International Isotopes Inc. Announces Financial Results For The Second Quarter And Six Months Ended June 30, 2017
The Company Reports a 50% Increase In Radiochemical Sales and a 37% Increase in Radiological Services Revenue For The First Six Months Of 2017
IDAHO FALLS, Idaho, Aug. 16, 2017 /PRNewswire/ -- International Isotopes Inc. (OTCQB: INIS) announces its financial results for the second quarter and six months ended June 30, 2017.
Revenue for the three months ended June 30, 2017 was $1,785,824 as compared to $1,698,732 for the same period in 2016, an overall increase of approximately 5%. Revenue for the six-month period ended June 30, 2017 was $3,620,032, as compared to $3,390,409 for the same period in 2016, an increase of approximately 7%.
Revenue from the sale of radiochemical products for the three months ended June 30, 2017 increased approximately 39% compared to the same period in 2016. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2017, also increased approximately 50% compared to the same period in 2016. We believe the significant increase in revenue for both periods is the result of another sodium iodide producer ceasing production operation in late 2016. The Company realized a profit margin for this segment of about 19% for the three months ended June 30, 2017 which is a decline of about 5% from the 24% profit margin reported in the same period in 2016. Profit Margin for this segment was approximately 19% for the six months ended June 30, 2017 for the segment which is a slight decline of about 1% from the 20% profit margin reported in the same period in 2016. The decrease in net income and profit margin was the result of some minor increases in production costs.
Revenue from radiological services for the three months ended June 30, 2017 increased approximately 30% compared to the same period in 2016. The radiological services segment reported an increase of approximately 37% in revenue for the six-month period ended June 30, 2017 compared to the same period in 2016. Profit margin for the three-month period ended June 30, 2017 was about 41% compared to 48% for the same period for 2016, a decrease in profit margin of about 7% for the three-month period. Although net income increased in the period comparison, profit margin decreased, which was attributable to increased operating cost during the three-month period. Profit margin for this segment was 48% for the six-month period ending June 30, 2017 compared to 44% for the same period in 2016. The increase in profit margin during that period was attributable to increased revenue and gross profit in the period comparison. Revenue in this segment is primarily earned by performing field service activities in connection with the Department of Energy's (DOE) Orphan Source Recovery Program. The DOE awards those contracts on a periodic basis and that can account for large fluctuations in revenue and net income within this segment and in our period-to-period comparisons.
Revenue from nuclear medicine products for the three months and six months ended June 30, 2017 decreased about 1% compared to the same periods in 2016. The profit margin for this segment for the three months ended June 30, 2017, decreased approximately 2% compared to the same period in 2016, and the profit margin for this segment increased by approximately 1% for the six-month period ended June 30, 2017 compared to the same period in 2016. The Company reports sales of TI Services, its 50% owned distributor business, within this segment and although TI Services sales continue to decline, our nuclear medicine product sales to RadQual have remained constant. The majority of revenue within this segment is generated by sales to RadQual, which has increased by less than 1% and 2%, respectively, for the three- and six-month periods ended June 30, 2017, compared to the same periods in 2016.
Revenue from the sale of cobalt products for the three months ended June 30, 2017 decreased approximately 56% compared to the same period in 2016, and revenue from the sale of cobalt products for the six-month period ended June 30, 2017 decreased approximately 40% compared to the same period in 2016. The profit margin for cobalt products decreased by approximately 14% for the three months ended June 30, 2017, as compared to the same period in 2016, and the profit margin decreased approximately 10% for the six months ended June 30, 2017 compared to the same period in 2016. The decline in revenue and net income for both periods is again attributed to the lack of available cobalt for source manufacturing. The Company has resumed production of cobalt in the Department of Energy's Advanced Test Reactor and has most of that material under sales contracts with several customers. Revenue from the sale of this and other cobalt the Company has acquired will begin to be recognized in late 2017 and continue throughout 2018 and will have a significant impact to Company revenue in 2018.
Overall gross profit for the three months ended June 30, 2017 decreased approximately 10% compared to the same period in 2016, and gross profit percentage was 39% for the three months ended June 30, 2017, compared to 46% for the same period in 2016. Gross profit for the six-month period ended June 30, 2017 decreased approximately 1% compared to the same period in 2016 and gross profit percentage also decreased from 45% to 42% in the respective period comparison. The reductions in gross profit and gross profit percentage are largely the result of increases in general and administrative expenses such as legal.
Operating expense for the three months ended June 30, 2017 increased approximately 4% compared to the same period in 2016. Operating expenses for the six-month period ended June 30, 2017 increased approximately 23% compared to the same period in 2016. This increase in operating expense was largely the result of an increase in general, administrative, and consulting costs. Specifically, the costs associated with legal work associated with arbitration proceedings the Company expects to conclude later this year.
Our net loss for the three months ended June 30, 2017 was $602,195, compared to a net loss of $445,427, for the same period in 2016, an increase in net loss of approximately 36% and is the result of the increase in cost of sales and general and administrative expenses. Our net loss for the six-month period ended June 30, 2017, was $1,388,463 as compared to $819,945 for the same period in 2016. This is an increase in loss of approximately 69%. This increase in net loss was largely the result of increased legal expense incurred for arbitration proceedings and increase interest expense recorded during the period.
Steve T. Laflin, President and CEO of the Company, said, "We are very pleased with the continued strong performance of our radiochemical and radiological services segments. As we have recently announced we expect significant further increases in the radiological services segment for the balance of the year attributable to more than $1.3 million of additional field service contracts. All indications seem to support our expectation that our radiochemical sales should also remain on a strong pace for the remainder of the year as well. We expect to see a reemergence of our cobalt sales beginning late in 2017 and continuing through 2018. Those sales should be driven by bulk material we have been able to purchase and material we should begin to process under our contract with the Department of Energy. In addition to all of this we are optimistic that the U.S. Food and Drug Administration will be able to complete their expedited review of our sodium iodide product and we hope to begin commercial sales of that product early in 2018. Considering these positive developments we are quite optimistic about the prospects of the Company reaching profitability in 2018."
International Isotopes Inc.
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About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards and provides radiochemicals for pharmacy compounding, clinical research, and life sciences. The Company also produces bulk cobalt-60 and 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.
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, but not limited to, statements with respect to revenue performance within any of the Company's business segments and the success of new products or contract opportunities. 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, 2016. 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, please visit the Company web site: www.internationalisotopes.com
SOURCE International Isotopes Inc.
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