Twin Vee Powercats Co. (VEEE) Earnings Call Transcript & Summary

Good morning, everyone. I am the CEO of Twin Vee Powercats, NASDAQ-listed company, VEEE, and I'm here with Jared Reichenberger, who is the Director of OEM Sales for Mercury Marine. We are here to announce a strategic partnership between Mercury Marine and Bahama Boats, and so I'd like to turn it over to Jared Reichenberger.

Joseph, thank you for having me. As you said, I am with Mercury Marine. We are a leading manufacturer of recreational marine propulsion. This is an exciting time for us. There's been some discussions that we've been engaging on. And we are definitely excited to roll up our sleeves and work alongside your leadership and team to help relaunch this incredible brand. We don't necessarily view this as just a regional play in the state of Florida. I think this is a great opportunity across the United States, but then also with the group when will reach there, we're going to be able to offer and help and assist with. Bahama is a very great brand in the marketplace. They have a very loyal customer base, and that's where we see this as a great opportunity to be a part of it. We want to help take this to the next level. And I think under your leadership and the vision that you're showing, it's going to be an exciting time to see where we can take this. More so, Mercury is about product. The vision that Joseph has laid out in regards to future products, just the true where he's going to take the brand lines perfectly with and matches our product line. Our innovation in V6, V8, V10 and B12 are great opportunities to help this brand, and we really look forward to the opportunity. And Joseph, I'll give it back to you. Again, thank you for engaging with us and going through this process and really look forward to it.

Thank you, Jared. Appreciate all the support. Looking forward to an exciting couple of years as we roll out all of our new products. So a brief history on Bahama Boats. Bahama was founded by the late great Scott Henley approximately 20 years ago. Bahama is a highly recognized and respected brand. And today, Twin Vee acquired -- well, not today, but Twin Vee acquired 100% of Bahama Boat Works 7 months ago. And today, Bahama is a Twin Vee company. Along with Bahama's exquisite design, it's offshore performance and it's yacht quality, fit and finish, Bahama has always been a brand for the few. Now with Mercury Marine as a partner and Twin Vee's manufacturing capabilities, together we're going to relaunch this incredible brand with a complete model lineup from 21 feet to 41 and possibly larger as we roll forward with new Bahama models. As you know, Twin Vee is a large-scale production boatbuilder. We have a new modified 100,000 square foot facility capable of producing up to 700 units annually depending on the model mix. Why Mercury? Mercury is the most powerful engine brand in boating period. Mercury is backed by 0Brunswick, which is a New York Stock Exchange company, the gold standard. This partnership is an OEM alliance that instantly elevates the trust and demand for our products. And why does this matter? Motor packages are anywhere between 20% to 35% of the total cost of a boat. I mean a lot of times, like the first question a buyer asks is what is the power on the boat. And if it's not a mercury, many buyers stop listening. And so what's important here is Mercury doesn't just power boats, Mercury brings buyers to the table and starts possibly new conversations with buyers. Mercury is brand dominance. They've set the standard, they look the part. They have an intimidated iconic look and Mercury Motors sells boats. Do you remember that Black Max 50 years ago, and Mercury has built off that early success and they kept going. And I want to go over some investor highlights to touch on. Today, Twin Vee, NASDAQ listed has a total market cap of under $4 million. Twin Vee has been building and designing boats for over 30 years. We've produced over 10,000 boats globally. And today, Twin Vee has two brands under one roof. This is shared cost leverage. Two brands, one factory. This lowers cost and supports scale of economy and cost efficiencies. We have all the infrastructure we need, including tooling. The processes are already in place to support a multi-brand growth without duplicating capital spend. And Twin Vee now has the ownership of one of the most recognized names in the offshore center console sport boats. Twin Vee will be reintroducing the Bahama Boat brand with disciplined execution and modern manufacturing. And I'd like to invite everyone to our official relaunch of Bahama Boats with our new propulsion partner, Mercury Marine at the Palm Beach Boat Show on March 25. So stay tuned at twinvee.com for updates and highlights, and thank you for joining us today. Have a good day. Thank you.