Twin Vee Powercats (VEEE) 14 Nov 242024 Q3 Earnings call transcript

Welcome to the Twin Vee PowerCats Company Third Quarter 2024 Investor Call.

As a reminder, this call is being recorded [Operator Instructions].

Your speakers for today's program are Chairman and CEO, Joseph Visconti, and Chief Financial and Administrative Officer, Michael P. Dickerson.

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. objectives call, the statements financial company's strategy plans this including historical position, on future and regarding for statements future and statements other forward-looking of than facts, business operations All are management statements. of operations and

and forward-looking the cases, identified be terms expressions. other negative may, of financial statements projections and strategy forward-looking based can as of largely future plan, it expects, current expectations operations, needs. The by future on intends, similar continue, events these about anticipates, statements should, these financial such company predict, believes believes, its events some may condition, business In that trends terminologies financial affect and estimates, potential its has or or results

a assumptions uncertainties to Investor in the risks These Relations Exchange set Securities forth on at are number described, filings those which ir.twinvee.com. forward-looking and with the Commission company's website its and subject and including available of are statements

You predictions should not rely events. as future of upon forward-looking statements

cannot be achieved events We will forward-looking occur. and in the assure circumstances or statements reflected the that

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Michael It's also for challenging our you But to been for Joseph CFO, Chairman begin current by today, share CEO our of just your continued to and with Good extremely afternoon, the as PowerCats. team expressing position, Good everybody, I earnings in quarter. here here members. trust and thank Vee gratitude shareholders, you partners, but with for outlook my Visconti, like XXXX call. Twin joining our PowerCats. afternoon, third want I'm Twin I'd future. quarter our sincere I'm valued we not Vee gather Dickerson. an

and recreational market shifting the of are difficult grappling environment, this made headwinds consumer been but memory. the pressures, industry. one know, for recent with These and behaviors broader boating the we economic vehicle As the and in recreational Twin retail challenges turbulent to inflationary have affected all vehicle more Vee industries have unique have not periods

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current into plans have our for that products. incorporated demand mirror have our and the We overhead reduced to

Marion personally Forza Fort, resilient. believe I is strengthen, environment. I operational also since operational this to next XX acquired demand believe winding we I the one be to Forza shell. I North of feel to has construction completed end toughest years industry navigating our a CEO team but our the down good months as the due tunnel. and the ago, job believe done QX light also was the expenses includes of continue factory it X will quarters experienced I there's I stopping X County, with the the quarter and challenging, the of losses, QX at and that will Twin on Carolina Old along Vee the after

of on Stopping damaged Helena. Hurricane severely Western construction for listed on the County There's region cash, the sale. shell The currently North property the was Marion was building. Carolina to and debt we preserve have no from

were damaged, not in was and surrounding building the destroyed. buildings flooded manufacturing Our many but area

of production single that and to the out also go set centralized a back of base costs included dealing included new partial tragedies XXXX. fairs in router expansion payments quarter for with that home families facility, included and hearts is are January Fort construction Helena. Hurricane CNCX-axis Ford the our be factory all Pierce from our Our costs experiencing The consolidating our into Pier delivered to

Bay that also products, to on want challenging very want I specifically to changing our of and and see I maintain is I financial and market I we successful goal that conditions industry in highlight and XXXX. in spend Vee, quickly was quarter stability. our new time resilient. price Twin believe line for ugly. at new The of demand point historically a but is development begin to we too QX this do to will don't situation our adapt been are much BayCats strength a selling of promoting believe to focused we are the boats, talking new line have

to for shift. encouraged into interest bring important buyers this and the person move you are clearly making give the we of retail positive hopefully cycle our sustained we preparing a While see the and in that rate recent am I nature, possible I as as communicate back but market. payment need confidence by a details to rates, -- it's of we by the moves and groundwork QX our for team shareholders is lay here smart cuts are

great address me that is is today, and importance to optimism. of want that I something to

While critical say benefit soft With the significantly and would direction will and dynamics. to the expect retail Trump Why ours. economic feel market we we incentives see the positive for deregulation, to will vehicles that industry. months, industries believe of have policies our presidency, be these do the shaping tax stimulation, over like political the of under economic role X U.S. his demand next recreational economy Donald I X a and greater return promote which this? for I directly been President-elect I plays dealing for environment in firmly The that shift the with a uncertainty, to context period of better. all

solution business encourage help will to Specifically, in historically championed RVs stabilizes condition has leisure. both create flexible economic again and will our industry. to environment. the foster and strong. These experiences initiatives manufacturers lifestyle family-centric for reduce consumers still a once that are affordable, to landscape pro-business The people benefit and turn outdoor taxes, administration a trends as increased Trump's boats investments lead as and towards economic vacations And growth and measures

like in Vee invest see more freedom experiences sense our companies a I of increase reliable and the in to we'll quality them as Twin believe opt adventure. that especially consumers offer demand products PowerCats, for an

Our strategy taken recovery in proactive mind. approach, and is this our with expanding Vee designed we're We've Twin at our base. managing a chains supply refining our production, customer carefully

interest. not have operational we new agility market for shifts, market exciting positioned it. product the rebound. hoping to models. solid we ensuring a customer We're capture this just pipeline And includes preparing As the are features with a well designs, We're that and for that we're renewed

you Michael while the has road we bumpy, value. thank that the of turn I shareholder now To to remain to been and committed this our assure you Dickerson. to shareholders, let over I'll creation me want

XXXX. Thanks, the now. third and quarter of in the $X.X million and through challenging just of experienced going third is I'm result walk of end you a quarter sales of million described good continuation financials. or earnings reduction from On Joseph, net our of declining markets you year XXXX. Vee's reduction Twin the release a everyone. a basis, $X.X for to XX% to all a that Joseph were This trend afternoon, A consolidated consolidated we described

quarter, period year. in third we the last this sold same boats During to compared XX XX%

through the in we the decline assembly in of up sales the the boats margin XX%, company partially depressed length bigger, in discretionary keep to pace in price harness with sold. in last are sales. slightly reductions in-house. the a while year and throughout as spending, boats our reducing number of acceleration gross and research investments change didn't to With quality is the third expenses development a towards the negative sales sales offset the due quarter, been by headcount, quarter largely cost-cutting increase improve down the Throughout At the efforts higher-priced than bring levels, average boats, and these average has focus less generated

are largely merger expenses Forza. of or third fees, increase down professional to $XXX,XXX includes Twin related the in $XXX,XXX This Overall, of and the Vee XXXX. consolidated increase quarter XX% in $XX,XXX to compared a comparison depreciation and operating

have Before to $XXX,XXX XX% compared $XXX,XXX third down the of third of and and respectively. XXXX, quarter. wages expenses the compared these XX% items, year salaries the or XX% $XXX,XXX to about would been down General are expenses quarter administrative consolidated and quarter prior XXXX or or two are impact operating

overall Forza placed well were the the as $XX,XXX were 'XX, expenses quarter as development in in and receipt quarters. Research achieved items primarily the segment prior These in result of both long segment. of the reductions by Forza lead a Twin third Vee as of

third the these nearly exited quarter, X. As were costs we

product terms of at million $XX.X new second $XX.X of yet quarter. received to used machine. the was consolidated the liquidity, million to and This In on $X.X basis, third ended equivalents. million new reduction, the building payments million primarily quarter CNC and $X.X Fort to Of the we compares cash Pierce expansion, additions with for cash of the on progress be state-of-the-art end this a development,

Additionally, against GX in we Super the and Boat. made second the vendor product excess balances that Aquaport new payments quarter X the the XXX of launch following line. grew

focused to the of believe $XXX,XXX burn The was already decline this the volumes and exited on burn as cash continued may both we approximately basis, quarter. as well are at and $XXX,XXX a lower impact leadership go-forward and items, stage. in the execution amount the cash cash these chased are our understandable we developed the as has burn this operational Joseph Plans on burn. about the bringing Before of overall not month. was cash down level have team, which But The acceptable year. per per Forza of is as throughout I of rest be month been

sales nearly item. driving discretionary are efforts, opportunities every additional revenue-generating spending We looking for eliminating

in input looking scrutinizing material standardizing our lower, We towards supply more quality and potential and In with improve lines. across are we just-in-time every deliveries potential count our costs chain, rightsizing both reducing inventory, that are and head components P&L cost, our working actively moving continuously savings. our to item drive for suppliers substitutions product line for further

loss any make exit cannot a run adjusted assurances, better or quarter. rate we $XXX,XXX we achieve goal consolidated a a as is of month first net While our of the to

fourth sales those just trends trailing are third reported. quarter Even while experienced the current quarter in in the

to the end moving of Vee vote of the and the are the forward by before year. expected of execution Forza, Twin and With completed be we successful merger the shareholders with both

I the both of see want share shareholders this through vehicle shareholders thank times Forza each in reminder, of leadership for very to in the receive Twin continuing us space. and of difficult confidence for shares a their recreational team companies of Forza these marine support Vee X.XXX As to will

holding highest is One of North is of fold exploring use shareholder Carolina. company Forza partially its building The lens coming best the the its most maximizing completed into from significant through Twin assets and in Vee Marion, and the attempting may marketing building and and or as sell the shell for be it completion market building building conditions value better for the the the which delaying to of finishing sale, finishing construction. finishing is. the

of of under capital. the conserving and possibilities value these active are again, consideration, to maximizing All shareholder lens viewed

the I'll operator, taking now over will the who assist turn your call questions. to with

There Visconti for time. Joseph this to Instructions]. At call back questions closing comments. turn I'd the are to [Operator like no this over at point,

Thank you very much. employees you. investors, on want call. I want support. to And thank great continued the for their thank everyone and Thank Have I a our to stakeholders day.

This today's concludes conference.

your may at lines you participation. we disconnect this thank time, for and You your