Twin Vee Powercats $VEEE stock exploded 71% higher in early trade on August 12, 2022, after the company reported an eye-popping 158% increase in revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th....
Twin Vee Powercats Co. Reports a 158% Increase in Revenue, Adjusted Net Profits Of $607,000 for Its Gas-Powered Division for the Second Quarter of 2022
On August 12, 2022, Twin Vee PowerCats $VEEE, a designer, manufacturer, distributor, and marketer of power sport catamaran boats, 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 for 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 our customers’ buying decisions. 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 strengthen our productivity further, 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 and 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, reflects the company’s investment in Forza X1. Today we completed our IPO of Forza X1 (FRZA). Forza X1 is expected to have its newly designed electric boat on the water in September 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.
- The gross profit for the three months ended June 30, 2022, was approximately $3,447,000 compared to a gross profit of roughly $1,316,000 for the three months ended June 30, 2021.
- For our gas-powered division, adjusted net income or free cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... for the three months ended June 30, 2022, which excludes non-cash charges, was approximately $607,000. Consolidated adjusted net income was roughly $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.
- The net loss from our electric boat division was approximately $600,000, and the net loss from our franchise business was roughly $12,000 for the three months that ended June 30, 2022.
Twin Vee PowerCats Co. is a designer, manufacturer, and marketer of recreational and commercial power catamaran boats. Twin Vee PowerCats Co. is based in FORT PIERCE, Florida.
Twin Vee PowerCats and Wholly-Owned EV Subsidiary Forza X1 Make Joint Announcement with North Carolina Governor Roy Cooper to Build Large Scale Electric Boat Factory in McDowell County, NC
On July 29, 2022, North Carolina Governor Roy Cooper and Twin Vee PowerCats, Co. (NASDAQ: VEEE) announced that Forza X1, Inc., Twin Vee’s wholly-owned EV subsidiary, would obtain incentives from the North Carolina Department of Commerce and the McDowell County local government to establish its electric boat manufacturing operations in McDowell County, North Carolina. Jim Leffew, President and CEO of Forza X1 lead the efforts with state and local entities, which resulted in selecting the site in McDowell County.
Within thirty days, the North Carolina Department of Commerce will finalize the incentive package in a Community Economic Development Agreement (CEDA). The CEDA, among other things, will formally create the Job Development Investment Grant Program along with the investment and performance criteria Forza X1 must follow in the coming years to receive the grant funding.
Forza X1 expects to invest over $10.5 million in land, buildings and fixtures, infrastructure, and machinery and equipment by the end of 2025 through its new manufacturing plant in McDowell County. Once constructed and after Forza X1 ramps its electric boat manufacturing process, Forza X1 anticipates creating as many as 170 new jobs. The CEDA will require each job created to pay a minimum annual salary of $51,047, above the current average wage in McDowell County of $39,071. Using a formula based upon fifty percent (50%) of state personal income tax withholdings paid by Forza X1 for net new jobs created at the manufacturing plant, North Carolina’s Job Development Investment Grant Program will authorize the potential reimbursement to Forza X1 of up to $1,367,100, spread over 12 years.
📺 TwinVee 400 GFX – Maiden Voyage
📈 Twin Vee Powercats $VEEE Chart
$VEEE stock had an uptrend rating going into the 71% gap up explosion higher on August 12, 2022. The stock is still in an uptrend with strengthening short-term technicals but is now in overbought territory and prime for a trend reversal on profit taking. The other significant risk factor is the macro-economic environment. $VEE stock trades within the cyclical consumer sector. As we progress through the recession, discretionary spending will rapidly drop, hurting Twin Vee Powercats’ sales.