SOURCE: LaPolla Industries, Inc.

May 15, 2007 13:00 ET

LaPolla Reports First Quarter 2007 Results

Foam Business Delivers 42% Sales Growth

HOUSTON, TX -- (MARKET WIRE) -- May 15, 2007 -- LaPolla Industries, Inc. ("LaPolla" or the "Company") (AMEX: LPA) today announced sales of $7,269,322 for the first quarter of 2007, a 21% increase over sales of $5,999,935 for the first quarter of 2006. Gross Profit increased $345,700, or 41%, for the three months ended March 31, 2007 compared to the three months ended March 31, 2006, primarily due to sales volume growth in our core foam and coatings businesses. Gross margin increased 2.32 percentage points, or 16.6%, for the quarter ended March 31, 2007 compared to the prior quarter ended March 31, 2006. Operating loss before income taxes for the first quarter of 2007 was $992,984 compared to $514,970 for the comparable quarter in 2006. Net loss for the quarter ended March 31, 2007 was $1,063,543 compared to $227,164 for the quarter ended march 31, 2006. Net loss per share for the first quarter of 2007 was $0.019 compared to $0.009 for the first quarter of 2006.

Douglas J. Kramer, CEO and President, stated, "Our foam revenue growth is an indication of the market opportunity and LaPolla's competence in this arena. It is a market that we believe in and we will continue to take the necessary steps to position LPA to be the market leader. The growing recognition of Spray Polyurethane Foam as a Green Construction Material due to its energy savings is a positive step in the construction industry as well as for the future of LaPolla Industries, Inc.," concluded Mr. Kramer.

Results of Core Business Segments

Foam sales increased $1,306,340, or 42%, for the first quarter of 2007 compared to the first quarter of 2006 due to an increase in our sales force, advertising, marketing, and promotion programs. Foam segment loss increased $391,039, or 298%, for the quarter ended March 31, 2007 compared to the quarter ended March 31, 2006 primarily due to an increase in our foam products being sold through independent distributors at lower margins.

Coatings sales increased $81,700, or 4%, for the quarter ended March 31, 2007 compared to the quarter ended March 31, 2006 due to the same reasons enumerated in our Foam segment. Coatings segment loss decreased $7,143, or 16.2%, for the quarter ended March 31, 2007 compared to the quarter ended March 31, 2006 primarily due to increased sales volumes, manufacturing efficiencies, and economies of scale realized from increased purchasing power.

About LaPolla Industries, Inc.

LaPolla Industries, Inc. is a national manufacturer and distributor focused on several basic segments: Coatings, Foam, Paints, Sealants, Adhesives, Equipment, and All Other. Within these business segments, LaPolla has invested resources in a variety of products targeting commercial and industrial and residential applications in the roofing, construction and paint industries.

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

Contact Information

  • Company Contacts:
    Douglas J. Kramer

    John A. Campbell

    Michael T. Adams

    (281) 219-4700 (t)
    (281) 219-4701 (f)