Contact Information: Company Contacts: Douglas J. Kramer, CEO Michael T. Adams, CGO Paul Smiertka, CFO (281) 219-4700
Lapolla Reports First Quarter 2009 Results
Delivers 40% Sales Growth in Insulation Foam Business
| Source: Lapolla Industries, Inc.
HOUSTON, TX--(Marketwire - May 15, 2009) - Lapolla Industries, Inc. ("Lapolla") (OTCBB : LPAD ), a Houston based manufacturer and supplier of spray foam insulation,
coatings, and equipment designed to reduce energy consumption in the
commercial and residential new construction and retrofit markets, today
announced results for the quarter ended March 31, 2009.
Overall Results of Operations
Sales increased $1.6 Million, or 19%, from $8.2 Million in the first
quarter of 2008 to $9.8 Million in the comparable period of 2009. Gross
profit increased $.8 Million, or 53%, from $1.5 Million for the three
months ended March 31, 2008 to $2.3 Million for the same period in 2009,
due to our substantial insulation foam sales growth. Gross margin
percentage increased 5.3% from 18.4% for the quarter ended March 31, 2008
to 23.7% in the comparable quarter in 2009, due to raw material price
declines and efficiencies in our foam manufacturing. Operating expenses
increased $.8 Million, or 29%, from $2.6 Million in the first quarter of
2008 to $3.4 Million in the comparable period in 2009, due to increases in
SG&A to support revenue growth, as well as increases associated with the
AirTight asset purchase. Lapolla's operating loss decreased 3% from $1.12
Million for the three months ended March 31, 2008 to $1.08 Million for the
same period in 2009. Net loss per share decreased $.002 per share from
$.019 for the quarter ended March 31, 2008 to $.017 in the comparable
period in 2009.
Douglas J. Kramer, CEO and President of Lapolla, stated, "Lapolla's overall
results reflect the synergies associated with improved efficiencies in our
foam manufacturing, as well as deeper market penetration as a result of
stronger credentials and approvals. Despite a sluggish economy, we
continue to grow our business and are well positioned to capitalize on an
economic upturn."
Results of Business Segments
Foam sales increased $2.4 Million, or 40%, from $6.1 Million in the first
quarter of 2008 to $8.5 Million in the comparable period in 2009, as spray
polyurethane foam continues to replace conventional insulation such as
fiberglass. Consumers and building owners alike continue to seek "green
building solutions" that provide energy cost savings. Foam segment loss
decreased $.1 Million, or 48%, from a loss of $.3 Million for the three
months ended March 31, 2008 to a loss of $.2 Million for the same period in
2009 as increased insulation foam sales translated to higher margins and an
improved bottom line.
Coatings sales decreased $.8 Million, or 39%, from $2.1 Million for the
quarter ended March 31, 2008 to $1.3 Million in the comparable quarter in
2009, as economic conditions adversely affected sales for the current
period. Coating segment profit was $.04 Million in the first quarter of
2008 compared to a loss of $.08 Million in the comparable period in 2009.
Mr. Kramer concluded, "Lapolla is partnering with home builders who are
looking to differentiate their product lines at all levels by offering high
performance home models to meet growing consumer demand for overall energy
efficiency. These strategic relationships are increasing our market share
today and position Lapolla for substantial growth when an increase in new
home sales materializes."
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a leading manufacturer and supplier of spray
polyurethane foam for insulation and coatings targeting commercial and
residential applications in the building envelope construction industries.
Additional information about Lapolla is available on the World Wide Web at
www.lapollaindustries.com.
Forward-Looking Statements
Statements made in this press release that are not historical facts
constitute "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933, Section 21 of the Securities Exchange Act of
1934 and the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are necessarily estimates reflecting the best
judgment of senior management and express the Company's opinions about
trends and factors which may impact future operating results. You can
identify these and other forward-looking statements by the use of words
such as "may," "will," "should," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "intends," "potential," "continue," or
the negative of such terms, or other comparable terminology. Such
statements rely on a number of assumptions concerning future events, many
of which are outside of the Company's control, and involve risks and
uncertainties that could cause actual results to differ materially from
opinions and expectations. Any such forward-looking statements should be
considered in context with the various disclosures made by the Company
about its businesses including, without limitation, the risk factors
described below. Although the Company believes its expectations are based
on reasonable assumptions, judgments, and estimates, forward-looking
statements involve known and unknown risks, uncertainties, contingencies,
and other factors that could cause the Company or the Company's industries'
actual results, level of activity, performance or achievement to differ
materially from those discussed in or implied by any forward-looking
statements made by or on the Company and could cause the financial
condition, results of operations, or cash flows to be materially adversely
affected. In evaluating these statements, some of the factors that you
should consider include the following: financial position and results of
operations, cash position and cash requirements, accounting estimates,
doubtful accounts, inventories, and warranties; operations, supply chain,
quality control, and manufacturing supply, capacity, and new and existing
facilities; products, price of products, product lines, and product and
sales channel mix; relationship with customers, suppliers and strategic
partners; credit facilities; industry trends and responses to these trends;
sources of competition; and outcome and effect of current and potential
future litigation. All information in this release is as of the date
hereof. The Company undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the
Company's expectations.
For further information regarding risks, uncertainties, and other factors
associated with Lapolla's business, please refer to the "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
and "Risk Factors" sections of Lapolla's SEC filings, including, but not
limited to, its annual report on Form 10-K and quarterly reports on Form
10-Q. Copies of Lapolla's press releases and additional information about
Lapolla is available on the World Wide Web at www.lapollaindustries.com.