Twin Vee Powercats Co. Reports a 18% Increase in Revenue for the Six Months Ended June 30, 2023
FORT PIERCE, FL / ACCESSWIRE / August 14, 2023 / Twin Vee PowerCats Co. (Nasdaq:VEEE) ("Twin Vee" or the "Company"), a company that creates, produces, and sells leisure and business power boats, announced its noteworthy achievements and financial outcomes for the period of three and six months concluding on June 30, 2023.
We are happy to inform you that our net revenue has increased by 18% for the six months ending June 30, 2023, reaching $17,000,000 compared to $14,400,000 in the same period last year. In terms of our gas powered boats segment, we experienced a net loss of $234,000 for the six months ending June 30, 2023, whereas the net loss was $554,000 during the same period in 2022. The total net loss attributed to Twin Vee's shareholders for the six months ending June 30, 2023, amounts to $2.5 million. This loss directly reflects Twin Vee's majority ownership in Forza X1, Inc. (Nasdaq: FRZA), the electric boat company in which we own a majority stake. Additionally, Twin Vee is required to file consolidated financial statements in accordance with GAAP accounting. As of June 30, 2023, Twin Vee, excluding Forza X1, had approximately $11,437,000 in cash, cash equivalents, restricted cash, and marketable securities.
The overall economic situation, such as the increase in interest rates, is directly impacting the buying behavior of individuals who want to purchase boats and recreational vehicles. While first-time buyers are being influenced by the higher interest rates, we are observing that those who can afford to pay upfront or are members of boat clubs are still showing a strong interest in our boats. To adapt to the shifting market and meet consumer needs, we are constantly expanding our range of products. This includes introducing the Twin Vee 400 GFX and our 280 GFX dual console.
We are pleased with the initial progress of acquiring the well-known brand AquaSport boats. Although it required spending money and starting expenses, obtaining AquaSport has allowed us to collaborate with more than 10 new dealers at over 36 locations. We have confidence that our Aquasport mono-hull boat brand will contribute to the growth of our overall business and attract a wider customer base. The mono-hull market is highly competitive, which is likely to reduce our profit margins as we enter this market, as we witnessed in the second quarter. However, it is also the largest market, and we believe that entering it will propel Twin Vee to the next level. As we monitor market conditions, dealer inventory levels, and economic indicators that may impact our business, we will also focus on managing inventory levels and cutting production costs.
Financial Results for the Period of Six Months Ended in 2023:
Joseph Visconti, the Chief Executive Officer and President, will be hosting a phone meeting today, Monday, August 14, 2023, at 10:00 a.m. Eastern Standard Time. Those interested in listening to the meeting can call 1-877-407-3982 and use the Conference ID 13740488. It is advised that all participants dial in around 10 minutes before the scheduled start time and request to be connected to the conference call for Twin Vee.
The conference call will also be accessible via a real-time audio web stream that can be reached at the designated URL.
Today, the Company is submitting its comprehensive financial statements to the Securities and Exchange Commission. These documents are now available for viewing at https://ir.twinvee.com/sec-filings.
Regarding Twin Vee PowerCats Co.
Twin Vee specializes in crafting, producing, delivering, and promoting power sport boats. The business is situated in Fort Pierce, Florida, and has been constructing and vending boats for nearly three decades. For further information, visit the website, www.twinvee.com. Twin Vee is highly renowned as a leading brand within the catamaran sport boat field and is celebrated for its exceptional performance on the water, earning the reputation of being the "Ultimate Boat Riding Experience™".
This press release includes some statements about the future that are protected by the laws of the Securities Litigation Reform Act of 1995. These statements use words like "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project," and others to identify future-looking statements. The statements talk about the overall economic situation, where increasing interest rates will directly affect consumers buying boats and recreational vehicles. They also mention the company's plans to broaden their product range, how their Aquasport mono-hull boat brand will help them expand and attract more customers, and their entry into the monohull market, which will take Twin Vee to the next level but may also decrease the company's gross margins. Lastly, they mention their efforts to manage inventory and reduce production costs.
The statements in this blog are based on the expectations and assumptions of management at the time of writing, and they may be affected by various risks and uncertainties that are difficult to predict. These factors could potentially cause the actual results to differ from the expectations and assumptions mentioned in the statements. Some important factors that could lead to such differences include the Company's ability to effectively manage inventory levels and control production costs, as well as their capacity to expand their business and increase their brand and product offerings. Additionally, the Company's successful entry into the monohull market and the risks mentioned in their Annual Report on Form 10-K for the year ending December 31, 2022, and subsequent reports filed with the SEC, including periodic reports on Forms 10-Q and 8-K, are also significant factors to consider. Please note that the information provided in this blog is current as of the date of publication, and the Company has no obligation to publicly update or revise any forward-looking statements. Any updates or revisions will only be made if required by law or if unforeseen events occur after the statement's publication.
Cash, cash substitutes, and confined cash
The expenses associated with the goods or services sold
The fundamental and diluted earnings per unit of common stock
The mean number of common shares outstanding, taking into account their respective weights: Both in a basic and diluted scenario.
The price of items sold
Earnings per share of ordinary shares in their most fundamental form and when taking into account diluting factors
The calculated average quantity of common stock shares on hand, factoring in their respective weights.
Cash utilized in operational pursuits
Money generated through investment activities
Funds obtained through financing operations
Cash at the end of the period refers to the amount of money that remains in an individual's possession or in a company's coffers after all expenses have been paid and revenues have been received. This financial metric indicates the level of liquidity or the ability to meet short-term financial obligations. It is a crucial aspect of financial management as it indicates the financial health and stability of an individual or organization.
The table below presents data organized by reportable segments for the periods between June 30, 2023 and 2022, spanning three and six months.
During the period spanning from April to June 2023
The expenditure incurred for the goods and services provided to customers
For the period spanning from April 1, 2022, to June 30, 2022
The expenses associated with selling goods or services
Profit (loss) from business operations
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Price of items sold _______________________________ In financial accounting, one crucial aspect of determining the profitability of a business is calculating the cost of products sold. This figure represents the expenses incurred by a company in producing or purchasing the goods it sells to customers. Essentially, it is the amount of money that goes into the creation or procurement of inventory that is later sold. The cost of products sold includes various expenses such as the cost of raw materials, labor costs, and any additional production overheads or direct expenses. These costs can fluctuate depending on factors such as market conditions, changes in the prices of raw materials, or variations in production methods. Calculating the cost of products sold can be done using different methods. One commonly used method is the "first-in, first-out" (FIFO) method, which assumes that the first units purchased or produced are the first to be sold. Another method is the "last-in, first-out" (LIFO) method, which assumes that the latest units purchased or produced are the first to be sold. Additionally, the weighted average method calculates the average cost of all units available for sale during a specific period. By accurately determining the cost of products sold, businesses can gain valuable insights into their financial performance and make strategic decisions to optimize their profitability. It provides a clear understanding of the expenses associated with the goods sold and helps in setting appropriate selling prices to cover these costs while generating a profit.
The period spanning from January to June 2022
Price of goods sold
In this earnings release, we have provided an additional financial measure that is not based on standard accounting principles. We believe that this extra information is valuable to investors because it allows them to assess the company's performance based on its core operations. It also enables more meaningful comparisons of financial results to previous periods. The Adjusted Net Loss figure removes certain non-cash expenses, providing a clearer picture of the company's ongoing performance. Our executive management team also relies on these non-standard measures to evaluate the company internally. However, it's important to note that Adjusted Net Loss should not be considered as a replacement for any standard accounting measures. Additionally, the way it is calculated may not be comparable to similar measures used by other companies in different industries or within the same industry.
Here is a comparison of the adjusted net loss to the GAAP net loss for the three and six months that concluded on June 30, 2023 and 2022:
Price of items sold
Simple and reducing loss per share of ordinary stock
The calculated average number of common stock shares outstanding, taking into account the differing weights assigned to each share.
Asset disposal loss
Modification of asset and liabilities associated with the use of rights and lease agreements
Change in marketable securities. --------------------------------------------------- Increase in marketable securities.
Price of items sold
This section discusses the fundamental and reducing loss per share of common stock.
The total number of common stock shares in circulation, taking into account their relative significance.
Asset disposal loss
Modification of utilitarian asset and rental obligations
The overall fluctuation in marketable securities
Asset disposal losses
Benefit from governmental funding
Modification of the asset recognized for the right to use and the obligations resulting from a lease agreement.
The overall modification in tradable money instruments
Modified net (loss) earnings
The squandering of assets
Benefit from the financial assistance provided by the government.
Modification of asset utilization rights and lease obligations
Change in tradable securities Net change in marketable securities refers to the difference in the value of tradable assets over a given period of time. It reflects the overall fluctuation in the market value of these securities. This net change can either be positive or negative, depending on various factors such as market conditions, investor behavior, and economic outlook. It is an important indicator that reflects the performance of tradable securities held by individuals, companies, or institutions during a specific period. Monitoring and analyzing this net change in marketable securities can provide valuable insights into the dynamics of the financial market.
Modified net profit/loss
Original: Twin Vee PowerCats is a company that manufactures high-quality power catamaran boats. Rewritten: Twin Vee PowerCats is a business that produces boats with excellent craftsmanship. Original: Our power catamaran boats are built with the finest materials and advanced technology. Rewritten: Our power catamaran vessels are constructed using top-notch materials and cutting-edge technology. Original: We take pride in delivering superior performance and uncompromising durability in each of our boats. Rewritten: We take great satisfaction in providing outstanding performance and unbeatable durability in every single one of our boats. Original: Customers can trust our boats to withstand the test of time and provide a smooth and enjoyable boating experience. Rewritten: Customers can have confidence in our boats to endure the trials of time and deliver a pleasant and enjoyable boating excursion.
