International Isotopes Inc. Announces Third Quarter and Nine Months 2008 Financial Results
Revenue for the three and nine-month period ended September 30, 2008, was$1,245,164 and $4,429,144 respectively as compared to $1,486,112 and$3,592,049 for the same periods in 2007, a decrease of $240,948, or 16%, forthe three-month period and an increase of $837,095, or 23%, for the nine-monthperiod. The increase in total revenue for the nine-month period wasattributable to strong performance in cobalt and radiochemical productbusiness segments. The decline in revenue for the three-month period wasattributable to normal variations in the sale of bulk cobalt for the periodcomparisons. Since the timing of large bulk cobalt product sales during thecourse of the calendar year has a significant impact upon period comparisons,the Company believes excluding sales of bulk cobalt product from the periodcomparisons of revenue provides useful information to investors.
Excluding bulk cobalt sales, revenue for the three-month period endedSeptember 30, 2008 was $1,245,164 as compared to $1,038,835 for the sameperiod in 2007, which represents an increase of 20%. Excluding bulk cobaltproduct sales, revenue for the nine-month period ended September 30, 2008 was$3,940,888 as compared to $3,144,773 for the same period in 2007, whichrepresents an increase of 25%. Please refer to the following tables for afurther analysis of this measure:
Revenue from the sale of radiochemical products for the three-month periodending September 30, 2008, was $348,968 compared to $248,228 for the sameperiod in 2007. Revenue from the sale of radiochemical products for thenine-month period ending September 30, 2008, was $1,017,366 compared to$758,235 for the same period in 2007. These represent increases in revenue of$100,740, or about 40%, and $259,131, or about 34% for the three andnine-month periods respectively. Increases in the segment performance areattributable to increased sales of radiochemical iodine-131.
Revenue from nuclear medicine products for the three-month period endingSeptember 30, 2008 was $487,640 compared to $466,435 for the same period in2007. Revenue from the sale of nuclear medicine products for the nine-monthperiod ending September 30, 2008, was $1,399,338 compared to $1,386,213 forthe same period in 2007. This represents an increase in income of $21,205, orabout 4%, and an increase in income of $13,125, or 1%, respectively.
Revenue from radiological services segment for the three-month periodending September 30, 2008, was $115,262 compared to $136,978 for the sameperiod in 2007; a decrease of $21,716 or 16%. Revenue from radiologicalservices segment for the nine-month period ending September 30, 2008, was$527,532 compared to $503,877 for the same period in 2007. This represents anincrease in revenue of $23,655 or approximately a 5% increase. Thefluctuations in revenue from this segment were attributable to typicalvariations in the volume of gemstone processing.
Gross profit for the three and nine-month periods ended September 30,2008, was $597,282 and $2,246,355 compared to $689,849 and $1,618,879 for thesame periods in 2007. This represents a decrease of $92,567 or 13% and anincrease of $627,476 or 39%, for the three and nine month periodsrespectively. However, gross profit as a percentage of revenue grew from 46%to 48% for the three-month period and from 45% to 50% for the nine-monthperiod comparisons. The Company reported the improvement in gross profitpercentage was the result of improvements in production costs and productionefficiencies.
Operating expenses increased to $1,324,266 and $3,647,443 for the threeand nine-month period ended September 30, 2008, compared to $970,115 and$2,756,052 for the same periods of 2007. This represents an increase of$354,151 or 36%, and $891,391 or 32%, for the three and nine-month periodsrespectively. The Company reports operating costs have increased in theperiod comparisons due to increased salaries, contract labor, and legalexpense related to engineering design, licensing, addition of full time staff,subcontractors, and legal counsel necessary to support continued growth of thefluorine products division. This includes pilot plant demonstrations andefforts related to equipment acquisition, raising capital, and protectingnewly developed intellectual property.
The Company's net loss for the three and nine-month periods endedSeptember 30, 2008 was $739,161 and $1,451,815 compared to a loss of $276,287and $1,146,281 for the same periods in 2007. This increase in loss wasattributable to increases in operating costs related to the support andcontinued growth of the fluorine products.
Steve T. Laflin, President and CEO of International Isotopes Inc. said,"We believe that continued growth in our current business segments willcontinue to improve revenue and cash flow for the Company. However, theCompany will also continue to invest in development of the fluorine extractionprocess technology as well as design and licensing of a larger scale uraniumde-conversion and fluorine extraction facility. While we expect to generatesufficient cash flows from the existing business segments to meet operationalneeds during 2008, there is no assurance these cash flows will occur. Inaddition, we will require additional capital to support ongoing efforts toexpand our business to include the envisioned large scale uraniumde-conversion processing and fluorine extraction plant. Site studies as wellas initial design and licensing activities for that new facility areproceeding on schedule and will continue through the remainder of 2008.Certainly our engineering design and licensing activities will continue into2009. These efforts are important to the strategic direction the Company istaking to position ourselves as the only major commercial provider of uraniumprocessing and fluorine extraction in the U.S."
About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicinecalibration and reference standards, high purity fluoride gases, and a varietyof cobalt-60 products such as teletherapy sources. The Company also providesa wide selection of radioisotopes and radiochemicals for medical devices,calibration, clinical research, life sciences, and industrial applications andprovides a host of analytical, measurement, recycling, and processing serviceson 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 Section21E of the Securities Exchange Act of 1934, including the statements withrespect to expected continued improvement in financial performance, cash fromoperations, and the Company's goals with respect to constructing a depleteduranium de-conversion processing and fluorine extraction facility.Information contained in such forward-looking statements is based on currentexpectations and is subject to change. These statements involve a number ofrisks, uncertainties and other factors that could cause actual results,performance or achievements of International Isotopes Inc. to be materiallydifferent from any future results, performance or achievements expressed orimplied by these forward-looking statements. For example, the Company may notbe successful in pursuing its strategy with respect to the fluorine extractionprocess and uranium de-conversion. Other factors, which could materiallyaffect such forward-looking statements, can be found in International IsotopesInc.'s filings with the Securities and Exchange Commission at www.sec.gov,including our annual report on Form 10-KSB for the year ending December 31,2007. Investors, potential investors and other readers are urged to considerthese factors carefully in evaluating the forward-looking statements and arecautioned not to place undue reliance on such forward-looking statements. Theforward-looking statements made herein are only made as of the date of thispress release and International Isotopes, Inc. undertakes no obligation topublicly update such forward-looking statements to reflect subsequent eventsor circumstances.
For More Information, Contact:
Steve Laflin, President and CEO
(208) 524-5300Three-Month Financial Measure Reconciliation Period Ended Period Ended Sept. 30, 2008 Sept. 30, 2007 Total Revenue $1,245,164 $1,486,112 Bulk Cobalt Products Revenue $0 $447,277 Total Revenue Excluding Bulk Cobalt Products Revenue $1,245,164 $1,038,835 Nine-Month Financial Measure Reconciliation Period Ended Period Ended Sept. 30, 2008 Sept. 30, 2007 Total Revenue $4,429,144 $3,592,049 Bulk Cobalt Products Revenue $488,256 $447,276 Total Revenue Excluding Bulk Cobalt Products Revenue $3,940,888 $3,144,773
SOURCE International Isotopes Inc.
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