SOURCE: LaPolla Industries, Inc.

April 11, 2011 10:00 ET

Lapolla Reports Record 2010 Year Results

Delivers 43% Sales Growth in Insulation Foam Business

HOUSTON, TX--(Marketwire - Apr 11, 2011) - Lapolla Industries, Inc. ("Lapolla") (OTCBB: LPAD), a Houston based manufacturer and supplier of spray foam insulation, cool roof coatings and equipment designed to reduce energy consumption in the residential and commercial markets, for both new construction and retrofit applications, today announced results for the year ended 2010.

Overall Results of Operations

Sales increased $20,470,159, or 40.9%, from $50,026,470 in 2009 to $70,496,629 in 2010. Gross profit increased $4,225,616, or 33.9%, from $12,477,187 in 2009 to $16,702,803 in 2010, due to our record sales growth. Operating expenses increased $246,229, or 1.8%, from $13,357,765 in 2009 to $13,603,993 in 2010. Other expense decreased $945,605, or 48.7%, from $1,943,350 in 2009 to $997,745 in 2010, due primarily to decreased interest expense from replacing our matured credit facility with a bank financed credit facility on more favorable terms in the second half of 2010. Lapolla's net income was $2,101,064 for 2010 compared to a net loss of $2,823,927 in 2009. Net income per common share was $.03 for 2010 compared to a net loss per common share of $.04 for 2009.

Douglas J. Kramer, CEO and President of Lapolla, stated, "Our compounded annual sales growth rate of 60% over the past 7 years is due to increasing demand for energy saving products from improved awareness of foam and coatings solutions in the marketplace. The increase in equipment sales is an indicator that expansion of our market opportunities is accelerating due to growing consumer demand worldwide. Lapolla's ongoing international focus has now culminated into the first Lapolla Global Summit, representing 12 countries, in Europe this month."

Results of Business Segments

Foam sales increased $18,516,479, or 43.0%, from $43,080,714 in 2009 to $61,597,220 in 2010, as energy conscious building owners and consumers continued to seek relief from high energy prices and spray polyurethane foam (SPF) continues to gain market share away from traditional insulation systems. Lapolla's startup and rig building operations provide new market entrants, such as HVAC contractors, as well as traditional insulation contractors, with the equipment and training to successfully market and supply foam insulation. As a result of these efforts, revenue growth from equipment sales has increased $1,574,577, or 76.9%, from 2009 to 2010, leading to substantial market gains in sales of SPF. Foam segment profit increased $3,745,166, or 299.5%, from $1,250,640 in 2009 to $4,995,806 in 2010, as targeted market share gains were achieved.

Coatings sales increased $1,953,680, or 28.1%, from 6,945,729 in 2009 to $8,899,409 in 2010, as industrial building markets opened up to meet pent up demand for commercial building projects. Coatings segment profit increased $776,160, or 544.6%, from a loss of $142,508 in 2009 to a profit of $678,482 in 2010.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a manufacturer of spray foam insulation and cool roof coating products targeting commercial, industrial and residential applications in the roofing and insulation construction industries. Additional information about Lapolla is available at www.Lapolla.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, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, 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. 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. 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.

Contact Information

  • Lapolla Contacts:
    Douglas J. Kramer
    CEO
    Michael T. Adams
    CGO
    Charles A. Zajaczkowski
    CFO
    (281) 219-4700