Revenue and Profitability Continued to Improve Year-over-year
PLAINVIEW, NY / ACCESSWIRE / May 15, 2023 / Vaso Corporation ("Vaso") (OTCQB:VASO) today reported its operating results for the three months ended March 31, 2023.
"The Company recorded a total revenue of $19.2 million for the first quarter of 2023, a growth of $2.2 million or 13.0% when compared to the same quarter last year. Quarterly gross profit reached $11.7 million, up by 19.9% year-over-year, as a result of higher revenue and higher gross profit margin," stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. "We have also achieved profitability in the first quarter of the year, with quarterly net income of $0.5 million versus prior year's quarterly net loss of $0.3 million, which is particularly noteworthy as we usually incur losses in the early quarters of the year due to the seasonality of our businesses."
"We were able to deliver these great results thanks to the revenue growth and improved operational efficiency in all three of our business units. As the Company's balance sheet remains strong as well, the management is looking forward to another great year in 2023," concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2023
For the three months ended March 31, 2023, revenue increased by 13.0% to $19.2 million from $17.0 million for the same period of 2022, due primarily to the increase of $1.7 million, or 25.8%, in revenue in our professional sales service segment as the result of higher equipment deliveries and a higher blended commission rate during the quarter. In addition, revenue in our IT segment increased by $271 thousand, or 2.7%, in the first quarter 2023 when compared to the same quarter of 2022, due to higher revenue in both the NetWolves and Vasohealthcare IT businesses; and our equipment segment revenue increased by $238 thousand, or 59.7%, when compared to the first quarter of 2022, principally due to higher equipment deliveries in our China operations.
Gross profit for the first quarter of 2023 increased by $1.9 million, or 19.9%, to $11.7 million, compared with a gross profit of $9.8 million for the same quarter of 2022, as a result of both higher revenues and higher gross profit margin, primarily in our professional sales service segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2023 increased by $1.1 million, or 11.4%, to $11.1 million, compared to the first quarter of 2022. The increase is primarily attributable to higher personnel costs across all three business segments as well as higher annual national sales meeting costs in our professional sales service segment.
Operating income for the three months ended March 31, 2023 was $410 thousand, compared to an operating loss of $354 thousand in the first quarter 2022, representing an improvement of $764 thousand, resulting from the increase in gross profit, partially offset by the increase in SG&A costs.
Net income for the three months ended March 31, 2023 was $454 thousand, a significant improvement over the loss of $344 thousand for the first quarter of 2022.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) improved to $639 thousand for the quarter, compared to $147 thousand in the first quarter of 2022.
Net cash used in operating activities was $1.9 million for the first quarter 2023, compared to net cash used in operating activities of $625 thousand for the first quarter of 2022. As of May 5, 2023, the Company's net cash, cash equivalents and short-term investments totaled approximately $24.5 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 medical equipment; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
- VasoTechnology, Inc. provides network and IT services through two business units: NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VasoHealthcare IT Corp., a national value added reseller of Radiology Information System ("RIS"), Picture Archiving and Communication System ("PACS"), and other software solutions from various vendors as well as related services, including implementation, management and support.
- Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
- VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company's overseas assets including China-based subsidiaries.
Additional information is available on the Company's website at www.vasocorporation.com.
Summarized Financial Information
| FOR THE THREE MONTHS ENDED | ||||||||
STATEMENTS OF OPERATIONS |
March 31, 2023 | March 31, 2022 | ||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
Revenue |
$ | 19,221 | $ | 17,009 | ||||
Gross profit |
11,710 | 9,767 | ||||||
Operating income (loss) |
410 | (354 | ) | |||||
Other income (expense), net |
54 | 22 | ||||||
Income (loss) before taxes |
464 | (332 | ) | |||||
Income tax expense |
(10 | ) | (12 | ) | ||||
Net income (loss) |
454 | (344 | ) | |||||
Income tax expense |
10 | 12 | ||||||
Interest (income) expense, net |
(111 | ) | 19 | |||||
Depreciation and amortization |
273 | 453 | ||||||
Non-cash stock-based compensation |
13 | 7 | ||||||
Adjusted EBITDA* |
$ | 639 | $ | 147 | ||||
| *Adjusted EBITDA is earnings (loss) before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||||||
BALANCE SHEETS |
March 31, 2023 | December 31, 2022 | ||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
Total current assets |
$ | 38,382 | $ | 42,000 | ||||
Total assets |
$ | 69,498 | $ | 72,655 | ||||
Total current liabilities |
$ | 26,223 | $ | 31,708 | ||||
Total stockholders' equity |
$ | 23,357 | $ | 22,875 | ||||
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", "looking forward", 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 possibility of a downturn in the US economy and the continued impact of the 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; 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
SOURCE: Vaso Corporation
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