FORT PIERCE, FL / ACCESSWIRE /, August 12, 2022 / Twin Vee PowerCats Co. (VEEE) ("Twin Vee" or the "Company"), a designer, manufacturer, distributor, and marketer of power sport catamaran boats, today reported operational highlights and financial results for the second quarter of fiscal 2022.
"We are pleased to report a 158% increase in net revenue for the three months ended June 30, 2022, compared to 2021, while also adding additional models to our lineup and expanding our dealer network. Our continued efforts to streamline our manufacturing process and to become a lean organization have started to take hold, resulting in our first profitable quarter for our gas-powered division since our IPO in July 2021. The demand of our products and manufacturing efficiencies have increased our unit throughput to an average of 4.75 boats a week, up from approximately 3.25 boats per week in the fourth quarter of 2021.
We continue to watch market conditions, dealer inventory levels and economic indicators that might affect our business or the buying decisions of our customers. Our goal is to maintain our current production momentum, maintain and streamline inventory levels and remain focused on hiring qualified production and administrative staff to further strengthen our productivity, drive efficiencies, and maintain a high level of quality.
We are supporting our growth with new boat models, increased production capabilities, strengthening our human capital and investing approximately $3 million in tooling, new molds for our 260 GFX, 280, 340 and 400 GFX , facility upgrades and capital equipment in the past 12 months."
"As we move forward into the second half of 2022, we anticipate our operating income to improve for our core gas-powered boat division. Forza X1 has successfully completed its initial public offering and Twin Vee should no longer be required to fund Forza's operations.
"The net loss for the three months ended June 30, 2022, is a reflection of the investment the Company made in Forza X1. Today we completed our IPO of Forza X1, (FRZA). Forza X1 is expected to have its newly designed electric boat in the water in September of 2022. Forza X1 has selected the site for its new factory in McDowell County, North Carolina and we are currently negotiating a land purchase agreement.
We have accomplished so much in the last year, and our work will continue at a fast pace as we build our Company and our brand."
Financial Highlights for the Quarter Ended June 30, 2022:
- Revenue for the three months ended June 30, 2022 was approximately $8,520,000, representing a 158% increase compared to approximately $3,298,000 for the three months ended June 30, 2021.
- Gross profit for the three months ended June 30, 2022 was approximately $3,447,000 compared to a gross profit of approximately $1,316,000 for the three months ended June 30, 2021.
- Adjusted net income or free cash flow for the three months ended June 30, 2022, which excludes non-cash charges, for our gas-powered division was approximately $607,000. Consolidated adjusted net income was approximately $38,000. Free cash flow and adjusted net income are Non-GAAP measures. See below for an explanation and reconciliation of these NON-GAAP measures.
- Net loss from our electric boat division was approximately $600,000 and the net loss from our franchise business was approximately $12,000, both for the three months ended June 30, 2022.
The Company had cash and marketable securities of approximately $9,860,000 as of June 30, 2022.
Conference Call
Joseph Visconti, CEO and Carrie Gunnerson, CFO will hold a conference call today, Friday, August 12, 2022, at 11:00 a.m. (Eastern). To listen to the conference call, interested parties should dial-in 1-888-220-8451 and use Conference ID 7599467. 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 by clicking on this link.
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.