Contact Information: Company Contacts: Douglas J. Kramer CEO Michael T. Adams CGO (281) 219-4700
Lapolla Reports Record Third Quarter 2009 Results
Delivers Operating Profit and Revenue Growth
| Source: Lapolla Industries, Inc.
HOUSTON, TX--(Marketwire - November 2, 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 its results for the third quarter and nine months ended September
30, 2009.
Third Quarter Results
Overall Results
Lapolla had record sales of $14,022,690 for the third quarter ended
September 30, 2009 compared to $13,880,220 in the comparable period in
2008. Gross profit increased $1,127,400, or 44%, and gross margin
percentage increased 8%, in the third quarter of 2009, compared to the same
period in 2008. Net income increased $385,322, or 1,500%, in the third
quarter of 2009, from the comparable prior year period. Net income per
share increased $0.006, or 1,500%, in the third quarter ended September 30,
2009, from the same period in 2008.
Douglas J. Kramer, CEO and President of Lapolla, commented,
"Lapolla's sustained growth, even through the current economic conditions,
is a result of Management's understanding of the dynamics of the spray
polyurethane foam industry and commitment to an ongoing strategy for
superior spray foam technology and deliberate strategic market expansion.
As our economy rebounds, further growth is expected from pent up demand in
our business segments, especially maintenance related spray foam and
coatings, resulting in a more profitable bottom line. We will continue to
aggressively pursue market share as well as expand the overall market by
offering extensive training to conventional insulators and others that are
looking to participate in the growing spray foam market."
Business Segments
Foam sales increased $912,727 for the third quarter of 2009, or 8%, from
the comparable prior year period. Gross profit increased $1,202,037, or
57%, in the third quarter ended September 30, 2009, compared to the same
period in 2008. Foam segment profit increased $588,957, or 94%, in the
current quarterly period compared to the prior year period in 2008.
Coatings sales decreased $770,257, or 27%, in the quarter ended September
30, 2009, compared to the same period in 2008. Gross profit decreased
$74,637, or 15%, in the current quarterly period, compared to the same
period in 2008. Coating segment profit decreased $5,497, or 5%, compared to
the same period in 2008.
Nine Months Results
Overall Results
Lapolla had record sales of $34,658,872 for the nine month period ended
September 30, 2009 compared to $34,086,949 in the same period of the prior
year. Gross profit increased $2,129,379, or 31%, and gross margin
percentage increased 6%, in the third quarter of 2009, compared to the same
period in 2008. Net loss for the current nine month period increased
$929,372, or 91%, compared to the prior year period. Net loss per share
increased $0.014, or 82%, in the nine months ended September 30, 2009
compared to the same period in 2008.
Business Segments
Foam sales increased $3,107,807 for the nine months ended September 30,
2009, or 12%, from the comparable prior year period. Gross profit increased
$2,957,251, or 60%, in the nine months ended September 30, 2009, compared
to the same period in 2008. Foam segment profit increased $512,610 in the
current nine month period, or 109%, compared to the same period in 2008.
Coatings sales decreased $2,535,884, or 32%, for the nine month period
ended September 30, 2009, compared to the same period in 2008. Gross profit
decreased $827,872, or 43%, in the current nine month period, compared to
the same period in 2008. Coating segment loss for the nine month period
ended September 30, 2009 was $112,274, compared to a segment profit of
$637,764 in the prior comparable period.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a leading manufacturer and supplier of spray
polyurethane foam for insulation and coatings targeting residential and
commercial applications in the building envelope construction industries.
For more information, please visit www.Lapolla.com and
www.AirTightInsulation.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.