SOURCE: LaPolla Industries, Inc.

Lapolla Industries, Inc.

August 14, 2009 17:48 ET

Lapolla Reports Second Quarter 2009 Results

Delivers 30% Insulation Foam Sales Growth for Six Months Ended June 30

HOUSTON, TX--(Marketwire - August 14, 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 current outlook and results for the second quarter and six months ended June 30, 2009.

Current Outlook

Foam sales continue to drive Lapolla's focus and growth. Insulation foam, other than roofing, continues to outpace the current stagnant economy primarily due to high energy costs and increasing consumer awareness of energy cost savings. Much of Lapolla's resources are focused on foam technology through formulations, testing, approvals and credentials. For the six month period ended June 30, 2009, foam segment sales have increased by 14.6%, gross profit by 3.8%, and insulation foam within this segment has grown by over 30%, compared to the same period in 2008. International sales, including Canada, are just beginning to impact foam sales and are expected to play a much larger role in the remaining quarters this year and in the foreseeable future. Although commercial roofing is down, directly affecting our roofing foam and coating sales, Lapolla is well positioned for growth in this market when commercial construction returns to more positive levels.

Douglas J. Kramer, CEO and President of Lapolla, commented, "Although the economy has impacted our business, spray foam insulation continues to grow and Lapolla is capitalizing on its leadership position in this market. As a result of our superior product performance, credentials and approvals, as well as technical sales and customer service, Lapolla is able to sustain an aggressive market profile. The recent approval of our spray foam insulation products for the Canadian insulation markets is the next step in Lapolla's aggressive growth strategy towards international expansion. We are very encouraged by the momentum we are seeing in the global spray foam insulation market being driven by rising consumer demand."

Second Quarter Results

Lapolla had sales of $10.94 Million for the second quarter ended June 30, 2009, a 9.1% decline from the same period of the prior year. Gross profit increased $198.6 Thousand, or 7.3%, and gross margin percentage increased 4.1%, in the second quarter of 2009, compared to the same period in 2008. Net loss for the second quarter was $1.28 Million compared to net income of $68.6 Thousand in the prior comparable period. Net loss per share was $0.020 per share for the second quarter compared to net income per share of $0.001 per share for the same period in 2008.

Foam sales decreased $176.5 Thousand for the second quarter of 2009, or 1.9%, from the comparable prior year period. Gross profit increased $694.5 Thousand, or 38.3%, in the second quarter ended June 30, 2009, compared to the same period in 2008. Segment loss was $57.2 Thousand in the current quarterly period, compared to a segment profit of $297.7 Thousand in the same period in 2008.

Coatings sales decreased $917.5 Thousand, or 31.3%, in the quarter ended June 30, 2009, compared to the same period in 2008. Gross profit decreased $495.8 Thousand, or 53.4%, in the current quarterly period, compared to the same period in 2008. Segment loss for the second quarter ended June 30, 2009 was $142.7 Thousand compared to segment profit of $493.7 Thousand in the prior comparable period.

Six Months Results

Lapolla had sales of $20.68 Million for the six month period ended June 30, 2009, a 2.3% incline from the same period of the prior year. Gross profit increased $1 Million and gross margin percentage increased 4.4% in the second quarter of 2009, compared to the same period in 2008. Net loss for the current six month period increased $1.31 Million, or 125.1%, compared the prior comparable period. Net loss per share was $0.037 per share for the six months ended June 30, 2009 compared to $0.018 per share for the same period in 2008.

Foam sales increased $2.22 Million for the six months ended June 30, 2009, or 14.6%, from the comparable prior year period. Gross profit increased $1.75 Million, or 6.2%, in the six months ended June 30, 2009, compared to the same period in 2008. Segment loss increased $154.1 Thousand in the current six month period, or 228.8%, compared to the same period in 2008.

Coatings sales decreased $1.75 Million, or 34.7%, for the six month period ended June 30, 2009, compared to the same period in 2008. Gross profit decreased $742.5 Thousand, or 51.9%, in the current six month period, compared to the same period in 2008. Segment loss for the six month period ended June 30, 2009 was $222.3 Thousand, compared to segment profit of $527.3 Thousand 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 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.

Contact Information

  • Company Contacts:
    Douglas J. Kramer, CEO
    Michael T. Adams, CGO
    (281) 219-4700