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Spray Foam Industry
Lapolla Reports Record Second Quarter Results
Delivers 52.2% Overall Sales Growth and Year to Date Profit

HOUSTON, TX — (MARKET WIRE) — August 12, 2010 — Lapolla Industries, Inc. (“Lapolla”) (OTC BB:LPAD.OB - News), a leading national manufacturer and supplier of insulation foam, coatings, and equipment, focused on commercial, industrial and residential applications in the insulation and construction industries, today announced results for the second quarter and six months ended June 30, 2010.

Second Quarter Ended June 30, 2010 Overall Results
The Company reported sales of $16,646,574 for the second quarter ended June 30, 2010, compared to $10,939,502 in the prior second quarter in 2009, an increase of $5,707,072, or 52.2% quarter-over-quarter. Gross profit was $4,236,699 in the second quarter of 2010, compared to $2,935,314 in the same quarter in 2009, an increase of $1,301,385, or 44.3%, of which 89.0% of the increase resulted from the Foam segment and 11.0% of the increase resulted from the Coatings segment. Total operating expenses were $3,693,817 for the second quarter of 2010, compared to $4,269,772 from the second quarter in 2009, a decrease of $575,955, or 13.5%, due to tighter cost controls. Net income was $542,882 for the quarter ended June 30, 2010, compared to a net loss of $1,334,458 in the quarter ended June 30, 2009.

Douglas J. Kramer, CEO and President of Lapolla, commented, "Lapolla's second quarter's results reflect record sales growth and continued profitability. Consumer demand for energy cost relief and growing awareness of the value proposition of spray polyurethane foam is expanding our target markets and continues to ensure growth in revenue and profit in all business segments. Foam sales continue to lead the charge with a 61.7% increase for the second quarter.”

Results of Business Segments
Foam segment sales were $14,447,981 for the second quarter ended June 30, 2010, compared to $8,934,404 for the second quarter of 2009, an increase of $5,513,577, or 61.7%. Foam segment equipment sales for the second quarter of 2010 were $850,966, compared to $512,459 for the second quarter of 2009, an increase of $338,507, or 66.1%. Foam segment profit was $1,295,465 in the second quarter of 2010, compared to a loss of $57,241 in the second quarter of 2009.

Coatings segment sales were $2,198,592 for the second quarter ended June 30, 2010, compared to $2,005,097 in the second quarter ended June 30, 2009, an increase of $193,495, or 9.7%. Coating segment profit was $215,343 in the second quarter of 2010, compared to a loss of $142,686 in the second quarter of 2009.

Total Foam and Coatings segments sales for the second quarter ended June 30, 2010 were $16,646,573, compared to $10,939,501 for the second quarter of 2009, an increase of $5,707,072, or 52.2%. Total Foam and Coatings segment profit was $1,510,808 in the second quarter of 2010, compared to a loss of $199,927 in the second quarter of 2009, due primarily to increases of $5,513,577 in Foam segment sales, $193,495 in Coatings segment sales, and $1,301,385 in gross profits.

Mr. Kramer continued, “As the third quarter unfolds, increased demand and order flow continues as expected. We believe the upward trends of the first half of the year will continue in the near term. All of the growth we are experiencing is as a result of existing market demand. Government stimulus and legislative efforts encouraging reductions in energy use and carbon footprint will only further enhance demand for our products.”

Six Months Ended June 30, 2010 Overall Results
The Company reported sales of $30,050,909 for the six months ended June 30, 2010, compared to $20,679,581 in the prior six months in 2009, an increase of $9,371,328, or 45.3% period-over-period. Gross profit was $7,619,074 in the six months of 2010, compared to $5,241,066 in the same period in 2009, an increase of $2,378,008, or 45.4%, of which 87.6% of the increase resulted from the Foam segment and 12.4% of the increase resulted from the Coatings segment. Total operating expenses were $6,911,769 for the six months of 2010, compared to $7,754,176 from the six months in 2009, a decrease of $842,407, or 10.9%, due to tighter cost controls and reduced bad debt expense. Net income was $707,305 for the six months ended June 30, 2010, compared to a net loss of $2,513,110 in the six months ended June 30, 2009.

Results of Business Segments
Foam segment sales were $26,319,284 for the six months ended June 30, 2010, compared to $17,394,188 for the six months of 2009, an increase of $8,925,096, or 51.3%. Foam segment equipment sales for the six months of 2010 were $2,108,393, compared to $710,234 for the six months of 2009, an increase of $1,398,159, or 196.9%. Foam segment profit was $2,208,803 in the six months of 2010, compared to a loss of $221,454 in the six months of 2009.

Coatings segment sales were $3,731,625 for the six months ended June 30, 2010, compared to $3,285,393 in the six months ended June 30, 2009, an increase of $446,232, or 13.6%. Coating segment profit was $312,991 in the six months of 2010, compared to a loss of $222,295 in the six months of 2009.

Total Foam and Coatings segments sales for the six months ended June 30, 2010 were $30,050,999, compared to $20,679,581 for the six months of 2009, an increase of $9,371,328, or 45.3%. Total Foam and Coatings segment profit was $2,521,794 in the six months of 2010, compared to a loss of $443,749 in the six months of 2009, due primarily to increases of $8,925,096 in Foam segment sales, $446,232 in Coatings segment sales, and $2,378,011 in gross profits.

About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a national manufacturer of insulation foam and coating products targeting commercial, industrial and residential applications in the roofing and insulation construction industries. Additional information about Lapolla is available on the World Wide Web at www.lapollaindustries.com and 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, 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.

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

Lapolla Industries, Inc. 2 Directory Page


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