Twin Vee Powercats Co. Reports a 18% Increase in Revenue for the Six Months Ended June 30, 2023
FORT PIERCE, FL / ACCESSWIRE / August 14, 2023 / Twin Vee PowerCats Co. (Nasdaq:VEEE) ("Twin Vee" or the "Company"), a designer, manufacturer and distributor of recreational and commercial power boats, today reported operational highlights and financial results for the three and six months ended June 30, 2023.
We are pleased to report an
The general economic landscape, including rising interest rates, continues to have a direct effect on consumers purchasing boats and recreational vehicles. While we have seen entry level buyers affected by higher interest rates, we are also seeing cash buyers and boat clubs maintaining a healthy demand for our boats. Due to the changing environment and consumer demands, we continue expanding our product offerings including the new Twin Vee 400 GFX and our 280 GFX dual console.
Our acquisition of the Iconic monohull brand AquaSport boats is off to a good start. While requiring cash outlay and startup expenses, the acquisition of AquaSport has allowed us to partner with over 10 new dealers with over 36 locations. We feel confident that our Aquasport mono-hull boat brand will continue our ability to scale our overall business and grow our brands while appealing to a broader market. The monohull market is extremely competitive, which we expect put downward pressure on our gross margins as we enter this market, which we saw in the second quarter. But it is also the largest market, and we believe that entering the market will propel Twin Vee to the next level, as we continue to watch market conditions, dealer inventory levels and economic indicators that might affect our business, we also streamline inventory levels and tighten production costs.
Six Months Ended 2023 Financial Highlights :
- Revenue for the six months ended June 30, 2023, was approximately
$17,002,000 , representing an18% increase compared to approximately$14,406,000 for the six months ended June 30, 2022. - Gross profit for the six months ended June 30, 2023, was approximately
$5,482,000 compared to a gross profit of approximately$5,882,000 for the six months ended June 30, 2022. - Net loss from operations of the Company's core business, gas-powered boats, was approximately
$234,000 for the six months ended June 30, 2023. - Forza X1, the electric boat entity, in which the Company is a majority shareholder, incurred a net loss of approximately
$3,489,000 , for the six months ended June 30, 2023. - Fix My Boat, the Company's franchise business, had a loss of approximately
$10,000 , for the six months ended June 30, 2023. - Twin Vee's consolidated cash, cash equivalents, restricted cash and marketable securities were approximately
$28,285,000 on June 30, 2023, compared to$9,859,000 on June 30, 2022. - Forza's cash, cash equivalents, restricted cash and marketable securities were approximately
$16,516,000 on June 30, 2023, compared to$258,000 on June 30, 2022. - Twin Vee's, the core business, gas powered boats had cash, cash equivalents, restricted cash and marketable securities of approximately
$11,437,000 on June 30, 2023, compared to$9,467,000 on June 30, 2022. - Fix My Boat's cash, cash equivalent, restricted cash and marketable securities were approximately
$131,000 on June 30, 2023, compared to$134,000 on June 30, 2022. - Twin Vee's consolidated total asset value was approximately
$45,582,000 on June 30, 2023. Forza's total asset value was approximately$18,322,000 on June 30, 2023. Twin Vee's, the core business, gas powered boats had a total asset value of approximately$27,129,000 on June 30, 2023. Fix My Boat's total asset value was approximately$131,000. - The Company's core business, gas powered boats, increased its total asset value by approximately
$3,251,000 , for the six months ended June 30, 2023, compared to December 31, 2022. - Forza's total asset value increased by approximately
$4,100,000 , for the six months ended June 30, 2023, compared to December 31, 2022.
Conference Call
Joseph Visconti, CEO and President will hold a conference call today, Monday, August 14, 2023, at 10:00 a.m. Eastern time. To listen to the conference call, interested parties should dial-in 1-877-407-3982 and use Conference ID 13740488. All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into 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 is a designer, manufacturer, distributer, and marketer of power sport boats. The Company is located in Fort Pierce, Florida and has been building and selling boats for nearly 30 years. Learn more at www.twinvee.com. 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™".
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 the. general economic landscape including rising interest rates continuing to have a direct effect on consumers purchasing boats and recreational vehicles, continuing expanding the Company's product offerings, the Company's Aquasport mono-hull boat brand continuing the Company's ability to scale its overall business and grow its brands while appealing to a broader market, entering the monohull market propelling Twin Vee to the next level, entering the monohull market putting downward pressure on the Company's gross margins, and streamlining inventory levels and tightening production costs.
These forward-looking statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict, that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others, the Company's ability to continue to streamline inventory levels and tighten production costs, the Company's ability to scale its overall business and grow its brands and product offerings, the Company's ability to successfully enter the monohull market and the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and the Company's subsequent filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.
CONTACT :
Glenn Sonoda
investor@twinvee.com
(Tables Follow)
| June 30, | December 31, | |||||||||||||||
| 2023 | 2022 | Change | % Change | |||||||||||||
Cash, cash equivalents and restricted cash | $ | 26,337,127 | $ | 23,501,007 | $ | 2,836,120 | 12.1 | % | ||||||||
Marketable securities | $ | 1,947,397 | $ | 2,927,518 | $ | (980,121 | ) | (33.5 | %) | |||||||
Current assets | $ | 33,938,100 | $ | 29,887,529 | $ | 4,050,571 | 13.6 | % | ||||||||
Current liabilities | $ | 4,511,968 | $ | 3,791,063 | $ | 720,905 | 19.0 | % | ||||||||
Working capital | $ | 29,426,132 | $ | 26,096,466 | $ | 3,329,666 | 12.8 | % | ||||||||
| June 30, | December 31, | |||||||||||||||
Balance Sheet Data: | 2023 | 2022 | Change | % Change | ||||||||||||
Cash | $ | 26,337,127 | $ | 23,501,007 | $ | 2,836,120 | 12 | % | ||||||||
Total assets | $ | 45,582,480 | $ | 38,231,480 | $ | 7,351,000 | 19 | % | ||||||||
Total liabilities | $ | 8,391,922 | $ | 5,210,591 | $ | 3,181,331 | 61 | % | ||||||||
Stockholder's equity | $ | 37,190,558 | $ | 28,435,734 | $ | (8,754,824 | ) | 346 | % | |||||||
| Three Months Ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2023 | 2022 | Change | % Change | |||||||||||||
Net sales | $ | 8,124,632 | $ | 8,519,613 | $ | (394,981 | ) | (5 | %) | |||||||
Cost of products sold | $ | 5,864,170 | $ | 5,072,401 | $ | 791,769 | 16 | % | ||||||||
Gross profit | $ | 2,260,462 | $ | 3,447,212 | $ | (1,186,750 | ) | (34 | %) | |||||||
Operating expenses | $ | 5,304,689 | $ | 3,919,191 | $ | 1,385,498 | 35 | % | ||||||||
Loss from Operations | $ | (3,044,227 | ) | $ | (471,979 | ) | $ | (2,572,248 | ) | 545 | % | |||||
Other income (expense) | $ | 1,140,484 | $ | (66,803 | ) | $ | 1,207,287 | (1,807 | %) | |||||||
Net loss | $ | (1,903,743 | ) | $ | (538,782 | ) | $ | (1,364,961 | ) | 253 | % | |||||
Basic and dilutive income per share of common stock | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.06 | ) | 82 | % | |||||
Weighted average number of common shares outstanding: Basic and diluted | 9,520,000 | 7,000,000 | ||||||||||||||
| Six months ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2023 | 2022 | Change | % Change | |||||||||||||
Net sales | $ | 17,001,847 | $ | 14,405,613 | $ | 2,596,234 | 18 | % | ||||||||
Cost of products sold | $ | 11,519,555 | $ | 8,524,047 | $ | 2,995,508 | 35 | % | ||||||||
Gross profit | $ | 5,482,292 | $ | 5,881,566 | $ | (399,274 | ) | (7 | %) | |||||||
Operating expenses | $ | 10,896,042 | $ | 7,401,698 | $ | 3,494,344 | 47 | % | ||||||||
Loss from operations | $ | (5,413,750 | ) | $ | (1,520,132 | ) | $ | (3,893,618 | ) | 256 | % | |||||
Other income (expense) | $ | 1,681,542 | $ | (209,967 | ) | $ | 1,891,509 | (901 | %) | |||||||
Net loss | $ | (3,732,208 | ) | $ | (1,730,099 | ) | $ | (2,002,109 | ) | 116 | % | |||||
Basic and dilutive income per share of common stock | $ | (0.26 | ) | $ | (0.25 | ) | $ | (0.02 | ) | 6 | % | |||||
Weighted average number of shares of common stock outstanding | 9,520,000 | 7,000,000 | ||||||||||||||
| Six months ended | ||||||||||||||||
| June 30, | ||||||||||||||||
| 2023 | 2022 | Change | % Change | |||||||||||||
Cash used in operating activities | $ | (3,430,097 | ) | $ | (1,196,245 | ) | $ | (2,233,852 | ) | (187 | %) | |||||
Cash (used in) provided by investing activities | $ | (655,669 | ) | $ | 273,105 | $ | 928,774 | (340 | %) | |||||||
Cash provided by (used in) financing activities | $ | 6,921,886 | $ | (141,629 | ) | $ | 7,063,515 | (4,987 | %) | |||||||
Cash at end of period | $ | 26,337,127 | $ | 5,910,533 | $ | 20,426,594 | 346 | % | ||||||||
The following table shows information by reportable segments for the three and six months ended June 30,2023 and 2022:
For the three months ended June 30, 2023
| Gas-Powered Boats | Franchise | Electric Boat and Development | Total | |||||||||||||
Net sales | $ | 8,124,632 | $ | - | $ | - | $ | 8,124,632 | ||||||||
Cost of products sold | 5,823,374 | - | 40,796 | 5,864,170 | ||||||||||||
Operating expense | 3,725,689 | 278 | 1,578,722 | 5,304,689 | ||||||||||||
Loss from operations | (1,424,431 | ) | (278 | ) | (1,619,518 | ) | (3,044,227 | ) | ||||||||
Other income (expense) | 1,008,741 | (4,122 | ) | 135,865 | 1,140,484 | |||||||||||
Net loss | $ | (415,690 | ) | $ | (4,400 | ) | $ | (1,483,653 | ) | $ | (1,903,743 | ) | ||||
For the three months ended June 30, 2022
| Gas-Powered Boats | Franchise | Electric Boat and Development | Total | |||||||||||||
Net sales | $ | 8,519,613 | $ | - | $ | - | $ | 8,519,613 | ||||||||
Cost of products sold | 5,059,389 | - | 13,012 | 5,072,401 | ||||||||||||
Operating expense | 3,356,381 | 7,723 | 555,087 | 3,919,191 | ||||||||||||
Income (loss) from operations | 103,843 | (7,723 | ) | (568,099 | ) | (471,979 | ) | |||||||||
Other expense | (31,089 | ) | (3,882 | ) | (31,832 | ) | (66,803 | ) | ||||||||
Net income (loss) | $ | 72,754 | $ | (11,605 | ) | $ | (599,931 | ) | $ | (538,782 | ) | |||||
For the six months ended June 30, 2023
| Gas-Powered Boats | Franchise | Electric Boat and Development | Total | |||||||||||||
Net sales | $ | 17,001,847 | $ | - | $ | - | $ | 17,001,847 | ||||||||
Cost of products sold | 11,428,818 | - | 90,737 | 11,519,555 | ||||||||||||
Operating expense | 7,236,112 | 1,399 | 3,658,531 | 10,896,042 | ||||||||||||
Loss from operations | (1,663,083 | ) | (1,399 | ) | (3,749,268 | ) | (5,413,750 | ) | ||||||||
Other income (expense) | 1,429,242 | (8,184 | ) | 260,484 | 1,681,542 | |||||||||||
Net loss | $ | (233,841 | ) | $ | (9,583 | ) | $ | (3,488,784 | ) | $ | (3,732,208 | ) | ||||
For the six months ended June 30, 2022
| Gas-Powered Boats | Franchise | Electric Boat and Development | Total | |||||||||||||
Net sales | $ | 14,406,645 | $ | (1,032 | ) | $ | - | $ | 14,405,613 | |||||||
Cost of products sold | 8,498,930 | 1,027 | 24,090 | 8,524,047 | ||||||||||||
Operating expense | 6,309,997 | 33,978 | 1,057,723 | 7,401,698 | ||||||||||||
Loss from operations | (402,282 | ) | (36,037 | ) | (1,081,813 | ) | (1,520,132 | ) | ||||||||
Other expense | (151,442 | ) | (26,116 | ) | (32,409 | ) | (209,967 | ) | ||||||||
Net loss | $ | (553,724 | ) | $ | (62,153 | ) | $ | (1,114,222 | ) | $ | (1,730,099 | ) | ||||
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 substitutes 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.
Below is a reconciliation of Adjusted Net loss to GAAP net loss for the three and six months ended June 30, 2023 and 2022:
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
Net sales | $ | 8,124,632 | $ | 8,519,613 | ||||
Cost of products sold | $ | 5,864,170 | $ | 5,072,401 | ||||
Gross profit | $ | 2,260,462 | $ | 3,447,212 | ||||
Operating expenses | $ | 5,304,689 | $ | 3,919,191 | ||||
Loss from operations | $ | (3,044,227 | ) | $ | (471,979 | ) | ||
Other expense | $ | 1,140,484 | $ | (66,803 | ) | |||
Net loss | $ | (1,903,743 | ) | $ | (538,782 | ) | ||
Basic and dilutive loss per share of common stock | $ | (0.14 | ) | $ | (0.08 | ) | ||
Weighted average number of shares of common stock outstanding | 9,520,000 | 7,000,000 | ||||||
| Adjusted Net Loss | ||||||||
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
Net loss | $ | (1,903,743 | ) | $ | (538,782 | ) | ||
Stock based compensation | 489,361 | 301,891 | ||||||
Loss on disposal of assets | - | 31,582 | ||||||
Depreciation and amortization | 284,564 | 119,817 | ||||||
Change of right-of-use asset and lease liabilities | 118,506 | 96,541 | ||||||
Net change in marketable securities | 4,957 | 27,038 | ||||||
Government grant income | (937,482 | ) | - | |||||
Adjusted net loss | $ | (1,943,838 | ) | $ | (689,341 | ) | ||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
Net sales | $ | 17,001,847 | $ | 14,405,613 | ||||
Cost of products sold | $ | 11,519,555 | $ | 8,524,047 | ||||
Gross profit | $ | 5,482,292 | $ | 5,881,566 | ||||
Operating expenses | $ | 10,896,042 | $ | 7,401,698 | ||||
Loss from operations | $ | (5,413,750 | ) | $ | (1,520,132 | ) | ||
Other expense | $ | 1,681,542 | $ | (209,967 | ) | |||
Net loss | $ | (3,732,208 | ) | $ | (1,730,099 | ) | ||
Basic and dilutive loss per share of common stock | $ | (0.26 | ) | $ | (0.25 | ) | ||
Weighted average number of shares of common stock outstanding | 9,520,000 | 7,000,000 | ||||||
| Adjusted Net Loss | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
Net loss | $ | (3,732,208 | ) | $ | (1,730,099 | ) | ||
Stock based compensation | 972,325 | 526,723 | ||||||
Loss on disposal of assets | - | 49,990 | ||||||
Depreciation and amortization | 502,840 | 199,909 | ||||||
Change of right-of-use asset and lease liabilities | 236,712 | 189,647 | ||||||
Net change in marketable securities | (3,077 | ) | 112,576 | |||||
Government grant income | (1,267,055 | ) | - | |||||
Adjusted net loss | $ | (3,290,464 | ) | $ | (651,254 | ) | ||
| Gas-Powered Boats | Fix My Boat | Electric Boat and Development | ||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (415,690 | ) | $ | 72,754 | $ | (4,400 | ) | $ | (11,605 | ) | $ | (1,483,653 | ) | $ | (599,931 | ) | |||||||
Stock based compensation | 147,544 | 301,891 | - | - | 341,817 | - | ||||||||||||||||||
Impairment loss | - | - | - | - | - | - | ||||||||||||||||||
Loss on disposal of assets | - | - | - | - | - | - | ||||||||||||||||||
Depreciation and amortization | 236,334 | 108,758 | - | - | 48,230 | 3,208 | ||||||||||||||||||
Gain from government grant | - | - | - | - | - | - | ||||||||||||||||||
Change of right-of-use asset and lease liabilities | 96,884 | 96,541 | - | - | 21,622 | - | ||||||||||||||||||
Net change in marketable securities | 4,957 | 27,038 | - | - | - | - | ||||||||||||||||||
Government grant income | (901,220 | ) | - | - | - | - | - | |||||||||||||||||
Adjusted net (loss) income | $ | (831,191 | ) | $ | 606,982 | $ | (4,400 | ) | $ | (11,605 | ) | $ | (1,071,984 | ) | $ | (596,723 | ) | |||||||
| Gas-Powered Boats | Fix My Boat | Electric Boat and Development | ||||||||||||||||||||||
| Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net loss | $ | (233,841 | ) | $ | (553,724 | ) | $ | (9,583 | ) | $ | (62,153 | ) | $ | (3,488,784 | ) | $ | (1,114,222 | ) | ||||||
Stock based compensation | 289,345 | 526,723 | - | - | 682,980 | - | ||||||||||||||||||
Impairment loss | - | - | - | - | - | - | ||||||||||||||||||
Loss on disposal of assets | - | - | - | 18,408 | - | 31,582 | ||||||||||||||||||
Depreciation and amortization | 418,914 | 185,642 | - | - | 83,926 | 14,267 | ||||||||||||||||||
Gain from government grant | - | - | - | - | - | - | ||||||||||||||||||
Change of right-of-use asset and lease liabilities | 193,679 | 189,647 | - | - | 43,033 | - | ||||||||||||||||||
Net change in marketable securities | (3,077 | ) | 112,576 | - | - | - | - | |||||||||||||||||
Government grant income | (1,230,793 | ) | - | - | - | - | - | |||||||||||||||||
Adjusted net (loss) income | $ | (565,773 | ) | $ | 460,864 | $ | (9,583 | ) | $ | (43,745 | ) | $ | (2,678,845 | ) | $ | (1,068,373 | ) | |||||||
SOURCE: Twin Vee PowerCats Co.
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