Twin Vee PowerCats Co. Reports 4% Increase in Revenue for the Year Ended December 31, 2023
Twin Vee PowerCats Co. (NASDAQ:VEEE) reported a 4% increase in revenue for fiscal year 2023, reaching $33.4 million, with a net loss of $2.3 million. The company announced a partnership for autonomous recreational sport boats and the construction of a new manufacturing facility. However, the electric boat subsidiary, Forza X1, had a net loss of $5.9 million, contributing to an overall consolidated net loss for Twin Vee.
Positive
4% revenue increase to $33.4 million in fiscal year 2023.
Net loss of $2.3 million for Twin Vee in 2023.
Partnership for autonomous sport boats and new manufacturing facility announced.
Forza X1 subsidiary reported a net loss of $5.9 million in 2023.
Consolidated net loss for Twin Vee increased to $7.2 million in 2023.
Challenges in customer demand due to economic landscape and rising interest rates.
CEO focusing on cost control and product development to navigate market challenges.
Conference call scheduled for further discussion on financial results.
Negative
Net loss increased compared to the previous year.
Challenges in customer demand affecting both brands.
Negative impact of economic landscape and rising interest rates on sales.
Consolidated net loss attributed to stockholders increased in 2023.
The reported 4% revenue increase for Twin Vee PowerCats Co. is a modest growth figure, particularly when considering the broader economic context. This growth is outpaced by the company's net loss expansion from $2,144,000 in 2022 to $2,348,000 in 2023. The widening loss is a concerning signal for profitability and cost management. Additionally, the decrease in cash and cash equivalents from $26,249,000 to $21,218,000 may indicate a higher cash burn rate, which, if sustained, could lead to liquidity challenges. Investors should monitor the company's ability to control operating costs and the success of new models in generating revenue.
The recreational and commercial power boats industry is sensitive to economic cycles, with consumer demand often correlating with disposable income levels and credit conditions. The CEO's statement on the impact of rising interest rates on customer demand is important as it highlights the vulnerability of Twin Vee's market segment to macroeconomic factors. The strategic focus on controlling operating costs and investing in product development is a common approach during downturns. However, the success of this strategy hinges on the company's ability to innovate and effectively expand its dealer network in a cost-efficient manner. The long-term outlook will depend on the company's ability to adapt to changing consumer behaviors and economic conditions.
From a legal and compliance perspective, Twin Vee's adherence to GAAP in consolidating financial statements due to its controlling interest in Forza X1, Inc. is a key point. This requirement ensures transparency for investors, especially when assessing the financial health of the company. The reported consolidated net loss attributed to stockholders has increased, which may raise questions about the valuation of the company's investment in Forza X1 and its overall impact on the company's financial position. Investors would benefit from a close examination of the SEC filings to understand the nuances of these consolidated results and any associated risks.
03/26/2024 - 08:30 AM
FORT PIERCE, FL / ACCESSWIRE / March 26, 2024 / 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 fiscal year ended December 31, 2023.
Highlights for fiscal year 2023 :
Revenue for the year ended December 31, 2023 increased 4% to $33,426,000 as compared to $31,988,000 in 2022. Twin Vee had a net loss of $2,348,000 for the year ended December 31, 2023, as compared to a net loss of $2,144,000 in 2022. Aquasport had a net loss of $1,482,897 for the year ended December 31, 2023. Forza X1 had a net loss of $ 5,933,000 for the year ended December 31, 2023, as compared to a net loss of $3,630,000 in 2022. Twin Vee's consolidated cash, cash equivalents, restricted cash and marketable securities were $21,218,000 on December 31, 2023, as compared to $26,249,000 on December 31, 2022. Announced Autonomous A.I. Technology Partnership to create the world's first autonomously equipped recreational sport boats. Forza announced construction of a new 60,000 square foot state-of-the-art manufacturing facility in Marion, North Carolina, is progressing on schedule. Twin Vee's core business, gas powered boats, had cash, cash equivalents, restricted cash and marketable securities of $8,396,000 on December 31, 2023, as compared to $13,529,000 on December 31,2022. Twin Vee's consolidated total asset value was $39,847,000 on December 31, 2023. Forza's total asset value was $16,922,000 on December 31, 2023. Twin Vee's core business, gas powered boats had a total asset value of $22,906,000 on December 31, 2023. The Company is pleased to report a 4% increase in consolidated revenue for the year ended December 31, 2023, to $33,425,912 as compared to $31,987,724 in the same period in 2022. For the year ended December 31, 2023, Twin Vee alone had a net operating loss of $2,347,975 , as compared to a net operating loss of $2,144,167 in the prior year. The Twin Vee operating loss is stated before consolidating Twin Vee's electric boat company Forza X1 and the expenses related to the Aquasport Facility in Tennessee. Twin Vee's new Aquasport monohull division, in Tennessee, contributed a cumulative net loss of $1,482,349 , such that the gas-powered segment had a combined net loss of $3,830,872 for the year ended December 31, 2023, as compared to a net loss of $2,144,167 in the prior year.
Forza X1, Inc. (NASDAQ: FRZA), the electric boat and development subsidiary in which Twin Vee has a 44.35% controlling interest, had a net loss of $5,933,112 for the year ended December 31, 2023 as compared to a net loss of $3,630,081 in the prior year. The consolidated net loss attributed to stockholders of Twin Vee was $7,192,176 for the year ended December 31, 2023, as compared to a consolidated net loss attributed to stockholders of Twin Vee of $5,137,252 in the prior year. Generally Accepted Accounting Principles ("GAAP") require Twin Vee to file consolidated financial statements based on Twin Vee's controlling ownership interest in Forza X1, Inc. (Nasdaq: FRZA). Twin Vee, net of Forza X1, had cash, cash equivalents, restricted cash, and marketable securities of $8,395,709 as of December 31, 2023.
"The general economic landscape, and the rising interest rate environment are creating challenges and downward pressure on customer demand across both brands," explained Joseph Visconti, CEO and President of Twin Vee PowerCats Co. "Not only are entry level buyers affected by higher interest rates, but cash buyers and boat clubs are also exhibiting reduced appetites. Due to the challenging environment and changing consumer behavior, Twin Vee's executive team is tightly controlling operating costs while continuing to develop exciting new models, expand the dealer network, and lay the groundwork for the next market upswing. Our goal is to reduce cash burn while continuing to invest in infrastructure, product development, and other revenue generating investments. For example, our brand-new Twin Vee Gen 2 400 GFX and the 280 GFX that are now in production."
Conference Call
Joseph Visconti, CEO and President, will hold a conference call today, Tuesday, March 26, 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 13745202. 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 is a designer, manufacturer, distributor, and marketer of power sport catamaran boats. The Company located in Fort Pierce, Florida, has been building and selling boats for nearly 30 years. Learn more at 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 creating the world's first autonomously equipped recreational sport boats through an autonomous A.I. technology partnership, construction of Forza's new 60,000 square foot state-of-the-art manufacturing facility in Marion, North Carolina progressing on schedule, tightly controlling operating costs while continuing to develop exciting new models, expand the dealer network, and lay the groundwork for the next market upswing and reducing cash burn while continuing to invest in infrastructure, product development and other revenue generating investments. 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 create the world's first autonomously equipped recreational sport boats through its autonomous A.I. technology partnership, Forza's ability to complete construction of its manufacturing facility in Marion, North Carolina as planned, the Company's ability to lay the groundwork for the next market upswing and reduce cash burn while continuing to invest in infrastructure, product development and other revenue generating investment, and the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, 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 Sonodainvestor@twinvee.com
(Tables Follow)
December 31, December 31,
2023 2022 Change % Change Cash, cash equivalents and restricted cash
$ 16,755,233 $ 23,501,007 $ (6,745,774 ) (28.7 %) Current assets
$ 26,646,318 $ 29,887,529 $ (3,241,211 ) (10.8 %) Current liabilities
$ 4,216,345 $ 3,791,063 $ 425,282 11.2 % Working capital
$ 22,429,973 $ 26,096,466 $ (3,666,493 ) (14.0 %)
December 31, December 31, Balance Sheet Data:
2023 2022 Change % Change Cash
$ 16,755,233 $ 23,501,007 $ (6,745,774 ) (29 %) Total assets
$ 39,846,713 $ 38,231,480 $ 1,615,233 4 % Total liabilities
$ 7,797,098 $ 5,210,591 $ 2,586,507 50 % Stockholder's equity
$ 23,511,193 $ 28,435,734 $ (4,924,541 ) (17 %)
Years Ended
December 31,
2023 2022 $ Change % Change Net sales
$ 33,425,912 $ 31,987,724 $ 1,438,188 4 % Cost of products sold
$ 23,702,885 $ 21,330,918 $ 2,371,967 11 % Gross profit
$ 9,723,027 $ 10,656,806 $ (933,779 ) (9 %) Operating expenses
$ 21,710,326 $ 16,678,514 $ 5,031,812 30 % Loss from operations
$ (11,987,299 ) $ (6,021,708 ) $ (5,965,591 ) 99 % Other expense
$ (2,205,103 ) $ (228,294 ) $ (1,976,809 ) 866 % Net loss
$ (9,782,196 ) $ (5,793,414 ) $ (3,988,782 ) 69 % Basic and dilutive income per share of common stock
$ (0.76 ) $ (0.67 ) $ (0.08 ) 12 % Weighted average number of shares of common stock outstanding
9,520,000 7,624,938
Years Ended
December 31,
2023 2022 Change % Change Cash used in operating activities
$ (6,934,773 ) $ (4,146,031 ) $ (2,788,742 ) (67 %) Cash used in investing activities
$ (6,629,021 ) $ (195,605 ) $ 6,433,416 3,289 % Cash provided by financing activities
$ 6,818,020 $ 20,867,340 $ (14,049,320 ) (67 %) Cash at end of year
$ 16,755,233 $ 23,501,007 $ (6,745,774 ) (29 %)
The following table shows information by reportable segments for fiscal year 2023 and 2022:
For the Year Ended December 31, 2023
Gas-Powered Boats Franchise Electric Boat and Development Total Net sales
$ 33,388,794 $ - $ 37,118 $ 33,425,912 Cost of products sold
23,545,248 - 157,637 23,702,885 Operating expense
15,234,159 3,253 6,472,914 21,710,326 Loss from operations
(5,390,613 ) (3,253 ) (6,593,433 ) (11,987,299 ) Other income (expense)
1,559,741 (14,959 ) 660,321 2,205,103 Net loss
$ (3,830,872 ) $ (18,212 ) $ (5,933,112 ) $ (9,782,196 )
For the Year Ended December 31, 2022
Gas-Powered Boats Franchise Electric Boat and Development Total Net sales
$ 31,988,756 $ (1,032 ) $ - $ 31,987,724 Cost of products sold
21,097,148 1,027 232,743 21,330,918 Operating expense
13,274,952 35,399 3,368,163 16,678,514 Loss from operations
(2,383,344 ) (37,458 ) (3,600,906 ) (6,021,708 ) Other income (expense)
239,177 (34,060 ) 23,177 228,294 Net loss
$ (2,144,167 ) $ (71,518 ) $ (3,577,729 ) $ (5,793,414 )
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.
Below is a reconciliation of Adjusted Net loss to GAAP net loss for the fiscal year 2023 and 2022:
Years Ended
December 31,
2023 2022 Net sales
$ 33,425,912 $ 31,987,724 Cost of products sold
$ 23,702,885 $ 21,330,918 Gross profit
$ 9,723,027 $ 10,656,806 Operating expenses
$ 21,710,326 $ 16,678,514 Loss from operations
$ (11,987,299 ) $ (6,021,708 ) Other expense
$ (2,205,103 ) $ (228,294 ) Net loss
$ (9,782,196 ) $ (5,793,414 ) Basic and dilutive income per share of common stock
$ (0.77 ) $ (0.67 ) Weighted average number of shares of common stock outstanding
9,520,000 7,624,938
Adjusted Net Loss
Years Ended
December 31,
2023 2022 Net loss
$ (9,782,196 ) $ (5,793,414 ) Stock based compensation
1,902,749 1,448,751 Loss on disposal of assets
- 60,088 Depreciation and amortization
1,353,383 553,750 Change of right-of-use asset and lease liabilities
474,630 397,136 Net change in marketable securities
(87,781 ) 133,988 Change in inventory reserce
419,616 - Government grant income
(1,267,055 ) (355,986.99 ) Adjusted net (loss)
$ (7,406,270 ) $ (3,555,688 )
Gas-Powered Boats Fix My Boat Electric Boat and Development
Fiscal Year Fiscal Year Fiscal Year
December 31, December 31, December 31,
2023 2022 2023 2022 2023 2022 Net loss
$ (3,830,872 ) $ (2,091,815 ) $ (18,212 ) $ (71,518 ) $ (5,933,112 ) $ (3,630,081 ) Stock based compensation
557,479 990,405 - - 1,345,270 458,346 Impairment loss
- - - - - - Loss on disposal of assets
- 10,098 - 18,408 - 31,582 Depreciation and amortization
1,167,483 493,785 - - 185,900 59,965 Gain from government grant
- - - - - - Change of right-of-use asset and lease liabilities
387,708 559,205 - - 86,922 (162,069 ) Net change in marketable securities
(36,903 ) 133,988 - - (50,878 ) - Change in inventory reserve
68,458 - - - 351,158 - Government grant income
(1,267,055 ) (355,987 ) - - - - Adjusted net income (loss)
$ (2,953,702 ) $ (260,321 ) $ (18,212 ) $ (53,110 ) $ (4,014,740 ) $ (3,242,257 )
SOURCE: Twin Vee PowerCats Co.
press release on accesswire.com
What was Twin Vee PowerCats Co.'s revenue for fiscal year 2023?
Twin Vee reported a revenue of $33.4 million for fiscal year 2023.
What was the net loss for Twin Vee in 2023?
Twin Vee had a net loss of $2.3 million in 2023.
What partnership did Twin Vee announce?
Twin Vee announced a partnership for autonomous recreational sport boats.
What new facility is Forza constructing?
Forza is constructing a new 60,000 square foot manufacturing facility in North Carolina.
What was the net loss for Forza X1 in 2023?
Forza X1 reported a net loss of $5.9 million in 2023.
What is the consolidated net loss for Twin Vee in 2023?
The consolidated net loss for Twin Vee was $7.2 million in 2023.
What challenges did the CEO mention in the press release?
The CEO highlighted challenges in customer demand due to the economic landscape and rising interest rates.
What is the CEO's strategy to address market challenges?
The CEO is focusing on cost control, product development, and expanding the dealer network to navigate market challenges.
When is the conference call scheduled?
The conference call is scheduled for today, Tuesday, March 26, 2024, at 12:00 p.m. (Eastern time).
