WESTBURY, N.Y., March 27, 2014 /PRNewswire/ -- Vasomedical,
Inc. ("Vasomedical") (OTC BB: VASO) today reported its operating
results for the three months and year ended December 31, 2013.
"Our equipment segment, which includes EECP® and
Biox™ products, showed momentum in the last quarter of 2013 with
equipment sales up by 26% for the quarter, and, as a result, we
increased our fourth quarter net profit by 19% from a year
ago. Equipment sales also went up by 9% for the year;
combined with a 15% increase in annual commission revenue in the
sales representation segment, our net loss for the year was
significantly narrowed to $1.1
million from $3.4 million last
year, an improvement of $2.3
million," stated Dr. Jun Ma,
President and Chief Executive Officer of Vasomedical, Inc. "Our
VasoHealthcare subsidiary continues to deliver remarkable
performance and in 2013 achieved the highest commission rate
payable under our agreement with GEHC. Its overall impact,
however, is not entirely reflected in the top line numbers since we
recognize revenues when the underlying equipment or services are
delivered to customers; prior to that we record commission
receivables as deferred revenue, which is roughly 50% of the total
commission revenue to be recognized in the future. As such,
our total deferred revenue increased to $18.0 million as of December 31, 2013 compared with $15.6 million at December
31, 2012."
"The activities within each of our businesses are exciting and
we are encouraged by the growth from both of our business
segments. Looking ahead to 2014, we remain committed to our
growth and diversification strategy and achieving profitability for
the full year. We will continue to pursue opportunities to
expand our product portfolio; the recently announced MobiCare™
wireless patient monitoring device, which has received marketing
approval in China, is such an
example. We are in continued discussions with our sales
representation partner with regard to further developing the
VasoHealthcare business to include more products and broader
customer base. In addition, we continue to review potential
accretive acquisitions and partnerships in the international and
domestic markets," concluded Dr. Ma.
Three Months Ended December 31,
2013 Financial Results
For the three months ended December 31,
2013, revenue increased 3% to $10.1
million from $9.8 million for
the same period of 2012. This is attributable to a 26%
increase in our equipment sales revenue to $1.3 million, as a result of continued growth
from our Biox subsidiary in China.
Gross profit for the fourth quarter of 2013 increased 1.2% to
$6.9 million, compared with a gross
profit of $6.8 million for the fourth
quarter of 2012. This increase is primarily a result of the
higher sales from our Biox subsidiary.
Selling, general and administrative (SG&A) expenses for the
fourth quarter of 2013 was $6.3
million or 62% of revenues, compared with $6.3 million, or 64% of revenues for the same
period last year.
Net income for the three months ended December 31, 2013 was $504,000, a 19% improvement compared with a net
income of $425,000 for the three
months ended December 31, 2012.
Year Ended December 31, 2013
Financial Results
For the year ended December 31,
2013, revenue increased $3.7
million, or 12%, to $32.9
million, compared with $29.2
million for the same period of 2012. Equipment sales
revenues for the year increased by 9% to $4.6 million, principally due to growth in volume
from our Biox subsidiary in China. Commission revenues in our
Sales Representation segment increased by 15% to $26.6 million for the year 2013, as compared with
$23.2 million for prior year. The
increase was due primarily to higher installations of underlying
equipment in 2013 as well as higher commission rates.
Gross profit for the year ended 2013 increased 9% to
$22.5 million, compared with
$20.6 million for the same period in
2012. This increase is due primarily to higher revenues in
both the Sales Representation and Equipment segments, partially
offset by a lower gross profit rate in the Sales Representation
segment resulting from the new Medical Device Excise Tax imposed by
the Patient Protection and Affordable Care Act. Equipment
segment gross profit margin increased to 58% for the year ended
December 31, 2013 from 55% for the
same period in 2012. The increase in the margin is primarily
due to higher sales volume and improved margins resulting from the
Chinese subsidiaries.
Selling, general and administrative expenses for the year ended
2013 decreased 2% to $23.1 million,
compared with $23.5 million for the
same period in 2012, resulting primarily from decreased
compensation expenses in the Sales Representation segment. In
2012 this segment incurred higher costs in conjunction with the
extension of the GEHC agreement.
For the year ended December 31,
2013, the Company had a net loss of $1.1 million, or $0.01 per common share, compared with a net loss
of $3.4 million, or $0.02 per common share, for the year ended
December 31, 2012.
Net cash decreased by $3.5 million
to $8.0 million at December 31, 2013, compared with net cash of
$11.5 million as of December 31, 2012. This decrease in cash is
mainly attributable to the $1.8
million incurred for our stock repurchase program and an
increase in other assets. Based on current forecast, we
anticipate cash flow from operating activities to be positive for
2014. As of February 28, 2014,
the Company's cash balances were approximately $13.8 million.
Deferred revenue remains substantial, at approximately
$18.0 million as of December 31, 2013, to be recognized in the future
when the underlying equipment is accepted at the customer site.
Our shareholders' equity decreased to $6.5 million as of December 31, 2013, compared with $9.0 million as of December 31, 2012, principally due to the stock
buyback and net loss for the year.
Conference Call Information
The Company will host a conference call today at 10:00 a.m. ET featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical,
and Michael Beecher, Chief Financial
Officer of Vasomedical. To dial into the conference call, please
dial 1-866-393-1344 from the U.S. or 1-631-291-4669,
internationally. All dial-in participants must use the following
code to access the call: 15577369. Please call at least five
minutes before the scheduled start time. The conference call will
also be available via webcast and can be accessed through the
Investor Relations section of Vasomedical's website,
www.vasomedical.com. Please allow extra time prior to the call to
visit the site and download any necessary software to listen to the
live broadcast.
A replay of the conference call will be available approximately
two hours after completion of the live conference call at
www.vasomedical.com. To access the dial-in replay of the call,
which will be available until April 28,
2014, please dial 1-855-859-2056 or 1-404-537-3406. All
dial-in participants must use the following code to access the
call: 15577369.
About Vasomedical
Vasomedical, Inc. is a diversified medical technology company
specializing in the manufacture and sale of medical devices and in
the domestic sale of diagnostic imaging products. The
Company's main proprietary products are
EECP® Therapy systems, the gold standard of ECP
treatment. The Company operates through three wholly owned
subsidiaries: VasoSolutions, Vasomedical Global and VasoHealthcare.
VasoSolutions manages and coordinates the design, manufacture and
sales of EECP® Therapy systems, and other medical
equipment operations; Vasomedical Global operates the
Company's China-based subsidiaries; and VasoHealthcare is the
operating subsidiary for the exclusive sales representation of GE
Healthcare diagnostic imaging products in certain markets.
Additional information is available on the Company's website
at www.vasomedical.com.
Summarized Financial Information
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FOR THE THREE
MONTHS ENDED
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FOR THE YEAR
ENDED
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STATEMENTS OF
OPERATIONS
|
December 31,
2013
|
December 31,
2012
|
|
December 31,
2013
|
December 31,
2012
|
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(In
thousands)
|
|
|
|
|
|
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Revenue
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$
10,095
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$
9,778
|
|
$
32,890
|
$
29,240
|
Gross
profit
|
6,900
|
6,820
|
|
22,513
|
20,594
|
Operating income
(loss)
|
414
|
377
|
|
(1,290)
|
(3,508)
|
Other (expense)
income, net
|
67
|
28
|
|
87
|
179
|
Income (loss) before
taxes
|
481
|
405
|
|
(1,203)
|
(3,329)
|
Income tax benefit
(expense)
|
23
|
20
|
|
58
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(52)
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Net income
(loss)
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$
504
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$
425
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$
(1,145)
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$
(3,381)
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BALANCE
SHEETS
|
December 31,
2013
|
December 31,
2012
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(In
thousands)
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Total current
assets
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$
25,931
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$
25,716
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Total
assets
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$
33,517
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$
32,381
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Total current
liabilities
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$
19,215
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$
18,178
|
|
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Total stockholders'
equity
|
$
6,465
|
$
9,010
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Except for historical information contained in this release,
the matters discussed are forward-looking statements that involve
risks and uncertainties. When used in this release, words such as
"anticipates", "believes", "could", "estimates", "expects", "may",
"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; the effect of the dramatic changes taking place in the
healthcare environment; the impact of competitive procedures and
products and their pricing; medical insurance reimbursement
policies; unexpected manufacturing or supplier problems; unforeseen
difficulties and delays in the conduct of clinical trials and other
product development programs; the actions of regulatory authorities
and third-party payers in the United
States and overseas; uncertainties about the acceptance of a
novel therapeutic modality by the medical community; continuation
of the GEHC agreement; 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 Contacts:
Todd
Fromer / Garth Russell
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1250
Email: tfromer@kcsa.com / grussell@kcsa.com
SOURCE Vasomedical, Inc.