International Isotopes Inc. Announces Financial Results for The Second Quarter And Six-Months 2020

Rhea-AI Summary

International Isotopes Inc. (OTCQB: INIS) reported financial results for Q2 and the first half of 2020. Q2 revenue rose by 1% to $2,159,559, but six-month revenue fell 4% to $4,495,345 due to COVID-19 impacts. Gross profit increased by 8% for Q2 and 1% for H1. Operating expenses rose by 8% in Q2 and 15% in H1, driven by staffing for new product development. Notable is a net income of $229,328 in Q2, up from a net loss of $1,157,194 in 2019. However, revenue from nuclear medicine products and radiological services decreased significantly due to the pandemic.

Positive

• Q2 revenue increased 1% to $2,159,559.
• Gross profit in Q2 rose 8% to $1,255,650.
• Net income for Q2 was $229,328, compared to a loss of $1,157,194 in 2019.
• Radiochemical products revenue increased 44% for Q2, driven by new product sales.

Negative

• Six-month revenue decreased 4% to $4,495,345 due to COVID-19.
• Operating expenses increased 8% for Q2 and 15% for H1.
• Revenue from nuclear medicine products fell 16% in Q2 and 10% for H1.
• Radiological services revenue decreased 80% in Q2 and 86% for H1.

IDAHO FALLS, Idaho, Aug. 18, 2020 /PRNewswire/ -- International Isotopes Inc. (OTCQB: INIS) (the "Company" or "INIS") announces its financial results for the three and six months ended June 30, 2020.

Revenue for the three months ended June 30, 2020 was $2,159,559 as compared to $2,135,839 for the same period in 2019, an overall increase of approximately 1%.  Revenue for the six-month period ended June 30, 2020 was $4,495,345, as compared to $4,663,691 for the same period in 2019, a decrease of approximately 4%.  The increase in revenue for the three month period was largely the result of increased sales of radiochemical products.  The decline in revenue for the six month period was largely the result of the negative impact of COVID-19 upon sales of radiochemical and nuclear medicine products.

Cost of sales decreased approximately 7% for the three months ended June 30, 2020 compared to the same period in 2019, resulting in an increase of gross profit of approximately 8% for the three month period compared to the same period of 2019.  Gross profit for the six-month period ended June 30, 2020 increased approximately 1% compared to the same period in 2019.  Operating expense increased approximately 8% and 15% for the three and six months respectively ended June 30, 2020, compared to the same periods in 2019.  The increase for both periods was primarily due to adding staff to support contract manufacturing and new product development.

Other income was $559,895 for the three months ended June 30, 2020, as compared to Other Expense of ($867,660) for the same period in 2019.  This is an increase of $1,427,555 and was attributable to the combination of income from an SBA Loan of $495,500, which converted to grant income during the three months ended June 30, 2020, and reduced expenses related to the contamination event in the state of Washington that occurred in the three months ended June 30, 2019.

Our net income for the three months ended June 30, 2020, was $229,328, compared to net loss of ($1,157,194), for the same period in 2019.  This is an increase of net income of $1,386,522.  Our net loss for the six-month period ended June 30, 2020, was $193,166 as compared to $1,209,151 for the same period in 2019.  This is a decrease in net loss of approximately 84%. The increase in net income for the three month period and decrease in net loss for the six-month periods are both the result of increased sales of our radiochemical products, a reduction in net expenses related to the cleanup of the contamination event that occurred in the state of Washington in the second quarter of 2019, and  income from the SBA Loan converted to grant income during the second quarter of 2020.

The following provides a brief summary of our current business segment performance for the three and six-month periods.

Revenue from the radiochemical products segment, which includes contact manufacturing, increased approximately 44% and 51% for the three and six-month periods ended June 30, 2020 compared to the same periods in 2019.  This increase was primarily the result of sales of our new generic sodium iodide I-131 drug product which was launched in March 2020.

Revenue from the sale of cobalt products for the three months ended June 30, 2020 increased approximately 5% compared to the same period in 2019, and revenues for the six-month period ended June 30, 2020 decreased approximately 10%.  Our cobalt sealed source manufacturing is largely dependent on our ability to procure cobalt material from the DOE's Advanced Test Reactor (ATR). While completing some sales of this material in the second quarter there have been continued delays in DOE's production of this material which have negatively impacted sales revenue for the six-month period.

Revenue from nuclear medicine products for the three months ended June 30, 2020 decreased approximately 16% compared to the same period in 2020 and revenue for the six-month period decreased approximately 10%.  The decrease in sales for both periods was largely the result of slowing sales activity attributed to the COVID-19 global outbreak which resulted in the temporary closure of many imaging clinics and suspension of elective or non-essential imaging procedures.  Starting in June 2020, we have seen our sales of these products begin to substantially recover from this negative COVID-19 impact. 

Revenue from all radiological services for the three and six months ended June 30, 2020 decreased 80% and 86% respectively.  The decrease in revenue for both periods is the result of the Company's termination of radiological services, including field service contracts for the Department of Energy. 

Steve Laflin, President and CEO of the Company, said, "We are pleased with the continued improvement in our financial performance driven largely by revenue growth in our radiochemical segment.  Certainly the COVID-19 pandemic has negatively impacted the revenue growth  within this segment and our nuclear medicine products segment.  However, we believe that many of the medical procedures related to both of these segments have been delayed, not canceled, and there should be a pent-up demand for these products.  We are also working toward the launch of several new products within the nuclear medicine segment and are completing our construction and start-up for contract manufacturing of the Progenics Azedra product.  Barring greater negative impact from COVID-19 the Company should be able to continue to improve our financial performance for the remainder of the year." 

		International Isotopes Inc.
		Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019
Sales of Product		$2,159,559	$2,135,839	$4,495,345	$4,663,691
Gross Profit		$1,255,650	$1,164,455	$2,622,911	$2,603,879
Total Operating Expenses		$1,351,751	$1,246,979	$2,928,322	$2,543,845
Operating Income (Loss)		($96,101)	($82,524)	($305,411)	$60,034
Total Other Income (Expense)		$364,299	($1,000,891)	$195,572	($1,086,914)
Net Income (Loss)		$229,328	($1,157,194)	($193,166)	($1,209,151)
Net Income (Loss) Per Common Share		$0.00	$0.00	$0.00	$0.00
basic and diluted
Weighted Av. Shares Outstanding		432,629,537	419,230,535	422,211,840	416,568,617
basic and diluted

About International Isotopes Inc.

International Isotopes Inc. manufactures a wide range of calibration and reference standards for nuclear medicine, generic sodium iodide I-131 drug product for hyperthyroidism and thyroid cancer, Cobalt-60 sealed source products, and provides  contract manufacturing of various drug products for 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to,  statements with respect to future performance of the Company's business segments and the impact that COVID-19 will, or will not have on our business performance and revenue growth.  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 of the Company 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 its Annual Report on Form 10-K for the year ended December 31, 2019.  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, CONTACT:

David Drewitz
Creative Options Communications
Investor and Public Relations
david@creativeoptionscommunications.com
www.creativeoptionsmaketing.com 
Phone:  972-814-5723

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SOURCE International Isotopes Inc.

FAQ

What were International Isotopes Inc.'s Q2 2020 financial results?

For Q2 2020, International Isotopes Inc. reported revenues of $2,159,559, an increase of 1% from 2019, with a net income of $229,328.

How did COVID-19 affect International Isotopes Inc.'s revenue in 2020?

COVID-19 negatively impacted revenue, leading to a 4% decrease in six-month revenue and significant declines in nuclear medicine and radiological services.

What factors contributed to the increase in net income for International Isotopes Inc. in Q2 2020?

The increase in net income was primarily due to higher sales of radiochemical products and reduced expenses from prior contamination events.

What is the outlook for International Isotopes Inc. after Q2 2020 results?

The company expects continued improvements in financial performance barring further negative impacts from COVID-19.