Twin Vee PowerCats, Co. Q1 FY2025 earnings call

• Dealer network expansion: Added six new dealer locations and focus on grassroots on-site dealer location training. - Field inventory improvement: Field inventory reduced from 80 boats to under 60 boats in the dealer network. - Product development: Introduced the all-new 2022 22-foot Twindie Bay Cat. - Facility expansion: Completed a 30,000 feet facility expansion. - Digital strategy: Upcoming launch of a brand new interactive Twin Vee website; also, weekly CEO Update newsletter for communication. - 2024 performance: In 2024, Twin Vee built and sold over 20 boats during the same period.

In the first quarter, Twin Vee Powercats Co. generated $3.6 million in revenue, which is a 91.7% sequential increase over February 2024. They shipped 24 units in the first quarter, a sequential increase of 118% compared to the fourth quarter of 2024. The average sale price fell to $151,000 in the first quarter from $171,000 in the fourth quarter due to an increased mix of 22 and 24-foot boats. Gross margins improved to 14.9%, up 961 basis points from the same period last year, primarily driven by better manufacturing efficiency. Operating expenses were down 21% year over year. Inventory turnover improved by half a turn year over year, from approximately 4.5 to 5 turns, reflecting better alignment between production and dealer demand.

• First quarter revenue of $3.6 million was well ahead of the previously guided 50% growth, with a 91.7% sequential increase. - Second quarter 2025 anticipates continued sequential revenue growth as the market recovers and dealer base expands. - Adjusted net loss averaged $333,000 per month in the first quarter, a 17% improvement over the guided $400,000 adjusted net loss. - Classified land and buildings in Marion, North Carolina as held for sale, expecting the asset sale to strengthen cash position within the next twelve months. - Monitor tariffs on marine components but have a proactive supply chain strategy to navigate near-term volatility.

• Tariffs on various categories of goods relevant to the marine manufacturing industry, particularly in areas such as motors and electronics, could present incremental headwinds in the quarters ahead.

No specific questions were posed during the provided earnings call transcript as no actual questions were asked by participants