International Isotopes Inc. Announces 2012 Year End Financial Results

Thu Mar 28, 2013 12:42pm EDT

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Shareholder Conference Call Scheduled For Monday, April 1, 2013 at 10:00AM
IDAHO FALLS, Idaho,  March 28, 2013  /PRNewswire/ -- International Isotopes Inc.
(OTC Bulletin Board: INIS)  announces the financial results for fiscal year
ended  December 31, 2012, 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 2013.

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

When:  Monday,  April 1, 2013at  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  on 
Tuesday, April 2, 2013.


Total revenue in 2012 was  $7,621,934, compared to  $9,462,012  in 2011, which
represents a decrease of  $1,840,078, or approximately 20%.  Each of the
Company's business segments reported decreased revenue in 2012.

Sales of Cobalt Products decreased by 41% to  $1,369,130  in 2012, as compared
to  $2,339,154  in 2011. The decrease in revenue in this segment was
attributable to a combination of a decrease in the production rate of high
specific activity material caused by the delays in U.S. Department of Energy's
(DOE) contracting and a curtailment of cobalt handling by the DOE pending an
investigation of a damaged cobalt target in the test reactor.

The Company previously reported in  December 2011  that it was forced into a new
contract arrangement through the DOE Office of Science National Isotope
Development Center (NIDC).  As expected, this change in contract approach by the
DOE resulted in a significant increase in costs to the Company and caused delays
in production that adversely impacted sales.  Furthermore, in  June 2012, a leak
of a cobalt target belonging to another commercial business resulted in the
curtailment of all further cobalt handling and production activities at the DOE
reactor pending completion of corrective actions.  The Company is currently
completing corrective actions and anticipates at least partial resumption of
cobalt target transfers before the third quarter of 2013 and development of a
new cobalt target design by the end of 2013.  However, it is not certain at this
time whether the reactor contractor will permit continued irradiation of the "in
process" cobalt targets currently stored at the reactor site.  The Company is
still discussing that issue with the reactor contractor and expects to make an
announcement on the outcome of those discussions later this year.  In addition,
to mitigate the impact of these delays and interruptions to cobalt production
activities caused by the NIDC and the cobalt target failure, the Company is
investigating alternative sources of cobalt supply and identifying additional
reactors for cobalt irradiation.

Sales of nuclear medicine standards accounted for approximately 55% and 51%, of
the Company's total sales revenue in 2012 and 2011, respectively.  Sales in this
segment decreased by  $625,659, or approximately 13%, to  $4,169,710  in 2012,
as compared to  $4,795,369  in 2011.  This year-to-year comparison includes
sales from TI Services, LLC, a 50/50 joint venture the Company formed with
RadQual, LLC in  December 2010, to distribute products and services for nuclear
medicine, nuclear cardiology, and Positron Emission Tomography (PET) imaging. 
TI Services, LLC sales for 2012 were  $2,390,514  as compared to  $2,801,109,
for 2011, a decrease of  $410,595, or approximately 15%.  This 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. The Company is working closely with RadQual,
LLC, its partner in the TI Services, LLC joint venture, to develop new products
to market through TI Services, LLC and to make further cuts in operating

Revenue from the Radiological Services segment accounted for approximately 2% of
total sales revenue in both 2012 and 2011.  Sales in this segment decreased by 
$50,760, or approximately 22%, from  $228,631  in 2011, to  $177,871  in 2012. 
Sales of radiochemical products accounted for approximately 22% of the Company
total sales revenue in 2012 and decreased by  $134,643, or approximately 7% to 
$1,677,291, as compared to  $1,811,935  in 2011.  Revenue from the
Transportation segment accounted for approximately 3% of total revenues in 2012
and 2011.  Sales in this segment decreased by approximately 21% to  $227,932  in
2012, as compared to  $286,923  in 2011. The decline in revenue in these
segments was attributed to adverse market conditions, impacts related to delays
in cobalt production, and the lack of appropriate transportation containers in
2012.  The Company expects improving market conditions, the availability of the
new AOS-100 shipping container, and resolution of cobalt production issues to
improve the performance of these business segments in 2013.

There was no revenue to report from the Fluorine Products segment for 2012 or
2011.  The Company is developing its fluoride products in conjunction with
uranium de-conversion, in order to take advantage of the anticipated need for
depleted uranium de-conversion services project.  During 2012, the Company
incurred  $1,050,995  of planning and other expenses related to the
de-conversion project, as compared to  $4,428,799  in 2011.  This decrease of
approximately  $3,378,000  is the result of reduced project spending as well as
capitalizing certain expenditures on the project versus expensing them as
research and development cost.   Although new funding for this project was
limited in 2012, the Company successfully completed the NRC licensing process by
receiving the NRC combination construction and operating license in October
2012.  The Company also reported successful completion of its Fluorine
Extraction Process (FEP) test program during 2012 and the expected shutdown of
the FEP pilot scale facility during 2013.  

Cost of Revenue and Gross Profit  

Cost of revenue for 2012 was  $4,970,033, as compared to  $6,045,471  in 2011, a
decrease of  $1,075,438  or approximately 18%.  Gross profit percentage
decreased to 35% for 2012, from 36% in 2011. The slight decrease in gross profit
can be attributed to incremental increases in the cost of manufacturing
materials including increases in freight costs.   

Operating Costs and Expenses

Total operating costs and expenses for 2012 were  $4,835,351, as compared to 
$6,786,991  in 2011; this is a decrease of    $1,951,640  or approximately 29%. 
Salaries and Contract Labor decreased 38% in 2012, as compared to 2011. Salaries
and Contract Labor included approximately  $286,000  in equity-based
compensation in 2012, as compared to approximately  $1,400,000  in 2011. This
decrease was the result of recording a significant amount of non-cash,
equity-based compensation expense in 2011 resulting from modification to the
terms of several classes of warrants.  General, Administrative and Consulting
expenses decreased 4% to  $1,946,105  in 2012, as compared to  $2,031,862  in
2011.  Research and development expense was  $990,021  for 2012 as compared to 
$1,695,315  for 2011.  This is a decrease of  $705,294, or approximately 42%. 
The majority of research and development expense, reported in both 2012 and
2011, was incurred for planning and licensing activities with regard to the
planned de-conversion facility.  

Net Loss

Net Loss was  $2,240,810  in 2012, compared to a Net Loss of  $5,950,438  in
2011.  The decrease in net loss of  $3,709,628, or approximately 62%, was the
result of the decrease in research and development expense related to the
proposed de-conversion facility, the decrease in operating expense, and the
decrease in interest expense recorded during 2012 as compared to 2011.

Steve Laflin, President and CEO said, "2012 was a challenging and disappointing
year.  Our core business encountered many production and distribution obstacles;
yet, we did make significant progress on our long-term business objective to
advance our 'green', patented, uranium de-conversion project.  During 2012 we
received our Part 40 combined construction and operating license for our planned
depleted uranium de-conversion and fluorine extraction processing facility from
the Nuclear Regulatory Commission (NRC).  It is important for our shareholders
to note that there are no other companies with a similar license, or even an
application for such a license under review by the NRC.  Therefore, the NRC
license represents a significant competitive barrier and we believe it also
provides us with a very valuable asset and a very real and solid growth

"While our progress on this project in 2012 was significant, a substantial
amount of work and additional capital will be required in order to complete this
facility.  The total estimated cost for the project is still estimated to be
approximately  $125 million.  During 2012, we were able to raise approximately 
$3 million  through the sale of convertible debentures and we spent
approximately  $1.5 million  on the project.  During 2013, we intend to control
the rate of capital expenditure on the project until project financing has been
secured. There is no assurance that adequate financing for the project will be
secured on terms acceptable to us, or at all.

"Our core business segments faced significant challenges during 2012.  Economic
conditions and market factors caused declines in the radiochemical and nuclear
medicine segments and both contract and technical issues have hindered our
cobalt sales over the past year.  We have completed significant manufacturing
process improvements in our iodine-131 processes, executed a contract to
purchase an AOS Type B (U) transportation container, are adding new products to
the nuclear medicine segment, and are working to resolve corrective actions
necessary to allow the resumption of cobalt shipments and irradiation.

"While some of those issues will continue to have a detrimental impact in 2013,
I am confident that we will begin to see improvement in revenue and I expect a
solid future of revenue growth in our core business as we realize the benefits
of these process changes, new product introductions, and implementation of new
designs for cobalt target production.  In addition, we plan to create and grow a
new revenue area for the Company in 2013 dealing with radiological field
services.  This type of work required an amendment to our NRC license for the 
Idaho  operations and we received that amendment in 2012.  We already have
several projects under contract for completion and I expect these services to
begin to make a significant contribution to our revenue figures in 2013."

 International Isotopes Inc.                                                                                        
 Years Ended December 31,                                                                                           
                                                                                   $                 %       
                                   2012                   2011                     Change            Change  
 Sales of Products                 $     7,621,934        $       9,462,012        $ (1,840,078)     -19%    
 Gross Profit                      $     2,651,901        $       3,416,541        $    (764,640)    -22%    
 Total Operating Expense           $     4,835,351        $       6,786,991        $ (1,951,640)     -29%    
 Operating Loss Before Other Exp.  $   (2,183,450)        $     (3,370,450)        $   1,187,000     -35%    
 Other Expense                     $        (98,649)      $     (2,656,472)        $   2,557,823     -96%    
 Net Loss                          $   (2,240,810)        $     (5,950,438)        $   3,709,628     -62%    
 Net (Loss) Per Common Share       $            (0.01)    $              (0.02)                              
 Weighted Ave. Sh. Outstanding     359,893,961            334,651,426                                        

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 statements with respect to the
significant competitive barrier provided by the NRC license, the asset value of
the NRC license, the Company's ability to control the rate of capital
expenditure on the depleted uranium project, the ability of the Company to
obtain adequate financing for the project on terms acceptable to the Company,
the resumption of cobalt target shipments and irradiation, the improvement in
revenue growth in most business segments, and the expectations related to new
field service activities.  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, including our Annual Report on Form 10-K for the
year ending  December 31, 2012.  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, Investor Relations  

Or visit the Company's website at:

SOURCE  International Isotopes Inc

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