Twin Vee PowerCats (VEEE) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a 158% increase in net revenue for Q2 2022, amounting to approximately $8.52 million compared to $5.22 million in Q2 2021 [12][25] - Gross profits for the quarter rose by 162%, reaching approximately $3.45 million [25] - The adjusted net profit for the gas-powered division was approximately $607,000, marking the first profitable quarter since the company's IPO in July 2021 [12][27] - The net loss for the quarter was approximately $539,000, compared to a net income of $51,000 in 2021 [26] Business Line Data and Key Metrics Changes - The gas-powered boat division achieved a unit throughput increase to an average of 4.75 boats per week, up from approximately 3.25 boats per week in Q4 2021 [14][31] - The electric division, Forza X1, is expected to incur losses as it transitions from R&D to production, with plans to ramp up production in the new factory over the next 12 to 18 months [16][17] Market Data and Key Metrics Changes - The company noted some softening in the marine sport boat market, with dealer inventory levels growing but still not back to pre-COVID levels [18] - Despite market challenges, dealer forecasts remain strong, with no dealers modifying or reducing their forecasted boat orders [18] Company Strategy and Development Direction - The company aims to sustain production momentum, streamline inventory levels, and expand its dealer network [15] - Forza X1's mission is to produce affordable, fully integrated all-electric recreational boats, with sales expected to commence in Q2 2023 [19] - The company plans to leverage the Forza X1 IPO to fund operations and strengthen its balance sheet [17][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to expand market share and continue growth despite some market slowdowns [15] - The company is closely monitoring economic indicators that may affect business and customer buying decisions [14] - Management highlighted the importance of the Forza X1 IPO in alleviating cash burn and improving cash flow [30] Other Important Information - The company has increased its dealer network by over 24 locations and currently employs around 160 employees [10] - The electric division's first model, the FX1 Dual Console, is in the final stages of tooling, with assembly expected to begin soon [22] Q&A Session Summary Question: Correlation between Twin Vee Powercats and Forza - Twin Vee holds a 70% stake in Forza X1, which will operate as an independent company with its own Board of Directors and Officers [35] Question: Stock conversion situation - A merger between TVPC and VEEE is planned, with no money changing hands and shares distributed on a pro rata basis to TVPC shareholders [36][37] Question: Conversion details - The conversion will not be one-to-one; specific numbers will be disclosed in an upcoming S-3 registration [39]