IDAHO FALLS, Idaho, Nov. 13, 2015 /PRNewswire/ -- International Isotopes Inc. (OTCQB: INIS) (the “Company”) announces financial results for the third quarter and nine months ended September 30, 2015.
Revenue for the three months ended September 30, 2015 was $1,609,061 compared to $1,985,956 for the same period in 2014, an overall decrease of approximately 19%. Revenue for the nine-month period ended September 30, 2015 was $5,125,918, as compared to $5,743,393 for the same period in 2014, a decrease of approximately 11%.
The following provides some detail regarding the business performance within each of our major business segments during the three- and nine-month periods.
Revenue from the sale of all radiochemical products for the three months ended September 30, 2015 increased less than 1%. Revenue within this segment for the nine-month period ended September 30, 2015 decreased by about 2%. During the nine months ended September 30, 2014, we reported $100,000 of consulting income in this segment, whereas we had no consulting income to report for the same period in 2015 and this accounts for the slight decline in revenue within this segment in the nine-month period comparison. The segment reported a decrease of net income of approximately 13% for the three-month period ended September 30, 2015, as compared to the same period in 2014. Net income for this segment for the nine-month period ended September 30, 2015, decreased by approximately 10% as compared to the same period in 2014 and was again due to the difference in consulting revenue reported within the segment during the nine-month period comparison.
Revenue from the sale of cobalt products for the three months ended September 30, 2015 decreased by about 47% as compared to the same period in 2014. Revenue from the sale of cobalt products for the nine-month period ended September 30, 2015 decreased by about 38% as compared to the same period in 2014. Our sealed source manufacturing generates the majority of our revenue in this segment and these sealed source sales depend on our ability to procure cobalt target material from the U.S. Department of Energy’s (DOE) Advanced Test Reactor. In October 2014, we entered into a ten year agreement with the DOE for the irradiation of cobalt targets. However, since it takes approximately two to three years to irradiate the cobalt targets to the desired level of activity, we anticipate continued limitations in sealed source manufacturing until 2017. Our net income for cobalt products for the three months ended September 30, 2015, as compared to the same period in 2014 decreased by about 60%. Net income for the nine months ended September 30, 2015 compared to the same period in 2014 decreased approximately 25%. The decrease in net income for both periods was attributable to the limitations on cobalt supply which have negatively impacted sealed source sales.
Revenue from nuclear medicine products for the three months ended September 30, 2015 compared to the same period in 2014 decreased approximately 30%. Revenue from nuclear medicine products for the nine-month period ended September 30, 2015 compared to the same period in 2014 decreased approximately 9%. The decrease in sales for both period comparisons was due to an extended maintenance outage completed in the nuclear medicine manufacturing area during the month of September 2015. This outage of the manufacturing processes was necessary to conduct periodic maintenance of equipment and to increase production capacity in our facility. Net income for this segment decreased about 57% for the three months ended September 30, 2015, and net income decreased by approximately 15% for the nine-month period ended September 30, 2015, in each case compared to the same periods in 2014. This decrease in net income for both the three- and nine-month periods was largely the result of the maintenance outage of the manufacturing area in September 2015 as described above.
Revenue from radiological services for the three months ended September 30, 2015 compared to the same period in 2014 increased approximately 229%. This segment’s revenue for the nine-month period ended September 30, 2015 compared to the same period in 2014, increased approximately 18%. The increase in revenue for both periods was attributable to an increase in both field service activities as well as gemstone processing. Net income for the three months ended September 30, 2015 compared to the same period in 2014 increased approximately 692%. Net income for the nine-month period ended September 30, 2015, compared to the same period in 2014, increased approximately 65%. The increase in net income for both three- and nine-month periods can be attributable to increased revenue from gemstone processing and radiological field services. The increase in field service activities has been facilitated primarily by use of the Company’s mobile hot cell unit.
Gross profit for the Company for the three months ended September 30, 2015 was $617,368, compared to $784,474 for the same period in 2014. This represents a decrease of approximately 21%. Gross profit for the nine-month period ended September 30, 2015 was $2,055,119, compared to $2,268,788, for the same period in 2014. This represents a decrease of approximately 9%. This decrease in gross profit was directly related to decreased overall sales.
Operating expense increased to $1,164,605 for the three months ended September 30, 2015, from $922,121 for the same period in 2014. This increase of approximately 26% is largely the result of increased research and development expense which is part of the Company’s continued pursuit of improved and expanded product lines. Operating expenses were $3,033,012 for the nine-month period ended September 30, 2015, compared to $2,823,946 for the same period in 2014. This represents an increase of approximately 7% and was due to increases in salaries and contract labor expense as well as increased research and development expense.
Net loss for the three months ended September 30, 2015 was $644,488, compared to a net loss of $267,487 for the same period in 2014. This is an increase in net loss of approximately 141%. Net loss for the nine-month period ended September 30, 2015, was $1,263,528 as compared to $1,247,990 for the same period in 2014. This is an increase in loss of approximately 1%. The increase in net loss is the result of the decreased overall sales and increased operating expense, particularly increased research and development expense.
Steve T. Laflin, President and CEO of the Company said, “We are continuing to make significant advances within most business segments as we move toward building company revenue and improving our prospects for profitability in future years. While cobalt product revenue is down this year, the resumption of cobalt irradiation will result in increased cobalt production and source manufacturing in future years. While the maintenance outage in Nuclear Medicine manufacturing negatively impacted revenue this year and this past quarter in the long term it will improve our manufacturing reliability and increase manufacturing capacity by a significant amount. We continue to work on further enhancements of existing products within the radiochemical products segment and anticipate the introduction of new generic drug products in the coming years. Our efforts over the past year and a half to build and promote the use of the mobile hot cell unit is now beginning to show benefit to our radiological services segment. We believe that all these advances will provide significant improvement in the Company’s financial performance in future years.”
International Isotopes Inc. | |||||
Three Months Ended Sept 30, | Nine Months Ended Sept 30, | ||||
2015 | 2014 | 2015 | 2014 | ||
Sales of Product | $1,609,061 | $1,985,956 | $5,125,918 | $5,743,393 | |
Gross Profit | $617,368 | $784,474 | $2,055,119 | $2,268,788 | |
Total Operating Expenses | $1,164,605 | $922,121 | $3,033,012 | $2,823,946 | |
Operating (Loss) | ($547,237) | ($137,647) | ($977,893) | ($555,158) | |
Total Other Income (Expense) | ($105,913) | ($119,453) | ($292,265) | ($683,260) | |
Net (Loss) | ($644,488) | ($267,487) | ($1,263,528) | ($1,247,990) | |
Net (Loss) Per Common Share | $0.00 | $0.00 | $0.00 | $0.00 | |
basic and diluted | |||||
Weighted Av. Shares Outstanding | 402,228,535 | 369,443,913 | 396,815,146 | 369,327,455 | |
basic and diluted | |||||
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 advances within the business segments, prospects for profitability, increased cobalt production and source manufacturing, improved manufacturing reliability, the possible introduction of new generic drug products, and prospects for improved Company’s financial performance in future years. 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
david@creativeoptionscommunications.com
www.creativeoptionsmarketing.com
Phone: 972-814-5723
For more information, please visit the Company web site: www.internationalisotopes.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/international-isotopes-inc-announces-third-quarter-and-nine-months-2015-financial-results-300178332.html
SOURCE International Isotopes Inc.
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