Revenue for the second quarter of 2024 for Twin Vee PowerCats Co, manufacturer of Twin Vee PowerCats and AquaSport boats, decreased by 47% compared to 2023.
The decline in demand for products is being put down to higher interest rates and slowing economic demand for recreational vehicles.
Proactive measures have been taken to mitigate slowing demand challenges, including lowering production numbers, tightened financial controls, and a reduction in workforce.
The consolidated net loss for Q2 ending June 30 2024 was $4,519,000, which includes Twin Vee’s Q2 net loss of $1,681,000 and Forza X1’s Q2 net loss of $2,832,000.
During the period, funds were spent on Forza building additions, funds allocated by Twin Vee for new product development and building expansion.
“The recreational marine industry has continued to be challenged by declining customer demand partially a result of the stubbornly high-interest rate environment,” explained Joseph Visconti, CEO of Twin Vee.
We are using this slower period to lay the groundwork for the next market upswing.
Joseph Visconti, CEO of Twin Vee
“During the second quarter we again took steps to right-size the labour 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.
“Twin Vee is investing in new models and expanding our Fort Pierce, FL manufacturing facility to increase production capacity and create a more efficient factory layout.”
And he said the company is investing in vertical integration and efficiency with the addition of a state-of-the-art CNC machine into its manufacturing process.
“This will save on costs associated with outsourcing and enhance the quality of the boat moulds we use to build our products,” explained Joseph.
“We are committed to reducing cash burn while making smart investments in infrastructure, product development, and other revenue generating opportunities for the Company.”
In August 2024, Twin Vee announced plans to merge with Forza under an all-stock transaction agreement with Forza becoming a wholly owned subsidiary of Twin Vee.
