Twin Vee Powercats (VEEE) 14 Aug 232023 Q2 Earnings call transcript

Welcome to the Twin Vee PowerCats Company Second Quarter 2023 Investor Call.

As a reminder, this call is being recorded and all participants are in a listen-only mode.

Your speaker for today's program is Joseph Visconti, President and CEO of Twin Vee PowerCats Company.

Before I turn the call over to Joseph, please remember that certain statements made during this investor call are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements on this call, other than statements of historical facts, including statements regarding the company's future operations, financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. of statements estimate, identified plan, continue, potential the forward-looking as terminologies expects, cases, similar or may, or believe, anticipate, negative some can by be such predicts, expressions. In terms these intend, should,

assumptions financial The condition, our expectations company business results and described, trends of of and These and forward-looking and on available risks may believes and to events our current that future at in operations, has it number forward-looking are Exchange needs. website www.twinvee.com. are about Securities those affect statements and including largely these filings financial based statements subject projections a its which on strategy financial the forth our set uncertainties with Commission,

of or assure that achieved future events. You reflected rely circumstances or should statements not We these occur. you predictions upon will events the as forward-looking forward-looking in be cannot statements

ir.twinvee.com Investor days. in Finally, of our this be will conference at available at webcast is webcast. section Relations The for least the being website XX

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to I call will over Joseph now the turn Visconti.

our his Tennessee. name due our PowerCats. boat Carrie CFO; call opening and and the Visconti, specifically Joseph of Twin electric of company. Leffew, the call the CEO Jim and ramping Jim role, Aquasport on plant to of Vee My I'm XX, Gunnerson, CEO for everyone. I'm Hello, Forza the in is on Vee's is joined President with leadership Twin the and President

designs, Fort XXXX factory manufactures boats quarter Pierce, our of from in Vee our thank and Twin Florida. catamaran Good you range morning, and joining call. sport second for sells located a investor

many the Twin water. be synonymous brand boats to is nearly one by considered with offshore XX on been the the of catamaran riding boats and best For has years, Vee

XXXX, and an period the report the in months compared in XX, same to top for to million of XX% six revenue ended to pleased $XX June $XX,XXX,XXX increase are XXXX. We line

in out of Vee Fort the break models you facility XXX% of where a in for boats in Florida six we our of two our Twin XXXX. months XX-footer, Pierce, If and loss our $XXX,XXX net new we our manufacture main our Aquasport, had production all

ended a This is period net the Forza reportable of reflection $XXX,XXX June months majority loss The is of marketable -- of $XXX,XXX of electric loss cash Forza XX% our ownership direct it's of that to which larger boat compared we the Vee's and have we June loss in XXXX, financial $XX,XXX,XXX accounting to for XX, approximately statements. a the cash securities cash requirement consolidate net restricted XX Twin according XXXX. own the to same and GAAP equivalents, for Vee's Twin and six XX, had of million Vee of XXXX. Twin and XX, $X.X as the company,

if loss you million loss bigger the $X.X six Forza, the of the So that's on you the million loss months. -- loss get $XXX,XXX Vee, on Twin plus the take reportable where for $X.X the

have to continues rates, direct our also seeing are while boat a clubs purchasing, seen we and vehicles, and affected rates, for interest boats demand a maintaining buyers recreational rising interest including have boats. cash higher on landscape, economic entry-level general by effect the buyers So consumer healthy we

offerings, consumer our and dual console. upcoming Due including to and GFX GFX new we environment XXX demand, product changing the to continue XXX our expand our

reach New of our and products our and open seeking expand new consumers lengths boats. various markets styles to

broader XX to partner off with good is allowed to Aquasport, our brand, monohull a our We and continue has of our our while market. Aquasport to business will ability cash to iconic and feel the locations. Aquasport requiring new grow start, a over in expenses. The overall monohull of scale while brand outlays dealers over confident startup XX acquisition Our acquisition that us boat appealing brands

on downward one is put of extremely boat which as competitive the gross largest highly in quarter. is market monohull besides market know, like markets we with monohull we competitive, The we margins, monohull pontoons, grow and company, superior market second saw The pressure boating allow revenue. that believe line entering Vee, increase will market market Aquasport to buying top the brand the our share Twin and the a

center have inventory per due week, to affect to console. console units the continue production XX-footer dealer Vee's our costs Twin of and the production Vee's increased to conditions, inventory Twin our Twin Pierce production, indicators new managing we dealer slow business, strategically the might boats vigilant to watch while X.X economic week of balance with to point facility market the Aquasport of To that are our burn in our boats, dual As not four and, new and levels of to inventory per our of course, between XX-foot chosen five have managing demand and levels Fort brisk and production for levels, to being we cash. units upbeat the we we down the labor Vee

is facility. in this place again production And taking our Pierce Fort

Fort revenues up Vee of of boats in are XX% Twin Aquasport. our of and made Our XX-foot XX% Pierce

facility is Tennessee we're up models. legacy So ramping is seven with this XX-foot our Aquasport only which excited Aquasport this one revenue with additional why model, about

ended XXXX. XX, core June our So Vee's loss cash some ended Forza net net June of XXXX, takeaways XXXX had highlights Twin equivalents only six of six months months was our the of business as for other some cash $XXX,XXX is again, and and XX, for and of operations, from the our $XX,XXX,XXX

discussed Some call, extension square Pierce. of additional plan -- feet in Fort the site expansion our in our building approval we received for that XX,XXX here, previous quarter we've items

with back Fort of ahead manufacturing point production linear of rolling be -- give the will will lines. to have linear a connecting building, feet total which that two a We here and which the are building XXX,XXX at in Pierce, ability facility true true square front us

as the state-of-the-art the is our infusion We've department lamination hulls decks. XXX% Infusion, increases that discussed, builds while process boat cost and and of our transitioned lamination to quality we the controls. for refining process

now leading Yamaha expanding have motor motors country of dealer Twin regional brand companies, regions offer the companies three strength. finalized where our continue can and target Vee outboard have OEM motors' these footprint we as and Mercury agreements We Suzuki, with

OneWater This dealer, currently still locations the another Marine, of of a over approximately and XX for mostly largest represents order seven locations, only the Twin next our placed Our units in OneWater two who XX forecasted is has locations. model new opened dealers boat we our have the And XXXX. dealers, addition week boats this dealers. XXX Aquasport a year months. Florida, in dealers. with XXX XX orders again, to These We've is of Aquasport locations. have XX OneWater outside is Vee

orders Tennessee forecasted orders months. includes plant XXX next six Our QX. is over revenue This current from for GFX's, in and XXX our see XX to Twin the begin Aquasport we Vee will

bit and, and a to time, remain value our continue objective are questions. our for course, of to markets to burn to grow While choppy, up our is cash, our balance business like open not I'd shareholders. business this continued it deliver sheet prudent with At

line question you. Ventures. Thanks Our first with Horowitz Palm Instructions] comes of from the Josh [Operator

Joseph. morning. Good Hi,

morning. Good

and guess, production the facility reopening back on the and question job with bit stuff. Great you coming? Aquasport ramping scaling I on more give said and of My could you how an is little the keeping is, on everything eye a inventory color

Thank you.

facility. CEO President and is in you're the talk I'd -- ramping to of of So opening our Jim on bring specifically to spending Leffew, a days Forza and Tennessee. week couple like that of a Jim about over

and thanks Joseph, for Yes. Thanks, Josh. Aquasport the our quick A update on facility. question,

and trademarks taken approximately brand. have former, over facility, date, the As molds To the Ebbtide Aquasport Bluff, know, people a Tennessee. the the many we square of foot It's operations have and we for hired White X. since Holdings you June of XX XXX,XXX including the

in In began June, the cleanup the and started production of rehabilitation July. factory and we actual

probably expect by up to to ship from the eight facility. be boats We of August to White end Bluff the able

year of into will then in for look boats the remainder through and week ramp turn year, of December, January. at We up September will faster we two to the the settle the per

biggest flats the have One including line boats, offshore dual we center be and full will a boats. to bay consoles boats, even possibly of initiatives develop of and

really next your units here of so good five and the that excited far But the start-up, about that a first we're plan in new have so product answers with it, August. over of set years. We our hope the shortly implemented will be we ship month question. aggressive should I

Q - Josh Horowitz

Yes, very you so good. much. Thank

tough pretty then lot market. meeting buyer Aquasport, anymore. these And absolutely this add, it the There's Josh, there a deal. -- Palm. dealer in that on premium up, boat in -- And nobody side. dealers. delivering Twin of other Vee And our we of we face I got opportunity. was mean, brands we've is we're little new of just got. mean, I'd dealers we I we Aquasport like feedback the catering set the bit positive a expensive kind mean the are amazing had to value-based and we kind was really caught a that feeling it out signed But larger out of the boats, very I looking did for there's West

ready-made there of Boat opportunity production was models Group, background he talked is to that for facility a job about nothing decent XX And were mean building for Leffew's Aquasport all was fairly in legacy previous previous facility. I the years, go. tooling. a easy, seven X,XXX the did Maverick with calls, of year. production but boats over a with head it The We so Jim ready at owners

back, workers. of a come assembling of the employees boat Jim's some managers, team leaders, old So have office

margins. a company, and a also have just brand a it's really to monohull for deliver us of public to revenues kind increased and as So great opportunity continue build

question. So again, for you thank the

guys. you, Thank

comes [Operator with you. of with question. Capital. Maheshwari Thank proceed your next Our Instructions] the Raj Please question Charleston line from

view? -- looks question. Is XXXX Aquasport there Hello. starting some Good point Thank to to 'XX, you as out Vee to like? look maybe combined as wondered, bottom -- Good I macro out Thank morning, Jim. a the way things of to my And what Twin what does you. companies. guidance gauge it starting just taking Joseph. any on is for and you morning, are

currently tell of you I you that hear okay? are Twin with or we facility. -- can our could That's numbers out Fort our hitting me Pierce

Now I can.

Aquasport console, legacy on model, our and are annual -- XX-center additional plus With Fort about are rate. the which console facility Twin revenue an year's dual numbers, boats our in hitting $XX we two our run last Vee with our million Pierce

Aquasport And we which as will is on is bring so Jim's finish good. revenue, Aquasport I adds -- think where think that where additional I $XX of kind to we boats this year, numbers so million the like plus two of with week, out kind a

it of year. some It's higher tough the higher last rates. than face was that's in interest pretty headwinds, And

that electrician boat the and payment buying that the is plumber, family. the move same we're -- or -- buyers we're a summer with $X,XXX an the was coming $XXX, buyer clubs of now. Some $X,XXX, seeing the to alternative up payment with $XXX,XXX that And the boat strategy them

think of add from and do bottoming? how getting Yes. was questions to can some signs But starting traffic dealers And of floors bit if our any we view we again. and buy mostly for showroom on a to one do feedback are is I see This of anecdotal the increased information. we people are that there's the macro Raj, little I the that

I think higher are used some don't still of buying. people gotten and to that finance need the to some the they've -- rates

data, segment. the now SSI also the are of segments right from one saltwater Marine dealers -- fishing the and hearing We boat that at best-performing is our in looking

the in of strength more, we're the some but down saltwater fishing. like are market much of other seems of a in So segments pocket it

So that's a thing us. good for

of like call for some way but no want shoots don't to they're knowing getting little of signs. green bit Obviously, the look there's a sure, I preliminary them better.

the started plan it yet? XXXX XXXX you the to budget year have Or too still for early? is for -- So calendar

Well, XXX Aquasport number I have went got forecast. from forecast new we've -- dealer our Aquasport forecasted a so network. our we boats of through been that's

finish and our OneWater, Vee. we've And from of Vee other baseline got XXX need we've there. to our got of Twin Twin forecasted numbers collecting XXX those are XXX boats. we boats from So a

As industry you the model marine in know, July. year the celebrates change

our forecasted So all getting happening planning we're and right when it's we're XXXX. with now working numbers our dealers,

in get to good So the I number, numbers Fort I plant Tennessee exact important want mean it's addition now. revenue we to an mean that but online, don't happening I look I in Aquasport think pinpoint the Pierce. what's right

got future. I think a we've bright

Excellent. Thank you, Joseph.

Visconti, Instructions] floor I'm Thank you. questions you [Operator seeing any in turn final no queue. back other Mr. the comments. to for I'll

and support our appreciate everyone shareholders and the and we given us. I want to you've thank participating stakeholders today, for confidence and

So thank you. a you and great day. everybody Thank have

concludes This you. call. Thank today's conference

time. participation. you for your your this disconnect Thank may You at lines