IDAHO FALLS, Idaho, Aug. 12 International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the second quarter and six-months ending June 30, 2009.
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Revenue: Revenue for the three and six-month period ended June 30, 2009, was $1,485,599 and $3,185,269 as compared to $1,876,042 and $3,183,980 for the same periods in 2008, a decrease of $390,443, or 21%, and an increase of $1,289, or less than 1% respectively. The decrease in total revenue for the three-month period was attributable to normal variations in the sale of bulk cobalt while the small increase in revenue for the six-month period is indicative of the steady state of most business segments this fiscal year.
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Revenue from the Sale of Cobalt Products
Since the timing of large bulk cobalt product sales during the course of the calendar year has a significant impact upon period comparisons, management believes that adjusting revenue by excluding sales of bulk cobalt product from the period comparisons provides useful information to investors.
There was no bulk cobalt sales during the three-month period ended June 30, 2009. Therefore, excluding bulk cobalt sales, revenue for the three-month period ended June 30, 2009, were $1,485,599 as compared to $1,387,786 in 2008, which represents an increase in adjusted revenue of 7%. Excluding bulk cobalt sales, revenue for the six-month period ended June 30, 2009 were $2,690,608 as compared to $2,695,724 in 2008, a decrease of less than 1%.
Please refer to the following tables for a financial reconciliation of adjusted total revenues:
Three-Month Financial Reconciliation
Six-Month Financial Reconciliation
Revenue From The Sale Of Radiochemical Products:
Revenue from the sale of radiochemical products for the three-month period ending June 30, 2009, was $398,895 compared to $349,990 for the same period in 2008. This represents an increase in revenue of $48,905, or about 14%. Revenue from the sale of radiochemical products for the six-month period ending June 30, 2009, was $747,666 compared to $668,398 for the same period in 2008. This represents an increase in revenue of $79,268, or about 12%. Increases in the segment performance are attributable to increased sales of radiochemical iodine-131.
Revenue From The Sale of Nuclear Medicine Products:
Revenue from nuclear medicine products for the three-month period ending June 30, 2009 was $466,113 compared to $464,288 for the same period in 2008. This represents an increase in revenue of $1,825, or less than 1%. Revenue from nuclear medicine products for the six-month period ending June 30, 2009 was $955,099 compared to $911,698 for the same period in 2008. This represents an increase in revenue of $43,401, or about 5%.
Revenue From The Radiological Services Segments:
Revenue from radiological services segment for the three-month period ending June 30, 2009, was $154,600 compared to $166,548 for the same period in 2008; a decrease of $11,948 or 7%. Revenue from radiological services segment for the six-month period ending June 30, 2009, was $234,953 compared to $412,270 for the same period in 2008; a decrease of $177,317 or 43%. The decline in this segment's revenue was largely attributable to a decline in the volume of gemstone processing. Current economic conditions are having a negative impact upon the gemstone industry which directly affects this segment's performance.
Gross Profit: Gross profit for the three and six-month periods ended June 30, 2009, was $800,858 and $1,669,792 compared to $950,671 and $1,649,073 for the same periods in 2008. This represents a decrease of $149,813 or 16% for the three month period and an increase of $20,719 or less than 1% for the six months ended June 30, 2009.
Operating Expense: Operating expenses increased to $1,557,774 for the three-month period ended June 30, 2009, compared to $1,177,670 for the same period of 2008. This represents an increase of $380,104 or 32%. Operating costs have increased in the period comparisons due to increased research and development costs and consultant expense related to engineering design, and licensing efforts to support the planned depleted uranium de-conversion and fluorine extraction process facility. All of the expenses of the project are currently being expensed as opposed to capitalized. The bulk of this expense is attributable to the consulting services of a major subcontractor which prepared the Conceptual Design Report for that project and is also preparing the environmental report and Nuclear Regulatory Commission (NRC) license application. Salaries and contract labor expenses for the three month period ended June 30, 2009 were $519,034 as compared to $507,865 for the same period in 2008 and $1,055,088 for the six month period ended June 30, 2009 as compared to $1,020,477 for the same six month period of 2008. General administrative expenses totaled $457,873 for the three-month period ended June 30, 2009 as compared to $663,415 for the same period of 2008 and $889,514 for the six month period ended June 30, 2009, as compared to $1,280,582 same period of 2008.
Net Loss: Our net loss for the three and six-month periods ended June 30, 2009 was $758,634 and $1,346,561 respectively compared to a loss of $246,710 and $712,654 for the same periods in 2008. This is an increase in loss of $511,924 for the three-months ended June 30, 2008 and an increase in loss of $633,907 for the six months ended June 30, 2009, and was attributable to research and development costs related to the depleted uranium de-conversion and fluorine extraction processing facility.
Steve T. Laflin, President and CEO of International Isotopes Inc. said, "With the exception of our Radiological Services, all of our business segments continue to grow or at least sustain the levels we achieved in 2008.
"The Radiological Services segment has been clearly impacted by the struggling world economy but we do not expect any similar impact on our other business segments. In fact, I remain quite optimistic about our future performance in these business segments because we anticipate new sales and market growth opportunities for our isotopes. These opportunities are caused in part by interruptions in supply from some of our competitors. Those interruptions have been caused by reduced or limited operability of some isotope producing reactors in the world. We, on the other hand, have a stable operating reactor source for our cobalt products. Additionally, we have agreements in place with other operating reactors for the other products we supply. We believe the stability and price competitiveness of our products will create additional opportunities for sales and revenue in these affected segments.
Laflin continued, "Our expenditures on the depleted uranium de-conversion and fluorine extraction facility, coupled with the costs of the FEP pilot plant, account for significantly more than our loss this fiscal year. Had we not continued to invest in the uranium de-conversion facility and our fluorine extraction pilot facility in Idaho Falls, this would have been a profitable quarter and six months. I truly believe, the investment we are making in the uranium de-conversion and fluorine extraction facility, are important to our future success and our ability to ultimately provide a return to our shareholders. We remain focused upon that goal and will continue to manage cash and seek investments as necessary to carry this extremely important project forward."
About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources. The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications and provides a host of analytical, measurement, recycling, and processing services 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 the statements regarding the Company's expectations of the current economy upon our business segments, projections about the Company's expected future performance including market growth opportunities, the stability of our supply reactors and agreements, the opportunity to expand sales revenues, potential for profits, and future return to shareholders. 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 International Isotopes Inc. 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 International Isotopes Inc.'s filings with the Securities and Exchange Commission at www.sec.gov, including our annual report on Form 10-K for the year ending December 31, 2008. 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 International Isotopes, Inc. undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Period ended Period ended June 30, 2009 June 30, 2008 Total Revenue $1,485,599 $1,876,042 Bulk Cobalt Products Revenue $0 $488,256 Adjusted Revenue Excluding Bulk Cobalt Products Revenue $1,485,599 $1,387,786
SOURCE International Isotopes Inc.
