The Company Announces Record Annual Revenue and Profit
PLAINVIEW, NY / ACCESSWIRE / March 29, 2023 / Vaso Corporation (“Vaso”) (OTCQB:VASO) today announced its operating results for the three months and year ended December 31, 2022.
“The Company recorded annual revenue of $80.0 million in fiscal year 2022, a growth of 5.9% over the prior year, and achieved an annual operating income of $7.0 million, an increase of 149.5% year-over-year. Net income for the year also increased significantly, to $11.9 million from $6.1 million for 2021,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “We were able to deliver such continued improvements in the top- and bottom-line results thanks to the extraordinary performance of our professional sales service segment and improved operating results in our IT segment, despite the negative effect of last year’s COVID lockdowns in China that our equipment segment endured.”
“Our balance sheet remains strong, with $20.3 million of cash and short-term investments at the end of 2022 as a result of $14.4 million in operating cashflow generated during the year,” Dr. Ma continued. “Deferred revenue increased by $5.8 million in fiscal year 2022 to reach a historical high of $30.8 million as of December 31, 2022, which will turn into recognized revenue once the underlying products or services are delivered in future periods.”
“With a healthy financial position and a diversified business portfolio, management is optimistic about the Company’s performance going forward. Our IT segment has improved operating efficiency as it’s recovering from the impact of the COVID-19 pandemic; our professional sales service segment continues to outperform expectations and has expanded the scope of its partnership with GE HealthCare; and our equipment segment is starting to evolve from a pure product play to a more product-based service business. We would not be able to accomplish all these without our employees’ dedication and professionalism. On behalf of the board of directors, I want to thank them as well as our shareholders for their continued support,” concluded Dr. Ma.
Financial Results for Three Months Ended December 31, 2022
For the three months ended December 31, 2022, revenue decreased by 4.2% to $23.5 million from $24.5 million for the same period of 2021, due to lower revenues in all our business segments. Revenue in our IT segment decreased by $0.4 million, or 3.7%, to $10.2 million as the result of lower recurring services during the quarter; revenue in our equipment segment decreased by $0.5 million, or 39.1%, to $0.8 million due to lower equipment sales in China in the quarter; and revenue in our professional sales service segment decreased by $0.1 million, or 1.0%, to $12.4 million due to lower incentive revenue when compared to the prior year, partially offset by higher equipment deliveries. We anticipate that revenue will improve in all three business segments, as we expect growth from new business in the IT segment, growth in our professional sales service segment resulting from strong order bookings in 2022, and a recovery of our China operations from last year’s COVID lockdowns.
Gross profit for the fourth quarter of 2022 decreased by 5.3% to $14.8 million, compared with a gross profit of $15.7 million for the same quarter of 2021. This decrease was primarily the result of a decrease in revenue and the increase in commission expense in the professional sales service segment.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2022 increased by 2.9% to $11.3 million, compared to $10.9 million for the fourth quarter of 2021. The increase was primarily attributable to an increase in personnel and travel costs in the professional sales service segment, offset by a decrease in travel and other costs in the IT segment. SG&A expenses were 48.0% and 44.7% of revenue in the fourth quarter of 2022 and 2021, respectively.
Net income for the three months ended December 31, 2022 was $8.2 million, compared with a net income of $3.3 million for the three months ended December 31, 2021. The increase was primarily due to the recognition of a $4.8 million tax benefit resulting from a reduction in the reserve for deferred tax assets.
Financial Results for Year Ended December 31, 2022
For the year ended December 31, 2022, revenue increased by $4.4 million, or 5.9%, to $80.0 million when compared with $75.6 million of revenue for the year 2021. Revenue in our IT segment decreased by 6.6% to $40.1 million for the year 2022, from 2021 revenue of $42.9 million, primarily due to a decrease of revenue in the network services business. Commission revenues in our professional sales service segment increased by $7.9 million, or 26.8%, to $37.3 million in the year 2022, compared to $29.4 million in 2021, primarily as the result of higher equipment deliveries by our partner and higher blended commission rates for the equipment delivered during the year. Equipment segment revenue for the year 2022 decreased by 20.1% to $2.6 million, from $3.2 million in 2021, due to a decrease in product sales in our China operations and the effect of foreign exchange rates, partially offset by a small increase in U.S. sales.
Gross profit for the year ended December 31, 2022 increased by 12.4% to $48.5 million, from $43.1 million in 2021, as a result of the higher revenue as well as higher gross profit margin in 2022.
SG&A expenses for the year ended December 31, 2022 increased by $2.3 million, or 5.8%, to $40.8 million, or 51.0% of revenue, compared with $38.6 million, or 51.1% of revenue, for the same period in 2021. The increase resulted primarily from an increase of $2.2 million in personnel and travel costs in the professional sales service segment.
For the year ended December 31, 2022, the Company had net income of $11.9 million, $5.8 million greater than the net income of $6.1 million for the year ended December 31, 2021.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was $9.0 million for the year ended December 31, 2022, compared to Adjusted EBITDA of $10.4 million for the year ended December 31, 2021 which included $3.6 million of PPP loan and interest forgiveness the Company recognized as income in 2021.
Net cash provided from operating activities in 2022 was $14.4 million, compared to net cash provided from operating activities of $7.8 million in 2021. The increase is principally due to the increase in profitability. Net cash and short-term investments increased to $20.3 million at December 31, 2022, compared to $6.6 million at December 31, 2021. The increase is the net effect of the increase in cash from operating activities and lower debt service payments in 2022 compared to 2021.
Deferred revenue increased to $30.8 million at December 31, 2022, compared to $25.0 million at December 31, 2021. The increase is primarily the result of higher order bookings in the professional sales service segment. Deferred revenue will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site.
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
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
PLAINVIEW, NY / October 6, 2022 / Vaso Corporation (“Vaso”) (OTCMKTS:VASO) today announced that its application to up-list from the OTC Pink Sheets to the OTCQB market has been approved by OTC Markets Group. The effective date of the listing on OTCQB is expected to be on October 10, 2022.
Compared to the OTC Pink Sheets, listing on the OTCQB market significantly increases transparency, reporting standards, management certification and compliance requirements. The OTCQB market is considered by the Securities and Exchange Commission (SEC) as an “established public market” for determining the public market price when registering securities for resale with the SEC, and as such, a larger number of broker dealers are able to trade stocks on the OTCQB market. Therefore, the Company believes that the move to the OTCQB market will provide enhanced investor benefits including greater access to the most current information possible as well as analyst coverage and news services, while reducing the trading limits and restrictions the Company may face on the Pink market.
“Up-listing to the OTCQB market should allow us to achieve greater market visibility along with increased trading liquidity within the investment community. We look forward to showcasing our Company to a larger audience of domestic and international investors,” commented Jun Ma, President and Chief Executive Officer of Vaso. “Besides continued improvements in operating and financial results the Company has accomplished in the last several years, this is the first of several advancements the Company has planned for the capital market. We hope it will provide greater recognition of shareholder value.”
More information regarding OTCQB eligibility requirements, etc. can be found on https://www.otcmarkets.com.
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
Company reports net income of $1.5 million on significant revenue growth
PLAINVIEW, NY / August 15, 2022 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months ended June 30, 2022.
“For the second quarter of 2022, the Company recorded a total revenue of $19.5 million, representing a 21% increase year-over-year. As a result, net income improved substantially, to $1.5 million from a net loss of $0.9 million when excluding the PPP loan forgiveness the Company received in the second quarter last year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “As we stated before, we usually incur losses in the early quarters of the year due to the seasonality of our businesses; therefore, a profitable second quarter, and first half as well, in 2022 was a promising sign of a very profitable year.”
“On the balance sheet, the Company’s cash and cash equivalents were $15.4 million as of June 30, 2022, up from $9.4 million a year before. Total deferred revenue reached a historical high of $27.1 million at the end of second quarter. In addition, the Company continued to generate positive cashflow from operating activities, in the amount of $9.7 million during the first six months of the year, up from $5.6 million during the same period of the prior year,” Dr. Ma continued. “Given the overall strength of the Company’s businesses and financials, we believe that the Company is well prepared to weather the pandemic and geopolitical uncertainties that continue to negatively impact the world economy.”
Financial Results for Three Months Ended June 30, 2022
For the three months ended June 30, 2022, revenue increased 21% to $19.5 million from $16.1 million for the same period of 2021. Revenue in our professional sales service segment increased $3.9 million or 78%, compared to the second quarter of 2021, as a result of higher deliveries of underlying equipment by our partner and a higher blended commission rate. Revenue in the IT segment decreased $0.4 million or 4% when compared to the second quarter of 2021, mainly due to the recurring service revenue lost during the peak of COVID-19 pandemic exceeding new customer contracts; and revenue in the equipment segment decreased $0.1 million or 12% due to lower equipment volumes in our China operations as impacted by the COVID-19 lockdown.
Gross profit for the second quarter of 2022 increased 31% to $11.3 million, compared with a gross profit of $8.6 million for the same quarter of 2021. This increase was primarily the result of the increase in revenue in the professional sales service segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2022 increased 5% to $9.6 million, when compared to the second quarter of 2021. The increase is primarily attributable to higher travel and personnel costs in the professional sales service and IT segments, partially offset by a decrease in expenses in the equipment segment as well as a decrease in corporate expenses.
Other expense, net, was $49 thousand in the second quarter, compared to other income of $3.6 million in the second quarter of 2021. In the second quarter of 2021 the Company recorded a $3.6 million gain on the forgiveness of the PPP loan.
Net income for the three months ended June 30, 2022 was $1.5 million, compared to net income of $2.8 million in the second quarter 2021, during which the gain on the forgiveness on the PPP loan was recognized.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $2.3 million for the three months ended June 30, 2022, compared to $3.4 million for the same period a year ago.
Net cash provided by operating activities in the first six months of 2022 was $9.7 million, a 74% increase when compared to cash provided by operations of $5.6 million for the same period in 2021. As of June 30, 2022 and December 31, 2021, the Company had cash and cash equivalents of approximately $15.4 million and $6.0 million, respectively.
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
Revenue and Profitability Continued to Improve Year-over-year
PLAINVIEW, NY / May 16, 2022 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months ended March 31, 2022.
“For first quarter of 2022, the Company recorded a total revenue of $17.0 million, up by 3.0% from $16.5 million for the same quarter in the prior year. Quarterly gross profit reached $9.8 million, up by 14.1% year-over-year, as gross profit margin also increased significantly. Operating loss for the quarter decreased by 34.3% year-over-year to $0.4 million, making it the best first quarter in the Company’s recent history,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Again, due to the cyclic nature of our businesses, we often incur losses in the beginning quarters of the year and record high revenue and profit in the later quarters, especially the fourth quarter. Therefore, we are excited to see a strong head start for the fiscal year of 2022.”
“The Company continues to maintain a strong balance sheet as well. Specifically, total deferred revenue as of March 31, 2022 reached a historical high of $27.0 million, representing an $8.5 million increase from March 31, 2021; as of May 6, 2022, cash and cash equivalents were $13.1 million. All these together provide a robust stage for continued profitability for the Company in 2022,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2022
For the three months ended March 31, 2022, revenue increased by 3.0% to $17.0 million from $16.5 million for the same period of 2021, due primarily to the increase of $2.0 million, or 41.9%, in revenue in our professional sales service segment as the result of higher equipment deliveries and a higher average commission rate during the quarter. Revenue in our IT segment decreased by $1.3 million, or 11.1%, in the first quarter 2022 when compared to the same quarter of 2021, due to lower revenue in the NetWolves business; and our equipment segment revenue decreased by $212 thousand, or 34.7%, when compared to the first quarter of 2021, principally due to lower equipment deliveries in our China operations as affected by COVID-19 lockdowns in the country.
Gross profit for the first quarter of 2022 increased by $1.2 million, or 14.1%, to $9.8 million, compared with a gross profit of $8.6 million for the same quarter of 2021. This increase was primarily the result of the increase in revenue in the professional sales service segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2022 increased by $1.0 million, or 11.7%, to $10.0 million, compared to the first quarter of 2021. The increase is primarily attributable to an increase in the costs of annual national sales meeting, which was held virtually last year, as well as travel and personnel costs. These meeting and travel costs were significantly lower in 2021 as a result of the COVID-19 pandemic.
Operating loss for the three months ended March 31, 2022 was $354 thousand, compared to an operating loss of $539 thousand in the first quarter 2021, representing an improvement of $185 thousand, or 34.3%, resulting from the increase in gross profit, partially offset by the increase in SG&A costs.
Net loss for the three months ended March 31, 2022 was $344 thousand, a significant improvement over the loss of $643 thousand for the first quarter of 2021.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) improved to $147 thousand for the quarter, compared to $101 thousand in the first quarter of 2021.
Net cash used in operating activities were $625 thousand for the first quarter 2022. compared to net cash provided from operations of $5.5 million during the first quarter of 2021. The change was mainly due to the late arrival of a large payment the Company has now received in April 2022. As of May 6, 2022, the Company’s net cash was approximately $13.1 million.
Summarized Financial Information
*Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation
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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