YUNHONG GREEN CTI LTD. Q4 FY2022 earnings call

• 2022 was impacted by elevated helium prices, but saw improvement in fourth quarter with Valentine's Day product sales. Helium price doubled in first half of 2022 and declined in second half, though remained elevated. - Foil balloon sales down $7M, but gross margin improved from 15% to 17%. Unrelated product sales increased by ~$1.4M. - Went from debt-rich to debt-poor position, debt reduced from ~$20M to ~$5M. - 2023 starts with deferred income and improving backlog. - Investing in robotic technology, with payback in less than 9 months. - Focus on compostability technology, working on prototypes for more sustainable products.

Foil balloon sales were down $7 million last year. Sales of unrelated products increased by about $1.4 million. Overall gross margin improved from 15% to 17%. The company went from a debt-rich position a few years ago to a debt-poor position, with debt reduced from about $20 million to about $5 million. Foil balloon revenue contribution was affected by helium price issues, while non-helium related product sales contributed to the revenue mix.

• Aim to improve adjusted EBITDA. - Work towards commercialization of compostability technology. - Hope for Russian supply to return to market. - Expect to have a better year in 2023 with recovery in demand due to more stable helium pricing.

• Elevated helium prices still pose challenges for customers. - Russian supply not yet returned to market. - Interest rate increases impact financial health. - Challenges in retail space similar to Party City's Chapter 11 filing, including helium prices, inflation, shipping costs, and changing consumer behavior.

Q: What technology or revenues do you guys expect in 2023 from the new technology related to the Yunhong Group?

A: The new technology is about compostability, dealing with replacing plastic and landfill-type products with compostable or sustainable alternatives. Prototypes exist but none are ready for commercialization today. Working to present environmentally friendly options to customers as they work on supply chain commitments.

Q: Would like to see insider purchase, any comment?

A: Insiders spend most of the year unable to transact stock, but the point is well taken that everyone wants to do the right thing.