PHOTO COURTESY TWIN VEE Twin Vee PowerCats reported sales of $4.33 million in the second quarter, a 47% decrease from $8.13 million year-over-year. The builder pointed to a decline in demand, higher interest rates, slowing economic demand, and absorbing the electric brand Forza X1.
“The recreational marine industry has continued to be challenged by declining customer demand, partially a result of the stubbornly high-interest rate environment,” CEO Joseph Visconti said in a statement. “During the second quarter, we again took steps to right-size the labor force while also tightly controlling operating costs. At the same time, we are using this slower period to lay the groundwork for the next market upswing.”
The company said it is investing in new models and expanding its Fort Pierce, Fla., facility to increase production capacity and efficiency, adding a CNC machine. “This will save on costs associated with outsourcing and enhance the quality of the boat molds we use to build our products,” Visconti said. “We are committed to reducing cash burn while making smart investments in infrastructure, product development and other revenue-generating opportunities for the company.”
For the three months ending June 30, Twin Vee had a consolidated net loss of $4.5 million compared with a loss of $1.9 million a year prior. Included in those figures was a net loss attributable to Forza X1 of $2.8 million.
Forza X1 had a net loss of $2.83 million for the second quarter, which included an impairment charge of $1.67 million for a partially completed building.
Twin Vee reported consolidated holdings of cash, cash equivalents, restricted cash and marketable securities of $15.13 million at the end of the second quarter, which was down $17.38 million compared with the first quarter.
