Monday May 15, 3:23 pm ET
LaPolla Reports First Quarter Results
LaPolla Delivers 145% Sales Growth
HOUSTON, May 15 /PRNewswire-FirstCall/ -- LaPolla Industries, Inc. ("LaPolla" or the "Company") (Amex: LPA - News), today announced sales of $6,042,115 for the quarter ended March 31, 2006, a 145% increase over sales of $2,457,653 for the same period in the prior year. Operating income for the first quarter was $31,940 and net income was $327,008. Diluted net income per share for the quarter was $0.006 compared to diluted net loss per share of $0.031 in the prior comparable period.
"We've continued our sales growth momentum during the first quarter and increased sales 145% over the prior year's first quarter," said Michael T. Adams, CEO of LaPolla. "Delivering value to our shareholders and customers are our top priorities for the rest of the year," concluded Mr. Adams.
Foam sales increased $2,056,935, or 182%, for the first quarter of 2006 compared to the first quarter of 2005. Coatings sales increased $1,173,750, or 129%, for the current quarter compared to the prior comparable quarter. Paints, sealants, and adhesives sales each increased $152,661, $72,175, and $4,032, respectively, for the quarterly period ended March 31, 2006 compared to the quarterly period ended March 31, 2005. Equipment sales increased $151,864, or 628%, while all other sales decreased $26,954, or 42%, for the first quarter of 2006 compared to the first quarter of 2005.
Douglas J. Kramer, President and COO stated, "Our sales and marketing efforts remain aggressive and are aimed at broadening our national sales presence to support our longer term goals. The greatest sales growth occurred in our foam, coatings, and equipment businesses and we expect this trend to continue throughout 2006."
Outlook for 2006
Management offers the following guidance for the quarter ending June 30, 2006:
-- Sales are expected to be in the range of $7.5 Million and $8.0 Million.
-- Operating income is expected to be in the range of $0.25 Million and $0.45 Million.
Management offers the following guidance for the full fiscal year ending December 31, 2006:
-- Sales are expected to be in the range of $35 Million and $38 Million.
-- Operating income is expected to be in the range of $4.1 Million and $4.4 Million
About LaPolla Industries, Inc.
LaPolla Industries, Inc. is a national manufacturer and distributor focused on several basic segments: Coatings, Foam, Paints, Sealants, Adhesives, Equipment, and All Other. Within these business segments, LaPolla has invested resources in a variety of products targeting commercial and industrial and residential applications in the roofing, construction and paint industries.
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, Section 21 of the Securities Exchange Act of 1934 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. You can identify these and other forward-looking statements by the use of words such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "continue," or the negative of such terms, or other comparable terminology. 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 including, without limitation, the risk factors described below. Although the Company believes its expectations are based on reasonable assumptions, judgments, and estimates, forward-looking statements involve known and unknown risks, uncertainties, contingencies, and other factors that could cause the Company or the Company's industries' actual results, level of activity, performance or achievement to differ materially from those discussed in or implied by any forward-looking statements made by or on the Company and could cause the financial condition, results of operations, or cash flows to be materially adversely affected. In evaluating these statements, some of the factors that you should consider include the following: financial position and results of operations, cash position and cash requirements, accounting estimates, doubtful accounts, inventories, and warranties; operations, supply chain, quality control, and manufacturing supply, capacity, and facilities; products, price of products, product lines, and product and sales channel mix; relationship with customers, suppliers and strategic partners; credit facilities; industry trends and responses to these trends; sources of competition; and outcome and effect of current and potential future litigation. All information in this release is as of March 31, 2006. 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.
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. Copies of LaPolla's press releases and additional information about LaPolla is available on the World Wide Web at http://www.lapollaindustries.com.
For more information, financial analysts, investors and press only:
Andrew J. Kaplan
Barry Kaplan Associates
(732) 747-0702 (t)
(732) 758-1837 (f)
Michael T. Adams, CEO
Douglas J. Kramer, President and COO
John A. Campbell, CFO
(281) 219-4700 (t)