Lapolla Reports First Quarter 2009 Results
Delivers 40% Sales Growth in Insulation Foam Business
May 15, 2009 4:25:00 PM
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View Additional ProfilesHOUSTON, TX -- (MARKET WIRE) -- 05/15/09 -- 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.
Company Contacts:
Douglas J. Kramer, CEO
Michael T. Adams, CGO
Paul Smiertka, CFO
(281) 219-4700
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