• Revenue: Fourth quarter 2024 revenue at $1.9 million, a multiyear quarter low.
• Full Year Net Sales: $14.4 million, a 57% reduction from 2023.
• Average Sale Price: Increased 19% to approximately $167,000 in 2024 from $140,000 in 2023.
• Gross Margin: Negative for 2024, primarily in the fourth quarter.
• Operating Expenses: Down $1,454,000 or 10% compared to 2023.
• General and Administrative Expenses: Down $639,000 or 17%.
• Salaries and Wages: Reduced by $2,567,000 or 34% compared to 2023.
• Research and Development Expenses: Down $857,000 or 59% in 2024 compared to 2023.
• Cash and Cash Equivalents: Ended the year with $7.7 million, down from $11.4 million at the end of the third quarter.
• Capital Expenditures: Expected to be significantly lower in 2025 compared to 2024.

• Warning! GuruFocus has detected 4 Warning Signs with VEEE.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Twin Vee PowerCats Co (NASDAQ:VEEE) is starting 2025 strong with a growing backlog and an expected 50% increase in first quarter sales compared to the fourth quarter of 2024.
• There is renewed interest in both the Twin Vee line and Aquasport monohull line, with new dealers seeking to join the expanding family.
• The company has been disciplined with discretionary spending, ramping up production slowly, and investing in dealer and retail-facing technologies.
• Average sale price increased by 19% in 2024 due to a focus on bigger, higher-priced boats.
• The company ended 2024 with $7.7 million in cash and cash equivalents, indicating a strong liquidity position.

Negative Points

• 2024 was the most challenging year for Twin Vee PowerCats Co (NASDAQ:VEEE) as a public company, with revenues falling to a multi-year low of $1.9 million in the fourth quarter.
• The marine and recreational vehicle markets faced a post-COVID slowdown, high interest rates, and inflation, which weighed heavily on consumer demand.
• Revenues declined sequentially throughout 2024, with a significant drop from $8.4 million in Q4 2023 to $1.9 million in Q4 2024.
• The company generated a negative gross margin for 2024 due to aggressive cost-cutting efforts not keeping pace with declining sales.
• Operating expenses included a $1,674,000 impairment charge on the North Carolina facility, impacting financial results.

Q & A Highlights

Q: Can you provide more details on the expected 50% increase in first-quarter sales for 2025? A: Michael Dickerson, Chief Financial & Administrative Officer, explained that the increase is driven by a growing backlog and renewed interest in both the Twin Vee line and Aquasport monohull line. New dealers are also seeking to join the expanding Twin Vee and Aquasport family, contributing to the anticipated sales growth.

Q: How did the company manage costs during the challenging 2024 year? A: Michael Dickerson stated that the company implemented aggressive cost-cutting measures, including reductions in headcount, research and development, and discretionary spending. Despite these efforts, the company faced a negative gross margin due to the rapid decline in sales.

Q: What strategic decisions were made regarding research and development? A: The company decided to curtail research and development of electric boats to focus on strengthening its business foundation. A significant milestone was the acquisition of the remaining 55% of Forza X1, which is expected to enable better operational efficiencies.

Q: What were the main factors contributing to the decline in revenues throughout 2024? A: Michael Dickerson highlighted that the post-COVID slowdown in the marine and recreational vehicle markets, high interest rates, inflation, and excess OneWater boats sold at deep discounts were major factors that weighed heavily on consumer demand and led to a sequential decline in revenues.

Q: What are the company's plans for capital expenditures in 2025? A: Michael Dickerson mentioned that with the North Carolina facility up for sale and the Fort Pierce facility expansion nearly complete, capital expenditures in 2025 are expected to be significantly lower than in 2024. The company is cautiously optimistic about market conditions and is focusing on operational efficiencies and product offerings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.