Nice news today:
Friday, November 15 2013 9:30 AM, EST International Isotopes Inc. Announces Third Quarter And Nine Months 2013 Financial Results PR Newswire "Press Releases US - English"
IDAHO FALLS, Idaho , Nov. 15, 2013 /PRNewswire/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the third quarter and nine-months ended September 30 , 2013.
Company revenue for the three months ended September 30, 2013 was $1,680,696 , as compared to $1,793,483 for the same period in 2012, an overall decrease of $112,787 , or approximately 6%. Revenue for the nine-month period ended September 30, 2013 , was $5,153,534 , as compared to $5,785,775 for the same period in 2012, a decrease of $632,241 , or approximately 11%.
Revenue from the sale of radiochemical products for the three months ended September 30, 2013 was $450,285 , compared to $443,127 for the same period in 2012. This represents an increase in revenue of approximately 2%. Revenue from the sale of radiochemical products for the nine-month period ended September 30, 2013 , was $1,316,909 , compared to $1,230,161 for the same period in 2012. This is an increase in revenue of approximately 7%. This segment reported an increase of net income of 307% and 442% for the three and nine-month periods respectively. The increase in net income is the result of increased sales and reduced cost of sales through process efficiencies and enhancements.
Revenue from the sale of cobalt products for the three months ended September 30, 2013 was $332,295 , compared to $202,545 for the same period in 2012. This represents an increase in revenue of approximately 64%. Revenue from the sale of cobalt products for the nine-month period ended September 30, 2013 was $777,424 , compared to $1,035,975 for the same period in 2012. This represents a decrease in revenue of approximately 25%. The net income for cobalt products increased approximately 169% for the three months ended September 30, 2013 , but decreased by approximately 39% for the nine months ended September 30 , 2013. The increase in net income for the three-month period, is attributable to the increase in sealed source sales and the significant decrease in fees paid to the U.S. Department of Energy ("DOE") for certain cobalt production activities. The decrease in net income for the nine-month period was attributable to the reduced productivity resulting from the unavailability of cobalt material during most of this year due to technical issues with the cobalt target design.
Revenue from nuclear medicine products for the three months ended September 30, 2013 was $736,238 , compared to $1,021,230 for the same period in 2012. This represents a decrease in revenue of approximately 28%. Revenue from nuclear medicine products for the nine-month period ended September 30, 2013 was $2,455,987 compared to $3,223,359 for the same period in 2012, a decrease of approximately 24%. The decline in revenue in this segment, for both the three and nine-month periods was largely attributable to the decrease in sales reported by our joint venture, TI Services, LLC . TI Services, LLC sales for the three months ended September 30, 2013 , were $333,548 as compared to $554,380 , for the same period in 2012, a decrease of approximately 40%. TI Services, LLC sales for the nine months ended September 30, 2013 were $1,148,860 , compared to $1,857,678 for the same period in 2012, a decrease of approximately 38%. The decrease in TI Services, LLC sales is largely attributable to a drop in sales of paper products used in nuclear medicine imaging which is the result of clinics shifting towards maintaining electronic records. Despite the significant decline in revenue within this segment, cost controlling measures and production efficiencies have mostly sustained the segment's net income. Net income for this segment for the three and nine-month periods ended September 30, 2013 , decreased only about 3% and 1%, respectively, compared to the same periods in 2012.
Revenue from radiological services for the three months ended September 30, 2013 was $143,380 , compared to $64,006 for the same period in 2012, an increase of approximately 124%. Revenue for the nine-month period ended September 30, 2013 was $484,416 compared to $129,889 for the same period in 2012, and increase of approximately 273%. The majority of the increase in revenue within this segment is the result of increased field service activity. Net income for the three months ended September 30, 2013 declined about 61% compared to the same period in 2012, however, net income for the nine-month period increased by about 161%. The variability in revenue and net income in the period comparisons is attributable to the random nature of the field service work contracts. We anticipate net income within this segment to continue to improve for the remainder of 2013 and beyond as much of the initial costs related to launching the field services work will diminish.
Overall Company gross profit for the three months ended September 30, 2013 was $623,942 , compared to $626,507 for the same period in 2012. This represents a decrease of less than 1%. Cost of sales decreased to $1,056,754 for the three months ended September 30, 2013 from $1,166,976 for the same period in 2012, a decrease of approximately 9%. Gross profit for the nine-month period ended September 30, 2013 was $1,991,574 , compared to $1,954,200 , for the same period in 2012, an increase of approximately 2%.
Operating expenses decreased to $951,452 for the three months ended September 30, 2013 , from $1,187,554 for the same period in 2012. This is a decrease of approximately 20%. Operating expenses were $3,199,908 for the nine-month period ended September 30, 2013 , compared to $3,658,817 for the same period in 2012. This represents a decrease of approximately 13%. The reductions in operating expense are the result of management's continued efforts to reduce discretionary costs where possible and secure beneficial pricing on general operating purchases. Research and development expense incurred, with regard to the planning and construction of the proposed de-conversion facility we plan to build in New Mexico , decreased by approximately 48% and 29% for the three and nine months ended September 30, 2013 , respectively, compared to the same periods in 2012.
Our net loss for the three months ended September 30, 2013 was $424,107 , compared to $591,526 for the same period in 2012. This is a decrease in loss of approximately 28%. Our net loss for the nine-month period ended September 30, 2013 , was $1,492,209 as compared to $1,696,905 for the same period in 2012. This is a decrease in loss of approximately 12%. The decrease in net loss is the result of the slight increase in gross profit percentage as well as a significant reduction in overall operating costs and expenses.
Steve T. Laflin , President and CEO of the Company said, "Despite the small decline in revenue seen this year we have been able to successfully control production costs and reduce operating expenses in order to improve gross profit and continue to move the Company towards profitability. Part of that cost control involves placing additional engineering work and formal design activities for the planned Hobbs de-conversion facility on hold for the time being. We are still confident that we will eventually be able to obtain contracts for additional de-conversion service and once we have fully committed the capacity of the facility under contract we will once again resume our search for financing the balance of the project and resume the schedule for design and construction.
"Delays in cobalt production activities and transfers have had the most detrimental impact to our core business this year but we are now moving past those issues. We have been able to resume cobalt shipments of targets for processing and sale beginning in October and this will permit resumption of cobalt product sales in the last quarter of 2013 and the first two quarters of 2014. This should provide a significant boost to revenue in those periods and we are still making progress with the evaluations necessary to resume irradiation of our cobalt targets as well. More information on our ability to resume those cobalt target irradiations should be available at year end.
"Perhaps the most positive sign of our improving business performance can be seen in reviewing our segment net income. Total net income from all business segments improved from just $6,099 to $205,897 for the three-month period and from $42,783 to $362,974 for the nine-month period ended September 30, 2013 compared to the same periods in 2012. For the three-month period this increase in net income was led by increases in radiochemical and cobalt product segments and for the nine-month period the increase was driven by radiochemical products and radiological services. We expect to continue to improve our business segment net income performance in the last quarter of this year as well.
"The Company's other major initiative involves our proposal to operate the Paducah Gaseous Diffusion Plant (PGDP). The Company is working with Advanced Process Technology Systems LLC (APTS) to form a joint venture and has submitted a proposal to the DOE under a Request For Offers solicitation process. That proposal was provided to the DOE in August 2013 and the Company was invited to make an oral presentation and answer questions on the proposal in September 2013. There is no indication that the DOE will accept or respond favorably to this proposal, however, the DOE expects to announce a decision by the end of November 2013 . There are a number of factors that could limit the ability of the joint venture to obtain the DOE's acceptance or operate the PGDP, including, but not limited to, obtaining additional adequate financing to support the proposal. However, the Company believes it has submitted a unique proposal to the DOE that offers considerable advantage to the DOE and U.S. taxpayers and is expected to provide a significant financial return to the Company."
