Twin Vee PowerCats (VEEE) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial and Operational Highlights Twin Vee PowerCats reported a strong Q1 2025 with 91.7% sequential revenue growth, a 961 basis point gross margin improvement, and disciplined cost management, exceeding guidance - CEO Joseph Visconti attributed the strong performance to solid execution, revenue growth, margin expansion, and disciplined operating costs[3] - The company expanded its dealer network in the first quarter, which is expected to extend its reach into key regional markets and reflects growing market confidence[3][8] Key Financial and Operational Highlights | Metric | Q1 2025 Result | Note | | :--- | :--- | :--- | | Sequential Revenue Growth | 91.7% (vs. Q4 2024) | Outpaced guidance of 50% | | Gross Margin | 14.9% | 961 basis point improvement YoY | | Adjusted Net Loss (Avg/Month) | $333,000 | 17% improvement over guidance | Financial Statements Analysis Financial statements reveal mixed year-over-year results with a 32% decrease in net sales but a 94% surge in gross profit and a 31% improvement in net loss, alongside a 37.6% increase in working capital Consolidated Statements of Operations Net sales for Q1 2025 decreased 32% to $3.6 million, yet gross profit increased 94% to $537,114, and net loss improved 31% to $(1.6) million year-over-year | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $3,612,291 | $5,276,343 | (32%) | | Gross profit | $537,114 | $277,313 | 94% | | Loss from operations | $(1,679,094) | $(2,543,207) | (34%) | | Net loss | $(1,610,240) | $(2,335,195) | (31%) | | Basic and dilutive EPS | $(1.08) | $(1.77) | (39%) | Consolidated Balance Sheets As of March 31, 2025, cash and cash equivalents decreased 34.5% to $4.9 million, but working capital significantly improved 37.6% to $9.2 million due to increased current assets and decreased current liabilities | Account | March 31, 2025 | December 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $4,910,267 | $7,491,123 | (34.5%) | | Current assets | $12,200,833 | $10,419,141 | 17.1% | | Current liabilities | $3,021,247 | $3,747,990 | (19.4%) | | Working capital | $9,179,586 | $6,671,151 | 37.6% | Consolidated Statements of Cash Flows Q1 2025 saw stable cash used in operating activities at $(1.7) million, a significant shift to cash used in investing activities at $(0.8) million, and a 35% decrease in cash used in financing activities | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Cash used in operating activities | $(1,736,276) | $(1,749,920) | (1%) | | Cash (used in) provided by investing activities | $(789,774) | $1,476,448 | (153%) | | Cash used in financing activities | $(54,806) | $(83,735) | (35%) | Non-GAAP Financial Measures The company presents Adjusted Net Loss, a non-GAAP measure, to provide a clearer view of core operational performance by excluding non-cash expenses, showing a significant improvement to $(997,522) in Q1 2025 - The company uses non-GAAP measures like Adjusted Net Loss to facilitate more meaningful comparisons of financial results to historical periods by excluding non-cash expenses[14] Reconciliation of GAAP Net Loss to Adjusted Net Loss | Reconciliation of GAAP Net Loss to Adjusted Net Loss | Quarter Ended March 31, 2025 | Quarter Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(1,610,240) | $(2,335,195) | | Depreciation & amortization | $441,672 | $425,281 | | Stock based compensation | $55,968 | $426,283 | | Loss on sale of property & equipment | $63,011 | — | | Boatsforsale.com development costs | $52,067 | — | | Adjusted net loss (Non-GAAP) | $(997,522) | $(1,483,631) | Business Outlook and Forward-Looking Statements Management anticipates continued sequential revenue growth in Q2 2025 driven by improving market conditions, focusing on responsible scaling and expecting a more favorable cash profile as major capital investments conclude - The company anticipates continued sequential revenue growth in Q2 2025, driven by improving market conditions and rebounding consumer demand[3] - Future strategy involves responsible scaling, balancing production increases with expense control and working capital discipline[3] - A more favorable cash profile is anticipated going forward, as most heavy capital investments are now complete[3] Conference Call Information Twin Vee PowerCats Co. held a conference call on May 8, 2025, at 12:00 p.m. Eastern Time, hosted by CEO Joseph Visconti and CFO Michael P. Dickerson, to discuss first-quarter financial results - A conference call was held on May 8, 2025, at 12:00 p.m. (Eastern) with CEO Joseph Visconti and CFO Michael P. Dickerson[4] - The complete financial statements are available for access on the SEC's website and the company's investor relations page[5] About Twin Vee PowerCats Co. Twin Vee PowerCats Co., based in Fort Pierce, Florida, is a 30-year manufacturer of power sport boats, renowned for its stable and efficient catamaran hull designs - Twin Vee PowerCats Co. is a manufacturer of power sport boats, specializing in catamaran hull designs known for stability and a smooth ride[6] - The company has been operating for 30 years and is located in Fort Pierce, Florida[6]