Massimo Group Reports Fiscal Year 2023 Financial Results
- Revenue growth of 32.9% to $115.0 million in FY 2023.
- Gross margin increased by 550 basis points to 31.2%.
- Net income rose by 150% to $10.4 million.
- Closed $5.85 million IPO and started trading on Nasdaq under 'MAMO'.
- None.
Insights
Massimo Group's robust fiscal year 2023 financial results demonstrate a significant uptrend in the company's performance, particularly in sales of powersports vehicles and pontoon boats. The impressive
One particularly encouraging sign is the gross margin improvement by 550 basis points to
The strategic decision to shift sales channels, notably moving away from retailers with liberal return policies, has positively impacted the gross profit margins, especially in UTVs and ATVs, which is a smart move to stabilize revenue predictability. However, investors should be aware of the increase in general and administrative expenses, up
Massimo Group's performance within the powersports and boating markets is telling of broader market trends. Sales of UTVs, ATVs and electric bikes, which grew
Their pontoon boats segment, achieving a
Entering the yacht market is a strategic leap into high-margin, luxury goods, diversifying Massimo's revenue streams. These market expansions, coupled with the company's efforts to enhance distribution centers and improve supplier networks, portray a company on an aggressive growth trajectory with a focus on scalability and market responsiveness.
Massimo Group's financials show a conscious effort to optimize their supply chain. The reduction in global container freight costs has directly benefited their cost of sales, improving gross margins, a reflection of the company's ability to adapt to dynamic shipping cost environments.
Investments in expanding distribution centers in California and the Southeast U.S. and diversifying the supplier base are proactive measures to mitigate supply chain risks and enhance operational efficiencies. For investors, this indicates a forward-thinking management team that is not merely reactive to market conditions but is preparing the company for resilience and sustainability in its operations.
As the company scales post-IPO, close monitoring of how these infrastructural enhancements translate into reduced delivery times and cost savings will be important for evaluating Massimo's ability to leverage its increased capital effectively and sustain supply chain advantages over competitors.
FY 2023 Revenues up
FY 2023 Gross Margin Grew 550 basis points to
FY 2023 Net Income up
Closed
Fourth Quarter and 2024 Operational Highlights
- Closed
$5.85 million - Q4 2023 Revenues up
58.5% to$39.6 million $25.0 million - FY 2023 Revenues increased
32.9% to$115.0 million $86.5 million - FY 2023 Gross profit increased
61.7% to$35.9 million $22.2 million - FY 2023 Gross margin grew 550 basis points to
31.2% compared to25.7% in FY 2022. - FY 2023 Net income increased
150% to$10.4 million $4.2 million - Massimo Motor:
o Added two new models to its 2024 ATV lineup, the Massimo MSA 600 and MSA 1000 ATVs, providing customers with new options for work or on the trail.
o Unveiled new 2024 1000 UTV, with a powerful 83hp EFI engine that allows for an efficient workday while leaving plenty of room for thrills on the weekends.
o Hired Dave McMahon as a media advisor, bringing extensive powersports industry experience with the aim of elevating the brand at the dealership level.
o Showcased a range of vehicles at the 2024 Tractor Supply Company Annual Sales Meeting, annual Thiesen's Home and Farm Show, and 40th Annual Equip Expo.
- Massimo Marine:
o Launched all-new 2024 25-Foot Ultra Lounger Tritoon, providing a nimble driving experience while offering a host of comforts that Massimo customers have come to expect.
o Successfully made its debut in the yacht market with a 72-foot vessel combining spacious quarters for guests and crew, a large living area and sundeck.
o Unveiled all-new 2024 30-Foot Double Decker Tritoon, available in five different Mercury motor configurations.
Management Commentary
"The fourth quarter of 2023 and early 2024 were highlighted by strong sales for our diversified and comprehensive product portfolio of powersports vehicles and pontoon boats, the launch of new models, and our debut as a public company on Nasdaq," said David Shan, Founder, Chairman & CEO. "Sales of UTVs, ATVs and electric bikes increased
"During the fourth quarter, while we focused on holiday order fulfillment, we also introduced exciting new products to the brand. Massimo Motor added two all-new models to its 2024 ATV lineup, geared toward riders who seek a high-quality vehicle at an affordable price. These ATVs are built with powerful 4 stroke engines, electronic fuel injection and on demand 4WD with locking differential and are now shipping to dealerships nationwide. We also launched an all-new 2024 1000 UTV with a 997cc, 4-stroke V-twin engine that makes for a confident ride whether at work or at play. We also continued marketing efforts to promote our brand at industry leading events and expos around the country.
"For our Massimo Marine segment, we launched the all-new 2024 25-Foot Ultra Lounger Tritoon, available only in a tritoon configuration that features three full-length tubes and a pair of 5-inch lifting strakes on all three tubes. The all-new 2024 30-Foot Double Decker Tritoon comes in variety of engine configurations to allow for optimal speed, performance and pleasurable ride experience. These new models are the result of consumer demands and trends, such as the Double Decker's aluminum slide with a waterspout that comes factory equipped.
"Operationally, the closing of our
"Looking ahead, with support from our IPO, we will continue to advance initiatives to improve gross margins while continuing to grow our revenue. We expect to expand our footprint with new distribution centers in
"In summary, the last several months were a time of foundation building for the year ahead – from which our vision to enter the top-tier band of the powersports vehicles and boats industry will emerge. I look forward to continued execution in the months ahead as we strive to create long-term value for our shareholders," concluded Mr. Shan.
Fourth Quarter 2023 Financial Results
For the three months ended December 31, 2023, revenues increased by
Revenue from sales of UTVs, ATVs and electric bikes increased by
Revenue from sales of Pontoon Boats were
Gross profit increased by
Cost of revenue on UTVs, ATVs and electric bikes increased by
Cost of revenue on Pontoon Boats decreased by
Selling and marketing expenses decreased by
General and administrative expenses increased by
Total operating expenses increased by
Net income for the three months ended December 31, 2023, was
Fiscal Year 2023 Financial Results
Revenues increased by
Revenue from sales of UTVs, ATVs and electric bikes increased by
Revenue from sales of Pontoon Boats increased by
Gross profit increased by
Cost of revenue on UTVs, ATVs and electric bikes increased by
Cost of revenue on Pontoon Boats increased by
General and administrative expenses increased by
Total operating expenses increased
Net income for fiscal 2023 was
Cash and cash equivalents totaled
Net cash provided by operating activities increased to
About Massimo Group
Massimo Group (NASDAQ: MAMO) is a manufacturer and distributor of powersports vehicles and pontoon boats. Founded in 2009, Massimo Motor believes it offers some of the most value packed UTV's, off-road, and on-road vehicles in the industry. The company's product lines include a wide selection of farm and ranch tested utility UTVs, recreational ATVs, and Americana style mini-bikes. Massimo Marine manufacturers and sells Pontoon and Tritoon boats with a dedication to innovative design, quality craftsmanship, and great customer service. Massimo is also developing electric versions of UTVs, golf-carts and pontoon boats. The company's 286,000 square foot factory is in the heart of the
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering, the use of proceeds thereof, financial and operating results, expansion efforts, new product offerings and other like items. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan," and other words and terms of similar meaning. These forward-looking statements include information concerning statements regarding future cash needs, future operations, business plans and future financial results; and any other statements that are not historical facts. No assurance can be given that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Massimo, including those set forth in the "Risk Factors" section of Massimo's annual report on Form 10-K for the for the fiscal year ended December 31, 2023 filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Massimo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Company
Dr. Yunhao Chen
Chief Financial Officer
Massimo Group
ir@massimomotor.com
Investor Relations
Chris Tyson
Executive Vice President
MZ North America
Direct: 949-491-8235
MAMO@mzgroup.us
MASSIMO GROUP AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
As of December 31, | As of December 31, | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 765,814 | $ | 947,971 | ||||
Accounts receivable, net | 9,566,445 | 6,831,731 | ||||||
Inventories, net | 25,800,912 | 23,762,950 | ||||||
Advance to suppliers | 1,589,328 | 2,977,412 | ||||||
Other current assets | 637,509 | 71,139 | ||||||
Total current assets | 38,360,008 | 34,591,203 | ||||||
NON-CURRENT ASSETS | ||||||||
Property and equipment at cost, net | 399,981 | 414,554 | ||||||
Right of use operating lease assets, net | 1,478,221 | 1,340,053 | ||||||
Right of use financing lease assets, net | 113,549 | 94,857 | ||||||
Deferred offering assets | 1,457,119 | 421,789 | ||||||
Deferred tax assets | 134,601 | - | ||||||
Total non-current assets | 3,583,471 | 2,271,253 | ||||||
TOTAL ASSETS | $ | 41,943,479 | $ | 36,862,456 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term loans | $ | 303,583 | 5,600,000 | |||||
Accounts payable | 12,678,077 | 11,111,624 | ||||||
Other payable, accrued expenses and other current liabilities | 98,097 | 402,056 | ||||||
Accrued return liabilities | 283,276 | 556,538 | ||||||
Accrued warranty liabilities | 619,113 | 260,531 | ||||||
Contract liabilities | 1,835,411 | 696,274 | ||||||
Current portion of obligations under operating leases | 847,368 | 750,719 | ||||||
Current portion of obligations under financing leases | 41,647 | 27,559 | ||||||
Due to shareholder | - | 10,984,344 | ||||||
Subscription deposits | - | 600,000 | ||||||
Due to related parties | - | 142,427 | ||||||
Income tax payable | 2,121,083 | - | ||||||
Total current liabilities | 18,827,655 | 31,132,072 | ||||||
NON-CURRENT LIABILITIES | ||||||||
Obligations under operating leases, non-current | 630,853 | 589,334 | ||||||
Obligations under financing leases, non-current | 77,024 | 70,310 | ||||||
Loan from a shareholder | 7,920,141 | - | ||||||
Total non-current liabilities | 8,628,018 | 659,644 | ||||||
TOTAL LIABILITIES | $ | 27,455,673 | $ | 31,791,716 | ||||
Commitments and Contingencies | ||||||||
EQUITY | ||||||||
Common shares, | 40,000 | 40,000 | ||||||
Preferred share, | - | - | ||||||
Subscription receivable | (832,159) | (2,034,000) | ||||||
Additional paid-in-capital | 1,994,000 | 1,994,000 | ||||||
Retained earnings | 13,285,965 | 5,070,740 | ||||||
Total equity | 14,487,806 | 5,070,740 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 41,943,479 | $ | 36,862,456 | ||||
MASSIMO GROUP AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||
For the Years Ended December 31, | ||||||||
2023 | 2022 | |||||||
Revenues | $ | 115,037,544 | $ | 86,527,534 | ||||
Cost of revenues | 79,126,454 | 64,323,858 | ||||||
Gross Profit | 35,911,090 | 22,203,676 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | 9,761,090 | 8,670,176 | ||||||
General and administrative expenses | 13,227,106 | 8,928,493 | ||||||
Total operating expenses | 22,988,196 | 17,598,669 | ||||||
Income from operations | 12,922,894 | 4,605,007 | ||||||
Other income (expense): | ||||||||
Other income, net | 140,866 | 384,622 | ||||||
Interest expense | (518,731) | (828,016) | ||||||
Total other income (expense), net | (377,865) | (443,394) | ||||||
Income before income taxes | 12,545,029 | 4,161,613 | ||||||
Provision for income taxes | (2,129,804) | - | ||||||
Net income and comprehensive income | $ | 10,415,225 | $ | 4,161,613 | ||||
2023 | 2022 (Pro Forma) | |||||||
For the Years Ended December 31, | ||||||||
2023 | 2022 (Pro Forma) | |||||||
Income before income taxes | $ | 12,545,029 | $ | 4,161,613 | ||||
Provision for income taxes | (2,129,804) | (873,939) | ||||||
Net income and comprehensive income | $ | 10,415,225 | $ | 3,287,674 | ||||
Earnings per share – basic and diluted | $ | 0.26 | $ | 0.08 | ||||
Weighted average number of shares of common stock outstanding – | 40,000,000 | 40,000,000 | ||||||
* Retroactively restated for effect of the Reorganization | ||||||||
MASSIMO GROUP AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
For the Years Ended December 31, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 10,415,225 | $ | 4,161,613 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Depreciation | 151,512 | 146,658 | ||||||
Non-cash operating lease expense | 974,973 | 698,379 | ||||||
Accretion of finance lease liabilities | 7,048 | 4,015 | ||||||
Amortization of finance lease right-of-use assets | 42,113 | 39,214 | ||||||
Written-off of account receivables | 598,434 | 4,011 | ||||||
Gain on disposal of fixed asset | (15,777) | - | ||||||
Provision (reversal of allowance) for expected credit loss, net | 203,301 | (97,635) | ||||||
Deferred tax assets | (134,601) | - | ||||||
Inventories reserve | 439,900 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (3,536,449) | 1,091,356 | ||||||
Inventories | (2,477,862) | (1,445,548) | ||||||
Advance to suppliers | 1,388,084 | (630,389) | ||||||
Other current asset | (566,370) | (22,117) | ||||||
Due from related party | - | 26,250 | ||||||
Accounts payables | 1,356,453 | (1,150,979) | ||||||
Other payable, accrued expense and other current liabilities | (303,959) | 106,430 | ||||||
Tax payable | 2,121,083 | - | ||||||
Accrued warranty liabilities | 358,582 | (20,277) | ||||||
Accrued return liabilities | (273,262) | (954,102) | ||||||
Contract liabilities | 1,139,137 | (637,207) | ||||||
Lease liabilities – operating lease | (974,973) | (698,379) | ||||||
Net cash provided by operating activities | 10,912,592 | 621,293 | ||||||
Cash flows from investing activities: | ||||||||
Proceed from sales of property and equipment | 13,500 | - | ||||||
Acquisition of property and equipment | (134,662) | (197,802) | ||||||
Net cash used in investing activities | (121,162) | (197,802) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from bank loan | 3,150,000 | 5,100,000 | ||||||
Repayment of bank loan | (8,750,000) | (3,500,000) | ||||||
Proceeds from other loans | 303,583 | - | ||||||
Repayment of finance lease liabilities | (47,051) | (42,503) | ||||||
Repayment to related party | (142,427) | - | ||||||
Deferred offering costs | (825,330) | (421,789) | ||||||
Proceeds from subscription deposits | - | 600,000 | ||||||
Proceeds from issuance of common stock | 601,841 | - | ||||||
Repayment of shareholder advance, net | (5,264,203) | (2,500,082) | ||||||
Net cash used in financing activities | (10,973,587) | (764,374) | ||||||
Net decrease in cash and cash equivalents | (182,157) | (340,883) | ||||||
Cash and cash equivalents, beginning of the year | 947,971 | 1,288,854 | ||||||
Cash and cash equivalents, end of the year | $ | 765,814 | $ | 947,971 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW | ||||||||
Cash paid for interest | $ | 518,731 | $ | 805,229 | ||||
Cash paid for income taxes | $ | 143,322 | $ | - | ||||
NON-CASH ACTIVITIES | ||||||||
Right of use assets obtained in exchange for operating lease | $ | 1,113,140 | $ | 255,066 | ||||
Right of use assets obtained in exchange for finance lease | $ | 60,805 | $ | - | ||||
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SOURCE Massimo Group
FAQ
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