The Company Reports Improved Profitability Despite Pandemic
PLAINVIEW, NY / May 4, 2021 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months and year ended December 31, 2020.
“The Company was able to conclude a profitable year in 2020 as it experienced an unprecedented impact of the economic shutdown due to the pandemic,” commented Dr. Jun Ma, President and CEO of the Company. “Specifically, net income for fiscal year 2020 was $358 thousand, compared to a net loss of $382 thousand in the prior year, although revenue for the year decreased by $5.7 million to $69.9 million.”
“The much-improved profitability was primarily the result of significant cost reductions. Selling, general and administrative costs went down by $4.0 million, or 9.7%, in 2020 when compared to 2019,” Dr. Ma continued. “In addition, the Company generated $5.9 million from operating activities in the year 2020 and its cash position remains strong.”
“As the country starts to get back to normalcy, we’ll continue to exercise our diligence in executing our strategy and look to further improve performance of all our business units,” concluded Dr. Ma.
The following financial results for the three and twelve months ended December 31, 2019 have been revised for the correction of errors.
Financial Results for Three Months Ended December 31, 2020
For the three months ended December 31, 2020, revenue decreased by 21.2% to $18.7 million from $23.7 million for the same period of 2019, due primarily to the decrease of $4.1 million, or 36.6%, in revenue in our professional sales service segment as the result of lower deliveries by our partner of underlying equipment during the quarter. Revenue in our IT segment decreased 3.4%, to $10.9 million in the fourth quarter 2020, compared to the same quarter of 2019, while our equipment segment revenue decreased 44.5% to $614 thousand from $1.1 million for the fourth quarter of 2019, due to the deconsolidation of EECP business as the result of the sale of equity in the EECP business early in the year, offset by an increase in sales in our Biox products.
Gross profit for the fourth quarter of 2020 decreased by 22.5% to $11.1 million, compared with a gross profit of $14.3 million for the same quarter of 2019. This decrease was primarily the result of the decrease in revenue in the professional sales service and IT segments.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2020 decreased by 14.1% to $9.6 million, compared to $11.1 million for the fourth quarter of 2019. The decrease was primarily attributable to a decrease in personnel costs in the IT segment and other cost reductions. SG&A expenses were 51.2% and 47.0% of revenue in the fourth quarter of 2020 and 2019, respectively.
Net income for the three months ended December 31, 2020 was $1.2 million, compared with a net income of $2.7 million for the three months ended December 31, 2019.
Financial Results for Year Ended December 31, 2020
For the year ended December 31, 2020, revenue decreased by $5.7 million or 7.5% to $69.9 million when compared with $75.5 million for the year 2019. Revenue in our IT segment decreased 3.5% to $43.9 million for the year 2020, from 2019 revenue of $45.5 million, primarily due to a decrease of revenue in the healthcare IT business. Commission revenues in our professional sales service segment decreased by 12.8% to $22.9 million in the year 2020, compared to $26.2 million in 2019. The decrease was the result of lower equipment deliveries by our partner and lower blended commission rates for the equipment delivered during the year. Equipment segment revenue for the year 2020 decreased by 18.7% to $3.1 million, from $3.8 million in 2019, principally due to the sale of 51% of our EECP business early in the year, partially offset by an increase in sales in our China operations. Revenues in the IT and professional sales service segments were negatively impacted by the COVID-19 pandemic.
Gross profit for the year ended December 31, 2020 decreased 9.1% to $38.6 million, from $42.4 million in 2019, as a result of the lower sales in our IT and professional sales service segments.
SG&A expenses for the year ended December 31, 2020 decreased $4.0 million or 9.7% to $37.1 million, or 53.0% of revenue, compared with $41.0 million, or 54.3% of revenue, for the same period in 2019. The decrease resulted primarily from a decrease $3.1 million in personnel and travel costs in the professional sales service and IT segments, as well as a decrease in corporate expenses.
For the year ended December 31, 2020, the Company had net income of $358 thousand, compared with a net loss of $382 thousand for the year ended December 31, 2019.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was $3.6 million for the year ended December 31, 2020 compared to Adjusted EBITDA of $3.5 million for the year ended December 31, 2019.
Net cash provided from operating activities in 2020 was $5.9 million, compared to net cash used in operating activities of $1.3 million in 2019. The increase is principally due to the increase in profitability and the decrease in accounts receivable. Net cash increased to $6.8 million at December 31, 2020, compared to $2.1 million at December 31, 2019. The increase in cash is the net effect of positive cash from operating activities, and proceeds of $3.6 million from a PPP loan, offset by the repayment of $1.2 million of the MedTech note and $1.4 million on our lines of credit. As of April 23, 2020, the Company’s net cash was approximately $9.5 million.
Deferred revenue decreased to $17.7 million at December 31, 2020, compared to $19.3 million at December 31, 2019. The decrease is primarily the result of lower 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.
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
PLAINVIEW, NY April 15, 2021 – Vaso Corporation (“Vaso”) (OTC PINK:VASO) today announces the delayed reporting of its operating results for the three months and year ended December 31, 2020.
The Company announces that it will be temporarily delayed in filing its annual report on Form 10-K which is due on April 15, 2021. The process is not yet completed on certain accounting issues. The company currently expects to file this annual report no later than April 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
Net Profit for the Quarter Increased by 104% Year-over-Year
PLAINVIEW, N.Y. November 13, 2020 – Vaso Corporation (“Vaso”) (OTCMKTS: VASO) today reported its operating results for the three months ended September 30, 2020.
“Despite continued impediment to business by the COVID pandemic, which led to a 6% drop in quarterly revenue from a year ago, the Company recorded an operating income of $1.3 million for the third quarter of 2020, an increase of 56% when compared to the $0.8 million operating income for the same quarter last year. This is mainly a result of much lower selling, general and administrative (“SG&A”) costs, which during the quarter decreased by 14% year-over-year,” commented Dr. Jun Ma, President and CEO of the Company. “Net profit for the quarter was $1.1 million, representing an increase of 104% year-over-year. Year-to-date, we saw a $2.2 million improvement to the bottom line from the prior year even when the top line was slightly down. The Company has also generated $4.7 million cash from operating activities for the nine months ended September 30, 2020, and maintains a healthy cash position as of today.”
“We remain cautiously optimistic about the current state of our businesses and are confident about the future of the Company. We are particularly encouraged by the performance of our professional sales service and equipment segments, which have shown significant improvements in the quarterly and year-to-date operating results even during this difficult year. We continue to be vigilant and stay ready for the recovery of the economy from the pandemic,” concluded Dr. Ma.
Financial Results for Three Months Ended September 30, 2020
For the three months ended September 30, 2020, revenue decreased $1.2 million, or 6%, to $17.5 million from $18.7 million for the same period of 2019, primarily due to the impact of the COVID-19 pandemic. Quarterly revenue in our IT segment decreased by $652 thousand or 6% year-over-year as both the healthcare IT business and network services business were affected by the pandemic. Revenue in the professional sales service segment decreased by $535 thousand, or 8% year-over-year, mainly due to lower equipment deliveries by our partner. Revenue in the equipment segment decreased by $6 thousand, or 0.7% year-over-year, mainly due to exclusion of EECP sales in the reporting, offset by an increase in the Biox equipment sales
Gross profit for the third quarter of 2020 decreased by 9% to $9.9 million, compared with a gross profit of $10.8 million for the third quarter of 2019. This decrease is primarily the result of a decrease in revenue in the IT and professional sales service segments due to the impact of the COVID-19 pandemic. In the IT segment gross profit decreased by $588 thousand or 12% year-over-year. Gross profit in the professional sales service segment decreased by $487 thousand or 9% year-over-year. Gross profit in the equipment segment increased $113 thousand, or 20% in the third quarter 2020 compared to the same period in 2019.
SG&A expenses for the third quarter of 2020 decreased by 14% to $8.5 million compared to $9.8 million for the same quarter of 2019. The decrease is primarily attributable to decreases in personnel and other costs in the IT segment and decreases in travel and related costs in the professional sales service and equipment segments.
Research and development costs decreased by 11% to $174 thousand in the third quarter of 2020 compared to the same period in 2019, primarily due to lower software development costs in the equipment segment
Net income for the three months ended September 30, 2020 was $1.1 million, compared to net income of $562 thousand for the third quarter of 2019. The increase of $584 thousand, or 104%, is primarily the result of the decrease in SG&A costs offset by the lower gross profit.
Net cash provided by operating activities was $4.7 million in the nine months ended September 30, 2020, compared to net cash used in operating activities of $2.1 million for the same period in 2019. Cash and cash equivalents at September 30, 2020 was $6.9 million, compared to $2.1 million at December 31, 201
Total deferred revenue remains substantial, at approximately $16.7 million as of September 30, 2020, which will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site. Our shareholders’ equity decreased to $5.3 million as of September 30, 2020 from $5.8 million as of December 31, 2019.
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
PLAINVIEW, N.Y. August 14, 2020 – Vaso Corporation (“Vaso”) (OTCMKTS: VASO) today reported its operating results for the three months ended June 30, 2020.
“The COVID-19 pandemic continues its unprecedented impact on the nation’s economy and people’s lives, and all of our businesses have been adversely affected as well. During the second quarter of 2020, the Company experienced a drop in its total revenue, by 7% year-over-year, although we still recorded a higher revenue year-to-date,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “At the same time, however, quarterly operating expenses were reduced by 10% from a year ago; as a result, operating loss for the quarter only increased slightly when compared to the same quarter last year. For the first half of the year, we maintained a significant improvement in the operating results over the same period of the prior year.”
“Since the beginning of the COVID-19 pandemic and the shutdown in most parts of the country, we have taken steps to protect the safety of our employees and have reached out to many of our customers and suppliers to jointly assess and mitigate risks. As uncertainties in our markets are expected to continue for an extended period of time, we are exercising extra caution in managing business expenses to stay financially stable and be ready for the reopening of the economy,” concluded Dr. Ma.
Financial Results for Three Months Ended June 30, 2020
For the three months ended June 30, 2020, revenue decreased 7% to $16.3 million from $17.5 million for the same period of 2019, as all three business segments were impacted by the COVID-19 pandemic. When compared to the second quarter of 2019, revenue in the IT segment decreased $0.6 million or 5%; revenue in our professional sales service segment decreased $0.4 million or 8%; and revenue in the equipment segment decreased $0.2 million or 21%. The decreases were due to lower deliveries of equipment and lower service revenues, all primarily caused by the pandemic and the economic shutdown.
Gross profit for the second quarter of 2020 decreased 11% to $8.4 million, compared with a gross profit of $9.4 million for the same quarter of 2019. This decrease was primarily the result of the decrease in revenue as discussed above.
Selling, general and administrative (SG&A) expenses for the second quarter of 2020 decreased 10% to $9.0 million, compared to the first quarter of 2020. The decrease is primarily attributable to personnel cost reductions in the IT segment and decreases in travel and other operating costs as a result of the
shutdown, as well as a decrease in operating costs of the EECP operation.
Other income and expense, net, improved by $149 thousand in the second quarter 2020 compared to the second quarter 2019, due primarily to a gain on the sale of 51% of the EECP business and to a decrease in interest costs resulting from the reduction of debt.
Net loss for the three months ended June 30, 2020 was $0.6 million, an improvement of $153 thousand or 20% over the loss of $0.7 million for the second quarter of 2019.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stockbased compensation) was $221 thousand for the three months ended June 30, 2020, compared to $228
thousand for the same period a year ago.
Net cash provided by operating activities in the first six months of 2020 was $4.0 million, a significant improvement when compared to net cash used in operations of $2.4 million for the same period in 2019. As of June 30, 2020 and December 31, 2019, the Company had cash and cash equivalents of approximately $6.9 million and $2.1 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:
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 current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreements; 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.
PLAINVIEW, NY / June 4, 2020 / Vaso Corporation (“Vaso”) (OTC PINK:VASO) today reported its operating results for the three months ended March 31, 2020.
“The Company’s total revenue for the first quarter 2020 was $17.3 million, an increase of 11% when compared to the same quarter in the prior year, primarily as a result of a $1.8 million increase in revenue in our professional sales service segment,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Combined with a significant increase in the gross profit margin, Vaso Corporation achieved an impressive improvement of $1.4 million in operating income, reducing its quarterly operating loss by 53% year-over-year, to $1.3 million.”
“On the other hand, like many others, we started to experience the negative impact of the COVID-19 pandemic toward the end of the first quarter as the shutdown became widespread. All of our businesses have been adversely affected and much uncertainty continues to remain for the rest of the year. While we regard the safety and well-being of our employees and customers a top priority, we have also been actively engaging with our customers to maintain ongoing business relationships and help each other weather the storm. With the assistance of the $3.6 million PPP loan the Company received in the second quarter under the CARES Act, we believe Vaso will continue to be financially stable despite the anticipated volatility in orders, revenue and cash receipts,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2020
For the three months ended March 31, 2020, revenue increased 11% to $17.3 million from $15.5 million for the same period of 2019, due primarily to the increase of $1.8 million, or 51%, in revenue in our professional sales service segment as the result of higher equipment deliveries by GEHC during the quarter. Revenue in our IT segment increased less than 1%, to $11.3 million in the first quarter 2020, compared to the same quarter of 2019, while our equipment segment revenue decreased slightly to $778 thousand compared to the first quarter of 2019, principally due to lower service revenues in that segment.
Gross profit for the first quarter of 2020 increased 17% to $9.2 million, compared with a gross profit of $7.9 million for the same quarter of 2019. This increase was primarily the result of the increase in revenue in the professional sales service and an increase in profit margin in the equipment segment due to the higher margin product mix, partially offset by a decrease in gross profit in the IT segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2020 decreased 1% to $10.3 million, compared to the first quarter of 2019. The decrease is primarily attributable to a decrease in personnel costs in the IT and equipment segments, offset by an increase in SG&A costs in the professional sales service segment resulting from costs for the national sales meeting held during the quarter. (No national sales meeting was held in 2019.) SG&A expenses were 59% and 67% of revenue in the first quarter of 2020 and 2019, respectively.
Net loss for the three months ended March 31, 2020 was $1.4 million, a significant improvement over the loss of $2.8 million for the first quarter of 2019.
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:
Additional information is available on the Company’s website at www.vasocorporation.com.
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 current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreements; 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.
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