Vaso Corporation Announces Financial Results for Second Quarter 2024
Rhea-AI Summary
Vaso (OTCQX: VASO) reported its Q2 2024 financial results, with total revenue of $20.2 million, slightly down from $20.3 million in Q2 2023. The company's IT segment saw a 1% increase, while the professional sales service segment remained flat. The equipment segment experienced a 30% decrease. Gross profit decreased by 4% to $12.2 million. Net income for Q2 2024 was $1.2 million, down from $2.0 million in Q2 2023. Adjusted EBITDA was $1.2 million, compared to $2.1 million a year ago.
Despite lower earnings, Vaso maintains a strong financial position with $25.7 million in cash and cash equivalents. The company's deferred revenue stands at $31.7 million, with a multi-year high backlog of $39.4 million in the IT segment, indicating potential for future growth. Vaso is pursuing a NASDAQ listing through a proposed business combination with Achari Ventures Holdings Corp. I, with a special stockholders meeting scheduled for August 26, 2024.
Positive
- Strong cash position of $25.7 million as of June 30, 2024
- High deferred revenue of $31.7 million in professional sales service segment
- Multi-year high backlog of $39.4 million in IT segment
- 1% revenue growth in IT segment
- Positive cash flow from operating activities of $2.8 million in Q2 2024
- Potential NASDAQ listing through proposed business combination
Negative
- Slight decrease in total revenue to $20.2 million in Q2 2024
- 4% decrease in gross profit to $12.2 million
- 30% decrease in equipment segment revenue
- 2% increase in selling, general and administrative expenses
- Net income decreased to $1.2 million from $2.0 million in Q2 2023
- Adjusted EBITDA decreased to $1.2 million from $2.1 million year-over-year
News Market Reaction
On the day this news was published, VASO gained 7.19%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
High deferred revenue and backlog setting stage for 2024 revenue and income growth
PLAINVIEW, N.Y., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Vaso Corporation (“Vaso”) (OTCQX: VASO) today reported its operating results for the three months ended June 30, 2024.
“The Company recorded a total revenue of
“As stated before, we are a seasonal business in that a substantial amount of our revenue and income is usually generated in the last six months of any year. We are optimistic about the Company’s performance for the remainder of the year, as both top- and bottom-line numbers are tracking ahead of our 2024 goals year-to-date. We also continue to generate positive cashflow from operating activities, in the amount of
“With regard to listing on NASDAQ, we anticipate it will afford the Company the opportunity of broadening its stockholder base as institutional investors have a very limited interest in OTC stocks. We also believe that, based on the historical performance and financial fundamentals of the Company, our common stock is undervalued as it is subject to trading restrictions under the penny stock rules which impose certain sales practice requirements on broker-dealers in transactions involving our stock. In addition, listing on NASDAQ should assist the Company in its goal of expanding operations through internal growth, new partnerships, and strategic investments with a concentration on medical and IT service companies,” concluded Dr. Ma. “A special stockholders meeting has been scheduled for August 26, 2024 in New York City to seek stockholders’ approval of the business combination, and I look forward to seeing you then.”
Financial Results for Three Months Ended June 30, 2024
For the three months ended June 30, 2024, total revenue decreased slightly to
Gross profit for the second quarter of 2024 was
Selling, general and administrative (SG&A) expenses for the second quarter of 2024 increased
Net income for the three months ended June 30, 2024 was
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was
Net cash provided by operating activities in the first six months of 2024 was
About Vaso
Vaso Corporation is a diversified medical technology company operating in three business segments:
- IT Segment provides network and IT services through two operating units: NetWolves Network Services, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VHC-IT, a service provider for healthcare application solutions from various vendors as well as related services, including implementation, management and support.
- Professional Sales Service Segment provides sales service of capital medical equipment through a wholly owned subsidiary VasoHealthcare, currently serving as the exclusive sales representative of GE HealthCare diagnostic imaging and ultrasound products and services in certain market segments in the USA.
- Equipment Segment 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 | FOR THE SIX MONTHS ENDED | ||||||||||||||
| STATEMENTS OF OPERATIONS | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Revenue | $ | 20,226 | $ | 20,323 | $ | 38,963 | $ | 39,359 | |||||||
| Gross profit | 12,151 | 12,696 | 23,068 | 24,258 | |||||||||||
| Operating income (loss) | 996 | 1,817 | (473 | ) | 2,079 | ||||||||||
| Other (expense) income, net | 271 | 173 | 579 | 227 | |||||||||||
| Income (loss) before taxes | 1,267 | 1,990 | 106 | 2,306 | |||||||||||
| Income tax expense | (112 | ) | (9 | ) | (124 | ) | (19 | ) | |||||||
| Net income (loss) | $ | 1,155 | $ | 1,981 | $ | (18 | ) | $ | 2,287 | ||||||
| Income tax expense | 112 | 9 | 124 | 19 | |||||||||||
| Interest expense (income), net | (301 | ) | (181 | ) | (600 | ) | (292 | ) | |||||||
| Depreciation and amortization | 226 | 264 | 411 | 537 | |||||||||||
| Non-cash stock-based compensation | 9 | 15 | 18 | 28 | |||||||||||
| Adjusted EBITDA* | $ | 1,201 | $ | 2,088 | $ | (65 | ) | $ | 2,579 | ||||||
*Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation
| BALANCE SHEETS | June 30, 2024 | December 31, 2023 | |||
| (In thousands) | |||||
| (Unaudited) | |||||
| Total current assets | $ | 40,889 | $ | 45,099 | |
| Total assets | $ | 72,063 | $ | 75,757 | |
| Total current liabilities | $ | 26,836 | $ | 30,040 | |
| Total stockholders' equity | $ | 26,721 | $ | 26,843 | |
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: 516-508-5840
Email: mbeecher@vasocorporation.com
FAQ
What was Vaso 's revenue for Q2 2024?
How much cash does VASO have as of June 30, 2024?
What is the deferred revenue for VASO's professional sales service segment?
What is VASO's IT segment backlog as of Q2 2024?
When is Vaso 's special stockholders meeting for the proposed business combination?
