posted slight year-over-year sales growth, demonstrating resilience amid tariffs and weak consumer sentiment.
Strong Greenwood Industrial Wood Growth
Greenwood subsidiary sales increased 45% year-over-year, driven by stronger demand from municipalities and transit operators and a new non-transit industrial customer.
Inventory Reduction
Company inventory declined to $13.5M as of 11/30/2025 from $15.9M in August 2025, a reduction of ~15.1%, reflecting efforts to sell excess lumber and slow-moving product and lower warehousing exposures.
Cost-Reduction Progress — Payroll
Wages and employee benefits fell to $1.2M from $1.7M (down ~$500k, ~29.4%) as headcount reductions continued, and management targets further annual operating expense reductions of $1M–$3M to align cost structure with demand.
Pricing Renegotiations Underway
Management has renegotiated pricing agreements with most customers to recapture tariff-driven cost increases; implementation began in 2026 and is expected to support margin recovery as global trade conditions stabilize.
Improved Liquidity Flexibility
Amended financing arrangement with NorthRim increased maximum AR purchase to 90% (up from 80%) and cap to $8M (from $6M), inventory advance rate to 50% (from 25%), and maximum borrowing to $6.5M (from $4M), providing near-term liquidity and flexibility; company had $4.2M drawn as of 11/30/2025.