- We believe we are (Twin Vee Power Cats) one of the largest center console twin-hull power boat manufacturers in the USA (by unit volume), having sold over 7,000 boats over the past 23 years to recreational, commercial and government customers
- Under new ownership in 2016, Twin Vee has undergone capital investment and modernization to support future growth and profitability within the $18 billion recreational boating industry1
- Twin Vee is currently profitable, with capacity to scale to over 450 boats per year (2017 sold 108 boats with 28 boat backlog entering 2018)
- Twin Vee plans to undertake further capital investment in CNC machining and 3D CAD/CAM technologies and plant modernization / manufacturing efficiencies
- Twin Vee expects these investments will result in unit volume growth and increased profitability
- Twin Vee planned path to growth includes new products, new dealers and new sales & marketing programs
- Twin Vee plans to uplist its common shares to a major US exchange in the next 12 months
Source: Company, 1 National Marine Manufacturer’s Association
Nearly $2 million capital investment in multiple CNC routers, including $500k DMS 5-Axis router, 120 ft crane, CAD/CAM software systems, new molds and manufacturing plant improvements
We believe we are well positioned to scale boat unit volumes and increase EBIT per boat
2016: New ownership, new capital investment, new operational systems
2017: Actual $6.3 million sales and $133k net profit (2.2% net margin), 108 boats sold with 28 boat backlog
2018: Actual Q1 $2.5 million sales and $320k net profit (12.8% net margin) on 30 boats sold, 9 new dealers added in FL, TX and WI
We believe our dedicated and talented team drives Twin Vee performance:
- We strive to instill a culture of excellence with over 65 employees, many with over 10+ years of service
- In-house naval architect and prototyping team
- In-house 3D CAD/CAM to 5-axis CNC machining team
- In-house wiring, upholstery and metal fabrication teams
- Functional teams are committed to continuous improvement and customer service; innovation is incentivized
We see multiple avenues for growth:
- Current dealer footprint with 20 dealers in FL, AL, LA, NY, MD, NC, VA
- Continued dealer expansion planned to TX, MI, MN, WI, Western US; followed by Canada and Caribbean / Latin and South America
- Increase per dealer sales with flooring programs
- Increase manufacturing capacity through physical plant expansion and modernization
- Continued new product developments
$18 Billion Recreational Boat Market
- An important economic indicator confirming spending trends, consumer confidence is at a 14 year high and nearing an all-time high
- US Consumer Confidence Index (CCI) for February 2018 stands at 130.8 up from 124.3 in January 2018 and up from 117.3 in June 2017
- February 2018’s CCI of 130.8 is less than 2 points away from the all-time high reached in November 2000 of 132.6 when new powerboat units reached an all-time high of 340,000 units.
- New powerboat units were up 6 years in a row to 185,000 units
- Despite the gains, new powerboat units still stand roughly half of the 2000 peak of 340,000 units and -35% below normal levels
- According to NMMA, new powerboats in 2018 are projected to increase +5%, led by saltwater fishing boats and boats in the 26 to 32 foot range (+9% to +10%). Retail $ value will increase by +8% while units will increase 5%
- According to the NMMA, Florida is the largest powerboat market in USA at $2.64 billion growing 11.4% year over year; 95% of all boats bought in Florida are made in Florida, making it one of the most competitive markets in the USA. The 26 foot segment is growing 46% faster than the overall market as 95% of all boats bought are 26 feet or smaller.
- Ranked #6, Twin Vee has tripled its market share of the 26 foot segment in the past 3 years despite having only 8 FL dealers versus an average of 18 for the Top 5 FL Dealers.
- Twin Vee’s growth strategy includes adding more new dealers in Top 10 markets and more new CNC-milled products in the 23 foot to 26 foot segments.
- According to Bloomberg, the 3 largest US public boat manufacturers1 have outperformed the Russell 2000 from January 2016 to February 23, 2018 with an average total return of 139.7% for the 25 month period. However, there can be no guarantee such performance will continue, or that these shares may lose value in the future
- We believe investment returns have been driven by consistent earnings outperformance:
-MBUU beat estimates 8 of 8 last quarters
-MCFT beat estimates 5 of 8 last quarters
-MPX beat estimates 3 of 6 last quarters (Robalo)
- None of the 3 manufacture a twin-hull powerboat
Twin Hull Technology.
We believe Twin Vee, “The Best Riding Boat on the Water™, offers advantages over mono-hulled boats for the following reasons:
Ride Quality: Narrow, twin hulls form a counter-rotating hydro-vortex “cushion” with reduced wetted surface area, instead of bouncing on the waves like wide mono-hulls. Designed to offer a smooth, dry ride, we believe Twin Vees tend to stay in the direction they’re pointed, especially in rough seas and easily cut through wakes. In independent tests1 into 4’ to 5’ seas, 6 second intervals, at 29 mph, twin-hull vs monohull had 25% less gravitational force (3 Gs vs 4 Gs) with 350% less deceleration (0.3 seconds vs 0.08 seconds).
Stability: The widely spaced hulls offer superior stability because the buoyancy is distributed to the outside edges, unlike precariously centered mono-hulls. In the same independent test into 4’ beam seas, the twin-hull had 28% less lateral force than the monohull (0.9 Gs vs. 1.2 Gs).
Fuel Efficient: Producing about one-third the drag of a monohull, the Twin Vee has better fuel efficiency. Using less power, it can maintain the equivalent cruising speed of a mono-hull, allowing use of smaller engines – which should result in cost savings. Even at the same speed and on the same power2, Twin Vee 310 was 19% more fuel efficient than a Robalo 302.
Safety: Twin-hull’s draft are 4” to 7” less than an equivalent length monohull which permits safer access to shallow water. In addition, the twin-engine versions can typically get up to cruising speed even on one engine, enabling quick return to the dock in the event of an engine failure.
Maneuverability: The motors can be cross-clutched to turn the boat within its own length while docking and can also execute tight, stable turns, even at full speed.
1Boating, December 2004: Catamaran vs. V-Hull: Which Rides Better?
2 BoatTest.com review of Robalo 302 vs. Company test of TV 310
We believe we have built a position of industry leadership on the basis of a high quality product line offering superior value, superior performance and superior resale value.
In our opinion, World Cat is Twin Vee’s only “production based” competitor www.worldcat.com
Twin Vee vs. World Cat Comparison
In our view this analysis shows that relative to World Cat, Twin Vee offers:
- Superior Value
- 70% lower price
- Superior Performance
- 12% faster speed
- 26% better fuel efficiency
- Superior Resale Value
- 10% Higher than World Cat
We believe Twin Vee PowerCats are renowned for their industrial grade quality, stability and reliability to meet the most rigorous demands of the commercial markets with customers in law enforcement, public safety, environmental services, hospitality and the motion picture / television industry.
Twin Vee Commercial Markets
- Law Enforcement & Public Safety: Numerous police and fire departments, boat towing services
- Motion Picture & Television: Filmed James Bond, Pirates of the Caribbean, Bay Watch, America’s Cup, Discovery Channel Shark Week, etc.
- Hospitality & Tourism
Chief Executive Officer
Mr. Visconti has more than 25 years of senior-level executive experience in fields including financial services, real estate, media, manufacturing, and sales and marketing. Mr. Visconti has acquired businesses that he believes have benefited from his turnaround and growth phase management skills. Mr. Visconti has launched four companies with three exits including an IPO on the American Stock Exchange.
Director of Product Development
Mr. Yarborough is the Director of Product Development and has 18 years with Twin Vee. Mr. Yarborough has experience including yacht design and manufacturing, fiberglass production, material handling, plug and mold design and production, vacuum bagging, resin infusion, process development and implementation, purchasing, Q.A., electrical systems, plumbing and navigational systems, lean manufacturing, personnel management, process refinement, as well as sales and marketing.
Director of Operations
Ms. Ball has served as Director of Operations, Dealer/Sales Coordinator, and Corporate Secretary of Twin Vee since June 2011. Ms. Ball previously was Director of Operations of a high performance boat line (Sonic) from 2004 until 2011. Prior to Sonic, she was responsible for foreign and domestic sales, purchasing, and operations for Florida Boat Works’ team in the acquisition of Dakota Yachts in January 2002 until its merger with Sonic in 2004.
Chief Financial and Accounting Officer
Ms. Barnett has been our Chief Financial and Accounting Officer and a Director since 2018. Between May 2017 and March 2018 Ms. Barnett provided accounting services for corporate, municipal and non-profit entities. Ms. Barnett was the Clerk/Treasurer for Bridgewater, New York. (2014-2017), the Treasurer of Amityville, New York (2004-2014) and an accounting manager for The Berkley Group, a division of AON Insurance (1998-2003).
- In May 2017, Twin Vee purchased a $500,000 DMS 5-axis CNC router which features advanced tooling and computer-automated manufacturing.
- Twin Vee utilizes Dan Mielke, PE, Naval Architect to aid in the company’s engineering efforts headed by Preston Yarborough. Dan has headed similar assignments for such boat manufacturers as Hinckley Boats, Boston Whaler, Bluewater, Edgewater, Bahama Boats and Everglades Boats.
- Utilizing 3D CAD / CAM software with CNC machining, Twin Vee believes it will reduce Design-to-Production time in half.
- Twin Vee has in-house the following proficiencies:
3D CAD / CAM modeling
Plastics mold construction
Hand-built by Marine Craftsmen
Twin Vee’s employees strive to focus a significant attention to detail on every Twin Vee PowerCat before it leaves the factory.
The Twin Vee manufacturing process begins with hand-laid, solid-laminated fiberglass hulls designed and constructed for durability. Twin Vee uses only what it considers to be high quality marine suppliers and specifies all fittings, standard equipment and accessories for strength and resistance to corrosion.
Twin Vee hulls are also self bailing, allowing water to flow out the stern of the boat in extreme conditions. We believe these features make Twin Vee boats durable for a lifetime and essentially unsinkable.
The gunnels receive the most abuse over the life of a boat. Twin Vee’s rolled gunnel construction seamlessly connects the cap across the entire hull with structural bonding adhesive and stainless steel through-bolts to create a single uni-body structure.
Post-Financing Planned Factory Modernization and Expansion
- 7 acre factory parcel with 80,000 square feet currently under roof.
- Plan to fully enclose an additional 70,000 square feet in a modernized, climate control 150,000 square feet manufacturing environment.
- Plan to increase current single shift to double shift with modernized dual assembly line operations.
- Planned additional capital equipment to include CNC routers, 120 ton crane, resin tanks, air compressors and ERP inventory management system.
- Planned expansion is expected to increase manufacturing capacity to over 700 boats per year.
Twin Vee’s Best Selling Model
- 60% of Twin Vee’s 2017 Sales
- 2017: 65 units
Twin Vee’s Best Selling Model Compared to a World Cat 255
- Costs 58% less
- 10% better resale value
- 7% higher top speed
- 30% better fuel efficiency
Twin Vee’s 2nd Best Selling Model
- 15% of Twin Vee’s 2017 Sales
- 2017: 16 units
Twin Vee’s 2nd Best Selling Model
- 66% less than a World Cat 320
- 11% better resale value
- 6% higher top speed
- 1% better fuel efficiency
According to NMMA, the 23 foot powerboat is the best selling length in the US by unit volume
Twin Vee’s New 5-Axis 23 Foot Boats in 2018
- CAD-CAM 5-axis CNC milled design reduces assembly costs, improves quality
- Designed to have enhanced performance, styling & value
- Both center console and new dual console designs
- 230 CC and DC Italia models
- 2018E: 35 units
- 2019E: 100 units
- 2020E: 135 units
- Expected pricing to dealers at $45,000 for CC and $60,000 for DC with 200 HP single engine, shipping in May 2018
In our opinion, the goal of any great company is to create a product or service that exceeds the expectations of their customers while exciting imaginations. Design, innovation, quality and affordability are what matters in business and we believe Twin Vee PowerCats is leading the way with the Twin Hull technology revolution.
“Two Years ago, I changed my life’s direction by acquiring a boat manufacturer. While I knew Twin Vee was a popular, efficient, and an affordable brand - what I came to realize over the past couple of years was the real asset of Twin Vee was its customers. I believe Twin Vee owners don’t float from brand to brand, but have a passionate and dedicated belief in Dual Hull Technology. Moreover, it’s my opinion that Cat owners intellectually understand why a dual hull boat is a superior boating experience - from more deck space, better fuel efficiency, less draft, more stability, less rocking, superior wave and wake cutting technology and safer water access for divers and children.
In my view, adding different colors or changing upholstery is not enough for a discerning customer to transition to a new brand of boat. As a company, you must constantly evolve and improve on your products. At Twin Vee, we strive to push forward with technology, and we believe our engineers, and craftspeople are innovating and designing the Next Generation of Power Catamarans. “The Best Riding Boats on the Water”TM on our business card, website, and brochure is not intended to be a cute marketing slogan, but reflects our Company’s highest and greatest goal : to design and build “best in class” boats.
It is my belief that Twin Hull Technology is revolutionizing the consumer and pro offshore market. We consider dual hull boats to be the norm in the transport, recreation, racing, and the pontoon markets. Why is that? Are dual hull boats less expensive to manufacture? Are they easier to build? We believe the answer is simple: catamarans cost more to design, more to build, and catamarans cost much more to market than other boats. It is our view that a fiberglass catamaran boat is more complicated to design and requires a higher level of experienced boat builders to execute the lamination, assembly, and rigging process compared to other boats. However, we also believe a quality catamaran will hold its value much more in the resale market. I have seen some of our customers re-power their Twin Vee’s four to six times with new motors. I have met with Twin Vee owners that have purchased their sixth, seventh, and eighth Twin Vee. I have had the pleasure of meeting the children that grew up fishing, diving, and enjoying family time on a Twin Vee and now follow their parents in purchasing their own Twin Vee.
To all of our loyal customers and future Twin Vee owners, I make you this commitment and promise. Building “The Best Riding Boat on the Water”TM is not only our core mission, but it’s our Company Mantra. We know there are thousands of boat manufactures to choose from and we take your ownership and loyalty to our products very seriously. Team Twin Vee will continue to strive for excellence in product design, quality, and safety for you, your family, and your friends."
Go Fish, Go Friends, Go Family, Go Fuel Efficient, and GO have FUN.
- Joseph Visconti, CEO/ President, Twin Vee PowerCats
The following summary is provided for informational purposes only and does not constitute an offer or solicitation to acquire interests in the investment or any related or associated company. Any such offer or solicitation may be made only by means of a confidential Private Placement Memorandum (“Memorandum”) and in accordance with the terms of all applicable securities and other laws. All information contained herein is subject to and qualified by the contents of the Memorandum. As more fully described therein, participation in any securities offering is limited to Accredited Investors. Please contact an Officer or Director of Twin Vee PowerCats, Inc. (the "Company”) or a licensed representative of Boustead Securities, LLC ("Boustead"), the FINRA Registered managing broker-dealer of this Offering, to inquire about obtaining a copy of any such Memorandum. The information and any statistical data contained herein have been obtained from sources which we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. All opinions expressed and data provided herein are subject to change without notice.
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