Company reports net income of $1.5 million on significant revenue growth
PLAINVIEW, NY / November 14, 2022 / Vaso Corporation (“Vaso”) (OTCQB:VASO) today reported its operating results for the three months ended September 30, 2022.
“For the third quarter of 2022, the Company recorded a net income of $2.5 million on revenue of $20.0 million, compared to the prior year’s third quarter net income of $0.7 million on revenue of $18.4 million. For the nine months ending September 30, 2022, net income increased by $0.9 million year-over-year – or by $4.5 million when excluding the PPP loan forgiveness of $3.6 million the Company recognized as income in the second quarter of 2021,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Such improvements on both top and bottom lines are not only significant to achieve continued profitability in 2022 but also to ensure a much-improved year since historically the fourth quarter has been the most profitable quarter of the year due to the cyclical nature of our business.”
“The Company also generated $2.9 million of cash from operating activities during the third quarter of the year and continues to maintain a very strong cash position. As of September 30, 2022, our cash, cash equivalents and short-term investments reached $18.7 million, an increase of $12.0 million since the beginning of the year. While the uncertainties affecting our business, such as inflation and global supply chain disruption, do not seem to ease in the near future, we remain optimistic about the Company’s performance going forward,” concluded Dr. Ma.
Financial Results for Three Months Ended September 30, 2022
Total revenue for the three months ended September 30, 2022 was $20.0 million, representing an increase of $1.6 million or 9% from revenue of $18.4 million for the same period in the prior year. On a segment basis, revenue in the professional sales services segment increased $2.2 million or 30% year-over-year, mainly as a result of higher volume of underlying equipment delivered by our partner during the period as well as higher blended commission rates on those deliveries; revenue in the IT segment decreased by $0.7 million or 7% year-over-year, due to lower sales in network services and in the healthcare IT business; and revenue in the equipment segment increased by $0.2 million or 26% year-over-year, due to higher deliveries in China partially offset by unfavorable currency exchange rate during the period.
Gross profit for the three months ended September 30, 2022 increased by $2.3 million, or 22%, to $12.5 million, from $10.2 million for the third quarter of 2021. 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 2022 increased by 5% to $10.0 million when compared to the third quarter of 2021. The increase is primarily attributable to higher personnel and travel costs in the professional sales service and IT segments as compared to 2021.
Net income for the three months ended September 30, 2022 was $2.5 million, compared to net income of $0.7 million for the three months ended September 30, 2021. The principal cause of the increase in net income is the increase in revenue in the professional sales service segment.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for non-cash stock-based compensation) was $2.8 million for the quarter ended September 30, 2022, compared to $1.4 million for the third quarter of 2021.
Net cash provided by operating activities in the first nine months of 2022 was $12.7 million, compared to $5.4 million for the same period in 2021. As of September 30, 2022 and December 31, 2021, the Company had cash, cash equivalents and short term investments of approximately $18.7 million and $6.7 million, respectively, an increase of $12.0 million.
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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