International Isotopes Inc. Announces First Quarter 2015 Financial Results

IDAHO FALLS, Idaho, May 18, 2015 /PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) (the "Company") announces financial results for the first quarter ended March 31, 2015. 

Revenue for the three months ended March 31, 2015 was $1,936,481 as compared to $1,948,856 for the same period in 2014.

Revenue from the sale of radiochemical products for the three months ended March 31, 2015 was $421,639, compared to $418,404 for the same period in 2014.  This represents an increase in revenue by approximately 1%. The Company is currently working on further enhancements of existing products within this segment and evaluating the possible addition of several new products.  Gross profit of radiochemical products for the three months ended March 31, 2015 increased slightly compared to the same period in 2014 and operating expense for this segment decreased by approximately 25% for the three months ended March 31, 2015, compared to the same period in 2014.  This decrease is largely due to a decrease in outside consulting costs. As a result, radiochemical products have a segment income of $86,968, a 17% increase for the three months ended March 31, 2015, as compared to the same period in 2014.

Revenue from the sale of cobalt products for the three months ended March 31, 2015 was $253,315, compared to $541,948 for the same period in 2014, or a decrease of approximately 53%. The Company's cobalt sealed source manufacturing generates the majority of the revenue in this segment and sealed source sales have been limited by the Company's inability to procure cobalt target material from the U.S. Department of Energy's (DOE) Advanced Test Reactor (ATR).  In October 2014, however, the Company entered into a new ten year agreement with the DOE for the irradiation of cobalt targets and during the first few months of 2015, the Company completed new cobalt supply agreements with certain customers.  It takes approximately three years to irradiate the cobalt targets to the desired level of activity, and the Company anticipates having high specific activity cobalt available for customers and for fabricating its own sealed sources by the middle of 2017 and every year thereafter through at least 2024.

Gross profit for cobalt products for the three months ended March 31, 2015 decreased approximately 28% compared to the same period in 2014, and was attributable to decreased cobalt sales.  Operating expense in this segment decreased by approximately 38% for the three months ended March 31, 2015, as compared to the same period in 2014, which was the result of decreased costs incurred for outside consulting and decreased depreciation expense as a result of assets being fully depreciated. Segment income for cobalt products decreased approximately 25% to $150,268 for the three months ended March 31, 2015, as compared to the same period in 2014.

Revenue from nuclear medicine products for the three months ended March 31, 2015 was $869,982, compared to $813,523 for the same period in 2014, an increase in revenue of approximately 7%.  Revenue from nuclear medicine products includes sales from TI Services, LLC, a 50/50 joint venture that we formed with RadQual in December 2010, to distribute products and services for nuclear medicine, nuclear cardiology and Positron Emission Tomography (PET) imaging although sales to RadQual represents the majority of the revenue in this segment. Gross profit for our nuclear medicine standards segment increased approximately 13% for the three months ended March 31, 2015 compared to the same period in 2014, and operating expense for this segment had a small 2% increase for the three months ended March 31, 2015 compared to the same period in 2014.  Net income for this segment for the three months ended March 31, 2015, increased 21% to $192,649 compared to the same period in 2014.  The improved results are principally from increased sales of higher margin products within this business segment.

Revenue from radiological services for the three months ended March 31, 2015 was $354,895, compared to $124,756 for the same period in 2014, an increase of approximately 184%.  The majority of the revenue within this segment was generated by the performance of field service activities in connection with the DOE's Orphan Source Recovery Program (OSRP).  Gross profit for this segment increased approximately 63% for the three months ended March 31, 2015 compared to the same period in 2014, due to increases in OSRP jobs performed during the period ended March 31, 2015, as compared to the same time period in 2014.  Operating expense for the three months ended March 31, 2015 decreased approximately 41% compared to the same period in 2014.  Net profit within this segment increased 112% to $142,361 for the period ended March 31, 2015, as compared to the same time period in 2014 as a result of the improvements in both gross profit and reductions in operating expense.

There was no revenue reported by the Company within the fluorine products segment for the three months ended March 31, 2015, or for the same period in 2014, and relatively minor expenses continue within the segment related to maintenance of licenses and other essential items in support of future planning and design for the proposed de-conversion facility.  The Company also reported a 27% decrease in revenue within its transportation segment for the three months ended March 31, 2015 compared to the same period in 2014, as that segment was directly affected by the reduced activity of cobalt product sales.

Overall gross profit for the Company for the three months ended March 31, 2015 was $810,538, compared to $804,428 for the same period in 2014, or a slight increase of approximately 1%.  Gross profit percentage was up slightly to 42% for the three months ended March 31, 2015, from 41% for the same period in 2014, as a result of the decrease in cost of sales.  Operating expense decreased to $877,627 for the three months ended March 31, 2015, from $976,527 for the same period in 2014, or a decrease of approximately 10%, largely the result of decreased general and administrative costs.

Our net loss for the three months ended March 31, 2015 was $171,548, compared to $452,205, for the same period in 2014.  This is a decrease in loss of approximately 62%, and is the result of the slight increase in gross profit, our ability to hold down operating costs, and a reduction in interest expense resulting from a fully matured convertible note.

Steve T. Laflin, President and CEO of the Company said, "I believe the most significant financial achievement for the Company to report for the first quarter was our ability to sustain positive cash flows and to continue our significant reductions in net loss.  Also very important to the Company is the reestablishment of cobalt production in the DOE's reactor and our completion of commercial cobalt sales agreements with customers during the first months of 2015.  We believe these steps will allow us to resume the role of being the only major cobalt production company in the U.S. by 2017.  In the interim, we will continue to evaluate our options for the recovery and sale of the older in progress cobalt inventory located at the ATR and utilize recycle opportunities to help continue cobalt product revenues.  We also anticipate the announcement of at least one new product line and the submission of an abbreviated new drug application to the U.S. Food and Drug Administration for another product later this year.  We see continued opportunities to expand our reach and further grow revenues within the radiological field services segment and will continue to update shareholders as these opportunities materialize." 

About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, a variety of cobalt-60 products, provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, and industrial applications, and provides radiological services including source installation/removal, and decommissioning various radiation units on a contract basis to clients.

International Isotopes Inc. Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements with respect to improvements in production efficiencies and revenue performance, the creation of new business opportunities, sustained positive cash flows, continued reductions in net loss, the success of future cobalt sales and the availability of future cobalt supply, our ability to sell or recover value from in progress cobalt inventory, and the Company's ability gain U.S. Food and Drug Administration approval of any new or generic drug products.  Information contained in such forward-looking statements is based on current expectations and is subject to change.  These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Other factors, which could materially affect such forward-looking statements, can be found in the Company's filings with the Securities and Exchange Commission at www.sec.gov, including our Annual Report on Form 10-K for the year ended December 31, 2014.  Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.  The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

FOR MORE INFORMATION CONTACT:

David Drewitz
Creative Options Communications
Investor and Public Relations
[email protected]
www.creativeoptionsmarketing.com
Phone:  972-814-5723

For more information, please visit the Company web site:  www.internationalisotopes.com

SOURCE International Isotopes Inc.

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