The Company Reports Significant Growth in Revenue and Profitability
PLAINVIEW, NY / March 30, 2022/ Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months and year ended December 31, 2021.
“Driven by the extraordinary fourth-quarter growth in our professional sales service segment and equipment segment, the Company’s total revenue for fiscal year 2021 reached $75.6 million, a growth of 8.2% over the prior year. Compounding it with an improvement in gross profit margin by 185 basis points, we recorded an annual operating profit of $2.8 million, an increase of 265.0% year-over-year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Such an accomplishment would not be possible without the dedication and professionalism of our employees, who must be constantly balancing their life and work while facing the tremendous uncertainties in business and daily life during the pandemic. On behalf of the board of directors and the management of the Company, I thank you.”
“The Company’s balance sheet has been further strengthened after a total debt paydown of $8.1 million in 2021. In addition, deferred revenue as of December 31, 2021 was at a historical high of $25.0 million, a $7.3 million increase over the prior 12-month period. With a healthy cash position thanks to the positive cash flow of $7.8 million generated in operating activities during the year, and in light of the pandemic’s recent tapering off, we remain optimistic about the Company’s performance going forward,” concluded Dr. Ma.
Financial Results for Three Months Ended December 31, 2021
For the three months ended December 31, 2021, revenue increased by 31.1% to $24.5 million from $18.7 million for the same period of 2020, due primarily to the increase of $5.4 million, or 75.1%, in revenue in our professional sales service segment as the result of higher deliveries of underlying equipment by our partner and a higher blended commission rate during the quarter. Revenue in our IT segment decreased 2.4%, to $10.6 million in the fourth quarter 2021, compared to the same quarter of 2020, while our equipment segment revenue increased 110.1% to $1.3 million from $0.6 million for the fourth quarter of 2020, primarily due to an increase in unit sales of our Biox products in China.
Gross profit for the fourth quarter of 2021 increased by 41.5% to $15.7 million, compared with a gross profit of $11.1 million for the same quarter of 2020. This increase was primarily the result of the increase in revenue in the professional sales service and equipment segments.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2021 increased by 14.4% to $10.9 million, compared to $9.6 million for the fourth quarter of 2020. The increase was primarily attributable to an increase in personnel and travel costs in the professional sales service segment, offset by a decrease in personnel and other costs in the IT segment. SG&A expenses were 44.7% and 51.2% of revenue in the fourth quarter of 2021 and 2020, respectively.
Net income for the three months ended December 31, 2021 was $3.3 million, compared with a net income of $1.2 million for the three months ended December 31, 2020.
Financial Results for Year Ended December 31, 2021
For the year ended December 31, 2021, revenue increased by $5.7 million or 8.2% to $75.6 million when compared with $69.9 million for the year 2020. Revenue in our IT segment decreased 2.2% to $42.9 million for the year 2021, from 2020 revenue of $43.9 million, primarily due to a decrease of revenue in the network services business. Commission revenues in our professional sales service segment increased by 28.8% to $29.4 million in the year 2021, compared to $22.9 million in 2020. The increase was 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 2021 increased by 4.2% to $3.2 million, from $3.1 million in 2020, principally due to an increase in product sales in our China operations, partially offset by the sale of 51% of our EECP business in the second quarter of 2020.
Gross profit for the year ended December 31, 2021 increased 11.8% to $43.1 million, from $38.6 million in 2020, as a result of the higher revenue in our professional sales service and equipment segments.
SG&A expenses for the year ended December 31, 2021 increased $1.5 million or 4.2% to $38.6 million, or 51.1% of revenue, compared with $37.1 million, or 53.0% of revenue, for the same period in 2020. The increase resulted primarily from an increase of $2.4 million in personnel and travel costs in the professional sales service segment, partially offset by a decrease of $1.1 million in the IT segment due to lower personnel and travel costs.
For the year ended December 31, 2021, the Company had net income of $6.1 million, $5.7 million greater than the net income of $358 thousand for the year ended December 31, 2020.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was $10.4 million for the year ended December 31, 2021 compared to Adjusted EBITDA of $3.6 million for the year ended December 31, 2020.
Net cash provided from operating activities in 2021 was $7.8 million, compared to net cash provided from operating activities of $5.9 million in 2020. The increase is principally due to the increase in profitability, offset by the increase in accounts receivable. Net cash decreased to $6.0 million at December 31, 2021, compared to $6.8 million at December 31, 2020. The decrease in cash is the net effect of positive cash from operating activities, reduced by the repayment of $8.1 million of debt. As of March 25, 2022, the Company’s net cash was approximately $11.2 million.
Deferred revenue increased to $25.0 million at December 31, 2021, compared to $17.7 million at December 31, 2020. The increase is primarily the result of high order bookings in the professional sales service segment. The deferred revenue will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site.
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
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
Company reports net income of $2.8 million with forgiveness of PPP loan
PLAINVIEW, NY / August 13, 2021 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months ended June 30, 2021.
“In the second quarter of 2021, the Company recorded an operating loss of $0.7 million on revenue of $16.1 million, as compared to an operating loss of $0.6 million on revenue of $16.3 million in the same quarter of the prior year. For the first half of the year, operating loss decreased by $0.7 million, or 37%, to $1.3 million on revenue of $32.7 million from $2.0 million on revenue $33.5 million for the first half of 2020,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “We are very much encouraged by the operating results this year so far, especially the progress in the IT segment despite the continued negative impact of the COVID-19 pandemic.”
“With the forgiveness of the $3.6 million PPP (Paycheck Protection Program) loan in June, which was accounted for as other income, the Company recorded net income of $2.8 million and $2.1 million for the three- and six-month periods ending June 30, 2021, respectively. Operating cash flow during the first half of the year was up 39% year-over-year, enabling us to pay down most of the debts,” Dr. Ma continued.
“New variants of the COVID virus have brought new challenges to the world and have greatly slowed down the economic reopening in the country. However, we remain cautiously optimistic for the remainder of the year as we have reduced operating expenses, improved business efficiency, and prepared for the market uncertainty going forward,” concluded Dr. Ma.
Financial Results for Three Months Ended June 30, 2021
For the three months ended June 30, 2021, revenue decreased 1% to $16.1 million from $16.3 million for the same period of 2020. When compared to the second quarter of 2020, revenue in the IT segment decreased $0.3 million or 3%, as this segment continued to experience the impact of COVID-19; revenue in our professional sales service segment increased $0.3 million or 5% as a result of higher deliveries of underlying equipment by our partner and a higher blended commission rate; and revenue in the equipment segment decreased $0.1 million or 10% as a result of lower EECP service revenue.
Gross profit for the second quarter of 2021 increased 3% to $8.6 million, compared with a gross profit of $8.4 million for the same quarter of 2020. 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 2021 increased 4% to $9.2 million, when compared to the first quarter of 2020. The increase is primarily attributable to higher travel and personnel costs in the professional sales service and equipment segments as well as an increase in corporate accounting fees, offset by a reduction in the costs in the IT segment as a result of lower personnel costs.
Other income, net, increased $3.6 million in the second quarter 2021 from net expense of $54 thousand in the second quarter 2020. The increase was due primarily to the $3.6 million gain on the forgiveness of the PPP loan.
Net income for the three months ended June 30, 2021 was $2.8 million, compared to a net loss of $0.7 million in the second quarter 2020. The improvement was primarily due to the forgiveness of the PPP loan.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $3.4 million for the three months ended June 30, 2021, compared to $121 thousand for the same period a year ago.
Net cash provided by operating activities in the first six months of 2021 was $5.6 million, a 39% improvement when compared to cash provided by operations of $4.0 million for the same period in 2020. The Company repaid debt totaling $3.0 million in the first half of 2021 and an additional $2.6 million in August 2021. As of June 30, 2021 and December 31, 2020, the Company had cash and cash equivalents of approximately $9.4 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
PLAINVIEW, NY / June 24, 2021 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported that the Company has received notice from the Small Business Administration (“SBA”) that the loan it received from a lending institute in April 2020 under the Paycheck Protection Program (“PPP”) of the CARES Act, approximately $3.6 million, together with all accrued interest, has been forgiven in full. The Company will account for this forgiveness of loan principal and interest as other income in its quarterly financial report for the three months ending June 30, 2021.
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: 516-997-4600
Email: mbeecher@vasocorporation.com
The Company Reports Continued Improvement in All Business Segments
PLAINVIEW, NY / June 4, 2021 / Vaso Corporation (“Vaso”) (OTCMKTS:VASO) today reported its operating results for the three months ended March 31, 2021.
“For the first quarter of 2021, the Company recorded total revenue of $16.5 million, a 4% decrease year-over-year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Nonetheless, our quarterly operating loss was significantly reduced, from $1.4 million to $539 thousand when compared to the same quarter last year, largely a result of substantially increased operating efficiency.”
“I am excited to report that, while we customarily experience an operating loss in the first quarter of the year due to the seasonal nature of our businesses, all three of our business segments – IT, professional sales service and equipment – delivered continued improvement in operating results in the first quarter of 2021, with the IT and equipment segments actually achieving operating profitability,” Dr. Ma continued.
“The Company also generated positive cashflow of $5.5 million from operating activities in the first three months of 2021, and continues to maintain a strong cash position even after a significant amount of debt paydown. As the country starts to reopen post-pandemic, we currently expect to see in the coming periods a recovery in our top-line performance and a more profitable bottom line,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2021
For the three months ended March 31, 2021, revenue decreased by 4% to $16.5 million from $17.2 million for the same period of 2020, due primarily to the decrease of $511 thousand, or 10%, in revenue in our professional sales service segment as the result of lower equipment deliveries by our partner during the quarter. Revenue in our IT segment decreased by $30 thousand in the first quarter 2021 when compared to the same quarter of 2020; and our equipment segment revenue decreased by $167 thousand when compared to the first quarter of 2020, principally due to the deconsolidation of EECP operations in the financial statements for the first quarter of 2021 as a result of sale of equity in the EECP business in the second quarter of 2020.
Gross profit for the first quarter of 2021 decreased by $580 thousand, or 6%, to $8.6 million, compared with a gross profit of $9.1 million for the same quarter of 2020. This decrease was primarily the result of the decrease in revenue.
Selling, general and administrative (SG&A) expenses for the first quarter of 2021 decreased by $1.4 million, or 13%, to $9.0 million, compared to the first quarter of 2020. The decrease is primarily attributable to a decrease in personnel costs in the IT and equipment segments, and a decrease in SG&A costs in the professional sales service segment resulting from lower sales meeting and travel costs. SG&A expenses were 54% and 60% of revenue in the first quarter of 2021 and 2020, respectively.
Operating loss for the three months ended March 31, 2021 was $539 thousand, compared to an operating loss of $1.4 million in the first quarter 2020, representing an improvement of $821 thousand, or 60%, as operating costs decreased substantially more than gross profit, year-over-year.
Net loss for the three months ended March 31, 2021 was $643 thousand, a significant improvement over the loss of $1.5 million for the first quarter of 2020.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) improved to a positive $101 thousand for the quarter, compared to a loss of $683 thousand in the first quarter of 2020.
Net cash provided by operating activities were $5.5 million and $6.3 million during the first quarter of 2021 and 2020, respectively. As of May 31, 2021, the Company’s net cash was approximately $10.6 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:
Summarized Financial Information
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: 516-997-4600
Email: mbeecher@vasocorporation.com
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