Revenue for the quarter increased by 6% year-over-year
PLAINVIEW, NY / November 15, 2021 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months ended September 30, 2021.
“Total revenue of the Company grew year-over-year for both the three-month and nine-month periods ending September 30, 2021,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Bottom line results year-to-date also improved significantly, with operating loss reduced by 29% to approximately $0.6 million. Given the cyclical nature of our business with the fourth quarter the most profitable quarter of the year, we anticipate that full year 2021 will be another profitable year for Vaso, without including the PPP loan forgiveness we received in the second quarter of this year.”
“The Company continues to maintain a strong cash position, thanks to the operating cash flow of over $5.4 million generated in the first nine months of the year. This cash position, coupled with our anticipated exit from the COVID-19 pandemic in the coming months, should allow us to further pay down our debt,” concluded Dr. Ma.
Financial Results for Three Months Ended September 30, 2021
Total revenue for the three months ended September 30, 2021 was $18.4 million, representing an increase of $1.0 million or 6% from revenue of $17.4 million for the same period in the prior year. On a segment basis, revenue in the IT segment decreased by $0.2 million or 1% year-over-year due to lower network service sales offset by higher healthcare IT sales, and revenue in the equipment segment decreased by $0.3 million or 33% due to lower deliveries in China, while revenue in the professional sales services segment increased $1.4 million or 25% mainly as a result of higher volume of underlying equipment delivered by our partner during the period.
Gross profit for the three months ended September 30, 2021 increased by $0.5 million, or 5%, to $10.3 million, compared to a gross profit of $9.8 million for the same quarter of 2020. This increase was mainly due to the increases in revenue and gross profit of the professional sales services segment.
Selling, general and administrative (SG&A) expenses for the third quarter of 2021 increased by 12% to $9.5 million when compared to the third quarter of 2020. The increase is primarily attributable to higher travel and personnel costs in the professional sales service segment as compared to 2020 when travel was limited due to the COVID-19 pandemic, as well as an increase in corporate expenses for the annual stockholders meeting which did not take place last year.
Net income for the three months ended September 30, 2021 was $0.7 million, compared to net income of $1.0 million for the three months ended September 30, 2020. The principal cause of the decrease in net income is the increase in SG&A expenses, partially offset by the increase in gross profit.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for non-cash stock-based compensation) was $1.4 million for the quarter ended September 30, 2021, compared to $1.8 million for the same quarter a year ago.
Net cash provided by operating activities in the first nine months of 2021 was $5.4 million, compared to $4.7 million for the same period in 2020. The Company repaid debt totaling $5.7 million in the first nine months of 2021. As of September 30, 2021 and December 31, 2020, the Company had cash and cash equivalents of approximately $6.2 million and $6.8 million, respectively.
Summarized Financial Information
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-508-5840
Email: mbeecher@vasocorporation.com
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