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Monday November 14, 5:44 pm
ET
LaPolla Reports Third
Quarter Results; Sales Projected
to Exceed $5 Million for the Fourth
Quarter
HOUSTON, Nov. 14 /PRNewswire-FirstCall/
-- LaPolla Industries, Inc. ("LaPolla"
or the "Company") (Amex:
LPA - News), today announced operating
results for the third quarter
surpassed its expectations.
For the quarter ended September
30, 2005:
-- LaPolla's sales were $5,559,461
as compared to sales of $521,852
in the third quarter of 2004,
a 965 % increase.
-- LaPolla's net loss was $300,836
as compared to a net loss of
$2,240,140 in the third quarter
of 2004, an 87 % decrease.
-- LaPolla's net loss per share
- basic and diluted - of $0.006
as compared to $0.077 in the
third quarter of 2004, a 92
% decrease.
"Our sales continued to
increase considerably in the third
quarter as compared to the same
period in 2004, while our gross
profit margin increased from 19%
for the six months ended June
30, 2005 to 20% for the nine months
ended September 30, 2005,"
stated Michael T. Adams, CEO of
LaPolla. "Changing our name
to LaPolla Industries, Inc. and
moving our Corporate Headquarters
to Texas completes our transformation
towards our primary focus on market
segments that will generate the
growth and margins we believe
to be needed for profitability,"
concluded Mr. Adams.
During the third quarter of
2005:
-- LaPolla moved its Corporate
Headquarters from Deerfield
Beach, Florida to Houston, Texas.
After the third quarter of
2005:
-- Effective October 1, 2005,
IFT Corporation, a Delaware
corporation, merged its wholly
owned subsidiary, LaPolla Industries,
Inc. (the "LaPolla Subsidiary"),
an Arizona corporation, into
itself pursuant to the resolution
of the board of directors of
each respective entity, whereupon
the separate existence of the
LaPolla Subsidiary ceased and
IFT Corporation continued as
the surviving corporation.
-- Effective November 8, 2005,
IFT Corporation changed its
corporate name to LaPolla Industries,
Inc.
LaPolla expects fourth quarter
sales to exceed $5 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 September 30, 2005,
we assess our liquidity by our
ability to generate cash to fund
our operations. Historically,
the Company has relied principally
on non-operational sources of
financing, mainly from the Chairman
of the Board, to fund its operations
for approximately seven years.
Although the Company had no formal
commitment from the Chairman to
fund the Company's operating requirements
for the 2005 year, the Company
received short term demand loans
from the Chairman during the first
half of the 2005 year to continue
its operations. During the second
quarter of 2005, the Company signed
a Promissory Note with a national
institution granting access to
funds which may be drawn against
from time to time by the Company
for operations. The Company's
ability to continue as a going
concern is dependent on management's
ability to successfully execute
its business plan, which includes
increasing sales while decreasing
operating costs and expenses,
as well as, increasing operational
cash flow, continued support from
the Chairman, and obtaining additional
funding to support longer term
capital requirements. If management
is unsuccessful in obtaining one
or more of the above mentioned
goals, the Company's ability to
continue as a going concern would
be adversely impacted.
About LaPolla Industries, Inc.
LaPolla Industries, Inc. is a
public business enterprise that
markets, sells, manufactures and
distributes acrylic roof coatings,
roof paints, sealers, roofing
adhesives, polyurethane foam and
wall systems, and other related
products to the commercial/industrial
construction and home improvement
retail chain store markets.
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 LaPolla's public periodic
filings with the Securities and
Exchange Commission. Copies of
LaPolla's press releases and additional
information about LaPolla is available
on the World Wide Web at http://www.lapollaindustries.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 (281) 219-4700
Website: http://www.lapollaindustries.com
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