Twin Vee Powercats Co. (NASDAQ:VEEE) Q2 2023 Earnings Call Transcript

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Joseph Visconti: I could tell you that we currently are hitting numbers out of our Fort Pierce facility. That’s with our Twin or — can you hear me okay?

Raj Maheshwari: Now I can.

Joseph Visconti: With our — in our Fort Pierce facility with our legacy Twin Vee boats plus our two additional Aquasport model, the 22-center console and dual console, we are hitting last year’s revenue numbers, which are about $35 million on an annual run rate. And so as we kind of bring on Aquasport with Jim’s numbers like two boats a week, I think that kind of adds to where — so $35 million plus this additional Aquasport revenue, I think is where we will finish out the year, which is good. It’s higher than it was last year. And that’s in the face of some pretty tough headwinds, higher interest rates. Some of the buyers — the plumber, the electrician that we’re buying a $100,000 boat and the payment was $500, that same payment is $1,000, $1,100 now. And that buyer — we’re seeing them move to the boat clubs or coming up with an alternative summer strategy with the family.

Carrie Gunnerson: Yes. And if I can add a little bit to that for Raj, I think one of the questions was how do we view the macro and do we see any signs of bottoming? This is mostly anecdotal information. But we are getting feedback from some of our dealers that there’s increased traffic on the showroom floors and people are starting to buy again. I think the — they’ve gotten used to some of the higher rates and some people that don’t need to finance are still buying. We are also hearing from our dealers and looking at the SSI data, that — one of the best-performing segments in Marine right now is the saltwater fishing boat segment. So some of the other segments of the market are down much more, but it seems like we’re in a pocket of strength in saltwater fishing. So that’s a good thing for us. Obviously, there’s no way of knowing for sure, but some of the preliminary signs. I don’t want to call them green shoots look like they’re getting a little bit better.

Raj Maheshwari: So have you started to plan for the 2023 — for the 2024 calendar year budget yet? Or is it still too early?

Joseph Visconti: Well, we’ve got our forecast. I went through — so we have a forecast number of 150 Aquasport boats that’s been forecasted from our new Aquasport dealer network. So we’ve got 150 boats there. And we’ve got a baseline of 120 Twin Vee boats. 100 of those are from OneWater, and we need to finish collecting our forecasted numbers from our other Twin Vee. As you know, the marine industry celebrates the model year change in July. So it’s all happening right now when we’re working with our dealers, we’re getting our forecasted numbers and planning 2024. So I mean the numbers look good right now. I mean I don’t want to pinpoint an exact revenue number, but I think it’s important that we get the Aquasport Tennessee plant online, in addition to what’s happening in Fort Pierce. I think we’ve got a bright future.

Raj Maheshwari: Excellent. Thank you, Joseph.

Operator: Thank you. [Operator Instructions] Mr. Visconti, I’m seeing no other questions in queue. I’ll turn the floor back to you for any final comments.

Joseph Visconti: I want to thank everyone for participating today, and we appreciate our stakeholders and shareholders and the confidence and support you’ve given us. So thank you and everybody have a great day. Thank you.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.

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