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|Lapolla Reports Record First Quarter 2010 Results|
Lapolla Reports Record First Quarter 2010 Results
Delivers 37.6% Overall Sales Growth and Profitability
HOUSTON, TX — (MARKET WIRE) — May 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 first quarter of 2010.
First Quarter Overall Results
The Company reported sales of $13,404,335 for the first quarter ended March 31, 2010, as compared to $9,740,079 in the comparable period in 2009, an increase of $3,664,255 or 37.6% year-over-year. Gross profit was $3,382,376, as compared to $2,305,752 in the same period in 2009, an increase of $1,076,624 or 47%. Gross margin percentage increased 1.5% to 25.2% as compared to the comparable period in 2009. Net income was $164,424, as compared to a net loss of $1,178,652 in the same period 2009. Net income per share was $0.00, as compared to a net loss of $0.02 in the same period of 2009, an increase of $0.02, or 100%.
Douglas J. Kramer, CEO and President of Lapolla, commented, "Lapolla's first quarter's results reflect record sales growth and profitability. Despite this historically being the slowest quarter of the year for the Company, organic growth was robust and yielded a net profit in both of our business segments. Volatile energy prices, increased demand for green building materials, government tax incentives for energy saving home improvements, and pent up demand from the recession has accelerated our sales growth. In particular, our foam sales experienced a marked improvement of over 40%. Due to manufacturing efficiencies from increased volumes, we experienced a greater gross profit for the quarter.”
Mr. Kramer continued, “As we enter the second quarter we are encouraged by continued strong demand and order flow. We fully expect the upward trends of the first quarter to continue in the near term. As the economy maintains its steady recovery and credit markets loosen, cost conscious building owners and consumers alike will continue to seek and invest in cost effective ways to reduce their energy costs, improve their air quality, and create a healthier living environment for their occupants and families.”
Results of Business Segments
Foam sales were $11,871,302 for the first quarter ended March 31, 2010, as compared to $8,459,784 in the comparable quarter in 2009, an increase of $3,411,518, or 40.3%. Foam segment profit was $913,337 in the first quarter of 2010, as compared to a loss of $164,214 in the same period in 2009.
Coatings sales were $1,533,033 for the first quarter ended March 31, 2010, as compared to $1,280,296 in the first quarter ended March 31, 2009, an increase of $252,737, or 19.7%. Coating segment profit was $97,648 in the first quarter of 2010, as compared to a loss of $79,609 in the same period in 2009.
Total foam and coatings segment net profit was $1,010,985 in the first quarter of 2010 compared to a net loss of $243,822 in the first quarter of 2009, due primarily to increases in foam sales of $3,441,518, coatings sales of $252,737, and a gross margin percentage increase of 1.5%.
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 forwardlooking 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 perations" 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