International Isotopes Announces Second Quarter And Six Months 2015 Financial Results

IDAHO FALLS, Idaho, Aug. 17, 2015/PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) (the "Company") announces financial results for the second quarter and six months ended June 30, 2015.

Revenue for the three months ended June 30, 2015 was $1,580,376 compared to $1,808,581 for the same period in 2014, an overall decrease of approximately 13%.  Revenue for the six-month period ended June 30, 2015 was $3,516,857, as compared to $3,757,437 for the same period in 2014, a decrease of approximately 6%. 

Revenue from the sale of radiochemical products for the three months ended June 30, 2015 was $433,520, compared to $460,988 for the same period in 2014.  This represents a decrease in revenue of approximately 6%. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2015 was $855,159, compared to $879,392 for the same period in 2014, or a decrease of approximately 3%. The decline in revenue for both periods was primarily attributable to the loss of consulting income in the segment.  Our sales of radiochemical products within the segment remains steady. The radiochemical products segment net income for the three months ended June 30, 2015, decreased approximately 26%. Net income for the segment for the six-month period ended June 30, 2015, decreased approximately 8%. The decline in net income for both periods was also the result of a lack of consulting income within the segment in 2015.  We are currently working on further enhancements of existing products within this segment and are evaluating the possible addition of several new products. 

Revenue from the sale of cobalt products for the three months ended June 30, 2015 was $232,743, compared to $152,100 for the same period in 2014. This represents an increase of approximately 53%. Revenues from the sale of cobalt products for the six-month period ended June 30, 2015 were $486,058, compared to $694,048 for the same period in 2014. This is a decrease of approximately 30% and is the result of decreased sealed source sales. Gross profit for cobalt products for the three months ended June 30, 2015 increased approximately 62% compared to the same period in 2014, and is attributable to an increase in our cobalt sealed source sales. Gross profit for cobalt products for the six-month period ended June 30, 2015 decreased approximately 4% compared to the same period in 2014. Our net income for cobalt products increased by approximately 266% for the three months ended June 30, 2015, as compared to the same period in 2014.  Net income for the six months ended June 30, 2015 increased approximately 15% compared to the same period in 2014, and is attributable to the significant reduction in cost of sales as well as a reduction in operating expense within the segment. 

Revenue from nuclear medicine products for the three months ended June 30, 2015 was $778,791, compared to $799,066 for the same period in 2014, a decrease of approximately 3%.  Revenue from nuclear medicine products for the six-month period ended June 30, 2015 was $1,648,773 compared to $1,612,589 for the same period in 2014, an increase of approximately 2%.  Revenue from nuclear medicine products includes sales from TI Services, LLC, a 50/50 joint venture that we formed with RadQual, LLC (RadQual) in December 2010 to distribute products and services for nuclear medicine, nuclear cardiology and Positron Emission Tomography (PET) imaging.  Revenue from TI Services, LLC declined approximately 13% in the three month period comparison and 7% in the six month period comparison, and is largely responsible for the overall decline in revenue within the nuclear medicine product segment.  Gross profit for our nuclear medicine standards segment for the three months ended June 30, 2015 decreased by approximately 10% compared to the same period in 2014. Gross profit for the six-month period ended June 30, 2015 increased by approximately 1% compared to the same period in 2014.  Net income for this segment for the three months ended June 30, 2015 decreased by approximately 7% compared to the same period in 2014, and is the combined result of our decreased sales and slight increase in cost of sales.  Net income for this segment increased by approximately 7% for the six month period ended June 30, 2015, compared to the same period in 2014, due to improved control of operating costs.

Revenue from radiological services for the three months ended June 30, 2015 was $99,272, compared to $375,727 for the same period in 2014, a decrease of approximately 74%. The radiological services segment reported revenue of $454,167 for the six-month period ended June 30, 2015 compared to $500,483 for the same period in 2014, a decrease of approximately 9%.  The decrease in radiological field service revenue for both periods is largely the result of fewer jobs awarded to the Company under the DOE's Orphan Source Recovery Program (OSRP) in the period comparison.  Gross profit for this segment for the three months ended June 30, 2015 decreased approximately 59% compared to the same period in 2014.  Gross profit for this segment for the six months ended June 30, 2015, decreased approximately 8% compared to the same period in 2014. Net income for the three months ended June 30, 2015 decreased approximately 60% compared to the same period in 2014 and net income for the six-month period ending June 30, 2015, increased approximately 5% as compared to the same period in 2014.

Gross profit for the Company for the three months ended June 30, 2015 was $627,213, compared to $679,886 for the same period in 2014.  This represents a decrease of approximately 8%.  Our gross profit percentage was up slightly to 40% for the three months ended June 30, 2015, from 38% for the same period in 2014, as a result of a decrease in cost of sales. Gross profit for the six-month period ended June 30, 2015 was $1,437,751, compared to $1,484,314, for the same period in 2014, or a decrease of approximately 3%.

Operating expenses for the Company increased to $990,780 for the three months ended June 30, 2015, from $925,298 for the same period in 2014, or an increase of approximately 7%, and is the result of increased labor and research and development expense from our continued pursuit of improved and expanded product lines. Operating expenses were $1,868,407 for the six-month period ended June 30, 2015, compared to $1,901,825 for the same period in 2014, a decrease of approximately 2%.

On June 30, 2015, we had cash and cash equivalents of $1,178,378 as compared to $558,541 at December 31, 2014.  This is an increase of $619,837, or approximately 111%.  For the six months ended June 30, 2015, net cash provided by operating activities was $960,280, and for the six months ended June 30, 2014, net cash provided by operating activities was $502,662. The increase in cash provided by operating activities is primarily the result of cash payments received on cobalt contracts and recorded as unearned revenue.

Our net loss for the three months ended June 30, 2015 was $447,492, compared to $528,298, for the same period in 2014.  This is a decrease in loss of approximately 15% for the second quarter comparison. Our net loss for the six-month period ended June 30, 2015, was $619,040 as compared to $980,503 for the same period in 2014, a decrease in loss of approximately 37%. The decrease in net loss for both periods was the result of decreased operating and interest expense.

Steve T. Laflin, President and CEO of the Company said, "I believe we are continuing on a good path towards profitability.  The interruption in cobalt production from 2012 continues to impact our cobalt segment's revenue performance. However, with a new production contract in place with the Department of Energy and several new commercial sales contracts in place with our customers, we believe that we are on track for improved revenue performance in future years. We believe this will result in a sustained positive cash flow.  While the rate of field service activities has caused fluctuations in the period comparisons within the radiological services segment, I remain optimistic that a growing number of significant, contract opportunities still exist. Revenue performance within this segment could greatly improve for the balance of the year.  Our radiochemical product sales this year are not showing significant improvement, however, we believe that the prospect of new products and higher value products within this segment in the coming years should make a major positive impact to that segment revenue and profit performance."

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 future profitability of the Company, sustained positive cash flow, additional field service contract opportunities, revenue performance within any of the Company business segments, and the success of new 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, please visit the Company web site:www.internationalisotopes.com

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SOURCE International Isotopes Inc.