International Isotopes Inc. (OTC Bulletin Board: INIS) (the "Company") announces the financial results for fiscal year ended December 31, 2011, 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 2012.
Revenue in 2011 was $9,462,012, compared to $6,107,281 in 2010, an increase of $3,354,731 or approximately 55%. These sales figures include $2,801,109 of revenue generated by the joint venture, TI Services, LLC that the Company formed with RadQual, LLC in December 2010. The Company did not report any revenue from this joint venture for the year ended December 31, 2010. Excluding TI Services, LLC sales from this comparison, total Company revenue increased by approximately 9% over 2010.
During 2011 all of the Company's business segments reported increased sales. Revenue from the sale of radiochemical products increased approximately 4% to $1,811,935, as compared to $1,746,735 in 2010. Revenue from Cobalt product sales increased by 4% to $2,339,154 in 2011, as compared to $2,250,049 in 2010. Revenue from the sale of Nuclear Medicine products increased by approximately 173% to $4,795,369 in 2011, as compared to $1,757,564 in 2010, which includes the sales from TI Services, LLC. Excluding TI Services, LLC from this comparison, sales of Nuclear Medicine products increased approximately 13%, to $1,994,260 in 2011 as compared to $1,757,564 in 2010. Radiological Services segment sales revenue increased by approximately 17% to $228,631 in 2011, as compared to $195,017 in 2010, and Transportation segment sales revenue increased by approximately 83% to $286,923 in 2011, as compared to $157,016 in 2010.
Cost of Revenue and Gross Profit
Cost of revenue for 2011 was $6,045,471, as compared to $3,619,759 in 2010, an increase of $2,425,712 or approximately 67%, which included $2,314,841 of costs attributable to TI Services, LLC. There was no similar cost to report for TI Services, LLC in 2010. Excluding TI Services, LLC cost of revenue from this comparison, cost of revenue for 2011 was $3,730,630, an increase of $110,871, or approximately 3%. Gross profit percentage for the Company decreased 5% overall to 36% in 2011, from 41% in 2010.
Operating Costs and Expenses
Total operating costs and expenses for 2011 were $6,786,991, as compared to $8,821,498 in 2010, a decrease of $2,034,507 or 23%.
Salaries and Contract Labor increased 66% in 2011, as compared to 2010. Salaries and Contract Labor included approximately $1,400,000 in equity-based compensation in 2011, as compared to approximately $739,000 in 2010. This increase was the result of recording a significant amount of non-cash, equity based compensation expense resulting from modification to the terms of several classes of warrants, in which we offered holders a discounted exercise price, as well as non-cash compensation expense recorded for stock options and restricted stock awards outstanding.
General, Administrative, and Consulting expenses increased 17% to $2,031,862 in 2011, as compared to $1,743,692 in 2010. This increase is primarily the result of consulting and training expenses incurred to enhance and develop our quality assurance program and to address FDA comments with regard to our radiochemical product production processes.
In 2011, we capitalized certain costs related to the planning, licensing, and construction of the proposed de-conversion facility we plan to build in New Mexico. In previous years these costs were recorded as Research and Development expense. The significant decrease in Research and Development expense in 2011 of approximately 68% is due to this change. Once it became reasonably certain to us that the NRC would likely issue our license to build and operate the de-conversion facility, we began to capitalize these costs rather than expense in accordance with appropriate accounting standards. We anticipate that the NRC will issue our operating license during the latter part of 2012 and the capitalized costs associated with obtaining the license will be amortized over the planned operating life of the facility.
Our Net Loss for 2011 was $5,950,438 in 2011, compared to a Net Loss of $6,802,014 in 2010. The decrease of $851,576, or approximately 13%, was the result of Research and Development expense related to the proposed de-conversion facility, which was capitalized in 2011, rather than being expensed as was done in prior periods. These costs totaled approximately $3,300,000. Two other major non-cash factors contributing to our net loss in 2011 were an increase of approximately $2,300,000 in Interest Expense, due to expense recorded upon maturity of convertible debentures, and a $1,400,000 increase in Salaries and Contract Labor as the result of recording a significant amount of equity based compensation expense due to modification to the terms of several classes of warrants and compensation expense recorded for stock options and restricted stock awards outstanding.
Steve Laflin, President and CEO said, "Calendar year 2011 was a record year for the Company in terms of total revenue with revenue growth shown within in every business segment. Demand for our products remains strong and we are making good progress on the long-term growth initiatives in which we've invested. However, we are not satisfied with the gross profit percentage in several segments and are working to put stronger measures in place in 2012, to allow us to focus upon higher margin products and improve the financial performance of our business segments and our sole joint venture, TI Services, LLC. We are planning a shareholder conference call on Monday, April 2, 2012 to address most of the major business segments in greater detail and to provide a further update on our plans and progress on the planned "green technology" depleted uranium de-conversion and fluorine extraction processing facility."
SOURCE International Isotopes Inc.