Twin Vee PowerCats Co. Reports Third Quarter 2024 Results of Operations

FORT PIERCE, FL / ACCESSWIRE / November 14, 2024 / Twin Vee PowerCats Co. (Nasdaq:VEEE) ("Twin Vee" or the "Company"), a manufacturer of Twin Vee PowerCats and AquaSport boats known as offshore, family-friendly fishing boats from its factory in Fort Pierce, Florida, today reported operational highlights and financial results for the three months ended September 30, 2024.

Highlights: (Unless otherwise noted, all comparisons are to the three months ended September 30, 2023, "Q1" refers to the three months ended March 31, 2024, "Q2" refers to the three months ended June 30, 2024, "Q3" refers to the three months ended September 30, 2024, "Twin Vee" refers to the gas-powered segment, "Forza" refers to the electric boat and development segment, and "consolidated" refers to the consolidated results of Twin Vee PowerCats Co.)

• Shareholders of both Twin Vee and Forza X1, Inc. (OTC: FRZA) voted in favor of the merger of these two entities.

• Twin Vee continues to experience industry wide declining demand for recreational marine vehicles.

• Proactive measures were taken to mitigate slowing demand challenges, including lowering production numbers, tightened financial controls, and a reduction in workforce.

• Consolidated revenue for Q3 decreased by 64% to $2,901,000 from $8,077,000 in Q3 2023.

• Consolidated holdings of cash, cash equivalents, restricted cash, and marketable securities totaled $11,358,000 at the end of Q3 as compared to $15,134,000 at the end of Q2.

• Consolidated net loss for Q3, was $3,010,000, which includes Twin Vee's Q3 net loss of $2,114,000 and Forza X1 Q3 net loss of $896,000.

• Twin Vee adjusted net loss was $1,402,000 or $467,000 per month in Q3.

• Forza adjusted net loss was $427,000 or $155,000 per month in Q3.

• The decrease in cash reserves was primarily due to the Twin Vee building expansion, new product development, merger related costs and operational cash losses from reduced revenue in the third quarter of 2024 and payments against vendor balances that had grown during the second quarter.

• At September 30, 2024:

  • Consolidated total assets were $30,140,000.

  • Consolidated total equity was $23,208,000

"The recreational marine industry has continued to be challenged by declining customer demand. The recent Fort Lauderdale International Boat Show was well-attended and Twin Vee had several models on display, with dealers reporting several sales and leads resulting from the show. Further, the results of the recent election are now behind us removing one uncertainty in the market, and in recent days, the Federal Reserve reduced interest rates by one quarter point. While this interest rate reduction by itself is not significant, we believe the directional move is an important signal to the market," explained Joseph Visconti, Chief Executive Officer of Twin Vee PowerCats Co.

"During the third quarter we again took steps to right-size the labor force while also tightly controlling operating costs. At the same time, we are using this slower period to lay the groundwork for the next market upswing. Twin Vee is investing in new models and expanding our Fort Pierce, FL manufacturing facility to increase production capacity and create a more efficient factory layout. We are also investing in vertical integration and efficiency by adding a state-of-the-art CNC machine into our manufacturing process. This will save on costs associated with outsourcing and enhance the quality of the boat molds we use to build our products."

Twin Vee reported a 64% decline in revenue for the three months ended September 30, 2024, to $2,901,000 as compared to $8,058,000 in the same period in 2023. For the three months ended September 30, 2024, Twin Vee had a net loss of $2,114,000, as compared to a net loss of $1,393,000 in the prior year.

Forza had a net loss of $896,000 for the three months ended September 30, 2024, compared to a net loss of $1,046,000 for the comparable period in 2023.

The consolidated net loss attributed to stockholders of Twin Vee was $2,512,000 for the three months ended September 30, 2024, compared to $1,862,000 for the comparable period in 2023. Generally Accepted Accounting Principles ("GAAP") require Twin Vee to file consolidated financial statements based on Twin Vee's controlling interest in Forza X1, Inc. (Nasdaq: FRZA).

Michael P. Dickerson, Chief Financial & Administrative Officer added, "The entire team is focused on reducing our operational cash burn by driving sales and reducing operating costs, while continuing to make smart investments in infrastructure, product development, and other revenue generating opportunities. While there can be no assurances, our goal is to achieve a run rate of a consolidated adjusted net loss of $400,000 on a monthly basis as we exit the first quarter of 2025."

Conference Call

Joseph Visconti, Chief Executive Officer and Michael P. Dickerson, Chief Financial & Administrative Officer, will hold a conference call today, Thursday November 14, 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 13749913. 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 PowerCats Co. manufactures Twin Vee and AquaSport branded boats designed for activities including fishing, cruising, and recreational use. Twin Vee PowerCats are recognized for their stable, fuel-efficient, and smooth-riding catamaran hull designs. 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™." The Company is located in Fort Pierce, Florida, and has been building and selling boats for nearly 30 years. Learn more at twinvee.com.

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 taking actions to mitigate slowing demand challenges, the Federal Reserve's recent interest rate reduction being an important signal to the market, taking steps to right-size the Company's labor force while tightly controlling operating costs, laying the groundwork for the next market upswing, investing in new models and expanding the Fort Pierce, FL manufacturing facility to increase production capacity and create a more efficient factory layout, adding a state-of-the-art CNC to bring the tooling of brand-new boat models in house, saving costs associated with outsourcing and enhancing the quality of the boat molds the Company uses to build its products, reducing operational cash burn by driving sales and reducing while making smart investments in infrastructure, product development and other revenue generating opportunities and achieving a run rate of a consolidated adjusted net loss of $400,000 on a monthly basis as the Company exits the first quarter of 2025. 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 lay the groundwork for the next market upswing and reduce operational cash burn while continuing to invest in infrastructure, product development and other revenue generating investments, 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 Sonoda
[email protected]

(Tables Follow)

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.

The following table shows information by reportable segments for three months ended September 30, 2024 and 2023, respectively:

Below is a reconciliation of Adjusted Net loss to GAAP net loss for the three months ended September 30, 2024 and 2023, respectively:

SOURCE: Twin Vee PowerCats Co.