Lapolla Reports 2012 Year Results Experiencing Accelerating SPF Demand Globally in 2013
HOUSTON, March 29, 2013 /PRNewswire/ -- Lapolla Industries, Inc. ("Lapolla") (OTCQB:LPAD), a Houston based global supplier, and manufacturer of spray foam insulation, and equipment designed to reduce energy consumption in the residential and commercial markets, for both new construction and retrofit applications, announces 2012 year results and outlook for 2013.
"The 2012 year was challenging with industry-wide concerns including record high raw material costs, shortages in availability of materials from a force majeure event, and elective reductions in sales through elimination of low margin or generally unfavorable business throughout the year. Lapolla responded decisively to these challenges by hiring a COO to enforce the required shift in focus to improving margins and reducing expenses. We continued to exercise stringent credit criteria and significantly reduced overhead, closing unprofitable locations and eliminating other overhead related expenses. Although this was not enough to offset the earlier quarterly losses, the progress as a result of the aggressive steps was evident. Margins increased 25% from the first half of 2012 to the second half of 2012, and SG&A for 2012 was reduced by $1.6 Million for an annualized savings of $3.2 Million," said Douglas J. Kramer, CEO and President at Lapolla.
For 2012, Lapolla reported annual sales of $70.4 Million, a decrease of 18.4%, comprehensive loss of $4.4 Million, an increase of 3.9%, and loss per share of $0.04, a decrease of 20%, from 2011, respectively.
Mr. Kramer continued, "Lapolla initiated its first global summit in 2011 which included representatives from 16 countries and those seeds are paying dividends so far in 2013. The uptick in international as well as expected increases in domestic business puts Lapolla back on its aggressive growth track, as we expect sales to grow to record levels in 2013 and beyond. Nobody can deny growing global consumer awareness about energy efficient foams and coatings and their reductions in energy costs."
The foam segment reported $12.7 Million in sales, a 17.8% decrease from the prior year period, while the coatings segment reported $3.1 Million in sales, a 21.3% decrease from the prior year period.
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, available on the World Wide Web at www.lapollaindustries.com.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray foam insulation, and equipment designed to reduce energy consumption in the residential and commercial markets, for both new construction and retrofit applications. Additional information about Lapolla is available at 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, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, 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. 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. 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. Copies of Lapolla's press releases and additional information about Lapolla is available at on the World Wide Web at www.lapollaindustries.com.
Douglas J. Kramer, CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
SOURCE Lapolla Industries, Inc.