International Isotopes Inc. Announces 2011 Year End Financial Results

^{Published on 2012-03-28 06:31:42 - Market Wire}
 

International Isotopes Inc. Announces 2011 Year End Financial Results -- IDAHO FALLS, Idaho, March 28, 2012 /PRNewswire/ --

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Shareholder Conference Call Scheduled For Monday, April 2 at 10:00AM Central

Company reports the strongest one-year revenue performance in its operating history with a 55% increase

IDAHO FALLS, Idaho, March 28, 2012 /PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: [ INIS ]) (the "Company") announces the financial results for fiscal year ended December 31, 2011, and plans for a shareholder conference call to review these results and provide a general update on the business performance and plans of the Company in 2012.

What: International Isotopes Inc. Year End Financial Results and General Business Update.

When: Monday, April 2, 2012 at 10:00AM Central Time

How:  Live via phone by dialing 800-624-7038. Code: International Isotopes. Steve Laflin, President and CEO of International Isotopes, Inc. will be leading the call. Participants to the conference call should call in at least 5 minutes prior to the start time. For those who cannot attend the call, an audio replay with be archived on the Company's web site [ www.internationalisotopes.com ] on Tuesday, April 3, 2012.

Revenue

Revenue in 2011 was $9,462,012, compared to $6,107,281 in 2010, an increase of $3,354,731 or approximately 55%.  These sales figures include $2,801,109 of revenue generated by the joint venture, TI Services, LLC that the Company formed with RadQual, LLC in December 2010.  The Company did not report any revenue from this joint venture for the year ended December 31, 2010.  Excluding TI Services, LLC sales from this comparison, total Company revenue increased by approximately 9% over 2010.

During 2011 all of the Company's business segments reported increased sales.  Revenue from the sale of radiochemical products increased approximately 4% to $1,811,935, as compared to $1,746,735 in 2010.  Revenue from Cobalt product sales increased by 4% to $2,339,154 in 2011, as compared to $2,250,049 in 2010.  Revenue from the sale of Nuclear Medicine products increased by approximately 173% to $4,795,369 in 2011, as compared to $1,757,564 in 2010, which includes the sales from TI Services, LLC.  Excluding TI Services, LLC from this comparison, sales of Nuclear Medicine products increased approximately 13%, to $1,994,260 in 2011 as compared to $1,757,564 in 2010.   Radiological Services segment sales revenue increased by approximately 17% to $228,631 in 2011, as compared to $195,017 in 2010, and Transportation segment sales revenue increased by approximately 83% to $286,923 in 2011, as compared to $157,016 in 2010.

Cost of Revenue and Gross Profit

Cost of revenue for 2011 was $6,045,471, as compared to $3,619,759 in 2010, an increase of $2,425,712 or approximately 67%, which included $2,314,841 of costs attributable to TI Services, LLC.  There was no similar cost to report for TI Services, LLC in 2010.  Excluding TI Services, LLC cost of revenue from this comparison, cost of revenue for 2011 was $3,730,630, an increase of $110,871, or approximately 3%.  Gross profit percentage for the Company decreased 5% overall to 36% in 2011, from 41% in 2010.  

Operating Costs and Expenses

Total operating costs and expenses for 2011 were $6,786,991, as compared to $8,821,498 in 2010, a decrease of $2,034,507 or 23%.   The following table presents Operating Costs and Expenses for 2011 as compared to 2010:

Salaries and Contract Labor increased 66% in 2011, as compared to 2010. Salaries and Contract Labor included approximately $1,400,000 in equity-based compensation in 2011, as compared to approximately $739,000 in 2010. This increase was the result of recording a significant amount of non-cash, equity based compensation expense resulting from modification to the terms of several classes of warrants, in which we offered holders a discounted exercise price, as well as non-cash compensation expense recorded for stock options and restricted stock awards outstanding.

General, Administrative, and Consulting expenses increased 17% to $2,031,862 in 2011, as compared to $1,743,692 in 2010.  This increase is primarily the result of consulting and training expenses incurred to enhance and develop our quality assurance program and to address FDA comments with regard to our radiochemical product production processes.

In 2011, we capitalized certain costs related to the planning, licensing, and construction of the proposed de-conversion facility we plan to build in New Mexico.  In previous years these costs were recorded as Research and Development expense.  The significant decrease in Research and Development expense in 2011 of approximately 68% is due to this change. Once it became reasonably certain to us that the NRC would likely issue our license to build and operate the de-conversion facility, we began to capitalize these costs rather than expense in accordance with appropriate accounting standards.  We anticipate that the NRC will issue our operating license during the latter part of 2012 and the capitalized costs associated with obtaining the license will be amortized over the planned operating life of the facility.

Net Loss

Our Net Loss for 2011 was $5,950,438 in 2011, compared to a Net Loss of $6,802,014 in 2010.  The decrease of $851,576, or approximately 13%, was the result of Research and Development expense related to the proposed de-conversion facility, which was capitalized in 2011, rather than being expensed as was done in prior periods.  These costs totaled approximately $3,300,000.  Two other major non-cash factors contributing to our net loss in 2011 were an increase of approximately $2,300,000 in Interest Expense, due to expense recorded upon maturity of convertible debentures, and a $1,400,000 increase in Salaries and Contract Labor as the result of recording a significant amount of equity based compensation expense due to modification to the terms of several classes of warrants and compensation expense recorded for stock options and restricted stock awards outstanding.  

Steve Laflin, President and CEO said, "Calendar year 2011 was a record year for the Company in terms of total revenue with revenue growth shown within in every business segment. Demand for our products remains strong and we are making good progress on the long-term growth initiatives in which we've invested.  However, we are not satisfied with the gross profit percentage in several segments and are working to put stronger measures in place in 2012, to allow us to focus upon higher margin products and improve the financial performance of our business segments and our sole joint venture, TI Services, LLC.  We are planning a shareholder conference call on Monday, April 2, 2012 to address most of the major business segments in greater detail and to provide a further update on our plans and progress on the planned "green technology" depleted uranium de-conversion and fluorine extraction processing facility."

About International Isotopes Inc.

International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, a variety of cobalt-60 products, and provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, and industrial applications.  The Company exclusively owns the patents for the fluorine extraction process and is planning to construct the first commercial depleted uranium de-conversion and fluorine extraction processing facility in the U.S.

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 with respect to our expectations for the NRC to issue an operating license for the planned uranium de-conversion facility, our progress on long-term growth initiatives, the success of additional management measures and higher margin products in improving gross and overall profitability of the Company, and the future profitability of TI Services, LLC.  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, 2011 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.

SOURCE International Isotopes Inc.

RELATED LINKS
[ http://www.internationalisotopes.com ]