International Isotopes Inc. Announces Second Quarter And Six Months 2014 Financial Results

IDAHO FALLS, Idaho, Aug. 11, 2014 /PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the second quarter and six-months ended June 30, 2014.

Revenue for the three months ended June 30, 2014 was $1,808,581 as compared to $1,800,049 for the same period in 2013, an overall increase of less than 1%.  Revenue for the six-month period ended June 30, 2014 was $3,757,437 as compared to $3,472,838 for the same period in 2013, an increase of approximately 9%.

Revenue from the sale of radiochemical products for the three months ended June 30, 2014 was $460,988, compared to $426,605 for the same period in 2013, an increase of approximately 8%. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2014 was $879,392, compared to $866,624 for the same period in 2013, which represents a slight increase of approximately 2%. This segment reported a 75% increase in net income for the three months ended June 30, 2014 compared to the same period in 2013, and an increase of approximately 46% in net income for the six-months ended June 30, 2014 compared to the same period in 2013, both as the result of slightly stronger sales coupled with management's success in holding down material costs, adjustments to pricing structure, and improved inventory management practices.

Revenue from the sale of cobalt products for the three months ended June 30, 2014 was $152,100, compared to $253,862 for the same period in 2013, or a decrease of approximately 40%.  Revenue from the sale of cobalt products for the six-month period ended June 30, 2014 was $694,048, compared to $445,129 for the same period in 2013, an increase in revenue of approximately 56%.   Our net income for cobalt products was $31,497 for the three months ended June 30, 2014, as compared to net income of $88,432 for the same period in 2013, or a decrease of approximately 64% and was due to a drop in sales for the period comparison. Net income for the six months ended June 30, 2014 was $231,262, compared to $69,757 for the same period in 2013, or an increase of approximately 232% and is attributable to the increased sales of the Company's sealed sources during the six-month period. 

Revenue from nuclear medicine products for the three months ended June 30, 2014 was $799,066, compared to $811,483 for the same period in 2013, a decrease in revenue of approximately 2%.  Revenue from nuclear medicine products for the six-month period ended June 30, 2014 was $1,612,589 compared to $1,719,749 for the same period in 2013, or a decrease of approximately 7%.  This period-to-period comparison includes sales from TI Services, LLC, a 50/50 joint venture that we formed with RadQual, LLC in December 2010.  The decline in TI Services, LLC sales was largely responsible for the overall decline in revenue for the nuclear medicine product segment.  TI Services, LLC sales for the three months ended June 30, 2014 decreased approximately 15% compared to the same period in 2013, and declined approximately 18% for the six months ended June 30, 2014.  This decrease in TI Services, LLC sales is largely attributable to a drop in sales of paper products used in nuclear medicine imaging due to clients moving toward maintain electronic records.  Net income for this segment for the three months ended June 30, 2014 was $153,921 compared to $149,565 for the same period in 2013. For the six-month period ended June 30, 2014, net income for this segment decreased slightly to $312,897, from $314,667 for the same period in 2013, or just less than 1%.

Revenue from radiological services for the three months ended June 30, 2014 was $375,727, compared to $254,499 for the same period in 2013, an increase of approximately 48%. The segment reported revenue of $500,483 for the six-month period ended June 30, 2014 compared to $341,036 for the same period in 2013, or an increase of approximately 47%.  Revenue from field service work performed in connection with the U.S. Department of Energy's (DOE) source recovery project accounted for the revenue increase within this segment. Net income for the three months ended June 30, 2014 was $108,116, as compared to $172,066 for the same period in 2013, or a decrease of approximately 37%.  Net income for the six-month period ending June 30, 2014, was $175,091, as compared to $199,963 for the same period in 2013, or a decrease of approximately 12%.  The decrease in net income for both periods can be attributed to a one time sale of nickel-62 that was held in raw material inventory and sold below the carrying value of the material.

Gross profit for the Company for the three months ended June 30, 2014 was $679,886, compared to $788,112 for the same period in 2013, or a decrease of approximately 14%.  Gross profit for the six-month period ended June 30, 2014, was $1,484,314, compared to $1,367,632 for the same period in 2013, or an increase of approximately 9%.  All business segments, with the exception of Radiological Services, reported no change or a decrease in cost of sales as compared to total sales in the period comparison.   Cost of sales increased in the radiological services segment for the three and six months ended June 30, 2014, as compared to the same periods in 2013, as a result of increased field service activities associated with the DOE's Orphan Source Recovery Program and as a result of a one-time enriched nickel-62 sale.

Operating expense for the Company decreased to $925,298 for the three months ended June 30, 2014, from $1,081,655 for the same period in 2013, or approximately 15%.  Operating expense for the six-month period ended June 30, 2014, was $1,901,825 compared to $2,248,456 for the same period in 2013, or a decrease of approximately 16%.   This decrease in both periods is largely attributable to reduced spending on further formal planning and design work associated with the proposed de-conversion facility in New Mexico. Salaries and Contract Labor expense also decreased by approximately 13% during the period which is the result of recording less non-cash equity compensation for the six-month period ended June 30, 2014 as compared to the same period in 2013.

On June 30, 2014, the Company had cash and cash equivalents of $810,309 as compared to $456,374 for the same period in 2013.  This is an increase of approximately 77%.  The increase is the combined result of stronger sales and reduced operating expense for the six month period ending June 30, 2014, as compared to the same period in 2013.  For the six months ended June 30, 2014, net cash provided in operating activities was $502,662, and for the six months ended June 30, 2013, net cash used in operating activities was $519,198. The increase in cash provided in operating activities is the result of stronger sales, reduced operating expenses and the reduction of outstanding accounts receivable.

Net loss for the three months ended June 30, 2014 was $528,298, compared to $399,210, for the same period in 2013, or an increase in loss of approximately 33%.  Net loss for the six-month period ended June 30, 2014 was $980,503 as compared to $1,068,102 for the same period in 2013, or a decrease in loss of approximately 9%.  This decrease in net loss for the six-month period was the result of increased gross profit coupled with decreased operating expenses.

Steve T. Laflin, President and CEO of the Company said, "Achieving positive cash flow for the Company during the first six months of the year is a very significant accomplishment and a sign we are putting appropriate cost control measures in place and continuing to move revenue in the right direction.  While there can certainly be no guarantee of continued positive cash flow, this is nonetheless worth noting and is the first time we have achieved positive cash flow over a six month period independent of any financing activities.

Coupled with our cash performance we have seen significant improvement in three of our most important business segments.  Our cobalt products segment saw a significant increase in sales during the quarter in spite of limited supplies of raw cobalt material and we continue to make good progress towards the resumption of full cobalt production capability. In the nuclear medicine products segment we were able to launch sales of the new lightweight flood source which has increased sales of that product line by approximately 23% for the second quarter of 2014 compared to the second quarter of 2013. Additional revenue producing opportunities within the radiological services segment continues to drive the positive revenue performance of that segment as well.  While there can be no certainty about our year end performance we do expect to see continued positive growth for the remainder of the year within these segments.

We intend to continue to keep our plans on hold for the construction of the depleted uranium deconversion and fluorine extraction processing facility in Lea County New Mexico until such time that additional uranium enrichment capacity comes on line that can provide us with additional opportunities to contract for deconversion service of that material.  We remain convinced that this opportunity is still likely to be realized in the future and we will remain positioned to take prompt advantage of that commercial opportunity when the appropriate time arrives.  In the meantime we intend to continue to focus on controlling cash expenditures and building our product lines and revenue within our current active business segments."

About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, manufactures a variety of cobalt-60 products such as teletherapy sources, and provides a wide range of radiological field services on a contract basis to clients.  The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications

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 expectations for achieving positive cash flow,  the ability of the Company to continue to control costs, future forecasts for revenue growth, expectations for individual business segment performance, ability to resume cobalt production, and plans for the depleted uranium deconversion and fluorine extraction processing facility in Lea County New Mexico. 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, 2013.  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.