Wednesday August 3, 12:31 pm ET
IFT Reports Second Quarter Results; Sales Projected to Exceed $5 Million for Third Quarter
LaPolla Scheduled to Open a Manufacturing Facility in Texas
DEERFIELD BEACH, Fla., Aug 3 /PRNewswire-FirstCall/ -- IFT Corporation ("IFT" or the "Company") (Amex: IFT - News), today announced operating results for the second quarter surpassed its expectations and plans to open a manufacturing facility in Texas.
For the quarter ended June 30, 2005:
IFT's revenue was $5,206,176 as compared to revenue of $586,629 in the second quarter of 2004, a 787% increase.
IFT's net loss was $(887,189) as compared to a net loss of $(1,555,501) in the second quarter of 2004, a 43% decrease.
IFT's net loss per share - basic and diluted - of $(0.018) as compared to $(0.054) in the second quarter of 2004, a 67% decrease.
"Our revenue increased considerably in the second quarter as compared to the same period in 2004, while our gross profit margin increased from 14% for the first quarter of 2005 to 19% for the six months ended June 30, 2005," stated Michael T. Adams, CEO of IFT. "The net loss for the second quarter was due to $368,364 in non-cash compensation expense, a portion of which relates to our early implementation of SFAS No. 123R for Share-Based Payments and an increase in SG&A resulting from selling and marketing expenses supporting our significant revenue growth, opening new sales offices and arranging new distribution channels for a broader reach of customers," concluded Mr. Adams.
During the second quarter of 2005:
Effective April 1, 2005, Infiniti Products, Inc., a Florida corporation, merged with and into LaPolla Industries, Inc., an Arizona corporation, whereupon the separate existence of Infiniti Products, Inc. ceased and LaPolla Industries, Inc. continued as the surviving corporation.
On June 2, 2005, the Company and the Chairman of the Board signed a Promissory Note with a national institution granting access to funds in the amount of $2,000,000, which may be drawn against from time to time for the operations of the Company. The Note bears interest at a rate equal to 1-month LIBOR plus two and one-quarter percent (2.25) per annum ("LIBOR-Based Rate"), and has a maturity date of June 1, 2006.
"After the first full quarter of results with our LaPolla Industries, Inc. subsidiary, the trends in both market opportunity and market penetration have met our expectations," commented Douglas J. Kramer, President and COO of IFT. "There are many positive sales and marketing developments underway as a result of the strong professional team that now makes up LaPolla. Both the Commercial and Retail Divisions continue to establish the LaPolla brands within their respective market place. Groundwork is well underway in establishing LaPolla Coatings(TM), Infiniti Paints and Coatings(TM) and HardScape(TM) as potentially major product lines in both roofing products and retail market segments of our business," continued Mr. Kramer. "The remainder of the 2005 fiscal year will remain strong and the growth will come as our latest efforts begin to come to fruition. New relationships are being established from a vendor and customer standpoint, both of which are critical to our ultimate success. The internal infrastructure at LaPolla continues to follow a structured and definitive path to assure that our growth is well managed and supported. Our customers and vendors are continuing to see that LaPolla's first priority is quality. Our corporate commitment is to quality for both products and service. In keeping with our growth plans, we are scheduled to open a manufacturing facility in Texas at the end of the third quarter of this year," concluded Mr. Kramer.
IFT expects third quarter sales to exceed $5.2 Million and gross profit margin to exceed 19%.
Going Concern Qualification
The Company's unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations, certain adverse conditions and events cast substantial doubt upon the validity of this assumption. Factors contributing to this substantial doubt include recurring losses from operations and net working capital deficiencies. As mentioned in the Financial Condition, Liquidity and Capital Resources section in our Form 10-Q for the Quarterly Period Ended June 30, 2005, we assess our liquidity by our ability to generate cash to fund our operations. Historically, we have relied principally on related party funding from our Chairman over the past six years and outside investors to meet our working capital and other corporate needs. We are beginning to see substantial improvement in our ability to generate enough cash from our operations to meet our working capital requirements. Although our dependence is decreasing based on our increase in revenues and profit margins, we still currently depend on support from the Chairman, the discontinuance of which and the unavailability of support otherwise, could result in the Company ceasing operations.
About IFT Corporation
IFT Corporation is a publicly traded holding company focused on acquiring and developing companies that operate in the coatings, paints, foams, sealants, and adhesives markets.
About LaPolla Industries, Inc.
LaPolla Industries, Inc. markets, sells, manufactures and distributes acrylic roof coatings, roof paints, sealers, roofing adhesives, and polyurethane foam and wall systems to the home improvement retail and commercial/industrial construction industries.
This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties, including, but not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to maintain sufficient financing to fund its operations, the outcome and timing of the Company's efforts to restructure its business; the ability of the Company to obtain and maintain normal terms with its vendors and dealers; the potential adverse impact of the discontinuance of a business segment on the Company's continuing operations; the ability of the Company to fund and execute its strategic business plan; the ability of the Company to attract, motivate and/or retain key executives and employees; the ability of the Company to attract and retain customers; risks and uncertainties relating to market acceptance of the Company's products; competition; the effectiveness of the Company's sales teams; as well as those risks and uncertainties discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
Additional information can be found in IFT's public periodic filings with the Securities and Exchange Commission. Copies of IFT's press releases and additional information about IFT is available on the World Wide Web at http://www.ift-corp.com .
Andrew J. Kaplan
Barry Kaplan Associates
(732) 747-0702 (t)
(732) 758-1837 (f)
Michael T. Adams, CEO
Phone (954) 428-7011
Fax (954) 428-4221
Source: IFT Corporation