Earnings call transcript Q1 2023

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Operator

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

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

Your speakers for today's program are Joseph Visconti, President and CEO of Twin Vee PowerCats Company; Jim Leffew, President and CEO of Forza X1, Incorporated; and Carrie Gunnerson, CFO 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 and 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 expect, cases, other or may, or beliefs, anticipate, negative some can by be such predict, similar In expressions. terms these intend, should, and largely financial based projections expectations operations, condition, events financial results statements future believes it strategy, our trends current of The company that forward-looking financial may on has and these needs. and about affect business its

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

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

call equipment, bandwidth, conference website of section be days. Audiocast subject webcast. Investor The quality at XX being traffic. our the in is least available webcast is available and your this Internet will Relations at for ir.twinvee.com Finally, to

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now I call over turn the would to Joseph Visconti.

Joseph Visconti

Jim the company Vee's and Vee electric joined on and our Twin shareholder. I'm CFO; PowerCats. the that President of is I'm everyone. Twin us, Forza Carrie and Visconti, XX, Vee Joseph Gunnerson, with of Hello is CEO also boat the Twin CEO President call majority joining Leffew

you sport Pierce, manufacturers, sells call. our located boats thank a for range Fort our joining Good financial designs, catamaran QX and in Twin from factory of Florida. Vee afternoon XXXX and

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

for brand production XX-foot our a Marine received new the Boat design, manufacturing, this And We launched the order a product, LFG new In named and gained the mono-hull through quarter, with initial continued new large console. additional Freedom and launch QX dealers, from XXXX, the boat the Club. momentum initial sales opened XXXX. of goals launch we of achieved Twin Vee center We including models.

We in now on model as in or built and dual will will LFG be these production Both the XX-foot LFG are of Aquasport second the presentation. we that boats, now later on discuss branded but console. boats

approval site foot XX,XXX for We nearly received square expansion. our plan

continue infusion the transitioned and We XXX% the process our hulls state-of-the-art We've the to our build cost lamination increases on controls. Infusion and while and is refining department to the building move ahead a front back that lamination of building. the connecting process quality for decks.

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

for We dual is another us. new and share dramatically. production, I This a console. away are new product entering month we'll XX-foot model market model GFX exciting our approximately our a expand believe from XXX

have boat Historically, biggest traditionally Lakes, sales. more and Great consoles Bays, Twin fishing the competitor market. such Our well console dual as design and Inland in production dual our XX% and a does been consoles cat Center consoles Vee offshore of extremely of the center day and regions are Waterways. appeal are to and

broaden contender dual catamaran our that will in good sector. our begin a console the feel sales be to DC and GFX We XX new strong

partner OneWater, We're as our a Our mostly and boats. great they're lucky to marketing biggest who represents continue OneWater locations, dealer our Marine, of they currently selling Florida. dealer have seven in

Essentially, with open a an our ago weeks day. XX on light with the in media, the We footer boats rides that Twin of Vee's barbecue we from outreach a at event. guests I'm seven our seen on are headwinds. back Vee offered sales of If possibly an OneWater four and transport Vee great Twin show to perfect. shine test and We highlighting sold to you would've process. being two co-hosted factory. the from our that face Twin tours. We some eight Fort OneWater at this follow and that house our The appreciation XXX success. marina weather We event just showcased lamination owner a music, Pierce held forth. social bringing a event. Vee's the you financial mini factory had was a boat approximately local doing throughout we guests had was XXX some raffles, had of We food, showcase The GFX. Twin

provides We including better controls which close stocking, of tighter our very for implementation the system finalizing provide are ordering, comprehensive inventory new ERP turn that to our levels, boats. detailed costing materials, will build in tracking,

our team been around clock want to online. the and and Carrie CFO, our have the Gunnerson, Carrie working thank team. bring I system the to

current the recreational-based and products. understand for rates federally demand state of interest the most that economy the increasing We have slowed

vigilant growth. and top-line and remained drive for LFG brand production field levels new the the QX of center launch console dealer revenues stocking relatively continue our while XX-foot dealers as remained were strong revenue We inventory restocking they to However, with brought with we of mono-hull. our top-line to due inventory, our online our push

square related tooling, facility discuss land Bluff, in an news. agreement Tennessee. Aquasport We initially to foot build the with ranging White equipment All facility. entered Now size acquisition manufacturing in acquire models into on and their five Aquasport Corporation Ebbtide manufacturing of trademarks, include situated acres Boats to and moles XX big from to will XX-feet. The XX.X let's the Aquasport XXX,XXX

where Vee $X.X the price. Corporation Twin Twin purchase a option Vee $XXX,XXX Ebbtide funded lease and million signed against

reducing the to assets Aquasport price. can any years outright outstanding to purchase option attributed years. the with the balance in purchase next month we lease simply time $XX,XXX for of going have per at $XX,XXX the payments the the $XX,XXX directly over We five of pay Or five

has of and Aquasport sold Boats the will market. property the Aquasport is until in was high this mono-hull manufacturing XXXXs. single look We known Aquasport to for X, produced control a the family halted traditional rich take November brand dating XXXX design. physical a rugged, Brand was facility. June of that iconic popular at boats. boaters many an its Boats before history of are factory XXXX; with versatile, quality, prefer haul back boats the friendly and feel Mono-hull who

make we as manufacturers would boat discussed calls, we themselves felt As confident headwinds on with it. strengthened, industry financial and brand would recognition not present previous acquisitions that strong

this step today in Aquasport. of this and discussed With also located on on call Jim saw opportunity with or And Group Tennessee. to opportunity, leveraging win Boat Leffew, production this this at any synergies as call and Maverick the led some in to a QX was around a X,XXX this the launch we this size happen. questions. is year, Jim Jim and worked related ago. huge our initially week for where for he make background There's Jim's factory clock we they we boats location the team When by offered Forza producing specifically a Forza

confident our dual materials. models, LFG production we're so will running. with will the less As the Aquasport Aquasport, we entering this week a just to around have transitioned, This We with Aquasport staffing, But include console the our marketing, up get two will XX inventory, than and seven re-launch just console we continuing happened our we're transaction. million XX to arms production, ago, $X we feel just and center models.

about excited opportunities are Aquasport the We transaction. with this

cash, burn to markets shareholders. deliver to While a balance prudent grow are and our and our continued choppy, bit not sheet remain business of objective course, business with our to our is value continue

over Carrie I'd Gunnerson, our thank like to I you CFO. to want turn to and

Carrie Gunnerson

Thank you, Joseph.

Good morning, everyone.

for to ended $X,XXX,XXX. was three Our XX, March the revenue up XXXX, net approximately months XX%

achieve We been growth are maintain the the we've year. last to consistent that over and pleased with able

profit three for to ended months March the XX, up $X,XXX,XXX. gross XX% XXXX, were Our

We of and sales and components accordingly. cost inventory with adjust dealer structures purchase continue and to monitor our the our along our revenue discount our prices the

XX, approximately operating to increased XXXX, ended three $X,XXX,XXX. $X,XXX,XXX for Our the expenses March months

Our XX% year. as the for the year percent ended XXXX, March for the XX, of operating in a months were prior to three compared expenses sales or XX%

look March our operating for were the powered expenses period same the you XXXX, ended XXXX. segment, XX% just as of in percent XX, sales three gas months when a However, the in XX% at compared to

So we're year-on-year pleased improvement see of for XX% the quarter. to the first

three ended Our for March net months XX, $X,XXX,XXX. loss approximately the were XXXX,

segment that our was portion Forza electric boat $X,XXX,XXX. loss of

boat putting motors resources electric first different R&D several our as on Forza efforts. spent part models of quarter in considerable the

loss that the So their decrease will we second quarter. do in anticipate

boats of period to excludes Our adjusted Further, our gas the March our business, for $XXX,XXX for income income of our approximately XX, approximately we in same $XXX,XXX the income net net was business powered income gas approximately EBITDA look period, boats the our ended when at months three adjusted compared recorded of loss which a powered $XXX,XXX, XXXX, core $XXX,XXX. charges, was for and net core non-cash the XXXX.

of that reflection Forza. So continued the the a efforts division net boat is the company's experienced definitely into loss we electric

had at As XXXX. turn sheet, cash, we XX, approximately we March balance and to cash the cash, securities $XX,XXX,XXX of marketable equivalents, restricted

that year. prior at $X,XXX,XXX Our was compared inventory date $X,XXX,XXX, the in approximately value to

pressure levels. offerings upward increased product inventory Our has our put definitely on

also will think However, we unlock value that we and some we're ERP of And our we're decrease to lead as component seeing our lead that for times parts. system to end. work to forward, going move the that

So of unlock inventory we that value. we do can some have use some tools to that

operations time, ongoing believe marketable finance securities in produced equivalents, cash we will At and and cash, cash provide sufficient cash this to restricted operations. our cash,

turn to that, over I'll call And with the back Joseph.

Joseph Visconti

Carrie. Thank you,

At it this up open like I'd questions. time, for to

Operator

now session. be question-and-answer Instructions]. [Operator We'll you. Thank a conducting

question Our Johnston. Paul the from line first of comes

Paul Johnston

us what point? Good of afternoon. Can this Twin Yes. you Good at morning. Forza, owns remind Vee percentage

Joseph Visconti

Paul. shares you, of Its Vee the Twin FRZA. XX% outstanding approximately of owns Thank Forza,

Paul Johnston

Okay. million roughly said so roughly correct? Forza the think month, Is the $X.X burn that cash release annually. a that you about $XXX,XXX And I in is

Joseph Visconti

That is correct.

prototyping prototyping. line we've Carrie, detail out I got into kind kind the of So change. with transition on And is Jim, number you're that's I'm if But we like from to that Jim into plus with to that so $XXX,XXX more going that you get production, will get as that. that into let of detail, on broken but or think, prototyping in want

Carrie Gunnerson

just Jim? I before in Can jump

Joseph Visconti

Sure.

Carrie Gunnerson

Says anything.

of that use the And the So boats because quarter. in we were actual and million over motors first in Forza producing. we that's did for cash the $X

So heavy quarter. in it quarter a R&D the first very was

expenses to away do with I the want those year. the the that not anticipate we of Jim? is same think we that So go rest message to for be at you level

Joseph Visconti

No, ahead. I'm go -- I Okay. sorry.

Jim Leffew

what going to I I Carrie that's say I was just wholeheartedly add. agree with there. to going was And

So I original to on question to a burn million on assertion. basis don't think annual your a $X.X back we are or rate at get

Paul Johnston

understand to is Forza trying Right. has was little guess that Well, I in million $XX a cash. what I over

here And roughly So to Forza, I'm of the cash million million $X counting like just at were like what which million $X.X here? market be, about years' I XX but of worth million Twin that's year, value even not Forza, million, price not because think I'm just counting it that's shares there's enterprise current am I understand $XX if something with apologize, $XX the in missing about Vee $X.XX, of now, outstanding. trying disconnect a so of the memory there's is is the cap, Vee three Twin in from sounds it guess right but cash. I cut I won't

Joseph Visconti

a XXX% correct. You're

non-deal doing shows. are road We

a getting out. message propulsion about I press what the the Forza control with past I year social speaking think great mean if incredibly operational, the we're over a We're am you've for really impressed out like doing boat updates. getting a I we I doing getting team, our marketing. accomplished mean, mono-hull. motor press second, and up media job seen

business you if a the $XX in sense. components and and million make you took in added a cash not million bank, of value, Forza, Twin it yes, Twin profitable XX% plus, components does ownership together it three plus cash So Vee the is those $XX Vee, the year trading

Paul Johnston

giant if of ahead whatever another a at look -- I it. is and It come is in it it way but got has Or even it bought someone that to right. get a in don't sure Vee and you chunk away, this? that, $XX lot that and Forza of want took value million. of million the completely Well, I is sales count didn't enterprise it, Twin not promise well, just make to $X is why you've obviously doing

Joseph Visconti

I that mean, stocks, we're of up stock that to are choppy market. leave oversold. gets a pickers in and I'll the we see A rough the professionals lot small

seeing expectation, We're to get watching what to are attention that brought out that to we've and both paying our volume and the everything Twin IPO during goal mean, buying investors we're to it's and through an listening pickup. Vee, accomplished. the we've speaking we're for and I think our there We Twin just someone are in, if doing we accumulating opportunity every Vee or meeting both companies, So -- every exceeding stock. market. you're Forza on we we stocks every accomplished I blasted set new model stated at and

Again, dealers choppy. what over We a would opened the grew year. do XX% XX we We're QX, market XXX% far we up grew a in stated plus exceeding We in over to bit we XXXX. a company in dealers. that's

is team. just forward a an have simply someone opportunity We're tight management We get stock lower the price for to pushing in. so

Paul Johnston

No, appreciate that.

on Vee, there to we're any projections made analysts as is XXXX? isn't make of any what missing. earnings kind have just Twin to kind or share be you And want per there just of for might And so what or rough XXXX anything have -- sure

Joseph Visconti

don't you ThinkEquity I'm sure up it me bank so me this not want that -- want state I send our can a go if don't of But I look in and something have to I it, you to report on So of you front out. at front it or could has time. to me, in give at Bloomberg I have do

Paul Johnston

XXXX? you're they're that, projecting But XXXX you're -- to that they going Sure. lose or money money make for are and to that going

Joseph Visconti

we're are Are profitable. you? We Twin Vee making money.

Paul Johnston

the Forza, guess. the I including consolidation Right. of annual that basis On an

Joseph Visconti

I don't question, understand Paul. the

Paul Johnston

profitable of The the your question that the ownership do losses including through is, they be -- you'll for project Forza?

Joseph Visconti

So What's the might your got me that then have and we questions -- because answer I me. if I it you want your over people will and shoot that in don't front e-mail? after if call I it what you give you. e-mail, of I will report And will -- other -- to grab to

Paul Johnston

That's fine. I'll write offline. you

Joseph Visconti

All right. I'm joseph@twinvee.

me, If and follow-up you afterwards ping okay. with just call report want you even grab the I'll to that's a if

Paul Johnston

it. Appreciate Yes. it. appreciate I

Joseph Visconti

it. You got

Operator

Thank you.

from next Our Please your question proceed Mike the comes with questions. Powell. line of

Mike Powell

prior call. of Twin was just to some I any the you on can Vee means economics in Hey, ask thanks can regarding you of you et Aquasport cetera? but about the disclose taking EBITDA, for financial what going announced, incremental Forza, caller questions asked for revenue, terms the The transaction that EBITDA,

Joseph Visconti

just can of hundred financial completed We have square can't about you'd don't have the any week we a a our I assets. molds the projections the strategy at that, hear It's re-launch kind of projections of couple on upwards inside that. this getting transaction arms around talk foot to time. about We We're Jim ago. just XXX,XXX elaborate facility. a facility. but if on any There's like probably

Mike Powell

whatever the doing can or you prior Or maybe a doing don't to or was I it, what that. like the revenues business was know in the November shutdown sounds history it in what like something but of disclose.

Joseph Visconti

revenues. think believe they years me like I XXX of two and Jim, don't facility. I the know units ago, if I'm -- correct wrong, out I produced I

Jim Leffew

Yes, Boat exactly, the say and were wrapped it's to brands. up with Company Limestone because also they Boca Bait hard the

you. up, So It's over five will targets revenue right suggest rebuild on I have we can start Aquasport years. a when that those exclusively brands to to and the next plant brand some back we And internal shutdown focus the now. we for

in there hire and over. and we have So go to ground-up the from start

those to So hear. I if give like you that, simply just But are projections can you'd projections. to those

Mike Powell

great. be Yes, that'd

Jim Leffew

from It's Nashville plant the of We together a rate workforce. $XX A this XX in in and it area. past, about depends started the in It's years, the high targeting on of July a I to we the year good put can in plant. a Hay back of year, after sometime expect first the so boat building boats now. between We're its And lot that two million get in been million production startup. months revenue produced $XX of day. Day believe

will tooling of We have some Aquasport. upgrade the to for obviously

able confident years. from it's As bad facelift. around received a year expecting or is is to well now you that's years, of incrementally been product a rebuild in We're that our every to had need but next and two But for of decade brand million legacy year. is. know, out target $XX XX the about be is over several many feel we'll the $XX may a Aquasport we there million fifth the until the add what brand That's and to

Mike Powell

And customer like is completely brands? the as kind Twin two be viewed separate it Is synergy of between the Aquasport? or know a will like Vee companies that -- two it'll any independent owns there

Joseph Visconti

it'll as brands. separate think two I looked be at

of the some of it operators so, last XX done think over the had brand the or not I Aquasport justice. years

I think I the brand. known of to with entity be we're the brand market will rebuild its in marketplace Vee. And we'll salt And be Aquasport -- given acquisition favorably rightful water in Twin a place that a think able time. and our Aquasport

Mike Powell

million for $XX you increasing did And then revs year hear know years. per And I million right? $XX you you -- that, to every said year Is five

Joseph Visconti

You did hear right. me

Mike Powell

Okay.

pretty Sounds substantial.

Joseph Visconti

matter It and our a got and we brand sounds boat experience But sounds the of building our and feel us. plans. can have good aggressive. lot that people a like It lot that'll we behind we've executing of be of target aggressive. It's on handle a

Mike Powell

profitable And what revenue level roughly? does it become

Joseph Visconti

Yes.

year-and-a-half million think into should we $XX or look I so. a it at

and of able be point add that. after after and is we'll escape profitability self-sufficient that really think that I there, to I velocity rate Vee be we right Twin to sort of think the should

Mike Powell

Okay.

Joseph Visconti

this out. vet these work we do a still and generalizations have are of to to Again, lot

Mike Powell

statement, covered. got I the your Yes. on five-minute you're forward-looking so intro

you kidding. So questions. But my guys appreciate just taking

Joseph Visconti

you. Thank

Operator

hand the Joseph no time. are remarks. to at There to would Visconti any for back I further over call questions you. closing like this Thank

Joseph Visconti

everybody re-launching want call I to joining today and with about we're for you support, your future this specifically Aquasport thank for everyone. excited the Thank brand. the

you any Thank me have questions, ping will and follow-up other can and we with you If you. you. at get in joseph@twinvee touch

Operator

teleconference. concludes appreciate This you. participation. your Thank We does today's

the You time. Enjoy may of disconnect lines this day. rest at your your

Twin Vee Powercats (VEEE) 15 May 232023 Q1 Earnings call transcript