Vaso Corporation Announces Financial Results for First Quarter 2021
Jun. 04, 2021 9:00 AM ETAccesswireVaso Corporation (VASO)
The Company Reports Continued Improvement in All Business Segments
PLAINVIEW, NY / ACCESSWIRE / 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:
VasoTechnology, Inc. provides network and IT services through two business units: 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; and NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers.
Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE Healthcare (GHCI) diagnostic imaging 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.
