Monday May 16, 7:11 pm ET
IFT Reports First Quarter
Results; Projects Sales of $5
Million for Second Quarter
Completes Integration
of LaPolla and Infiniti Subsidiaries
DEERFIELD BEACH, Fla., May 16
/PRNewswire-FirstCall/ -- IFT
Corporation ("IFT Corp"
or the "Company") (Amex:
IFT - News), today announced operating
results for the first quarter
ended March 31, 2005.
Operating Results
For the quarter ended March
31, 2005:
-- IFT Corp's revenue was $2,457,653
as compared to revenue of $460,897
in the first quarter of 2004,
a 533% increase.
-- IFT Corp's net loss was $(1,623,328)
as compared to a net loss of $(1,690,539)
in the first quarter of 2004,
a 4% decrease.
-- IFT Corp reported net loss
per share - basic and diluted
- of $(0.033) as compared to $(0.059)
in the first quarter of 2004,
a 44% decrease.
"Our revenue increased
over 500% in this first quarter
as compared to the first quarter
of 2004. This increase was essentially
attributable to revenues from
our newly acquired subsidiary,
LaPolla Industries, Inc.,"
stated Michael T. Adams, CEO of
IFT Corp.
"The net loss during the
first quarter was attributable
to several factors, including
the hiring of a new President/COO,
CFO, and key sales personnel,
opening a new sales office in
Texas, attending two major trade
shows, new sales/marketing materials,
acquisition related expenditures
for Lapolla Industries, Inc.,
and a non-recurring discontinued
operations charge,'' added Mr.
Adams.
During the first quarter of
2005:
-- Cancellation of Indebtedness
-- On January 4, 2005, the Company
issued 18,181,818 shares of restricted
common stock to Richard J. Kurtz,
Chairman of the Board, in exchange
for his cancellation of $6,000,000
of indebtedness advanced to the
Company and its subsidiaries for
working capital and other requirements
in the past.
-- Acquisition of LaPolla Industries,
Inc. -- February 11, 2005, the
Company closed the acquisition
of LaPolla Industries, Inc. for
$2 Million in cash and a nominal
amount of restricted common stock.
LaPolla is located in Tempe, Arizona.
LaPolla has 10 employees. The
basic assets of LaPolla include
manufacturing equipment, product
formulations, raw material and
finished goods inventory, long
term employees, customers and
vendors, office equipment, accounts
receivable, and goodwill. The
Chairman of the Board and majority
shareholder, Richard J. Kurtz,
advanced $2 Million in cash to
finance the acquisition. The $2
Million advance was made in the
form of a demand loan bearing
interest at 9% per annum payable
by the Company to Mr. Kurtz. LaPolla's
trailing twelve months revenue
as of January 31, 2005 was approximately
$8 Million.
-- Employment Agreements
-- On January 28, 2005, Douglas
J. Kramer joined IFT as President
and COO pursuant to an Employment
Agreement.
-- On February 25, 2005, Charles
R. Weeks joined IFT as CFO and
Treasurer pursuant to an Employment
Agreement.
Mr. Adams continued, "We
completed the integration of LaPolla
Industries, Inc. at the beginning
of the second quarter by merging
Infiniti Products, Inc. into LaPolla
Industries, Inc. The resulting
combination is enabling us to
centralize functions, streamline
operational processes, standardize
procedures, reduce redundant costs
and expenses, improve customer
service and vendor support, and
focus on selling the LaPolla and
Infiniti brand products to our
target markets. While we expect
our sales to at least double in
the second quarter as compared
to the first quarter of this year,
we are paying particular attention
to improving our overall gross
profit margin for the second quarter
and controlling costs and expenses
for the remainder of the 2005
year," concluded Mr. Adams.
After the first 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.
Second-Quarter Outlook
IFT said that it expects second
quarter sales to exceed $5 Million
and gross profit margins to exceed
18 percent.
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
above, we are currently dependent
on funding from the Chairman to
continue our operations, although
such dependence is decreasing
based on our increase in revenues
and profit margins. The discontinuance
of such funding, and the unavailability
of financing to replace such funding,
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.
Forward-looking Statements
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 Corp's public periodic
filings with the Securities and
Exchange Commission. Copies of
IFT Corp's press releases and
additional information about IFT-Corp
is available on the World Wide
Web at http://www.ift-corp.com.
Press Contact:
Andrew J. Kaplan
Barry Kaplan Associates
(732) 747-0702 (t)
(732) 758-1837 (f)
smallkap@aol.com
Company Contact:
Michael T. Adams, CEO
Phone (954) 428-7011
Fax (954) 428-4221
Website: http://ww.ift-corp.com
Source: IFT Corporation
