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Massimo Group Reports First Quarter 2024 Financial Results

文章來源 : PR Newswire 美通社 發表時間 : 瀏覽次數 : 109 加入收藏 :

Q1 2024 Revenue Increases 60% YoY to $30.2 Million

Q1 2024 Net Income Increases 480% YoY to $3.2 Million

New In-Store Agreements with Leading Global Retailers for Motor Vehicles

Increased Massimo Motor Production Capacity to 3,000+ Vehicles a Month

GARLAND, Texas, May 14, 2024 /PRNewswire/ -- Massimo Group (NASDAQ: MAMO) ("Massimo"), a manufacturer and distributor of powersports vehicles and pontoon boats, has reported its financial and operational results for the first quarter ended March 31, 2024.

Key Financial Q1 2024 and Subsequent Operational Highlights and Business Updates

($ millions)


Q1 Comparison




Q1 2024

Q1 2023

$ Change YoY

% Change YoY

Revenue


$30.2

$18.8

$11.3

60 %

Gross Profit


$10.5

$5.6

$4.8

86 %

Gross Margin


34.7 %

29.8 %

--

500 bps

Net Income


$3.2

$0.5

$2.6

480 %

  • Closed $5.85 million IPO listing on Nasdaq Capital Market under the ticker symbol "MAMO" on April 4, 2024.
  • Revenue increased 60% to $30.2 million in Q1 2024 compared to $18.8 million in Q1 2023.
  • Gross profit increased 86% to $10.5 million in Q1 2024 from $5.6 million in Q1 2023. Gross margin increased 500 basis points to 34.7% in Q1 2024 from 29.8% in Q1 2023.
  • Net income increased 480% to $3.2 million in Q1 2024, or $0.08 per basic and diluted share, as compared to net income of $0.5 million, or $0.01 per basic and diluted share, in Q1 2023.
  • Entered into an ongoing national agreement with a global omnichannel retailer for its youth series Mini Tractor and Mini 125 Go Karts to be sold in stores.
  • Entered into an ongoing agreement with Fleet Farm, a retailer serving active, outdoor, suburban and farm communities in the Midwest U.S., for its UTV, ATV, and youth series product lines to be sold in stores.
  • Increased production capacity to 3,000+ vehicles each month, a significant jump from previous output levels
  • Added two new models to its 2024 ATV lineup, the Massimo MSA 600 and MSA 1000 ATVs, providing customers with new options for work or on the trail.
  • Unveiled new 2024 1000 UTV, with a powerful 83hp EFI engine that allows for an efficient workday while leaving plenty of room for thrills on the weekends.
  • Showcased a range of vehicles at the 2024 Tractor Supply Company Annual Sales Meeting, annual Thiesen's Home and Farm Show, and 40th Annual Equip Expo.

Management Commentary

"The first quarter of 2024 was highlighted by our successful IPO and Nasdaq listing, along with substantial top and bottom line growth on strong sales and margin improvement for our diversified and comprehensive product portfolio," said David Shan, Founder, Chairman & CEO. "Our production crew is able to produce 3,000+ vehicles each month, a significant jump from previous output levels. This surge in manufacturing is expected to allow Massimo to meet growing demand while paving the way for exciting new developments.

"Two new recent partnership agreements highlighted our in-store distribution channel expansion efforts with major retailers. We signed an ongoing national agreement with a global omnichannel retailer for the youth series Mini Tractor and Mini 125 Go Kart to be sold in stores. The retailer's online marketplace currently features over 100 Massimo products, and with the expanded partnership, the two products will now be eligible to be stocked at over 1,300 stores in 13 states beginning in May. The addition of this first national in-store opportunity with this global retailer represents a significant milestone for our company, and we are well positioned to accelerate robust sales growth with the retailer. We believe with successful sales we can continue to add vehicles to the in-store program.

"We also entered into an ongoing agreement with Fleet Farm for six UTV, ATV, and youth series products to be sold in stores and featured on the retailer's online marketplace.

"Our focus on distribution channel expansion has resulted in over 2,800 retail locations promoting our brand in 48 states where our products are distributed and will continue to drive sales across our full motor product line of Massimo vehicles.  

"Looking ahead, with increased participation in outdoor activities and higher utilization of utility vehicles in ranch and farm-work, demand for UTVs and ATVs in the U.S, we believe we are well positioned for continued market penetration in this high-growth category with our full suite of consumer motor products. We believe with increased operating efficiencies we can further enhance margins while continuing to grow our revenue and expand our product line with new models and capabilities," concluded Mr. Shan.

First Quarter 2024 Financial Results

For the three months ended March 31, 2024, revenues increased by $11.3 million, or 60.0%, to $30.2 million, compared to $18.8 million in the prior year period. The first quarter increase in revenue was principally due to our expansion at major chain stores and our dealer network.

Revenue from sales of UTVs, ATVs and electric bikes increased by $12.2 million, or 74.1%, from $16.5 million in the three months ended March 31, 2023 to $28.7 million in the three months ended March 31, 2024. The increase in revenue was attributable to the expansion into more large retail stores in the US and to a shift in our sales strategy, focusing mostly on in-store sales, which generally involve larger volumes and fewer returns.

Revenue from sales of pontoon boats decreased by $0.9 million, or 38.2%, from $2.4 million in the three months ended March 31, 2023 to $1.5 million in the three months ended March 31, 2024. The decrease in revenue was primarily attributable to the fact that we shifted from retailing in Q1 2023 to dealer sales in Q1 2024 and the dealers have experienced more difficulty amid the current high interest rate environment obtaining floorplan financing for customers from providers such as Northpoint. This is consistent with industry-wide trends.

Gross profit increased by $4.8 million, or 86.1%, from $5.6 million in the three months ended March 31, 2023 to $10.5 million in the three months ended March 31, 2024. Gross profit margin was 34.7% in the three months ended March 31, 2024, as compared with 29.8% in the prior year quarter. The increase in the gross profit margin was primarily attributable to higher net sales partly due to decreased returns, as well as the lower cost of sales due to reduced freight costs in the first quarter of 2024 as compared to the previous year.

Cost of revenue on UTVs, ATVs and electric bikes increased by $7.2 million, or 63.7%, from $11.3 million in the three months ended March 31, 2023 to $18.5 million in the three months ended March 31, 2024 and gross profit increased by $5.0 million, or 96.7%, from $5.2 million in three months ended March 31, 2023 to $10.2 million in three months ended March 31, 2024. Gross profit margin increased by 4.1%, from 31.6% in the three months ended March 31, 2023 to 35.7% in the three months ended March 31, 2024. The increased cost of revenue was in line with the increase in sales. The increase in gross profit margin was mainly due to a significant decline in global container freight when compared with last year.

Cost of revenue on pontoon boats decreased by $0.7 million, or 36.4%, from $1.9 million from the three months ended March 31, 2023 to $1.2 million in the three months ended March 31, 2024, and gross profit decreased by $0.2 million, or 46.7%, from $0.4 million in the three months ended March 31, 2023 to $0.2 million in the three months ended March 31, 2024. Gross profit margin decreased by 2.4%, from 17.6% in the three months ended March 31, 2023 to 15.2% in the three months ended March 31, 2024.

Selling and marketing expenses increased by $0.3 million, or 13.3%, from $2.0 million in the three months ended March 31, 2023 to $2.2 million in the three months ended March 31, 2024. This is consistent with the fact that the chargebacks from new big box customer have been increased as a result of increased sales.

General and administrative expenses increased by $1.1 million, or 37.2%, from $3.0 million in the three months ended March 31, 2023 to $4.1 million in the three months ended March 31, 2024. The increase was mainly due to increased rent expense and professional fees.

Total operating expenses increased 31.1% to $6.5 million for the three months ended March 31, 2024, compared to $4.9 million in the prior year first quarter.

Net income for the three months ended March 31, 2024, was $3.2 million, or $0.08 per basic and diluted share, as compared to net income of $0.5 million, or $0.01 per basic and diluted share, in the three months ended March 31, 2023.

Cash and cash equivalents totaled $0.2 million at March 31, 2024, as compared to $0.8 million at December 31, 2023. On April 24, 2024, Massimo closed its initial public offering with aggregate gross proceeds, before deducting underwriting discounts and commissions and other offering expenses payable by Massimo, of $5.85 million.

Net cash used by operating activities was $0.6 million for the three months ended March 31, 2024, compared to cash provided of $0.8 million in the three months ended March 31, 2023, primarily due to increases in accounts receivable and inventory.

About Massimo Group

Massimo Group (NASDAQ: MAMO) is a manufacturer and distributor of powersports vehicles and pontoon boats. Founded in 2009, Massimo Motor believes it offers some of the most value packed UTV's, off-road, and on-road vehicles in the industry. The company's product lines include a wide selection of farm and ranch tested utility UTVs, recreational ATVs, and Americana style mini-bikes. Massimo Marine manufacturers and sells Pontoon and Tritoon boats with a dedication to innovative design, quality craftsmanship, and great customer service. Massimo is also developing electric versions of UTVs, golf-carts and pontoon boats. The company's 286,000 square foot factory is in the heart of the Dallas / Fort Worth area of Texas in the city of Garland. For more information, visit massimomotor.com, massimomarine.com and www.massimoelectric.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering and the use of proceeds thereof. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "predict," "project," "target," "potential," "seek," "will," "would," "could," "should," "continue," "contemplate," "plan," and other words and terms of similar meaning. These forward-looking statements include information concerning statements regarding future cash needs, future operations, business plans and future financial results; and any other statements that are not historical facts. No assurance can be given that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Massimo, including those set forth in the "Risk Factors" section of Massimo's annual report on Form 10-K for the for the fiscal year ended December 31, 2023 filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Massimo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company
Dr. Yunhao Chen
Chief Financial Officer
Massimo Group
ir@massimomotor.com

Investor Relations 
Chris Tyson 
Executive Vice President
MZ North America
Direct: 949-491-8235
MAMO@mzgroup.us

 

MASSIMO GROUP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS




March 31, 2023

(unaudited)



December 31, 2023

(audited)



As of       



March 31, 2024

(unaudited)



December 31, 2023

(audited)

ASSETS








CURRENT ASSETS








Cash and cash equivalents


$

207,137



$

765,814

Accounts receivable, net



14,203,770




9,566,445

Inventories, net



27,182,635




25,800,912

Advance to suppliers



1,406,100




1,589,328

Other current assets



679,319




637,509

Total current assets



43,678,961




38,360,008









NON-CURRENT ASSETS








Property and equipment at cost, net



384,551




399,981

Right of use operating lease assets, net



1,197,431




1,478,221

Right of use financing lease assets, net



103,169




113,549

Deferred offering assets



1,563,547




1,457,119

Deferred tax assets



346,948




134,601

Total non-current assets



3,595,646




3,583,471

TOTAL ASSETS


$

47,274,607



$

41,943,479









LIABILITIES AND EQUITY








CURRENT LIABILITIES








Short-term loans


$

-



$

303,583

Accounts payable



14,772,382




12,678,077

Other payable, accrued expenses and other current liabilities



90,463




98,097

Accrued return liabilities



138,229




283,276

Accrued warranty liabilities



640,525




619,113

Contract liabilities



1,052,342




1,835,411

Current portion of obligations under operating leases



681,872




847,368

Current portion of obligations under financing leases



42,083




41,647

Income tax payable



3,221,201




2,121,083

Total current liabilities



20,639,097




18,827,655









NON-CURRENT LIABILITIES








Obligations under operating leases, non-current



515,559




630,853

Obligations under financing leases, non-current



66,338




77,024

Loan from a shareholder



7,909,525




7,920,141

Total non-current liabilities



8,491,422




8,628,018

TOTAL LIABILITIES


$

29,130,519



$

27,455,673









Commitments and Contingencies
















EQUITY








Common shares, $0.001 par value, 100,000,000 shares authorized,
40,000,000 and 40,000,000 issued and outstanding as of March 31,
2024 and December 31, 2023, respectively



40,000




40,000

Preferred shares, $0.01 par value, 5,000,000 preferred shares
authorized, no shares were issued and outstanding as of March 31,
2024 and December 31, 2023, respectively



-




-

Subscription receivable



(357,159)




(832,159)

Additional paid-in-capital



1,994,000




1,994,000

Retained earnings



16,467,247




13,285,965

Total equity



18,144,088




14,487,806









TOTAL LIABILITIES AND EQUITY


$

47,274,607



$

41,943,479

 

MASSIMO GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME




2024



2023



For the Three Months Ended

March 31,



2024



2023







Revenues


$

30,151,677



$

18,840,415

Cost of revenues



19,700,290




13,223,421

Gross Profit



10,451,387




5,616,994









Operating expenses:








Selling and marketing expenses



2,210,484




1,950,285

General and administrative expenses



4,106,905




2,984,262

Research and development expenses



162,250




-

Total operating expenses



6,479,639




4,934,547









Income from operations



3,971,748




682,447









Other income (expense):








Other income, net



247,569




44,895

Interest expense



(137,694)




(155,098)

Total other income (expense), net



109,875




(110,203)









Income before income taxes



4,081,623




572,244









Provision for income taxes



900,341




24,079









Net income and comprehensive income


$

3,181,282



$

548,165









Earnings per share – basic and diluted


$

0.08



$

0.01

Weighted average number of shares of common stock outstanding –
basic and diluted



40,000,000




40,000,000

 

MASSIMO GROUP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS




2024



2023



Three Months Ended March 31,



2024



2023







Cash flows from operating activities:








Net income


$

3,181,282



$

548,165

Adjustments to reconcile net income to net cash provided by
operating activities:








Depreciation



36,511




35,300

Non-cash operating lease expense



280,790




184,316

Accretion of finance lease liabilities



1,331




1,784

Amortization of finance lease right-of-use assets



10,380




9,343

Gain on disposal of fixed asset



(44,655)




-

Provision for expected credit loss, net



234,298




104,631

Deferred tax assets



(212,347)




-

Changes in operating assets and liabilities:








Accounts receivable



(4,871,623)




93,993

Inventories



(1,381,723)




(672,300)

Advance to suppliers



183,228




1,423,742

Other current asset



(41,810)




(302,580)

Accounts payables



2,094,305




(525,990)

Other payable, accrued expense and other current liabilities



(7,634)




(33,401)

Tax payable



1,100,118




24,079

Accrued warranty liabilities



21,412




(37,558)

Accrued return liabilities



(145,047)




(292,483)

Contract liabilities



(783,069)




403,760

Due to shareholder



(10,616)




(20,273)

Lease liabilities – operating lease



(280,790)




(184,316)

Net cash (used in) provided by operating activities



(635,659)




760,212









Cash flows from investing activities:








Proceed from sales of property and equipment



128,001




-

Acquisition of property and equipment



(104,427)




-

Net cash provided by investing activities



23,574




-









Cash flows from financing activities:








Proceeds from bank loan



-




300,000

Repayment of bank loan



-




(900,000)

Repayment of other loans



(303,583)




-

Repayment of finance lease liabilities



(11,581)




(10,536)

Repayment to related party



-




(10,000)

Deferred offering costs



(106,428)




(75,000)

Proceeds from subscription deposits



475,000




-

Net cash provided by (used in) financing activities



53,408




(695,536)









Net (decrease) increase in cash and cash equivalents



(558,677)




64,676

Cash and cash equivalents, beginning of the period



765,814




947,971

Cash and cash equivalents, end of the period


$

207,137



$

1,012,647









SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:








Cash paid for interest


$

137,694



$

155,098

Cash paid for income taxes


$

12,570



$

-









NON-CASH ACTIVITIES








Right of use assets obtained in exchange for operating lease
obligations


$

-



$

-

Right of use assets obtained in exchange for finance lease


$

-



$

37,430

 

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