Twin Vee PowerCats Co. Reports Third Quarter 2024 Results of Operations
Twin Vee PowerCats Co. (NASDAQ:VEEE) reported Q3 2024 results showing significant challenges. Revenue decreased 64% to $2.9 million from $8.1 million in Q3 2023. The company posted a consolidated net loss of $3 million, with Twin Vee's loss at $2.1 million and Forza X1's at $896,000. Cash and equivalents declined to $11.4 million from $15.1 million in Q2. The company implemented cost-cutting measures including workforce reduction and lowered production in response to declining industry demand. Shareholders approved the merger between Twin Vee and Forza X1. The company is investing in facility expansion and new manufacturing equipment while aiming to reduce monthly consolidated adjusted net loss to $400,000 by Q1 2025 exit.
Twin Vee PowerCats Co. (NASDAQ:VEEE) ha riportato risultati per il terzo trimestre del 2024 che mostrano sfide significative. I ricavi sono diminuiti del 64%, passando da 8,1 milioni di dollari a 2,9 milioni di dollari nel Q3 2023. L'azienda ha registrato una perdita netta consolidata di 3 milioni di dollari, con una perdita di 2,1 milioni di dollari per Twin Vee e di 896.000 dollari per Forza X1. La liquidità e gli equivalenti sono scesi a 11,4 milioni di dollari rispetto ai 15,1 milioni di dollari del Q2. L'azienda ha attuato misure di riduzione dei costi, inclusa la riduzione della forza lavoro e l'abbassamento della produzione in risposta alla diminuzione della domanda nel settore. Gli azionisti hanno approvato la fusione tra Twin Vee e Forza X1. L'azienda sta investendo nell'espansione degli impianti e in nuove attrezzature di produzione, puntando a ridurre la perdita netta consolidata mensile a 400.000 dollari entro il primo trimestre del 2025.
Twin Vee PowerCats Co. (NASDAQ:VEEE) informó resultados del tercer trimestre de 2024 mostrando desafíos significativos. Los ingresos disminuyeron un 64%, de 8,1 millones de dólares a 2,9 millones de dólares en el Q3 de 2023. La compañía registró una pérdida neta consolidada de 3 millones de dólares, con una pérdida de 2,1 millones de dólares para Twin Vee y 896,000 dólares para Forza X1. El efectivo y equivalentes cayeron a 11,4 millones de dólares desde 15,1 millones de dólares en el Q2. La empresa implementó medidas de reducción de costos que incluyen la reducción de personal y la disminución de la producción en respuesta a la caída de la demanda de la industria. Los accionistas aprobaron la fusión entre Twin Vee y Forza X1. La empresa está invirtiendo en la expansión de instalaciones y nuevos equipos de fabricación mientras busca reducir la pérdida neta consolidada mensual a 400,000 dólares para la salida del primer trimestre de 2025.
Twin Vee PowerCats Co. (NASDAQ:VEEE)는 2024년 3분기 결과를 발표하며 중대한 어려움을 보였습니다. 수익이 64% 감소했습니다, 2023년 3분기의 810만 달러에서 290만 달러로 줄었습니다. 이 회사는 3백만 달러의 통합 순손실을 기록했습니다, Twin Vee의 손실이 210만 달러, Forza X1의 손실이 89만 6천 달러입니다. 현금 및 현금성 자산은 2분기의 1510만 달러에서 1140만 달러로 감소했습니다. 이 회사는 감소하는 산업 수요에 대응하여 인력 감축과 생산 감소를 포함한 비용 절감 조치를 시행했습니다. 주주들은 Twin Vee와 Forza X1 간의 합병을 승인했습니다. 이 회사는 시설 확장 및 신규 제조 장비에 투자하고 있으며, 2025년 1분기 종료까지 월간 통합 조정 순손실을 40만 달러로 줄이는 것을 목표로 하고 있습니다.
Twin Vee PowerCats Co. (NASDAQ:VEEE) a annoncé des résultats pour le troisième trimestre 2024 montrant des défis significatifs. Le chiffre d'affaires a diminué de 64%, passant de 8,1 millions de dollars à 2,9 millions de dollars au T3 2023. L'entreprise a enregistré une perte nette consolidée de 3 millions de dollars, avec une perte de 2,1 millions de dollars pour Twin Vee et de 896 000 dollars pour Forza X1. La trésorerie et les équivalents ont chuté à 11,4 millions de dollars contre 15,1 millions de dollars au T2. L'entreprise a mis en œuvre des mesures de réduction des coûts, y compris une réduction des effectifs et une baisse de la production en réponse à la diminution de la demande dans le secteur. Les actionnaires ont approuvé la fusion entre Twin Vee et Forza X1. L'entreprise investit dans l'extension de ses installations et de nouveaux équipements de fabrication tout en visant à réduire la perte nette consolidée mensuelle à 400 000 dollars d'ici la fin du premier trimestre 2025.
Twin Vee PowerCats Co. (NASDAQ:VEEE) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, die erhebliche Herausforderungen zeigen. Der Umsatz sank um 64% auf 2,9 Millionen Dollar von 8,1 Millionen Dollar im Q3 2023. Das Unternehmen verzeichnete einen konsolidierten Nettoverlust von 3 Millionen Dollar, wobei der Verlust von Twin Vee bei 2,1 Millionen Dollar und der von Forza X1 bei 896.000 Dollar lag. Bargeld und Äquivalente fielen auf 11,4 Millionen Dollar von 15,1 Millionen Dollar im Q2. Das Unternehmen führte Kostensenkungsmaßnahmen durch, einschließlich der Reduzierung des Personals und einer niedrigeren Produktion als Reaktion auf die rückläufige Branchennachfrage. Die Aktionäre genehmigten die Fusion zwischen Twin Vee und Forza X1. Das Unternehmen investiert in die Erweiterung der Anlagen und neue Produktionsausrüstungen, während es plant, den monatlichen konsolidierten bereinigten Nettoverlust bis zum ersten Quartal 2025 auf 400.000 Dollar zu senken.
- Strong cash position with $11.4 million in cash and equivalents
- Strategic investments in facility expansion and manufacturing efficiency
- Merger approval with Forza X1 potentially creating operational synergies
- 64% revenue decline to $2.9 million in Q3 2024
- Increased net loss to $3 million in Q3 2024
- Cash position decreased by $3.8 million from Q2
- Workforce reduction and lowered production due to declining demand
- Monthly operational cash burn remains significant
Insights
Twin Vee's Q3 results reveal significant challenges, with revenue plummeting
Despite these headwinds, the company maintains a solid balance sheet with
FORT PIERCE, FL / ACCESSWIRE / November 14, 2024 / Twin Vee PowerCats Co. (Nasdaq:VEEE) ("Twin Vee" or the "Company"), a manufacturer of Twin Vee PowerCats and AquaSport boats known as offshore, family-friendly fishing boats from its factory in Fort Pierce, Florida, today reported operational highlights and financial results for the three months ended September 30, 2024.
Highlights: (Unless otherwise noted, all comparisons are to the three months ended September 30, 2023, "Q1" refers to the three months ended March 31, 2024, "Q2" refers to the three months ended June 30, 2024, "Q3" refers to the three months ended September 30, 2024, "Twin Vee" refers to the gas-powered segment, "Forza" refers to the electric boat and development segment, and "consolidated" refers to the consolidated results of Twin Vee PowerCats Co.)
Shareholders of both Twin Vee and Forza X1, Inc. (OTC: FRZA) voted in favor of the merger of these two entities.
Twin Vee continues to experience industry wide declining demand for recreational marine vehicles.
Proactive measures were taken to mitigate slowing demand challenges, including lowering production numbers, tightened financial controls, and a reduction in workforce.
Consolidated revenue for Q3 decreased by
64% to$2,901,000 from$8,077,000 in Q3 2023.Consolidated holdings of cash, cash equivalents, restricted cash, and marketable securities totaled
$11,358,000 at the end of Q3 as compared to$15,134,000 at the end of Q2.Consolidated net loss for Q3, was
$3,010,000 , which includes Twin Vee's Q3 net loss of$2,114,000 and Forza X1 Q3 net loss of$896,000. Twin Vee adjusted net loss was
$1,402,000 or$467,000 per month in Q3.Forza adjusted net loss was
$427,000 or$155,000 per month in Q3.The decrease in cash reserves was primarily due to the Twin Vee building expansion, new product development, merger related costs and operational cash losses from reduced revenue in the third quarter of 2024 and payments against vendor balances that had grown during the second quarter.
At September 30, 2024:
Consolidated total assets were
$30,140,000. Consolidated total equity was
$23,208,000
"The recreational marine industry has continued to be challenged by declining customer demand. The recent Fort Lauderdale International Boat Show was well-attended and Twin Vee had several models on display, with dealers reporting several sales and leads resulting from the show. Further, the results of the recent election are now behind us removing one uncertainty in the market, and in recent days, the Federal Reserve reduced interest rates by one quarter point. While this interest rate reduction by itself is not significant, we believe the directional move is an important signal to the market," explained Joseph Visconti, Chief Executive Officer of Twin Vee PowerCats Co.
"During the third quarter we again took steps to right-size the labor force while also tightly controlling operating costs. At the same time, we are using this slower period to lay the groundwork for the next market upswing. Twin Vee is investing in new models and expanding our Fort Pierce, FL manufacturing facility to increase production capacity and create a more efficient factory layout. We are also investing in vertical integration and efficiency by adding a state-of-the-art CNC machine into our manufacturing process. This will save on costs associated with outsourcing and enhance the quality of the boat molds we use to build our products."
Twin Vee reported a
Forza had a net loss of
The consolidated net loss attributed to stockholders of Twin Vee was
Michael P. Dickerson, Chief Financial & Administrative Officer added, "The entire team is focused on reducing our operational cash burn by driving sales and reducing operating costs, while continuing to make smart investments in infrastructure, product development, and other revenue generating opportunities. While there can be no assurances, our goal is to achieve a run rate of a consolidated adjusted net loss of
Conference Call
Joseph Visconti, Chief Executive Officer and Michael P. Dickerson, Chief Financial & Administrative Officer, will hold a conference call today, Thursday November 14, 2024, at 12:00 p.m. (Eastern). To listen to the conference call, interested parties should dial-in 1-877-407-3982 and use Conference ID 13749913. All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to join the Twin Vee conference call.
The conference call will also be available through a live audio webcast that can be accessed at the LINK HERE.
The Company's complete financial statements are being filed today with the Securities and Exchange Commission and can be accessed via https://ir.twinvee.com/sec-filings.
About Twin Vee PowerCats Co.
Twin Vee PowerCats Co. manufactures Twin Vee and AquaSport branded boats designed for activities including fishing, cruising, and recreational use. Twin Vee PowerCats are recognized for their stable, fuel-efficient, and smooth-riding catamaran hull designs. Twin Vee is one of the most recognizable brand names in the catamaran sport boat category and is known as the "Best Riding Boats on the Water™." The Company is located in Fort Pierce, Florida, and has been building and selling boats for nearly 30 years. Learn more at twinvee.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements and include statements regarding taking actions to mitigate slowing demand challenges, the Federal Reserve's recent interest rate reduction being an important signal to the market, taking steps to right-size the Company's labor force while tightly controlling operating costs, laying the groundwork for the next market upswing, investing in new models and expanding the Fort Pierce, FL manufacturing facility to increase production capacity and create a more efficient factory layout, adding a state-of-the-art CNC to bring the tooling of brand-new boat models in house, saving costs associated with outsourcing and enhancing the quality of the boat molds the Company uses to build its products, reducing operational cash burn by driving sales and reducing while making smart investments in infrastructure, product development and other revenue generating opportunities and achieving a run rate of a consolidated adjusted net loss of
CONTACT:
Glenn Sonoda
investor@twinvee.com
(Tables Follow)
| September 30, |
|
| December 31, |
|
|
|
|
| % |
| |||||
| 2024 |
|
| 2023 |
|
| Change |
|
| Change |
| |||||
Cash and cash equivalents |
| $ | 11,144,929 |
|
| $ | 16,497,703 |
|
| $ | (5,352,774 | ) |
|
| ( | ) |
Restricted cash |
| $ | 212,963 |
|
| $ | 257,530 |
|
| $ | (44,567 | ) |
|
| ( | ) |
Current assets |
| $ | 15,378,981 |
|
| $ | 26,646,318 |
|
| $ | (11,267,337 | ) |
|
| ( | ) |
Current liabilities |
| $ | 3,843,294 |
|
| $ | 4,216,345 |
|
| $ | (373,051 | ) |
|
| ( | ) |
Working capital |
| $ | 11,535,687 |
|
| $ | 22,429,973 |
|
| $ | (10,894,286 | ) |
|
| ( | ) |
| Three Months Ended September 30, |
|
|
|
|
|
|
| ||||||||
| 2024 |
|
| 2023 |
|
| $ Change |
|
| % Change |
| |||||
Net sales |
| $ | 2,901,318 |
|
| $ | 8,076,545 |
|
| $ | (5,175,227 | ) |
|
| ( | ) |
Cost of products sold |
| $ | 3,046,975 |
|
| $ | 7,471,034 |
|
| $ | (4,424,059 | ) |
|
| ( | ) |
Gross (loss) profit |
| $ | (145,657 | ) |
| $ | 605,511 |
|
| $ | (751,168 | ) |
|
| ( | ) |
Operating expenses |
| $ | 2,843,573 |
|
| $ | 3,384,934 |
|
| $ | (541,361 | ) |
|
| ( | ) |
Loss from operations |
| $ | (2,989,230 | ) |
| $ | (2,779,423 | ) |
| $ | (209,807 | ) |
|
| (8) | % |
Other (expense) income |
| $ | (20,677 | ) |
| $ | 335,414 |
|
| $ | (356,091 | ) |
|
| ( | ) |
Net loss |
| $ | (3,009,907 | ) |
| $ | (2,444,009 | ) |
| $ | (565,898 | ) |
|
| (23) | % |
| Nine Months Ended September 30, |
|
|
|
|
|
|
| ||||||||
| 2024 |
|
| 2023 |
|
| $ Change |
|
| % Change |
| |||||
Net sales |
| $ | 12,504,482 |
|
| $ | 24,980,902 |
|
| $ | (12,476,420 | ) |
|
| ( | ) |
Cost of products sold |
| $ | 12,170,486 |
|
| $ | 21,928,093 |
|
| $ | (9,757,607 | ) |
|
| ( | ) |
Gross profit |
| $ | 333,996 |
|
| $ | 3,052,809 |
|
| $ | (2,718,813 | ) |
|
| ( | ) |
Operating expenses |
| $ | 10,525,509 |
|
| $ | 11,245,982 |
|
| $ | (720,473 | ) |
|
| ( | ) |
Loss from operations |
| $ | (10,191,513 | ) |
| $ | (8,193,173 | ) |
| $ | (1,998,340 | ) |
|
| (24) | % |
Other income |
| $ | 327,215 |
|
| $ | 2,016,956 |
|
| $ | (1,689,741 | ) |
|
| ( | ) |
Net loss |
| $ | (9,864,298 | ) |
| $ | (6,176,217 | ) |
| $ | (3,688,081 | ) |
|
| (60) | % |
| Nine Months Ended September 30, |
|
|
|
|
|
|
| ||||||||
| 2024 |
|
| 2023 |
|
| Change |
|
| % Change |
| |||||
Cash used in operating activities |
| $ | (4,638,887 | ) |
| $ | (6,930,130 | ) |
| $ | 2,291,243 |
|
|
| (33) | % |
Cash provided by (used in) investing activities |
| $ | (567,889 | ) |
| $ | (11,061,664 | ) |
| $ | (10,493,775 | ) |
|
| ( | ) |
Cash provided by (used in) financing activities |
| $ | (190,565 | ) |
| $ | 6,892,338 |
|
| $ | (7,082,903 | ) |
|
| ( | ) |
Net Change in Cash |
| $ | (5,397,341 | ) |
| $ | (11,099,456 | ) |
| $ | 5,702,115 |
|
|
| ( | ) |
Non-GAAP Financial Measures
We have presented a supplemental non-GAAP financial measure in this earnings release. We believe that this supplemental information is useful to investors because it allows for an evaluation of the company with a focus on the performance of its core operations, including more meaningful comparisons of financial results to historical periods. Adjusted Net Loss is a non-GAAP financial measure which excludes certain non-cash expenses. Our executive management team uses these same non-GAAP measures internally to assess the ongoing performance of the Company. Adjusted Net (Loss) is not intended to be a substitute for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
The following table shows information by reportable segments for three months ended September 30, 2024 and 2023, respectively:
For the Three Months Ended September 30, 2024 |
|
|
|
|
|
|
|
|
| |||||||
| Gas-Powered Boats |
|
| Franchise |
|
| Electric Boat |
|
| Total |
| |||||
Net sales |
| $ | 2,901,318 |
|
| $ | - |
|
| $ | - |
|
| $ | 2,901,318 |
|
Cost of products sold |
|
| 3,035,053 |
|
|
| - |
|
|
| 11,922 |
|
|
| 3,046,975 |
|
Operating expense |
|
| 1,990,512 |
|
|
| 610 |
|
|
| 852,451 |
|
|
| 2,843,573 |
|
Loss from operations |
|
| (2,124,247 | ) |
|
| (610 | ) |
|
| (864,373 | ) |
|
| (2,989,230 | ) |
Other income (expense) |
|
| 10,857 |
|
|
| (205 | ) |
|
| (31,329 | ) |
|
| (20,677 | ) |
Net loss |
| $ | (2,113,390 | ) |
|
| (815 | ) |
|
| (895,702 | ) |
|
| (3,009,907 | ) |
For the Three Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
| |||||||
| Gas-Powered Boats |
|
| Franchise |
|
| Electric Boat |
|
| Total |
| |||||
Net sales |
| $ | 8,057,986 |
|
| $ | - |
|
| $ | 18,559 |
|
| $ | 8,076,545 |
|
Cost of products sold |
|
| 7,459,413 |
|
|
| - |
|
|
| 11,621 |
|
|
| 7,471,034 |
|
Operating expense |
|
| 2,124,980 |
|
|
| 988 |
|
|
| 1,258,966 |
|
|
| 3,384,934 |
|
Loss from operations |
|
| (1,526,407 | ) |
|
| (988 | ) |
|
| (1,252,028 | ) |
|
| (2,779,423 | ) |
Other income (expense) |
|
| 133,885 |
|
|
| (4,185 | ) |
|
| 205,714 |
|
|
| 335,414 |
|
Net loss |
| $ | (1,392,522 | ) |
| $ | (5,173 | ) |
| $ | (1,046,314 | ) |
| $ | (2,444,009 | ) |
Below is a reconciliation of Adjusted Net loss to GAAP net loss for the three months ended September 30, 2024 and 2023, respectively:
| Gas-Powered Boats |
|
| Franchise |
|
| Electric Boat and Development |
| ||||||||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||||
Net loss |
| $ | (2,113,390 | ) |
| $ | (1,392,522 | ) |
| $ | (815 | ) |
| $ | (5,173 | ) |
| $ | (895,702 | ) |
| $ | (1,046,314 | ) |
Stock based compensation |
|
| 104,708 |
|
|
| 132,453 |
|
|
| - |
|
|
| - |
|
|
| 174,159 |
|
|
| 332,107 |
|
Net loss on sale of property & equipment |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 122,587 |
|
|
| - |
|
Depreciation and amortization |
|
| 375,769 |
|
|
| 291,344 |
|
|
| - |
|
|
| - |
|
|
| 64,689 |
|
|
| 50,482 |
|
Change in inventory reserve |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 49,913 |
|
|
| - |
|
Merger related professional fees |
|
| 230,664 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 57,386 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
| |
Adjusted net income (loss) |
| $ | (1,402,249 | ) |
| $ | (968,725 | ) |
| $ | (815 | ) |
| $ | (5,173 | ) |
| (426,968 | ) $ |
| $ | (663,725 | ) | |
SOURCE: Twin Vee PowerCats Co.
View the original press release on accesswire.com
FAQ
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