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International Isotopes Inc. Announces Second Quarter and Six Months 2011 Financial Results

August 11, 2011

IDAHO FALLS, Idaho, Aug. 11, 2011 /PRNewswire/ — International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the second quarter and six-months ended June 30, 2011.

Revenue for the three-month period ended June 30, 2011, was $2,614,744, as compared to $1,485,293 for the same period in 2010, an overall increase of $1,129,451, or approximately 76%. Revenue for the six-month period ended June 30, 2011, was $5,028,059, as compared to $2,594,844 for the same period in 2010, an increase of $2,433,215, or approximately 94%. All business segments reported increases in revenue for the three and six month periods ended June 30, 2011 with the exception of the Radiological Services segment which reported a slight decrease in revenue of $241, or less than 1% for the three-month period ended June 30, 2011 compared to the same period in 2010.

The Company’s three most significant business segments are Radiochemical Products, Nuclear Medicine Standards, and Cobalt Products. Revenue from the sale of radiochemical products for the three-month period ended June 30, 2011 was $465,901, compared to $404,620 for the same period in 2010. This represents an increase of $71,281, or approximately 18%. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2011, was $917,201, compared to $848,660 for the same period in 2010. This represents an increase in revenue of $68,541, or approximately 8%. Increases in this segment’s performance are attributable to increased sales of radiochemical iodine-131 which have remained strong for the six-month period ended June 30, 2011.

Revenue from nuclear medicine products for the three-month period ended June 30, 2011, was $1,186,399, compared to $483,520 for the same period in 2010. This represents an increase in revenue attributable to this segment of $702,879, or approximately 145%. Revenue from nuclear medicine products for the six-month period ended June 30, 2011 was $2,579,556, compared to $917,039 for the same period in 2010. This represents an increase in revenue attributable to this segment of $1,662,517, or approximately 181%. In December 2010, the Company entered into a 50/50 joint venture with RadQual, LLC and formed TI Services, LLC. Total revenue generated by TI Services, LLC for the three-month and six-month periods ended June 30, 2011 was $723,611 and $1,555,368, respectively, and is being reported on a consolidated basis with the Company’s Nuclear Medicine Standards business segment revenue.

Revenue from the sale of cobalt products for the three-month period ended June 30, 2011 was $821,409 compared to $486,377 for the same period in 2010. This represents an increase in revenue of $335,032, or approximately 69%. Revenue from the sale of cobalt products for the six-month period ended June 30, 2011 was $1,234,244, compared to $646,262 for the same period in 2010. This represents an increase in revenue of $587,982, or approximately 91%. The increase in revenue from the sale of cobalt products for the three and six-month periods ended June 30, 2011 as compared to the same periods in 2010 are largely the result of the timing of large bulk cobalt product sales that occurred during the periods which have a dramatic effect on period-to-period comparisons. The Company recorded $502,533 of bulk cobalt sales for the three-month period ended June 30, 2011. There were no bulk cobalt sales during the first quarter of 2011 or during the first six months of 2010. The following table presents a period-to-period comparison of total revenue by segment, as well as a period-to-period comparison of total revenue by segment excluding bulk cobalt sales. Management believes that a comparison of total revenue excluding bulk cobalt sales provides meaningful information to investors because of the large period-to-period fluctuations in bulk cobalt sales. However, this information has limitations as an analytical tool and you should not consider it in isolation or as a substitute for total revenue.


                               Three months ended June 30
                               --------------------------
    Sale of Product               2010       2011  Increase   % Change
    ---------------               ----       ---- (Decrease)  --------
                                                  ----------
    Radiochemical
     Products                 $404,620   $475,901    $71,281        18%
    Cobalt Products
     (including bulk
     cobalt sales)             486,377    821,409    335,032        69%
    Cobalt Products
     (excluding bulk
     cobalt sales)             486,377    318,876   (167,501)      -34%
    Nuclear Medicine
     Standards                 483,520  1,186,399    702,879       145%
    Radiological Services       57,876     57,635       (241)        0%
    Fluorine Products                -          -          -         0%
    Transportation              52,900     73,400     20,500        39%
                                ------     ------     ------       ---
            Total Segments
             Including Bulk
             Cobalt          1,485,293  2,614,744  1,129,451        76%
                             ---------  ---------  ---------       ---
            Total Segments
             Excluding Bulk
             Cobalt         $1,485,293 $2,112,211   $626,918        42%
                            ---------- ----------   --------       ---


                                      Six months ended June 30
                                      ------------------------
    Sale of Product                         2010     2011 Increase % Change
    ---------------                         ----   ---- (Decrease) --------
                                                        ----------
    Radiochemical Products              $848,660   $917,201    $68,541    8%
    Cobalt Products (including bulk
     cobalt sales)                       646,262  1,234,244    587,982   91%
    Cobalt Products (excluding bulk
     cobalt sales)                       646,262    731,711     85,449   13%
    Nuclear Medicine Standards           917,039  2,579,556  1,662,517  181%
    Radiological Services                105,533    134,250     28,717   27%
    Fluorine Products                          -          -          -    -
    Transportation                        77,350    162,808     85,458  110%
                                          ------    -------     ------  ---
        Total Segments Including Bulk
         Cobalt                        2,594,844  5,028,059  2,433,215   94%
        Total Segments Excluding Bulk
         Cobalt                       $2,594,844 $4,525,526 $1,930,682   74%
                                      ---------- ---------- ----------  ---

Gross profit for the three-month period ended June 30, 2011 was $999,221, compared to $736,920, for the same period in 2010. This represents an increase of $262,301, or approximately 36%. Gross profit for the six-month period June 30, 2011 was $1,918,258, compared to $1,112,601, for the same period in 2010. This represents an increase of $805,657, or approximately 72%. Cost of sales increased to $1,615,523 for the three-month period ended June 30, 2011, from $748,373 for the same period in 2010. Gross profit for the three-month period includes TI Services, LLC revenues in the amount of $723,611 and TI Services, LLC cost of sales in the amount of $576,111. Gross profit for the six-month period ended June 30, 2011, includes TI Services, LLC revenues in the amount of $1,555,368 and TI Services, LLC cost of sales in the amount of $1,234,731. This is the first year of reporting TI Services, LLC activity on a consolidated basis with all other business segments. Therefore, there are no corresponding sales or cost of sales to report for TI Services, LLC in 2010.

Operating expenses increased to $2,549,481 for the three-month period ended June 30, 2011, from $2,290,438 for the same period in 2010, representing an increase of 11%. Operating expense was $5,046,367 for the six-month period ended June 30, 2011, compared to $3,837,049 for the same period in 2010, representing an increase of $1,209,318 or approximately 32%. Most of the Company’s operating expense is attributable to the research and development costs generated by work related to the continued planning and licensing of the uranium de-conversion facility. During the three-month period ended June 30, 2011, the Company spent $1,591,173, or approximately 62% of its total operating cost, on the planned uranium de-conversion facility project and during the six-month period ended June 30, 2011, the Company spent $2,998,884, or approximately 59% of its total operating expenses, on the project.

The Company’s net loss for the three-month period ended June 30, 2011 was $1,670,187, as compared to $1,707,070 for the same period in 2010, which represents a decrease in loss of approximately 2%. The net loss for the six-month period ended June 30, 2011 was $3,385,198, as compared to $2,971,932 for the same period in 2010, representing an increase in loss of approximately 14%. The Company’s net loss is largely attributable to research and development costs related to the planned depleted uranium de-conversion and fluorine extraction processing facility.

Steve T. Laflin, President and CEO of International Isotopes Inc. said, “The continued strong performance of our major business segments, coupled with the positive contribution of TI Services, LLC revenue, has made this the Company’s strongest six-month revenue performance in our operating history. I believe these trends in business performance are likely to continue for the remainder of the year.

“In parallel with sustaining the growth and performance of our core business segments, we are also pleased with the progress made this year on the planned depleted uranium de-conversion project. We continue to make steady progress on the Nuclear Regulatory Commission (NRC) license review and anticipate the NRC will complete this process and issue our license for the facility by June 2012. We also recently announced the selection of Parsons Corporation (Parsons), a global engineering, construction, technical, and management services firm, as the prime contractor for the design-build of the planned depleted uranium de-conversion facility. We have completed a letter of intent with Parsons outlining the terms for the design and build contract. We have also provided additionally requested information to the Department of Energy (DOE) to further advance our application for a loan on the project under the DOE’s energy efficiency and renewable energy program solicitation. We expect additional information on the progress of that application later this fall. Overall, the project is progressing quite well but, as we have noted in the past, our ability to successfully complete the licensing, design, and construction of this project will require substantial additional funding. We will continue to manage our expenditures on this project and utilize the cash produced from our core business segments to sustain our operations and support budgeted work on the planned project until such time that market conditions for further debt or equity financing improve.”


     International Isotopes Inc.
                                   Three Months Ended
                                        June 30
                                      2010           2011
    Sales                       $1,485,293     $2,614,744
    Gross Profit                  $736,920       $999,221
    Total Operating Expense     $2,290,438     $2,549,481
    Operating (Loss)           ($1,553,518)   ($1,550,260)
    Other (Expense)              ($153,552)     ($129,053)
    Net (Loss)                 ($1,707,070)   ($1,670,186)
    Net (Loss) Per Common
     Share                          ($0.01)        ($0.01)

    Weighted Ave. Shares
     Outstanding               293,926,893    323,425,663


                                    Six Months ended
                                        June 30
                                      2010           2011
    Sales                       $2,594,844     $5,028,059
    Gross Profit                $1,112,601     $1,918,258
    Total Operating Expense     $3,837,049     $5,046,367
    Operating (Loss)           ($2,724,448)   ($3,128,109)
    Other (Expense)              ($247,484)     ($248,960)
    Net (Loss)                 ($2,971,932)   ($3,385,198)
    Net (Loss) Per Common
     Share                          ($0.01)        ($0.01)

    Weighted Ave. Shares
     Outstanding               293,900,022    323,312,599

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 statements with respect to expected trends in business performance, progress on the planned depleted uranium de-conversion project, the expectation of NRC license issuance in 2012, the progress or outcome of any loan applications, and the Company’s ability to obtain additional funding to complete the planned depleted uranium de-conversion project. 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, 2010. 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.

FOR MORE INFORMATION CONTACT:

Jim Drewitz
Creative Options Communications
Investor and Public Relations
jim@jdcreativeoptions.com
Phone: 830-669-2466

For more information, please visit the Company web site: www.intisoid.com

SOURCE International Isotopes Inc.


Source: newswire