Houston, TX, August 12, 2014 – Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, today announced financial results for the three month period ended June 30, 2014.
Second Quarter Financial Highlights
For the second quarter of 2014, Lapolla generated sales of $18.7 million, as compared to $17.8 million during the same period in 2013. During the second quarter of 2014, Lapolla’s gross profit was $3.9 million, as compared to $3.8 million for the second quarter of 2013. Adjusted EBITDA for the second quarter was $611,082, as compared to $660,361 in the same period of 2013.
For the second quarter of 2014, Lapolla reported foam segment sales were $16.2 million as compared to $14.9 million in the same period of 2013. Foam segment profit was $819,844 during the second quarter 2014, as compared to $670,559 for the same quarter in 2013. The second quarter 2014 coatings segment sales were $2.5 million versus $2.9 million for the same period in 2013. Coatings segment profit was $354,966, as compared to $446,542 for the second quarter in 2013.
“During the second quarter of 2014, our revenues were in line with last year and our operating expenses were lower by over 4%,” stated Doug Kramer, CEO and President of Lapolla Industries. “This is an exciting time to be in our industry as SPF insulation becomes mainstream as consumers, building owners and multi-family facility managers recognize the environmental and financial benefits Lapolla products provide. Lapolla recently announced its Next Generation technology, utilizing the latest blowing agent, which essentially eliminates ODP and GDP, making our product green and environmentally friendly. This new development solidifies Lapolla as a global technology leader, being the first in the world to deliver this cutting edge technology for wall foam insulation,” concluded Mr. Kramer.
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 at www.lapolla.com.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a global supplier, and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, designed to reduce energy consumption in the residential, industrial and commercial markets, for both new construction and retrofit applications. More information is available atwww.lapolla.com.
Non-GAAP Financial Measures:
Lapolla Industries utilizes Adjusted EBITDA to assist it in reviewing financial results and for management incentives. Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss. Lapolla’s management utilizes Adjusted EBITDA in an effort to provide information that reflects the Company’s economic performance. Lapolla’s management team reviews their monthly financial results on an Adjusted EBITDA basis. Adjusted EBITDA has no impact on reported sales. Adjusted EBITDA is used as a supplemental financial measure by management to describe Lapolla’s operations and economic performance to financial institutions, including the economic results of Lapolla’s operations; and repeatable operating performance that is not distorted by non-recurring items, certain other non-cash items, or market volatility. Adjusted EBITDA is not prepared in accordance with GAAP. Adjusted EBITDA should not be considered as an alternative to net income or loss, income or loss from operations, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
Forward Looking Statements
Statements made in this press release that are not historical facts constitute “forward-looking statements” pursuant to Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and Private Securities Litigation Reform Act of 1995. Any such forward-looking statements should be considered in context with various disclosures made by Company about its business. All information herein is as of date hereof. Company undertakes no duty to update any forward-looking statement.
Lapolla Industries Contacts:
Douglas J. Kramer, CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
Tel: (281) 219-4700