Jeremy L. Dillon
RW Monitor
4/10/2015
While International Isotopes experienced a full-year net loss of approximately $1.5 million in 2014, that marks an improvement over the $2.5 million net loss it had in 2013, the company announced last week. The decrease in loss when compared to last year totals approximately 37 percent, which the company attributes to increased revenue in three of our six business segments and the decrease in overall operating expenses. “We believe that fiscal year 2014 is indicative of the kind of revenue growth and improved cash performance this company is capable of achieving,” International Isotopes President and CEO Steve Laflin said in a statement. “While we have continued to face technical and regulatory challenges within some of our segments, our improvement in gross profit percentage, reduction in net loss, and production of positive cash flow from operations are all good indicators about the company’s future course of business performance.”
Total revenue in 2014 was approximately $7.5 million compared to approximately $6.8 million in 2013, which represents an increase of approximately 10 percent. A large reason for the increase involves an rise in the company’s sales of Cobalt Products, which increase approximately 66 percent in 2014. International Isotopes attributed the increase to the resumption of sealed source production, which was made possible through the resumption of cobalt transfers from the Department of Energy Idaho test reactor.
Looking to 2015, International Isotopes expects to expand its field service segment through its contract with the Department of Energy’s Orphan Source Recovery Program. The company has been leveraging its mobile hot cell to provide radiological field services. In 2014, radiological field services revenue decreased from $455,879 in 2013, to $407,328 in 2014, a decrease of approximately 11 percent. International Isotopes attributed the decrease, though, to the timing of its OSRP contractual work, which can fluctuate significantly from period to period. But, in 2015, the company anticipates its ORSP work to be the main driver of its Radiological Services segment revenue. “Both the expansion of the type of sealed sources the company plans to distribute beginning in 2016, and the increased use of our mobile hot cell for source recovery activities, should make major contributions towards increased revenue within our field services segment,” Laflin said.
De-Conversion Facility Still On Hold
The company’s planned de-conversion facility still remains on hold, though. Although the company remains hopeful about moving the de-conversion facility forward in the future, it announced last year that active engineering and construction work for the facility, to be built in New Mexico, needed to be suspended after it could not secure financing without contract commitments. In the company’s 2014 results, the company indicated there still remains interest, at least internationally, that could get the facility up and running in the next few years. “Although the three other commercial enrichment companies that we were in discussions with to secure de-conversion contracts have not moved forward with their plans in the U.S., none of them have officially cancelled construction plans,” the company’s Securities and Exchange Commission filing said. “We believe that one or more of these companies are likely to resume construction plans on their new enrichment facilities in the next few years and when they do, we will resume contract talks to commit the remaining capacity for our planned de-conversion facility and continue efforts to obtain project financing to proceed with the design and construction of the de-conversion facility in Hobbs, New Mexico. In the meantime, we will focus our efforts upon our other business segments and continue to work towards achieving profitability in those areas.”
