HOUSTON, TX--(Marketwire - May 19, 2008) - LaPolla Industries, Inc. (OTCBB: LPAD), a
leading manufacturer of foam and coating products targeting commercial,
industrial and residential building envelope applications, today announced
results for the first quarter ended March 31, 2008.
For the first quarter of 2008 sales increased 12.4% to $8.2 million
compared to $7.2 million in the first quarter of 2007. Gross profit
increased 27% to $1.5 million from $1.2 million in the first quarter of
2007. Operating expenses were $2.6 million in the first quarter of 2008
compared to $2.2 million in the same period last year, reflecting increased
sales and distribution expenses. Included in the first quarter 2008
operating expenses was $203,457 in interest expense consisting of
amortization of the discount on the company's convertible term note and
revolving credit note, and cash interest payments. Interest expense in the
prior year period was $80,171. Operating loss for the first quarter was
$1.2 million compared to $1.0 million for the same period last year.
Included in the operating loss was non-cash stock-based compensation
expense of $232,272 and $265,370 in the first quarters of 2008 and 2007,
respectively. Net loss available for common stockholders for the three
months ended March 31, 2008 was $1.3 million, or $0.02 per share, compared
to $1.2 million, or $0.02 per share, for the three months ended March 31,
2007.
"We had a great start to the year with insulation foam sales rising 34% in
the first quarter over last year's first quarter and 11% over the fourth
quarter of 2007," said Douglas J. Kramer, president and chief executive
officer. "Our strong results are a testament to the growing awareness of
the energy cost savings that our spray foam insulation products deliver to
home owners and businesses alike; to the markets we opened during the
quarter through our successful efforts to expand key industry credentials;
and to our broadened sales coverage both within the U.S. and abroad."
"In putting forth significant resources to satisfy and, in most cases,
exceed industry standards for product performance, we are now positioned to
more aggressively penetrate certain larger, concentrated domestic markets.
Our laboratory continues to pursue additional credentials, which will
create an even wider set of market opportunities for LaPolla," continued
Kramer. "Since our foam plant began production in 2007, our customers and
prospects have been able to evaluate our technology. As a result, we have
gained strong market recognition and credibility in a relatively short
time. Additionally, we are attracting more national distributors,
independent sales representatives, and in-house sales representatives, and
we are making forays in the Middle East and China."
"The value proposition for LaPolla's spray foam insulation products is
clearly resonating as consumers and builders recognize the 'green' benefits
of our products in reducing a building's carbon footprint and in providing
potentially significant energy cost savings. Demand and awareness is
escalating, and we have the credentials, the technology, established
national footprint, proven product reliability and vertically integrated
manufacturing to lead the conversion from fiberglass to foam insulation.
Our long-term business strategy is working and we're now hitting our stride
on the path to profitability," concluded Kramer.
Results of Core Business Segments
Foam sales increased 34% to $6.1 million in the first quarter of 2008 from
$4.5 million in the same period last year, reflecting increased market
penetration in the traditional insulation markets and expanded distribution
both nationally and internationally. Segment loss for the first quarter of
2008 decreased to $313,733 from $563,844 in the prior year period primarily
due to higher sales volumes and margin improvements associated with the
production of our in-house foam resins.
Coatings sales were $2.1 million in the first quarter of 2008 compared to
$2.7 million in the same period last year reflecting the sale of the
company's retail distribution channel in 2007. Segment income was $38,257
in the first quarter of 2008 compared to a segment loss of $26,564 in same
period last year, primarily due to cost reductions associated with the sale
of the retail distribution channel and improved manufacturing efficiencies.
About LaPolla Industries, Inc.
LaPolla Industries, Inc. is a national manufacturer of 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.
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
Paul Smiertka
CFO
Michael T. Adams
CGO
(281) 219-4700
Investor Relations Contacts:
Jody Burfening
Lippert/Heilshorn & Associates
(212) 838-3777
jburfening@lhai.com