Lapolla Industries Spray Foam Sales Increase for Q3
Lapolla reports record Third Quarter 2009 results delivers operating profit and revenue growth
HOUSTON, TX — (MARKET WIRE) — November 2, 2009 — Lapolla Industries, Inc. (“Lapolla”) (OTC BB:LPAD.OB - News), 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 results for the third quarter and nine months ended September 30, 2009.
Third Quarter Results
-- Overall Results
Lapolla had record sales of $14,022,690 for the third quarter ended September 30, 2009 compared to $13,880,220 in the comparable period in 2008. Gross profit increased $1,127,400, or 44%, and gross margin percentage increased 8%, in the third quarter of 2009, compared to the same period in 2008. Net income increased $385,322, or 1,500%, in the third quarter of 2009, from the comparable prior year period. Net income per share increased $0.006, or 1,500%, in the third quarter ended September 30, 2009, from the same period in 2008.
Douglas J. Kramer, CEO and President of Lapolla commented, “Lapolla's sustained growth, even through the current economic conditions, is a result of Management's understanding of the dynamics of the spray polyurethane foam industry and commitment to an ongoing strategy for superior spray foam technology and deliberate strategic market expansion. As our economy rebounds, further growth is expected from pent up demand in our business segments, especially maintenance related spray foam and coatings, resulting in a more profitable bottom line. We will continue to aggressively pursue market share as well as expand the overall market by offering extensive training to conventional insulators and others that are looking to participate in the growing spray foam market.”
-- Business Segments
Foam sales increased $912,727 for the third quarter of 2009, or 8%, from the comparable prior year period. Gross profit increased $1,202,037, or 57%, in the third quarter ended September 30, 2009, compared to the same period in 2008. Foam segment profit increased $588,957, or 94%, in the current quarterly period compared to the prior year period in 2008.
Coatings sales decreased $770,257, or 27%, in the quarter ended September 30, 2009, compared to the same period in 2008. Gross profit decreased $74,637, or 15%, in the current quarterly period, compared to the same period in 2008. Coating segment profit decreased $5,497, or 5%, compared to the same period in 2008.
Nine Months Results
-- Overall Results
Lapolla had record sales of $34,658,872 for the nine month period ended September 30, 2009 compared to $34,086,949 in the same period of the prior year. Gross profit increased $2,129,379, or 31%, and gross margin percentage increased 6%, in the third quarter of 2009, compared to the same period in 2008. Net loss for the current nine month period increased $929,372, or 91%, compared the prior year period. Net loss per share increased $0.014, or 82%, in the nine months ended September 30, 2009 compared to the same period in 2008.
-- Business Segments
Foam sales increased $3,107,807 for the nine months ended September 30, 2009, or 12%, from the comparable prior year period. Gross profit increased $2,957,251, or 60%, in the nine months ended September 30, 2009, compared to the same period in 2008. Foam segment profit increased $512,610 in the current nine month period, or 109%, compared to the same period in 2008.
Coatings sales decreased $2,535,884, or 32%, for the nine month period ended September 30, 2009, compared to the same period in 2008. Gross profit decreased $827,872, or 43%, in the current nine month period, compared to the same period in 2008. Coating segment loss for the nine month period ended September 30, 2009 was $112,274, compared to a segment profit of $637,764 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 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. 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.
Douglas J. Kramer, CEO
Michael T. Adams, CGO