Contact Information: Company Contacts: Douglas J. Kramer CEO John A. Campbell CFO Michael T. Adams CGO (281) 219-4700 (t) (281) 219-4701 (f)
LaPolla Reports First Quarter 2007 Results
Foam Business Delivers 42% Sales Growth
| Source: LaPolla Industries, Inc.
HOUSTON, TX -- (MARKET WIRE) -- May 15, 2007 -- LaPolla Industries, Inc. ("LaPolla" or the
"Company") (AMEX : LPA ) today announced sales of $7,269,322 for the first
quarter of 2007, a 21% increase over sales of $5,999,935 for the first
quarter of 2006. Gross Profit increased $345,700, or 41%, for the three
months ended March 31, 2007 compared to the three months ended March 31,
2006, primarily due to sales volume growth in our core foam and coatings
businesses. Gross margin increased 2.32 percentage points, or 16.6%, for
the quarter ended March 31, 2007 compared to the prior quarter ended March
31, 2006. Operating loss before income taxes for the first quarter of 2007
was $992,984 compared to $514,970 for the comparable quarter in 2006. Net
loss for the quarter ended March 31, 2007 was $1,063,543 compared to
$227,164 for the quarter ended march 31, 2006. Net loss per share for the
first quarter of 2007 was $0.019 compared to $0.009 for the first quarter
of 2006.
Douglas J. Kramer, CEO and President, stated, "Our foam revenue growth is
an indication of the market opportunity and LaPolla's competence in this
arena. It is a market that we believe in and we will continue to take the
necessary steps to position LPA to be the market leader. The growing
recognition of Spray Polyurethane Foam as a Green Construction Material due
to its energy savings is a positive step in the construction industry as
well as for the future of LaPolla Industries, Inc.," concluded Mr. Kramer.
Results of Core Business Segments
Foam sales increased $1,306,340, or 42%, for the first quarter of 2007
compared to the first quarter of 2006 due to an increase in our sales
force, advertising, marketing, and promotion programs. Foam segment loss
increased $391,039, or 298%, for the quarter ended March 31, 2007 compared
to the quarter ended March 31, 2006 primarily due to an increase in our
foam products being sold through independent distributors at lower margins.
Coatings sales increased $81,700, or 4%, for the quarter ended March 31,
2007 compared to the quarter ended March 31, 2006 due to the same reasons
enumerated in our Foam segment. Coatings segment loss decreased $7,143, or
16.2%, for the quarter ended March 31, 2007 compared to the quarter ended
March 31, 2006 primarily due to increased sales volumes, manufacturing
efficiencies, and economies of scale realized from increased purchasing
power.
About LaPolla Industries, Inc.
LaPolla Industries, Inc. is a national manufacturer and distributor focused
on several basic segments: Coatings, Foam, Paints, Sealants, Adhesives,
Equipment, and All Other. Within these business segments, LaPolla has
invested resources in a variety of products targeting commercial and
industrial and residential applications in the roofing, construction and
paint industries.
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.