Contact Information: Lapolla Contacts: Douglas J. Kramer, CEO Michael T. Adams, CGO (281) 219-4700 IR Contact: Howard Gostfrand (305) 918-7000 info@amcapventures.com www.amcapventures.com
Lapolla's CEO Issues 2010 Annual Letter to Shareholders
Green Building Materials at Forefront of Global Stage
| Source: Lapolla Industries, Inc.
HOUSTON, TX--(Marketwire - March 15, 2010) - Lapolla Industries, Inc. (OTCBB : LPAD )
(Lapolla), a Houston based manufacturer and supplier of spray foam
insulation, coatings, and equipment designed to reduce energy consumption
in the residential and commercial markets for both new construction and
retrofit applications, today announced the release of its annual
shareholder letter from CEO and President of Lapolla, Douglas J. Kramer.
Dear Fellow Shareholders:
Thank you for being a part of Lapolla. In spite of a very tough and
challenging commercial and residential development market, Lapolla has made
significant headway in growing its business, further promoting our high
quality spray polyurethane foam insulation and expanding our corporate
footprint as the leading manufacturer and supplier of spray foam insulation
in the United States in 2009. We wanted to take this time to outline our
achievements this past year and what we expect in 2010.
As I am sure you are all aware, we have experienced what has become known
as one of the worst financial crises in United States history, with the
housing market getting particularly battered, especially the residential
and commercial development sectors. This has caused depressed revenues and
minimal growth across the sector. Lapolla, fortunately, has several
advantages against its basic materials competitors that allow us to prosper
in spite of the nation's current economic troubles. Our spray foam
insulation products provide a cleaner, more cost effective solution to
rising energy costs and increasing greenhouse gas emissions, helping to not
only insulate and seal the "shell" of a structure but also aid in
preventing air infiltration and reducing our energy consumption overall.
Our spray foam insulation product lines can save homeowners up to 40% or
more on their energy bills. Due to volatile energy costs, we have seen
compounded revenue growth of 82% over the previous 5 years. With the
implementation of the U.S. Economic Stimulus Package, the government
increased the past tax credit for home improvement from 10% to 30% of the
cost and increased the maximum amount of the credit from $500 to $1500,
greatly benefitting Lapolla and other green building material solutions. We
provide homeowners and business owners with energy savings for the lifetime
of their building and saving them tax dollars at the end. Our market for
providing clean, energy saving, high quality insulation at an affordable
price has further solidified Lapolla's leading position as a brand people
trust. This is a truly compelling value proposition to our customers as
the return on investment begins upon installation.
During 2009, we further expanded our growing brand recognition and grew our
market share. In fact, during the year, we went international, opening a
headquarters in Toronto, Canada. In April 2009, we received Canadian
Product Approval and CCMC Approval which allows us market access with our
Foam-LOK™ spray polyurethane insulation systems throughout Canada.
Thanks to our solid relationships with distributors, we are seeing great
interest amongst the Canadian construction and roofing industries. In late
April 2009, we also received ICC-ES Approval for our half pound spray foam
insulation for use in wall cavities, floor and ceiling assemblies, as well
as attic and crawl space applications, further building our product
pipeline and expanding our market share.
In June 2009, we were pleased to accept an offer to contribute our spray
foam insulation for the Emmy Award Winning ABC television show Extreme
Makeover: Home Edition for Season 7 and remain truly honored to be their
preferred spray foam insulation supplier and a part of this great, combined
effort to improve deserving peoples' living situations. We contributed to 5
home makeovers since entering into the relationship and look forward to
continued participation with the show. The ABC Extreme Makeover: Home
Edition and Lapolla partnership is indicative of the growing awareness and
need for a healthy living environment, better air quality, reduced air
infiltration, and combating rising energy costs, thus further solidifying
our position in the green building materials market.
To further increase mainstream awareness of our green building envelope
technology, we have committed ourselves to increasing our marketing,
advertising and overall communication efforts through a variety of mediums.
As recently announced, we have arranged for Lapolla™ and Airtight™
commercials to air on over 55 networks across the country, totaling over
22,000 airtime minutes, by far the largest consumer marketing endeavor that
we have initiated to date, in an effort to create sales pull through and
increase our independent contractor/installer network. The Airtight™
program provides a turn-key approach to helping ensure the start-up success
of independent spray foam insulation installers. Both commercials have been
well received by our targeted audiences and we are already experiencing a
greater market impact in our foam insulation for construction and
retrofitting markets as a result of this effort.
In addition to promotional product marketing, we have made a significant
pledge to expand and broaden our investor communication efforts and have
engaged American Capital Ventures to lead the campaign on behalf of Lapolla
and its shareholders. They are a premier investor relations firm with
extensive ties to Wall Street and specific expertise in the micro and small
cap arena. We intend on being very active this year in communicating
company related news, engaging in multi-city non-deal road-shows, investor
conferences and one-on-one meetings with current and potential investors.
Looking ahead, we anticipate that 2010 will be an unprecedented year for
Lapolla and its shareholders. Even in the face of a tough economic
environment, our strategic partnerships and ripe energy saving product
lines aided us in producing sound financial growth in 2009. In the third
quarter, we achieved a small yet meaningful increase in revenue as compared
to 2008, which for most companies in this current economic environment is
outstanding growth. More importantly, we saw our foam insulation segment
increase to 85% in 2009 from 79% in 2008, continuing an upward trend in the
growth of our spray foam insulation based on increased market demand.
Lapolla is at the forefront of a rapidly emerging green building materials
insulation market and the timing could not be better. With our energy
saving product lines, compelling value proposition, attractive pricing
model, and immediate cost-saving benefits to consumers and businesses
alike, Lapolla has a solid foundation in the spray foam insulation and roof
coatings markets. The past year has produced many great strides and sound
organic growth. In the year ahead, we will continue to grow our business,
communicate the value-added benefits of spray foam insulation, cool roof
coatings, and place a strong emphasis on expanding our investor platform,
increasing our shareholder base and growing our market share. We appreciate
your trust in Lapolla and look forward to a successful and prosperous 2010
year.
-- Douglas J. Kramer, CEO and President, Lapolla.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a leading manufacturer and supplier of spray
polyurethane foam for insulation and roof 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. 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. 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 Lapolla's SEC filings, including, but not limited to, its
annual report on Form 10-K and quarterly reports on Form 10-Q, which are
available at www.lapollaindustries.com.