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Miami Zoo – Lapolla ThermoSIL Recoat Project

Ornamental Plumage for Miami Zoo Roofs

Too many, Miami is known for beautiful beaches, bright nightlife, and cigar shops, but it’s the climate that offers the most opportunities to some of the city’s more unique residents. For the animals at Zoo Miami, it’s the heat, humidity, and ultraviolet rays that make this city home. The qualities that the African elephant, clouded leopard, and greater one-horned rhinoceros, for example, may find familiar are also the sources of wear and tear on the zoo’s roofs — three roofs to be exact.

Much like Goldilocks’ three bears, each of the three roofs received similar systems but had to be tailored to meet the specific repair needs. Installing the roof coatings over a restaurant required work around many vents and other extrusions as well as timing for when patrons weren’t around eating. The work on the veterinary hospital required a quiet install so as not to disturb animals already out of sorts. And the third roof, over the commissary, offered the fewest challenges: with no obstructions up top, it was a straight forward, “plain Jane” kind of install, according to Kelly O’Brien, project manager for contracting firm A1 Property Services. Could these three “bears” find their fit?

Wet and Wild

After being awarded the small business set aside contract for the zoo’s annual maintenance, A1 came onsite to assess the properties and determine a way ahead. “In the case of last year’s contract, we determined that three buildings were excellent candidates for coating,” O’Brien explained.

Every one of A1’s projects starts with a moisture survey, completed by an independent lab, and these three were no different. “Here, we can only repair 25 percent of the roof,” O’Brien explained. “If more than 25 percent is wet, then it’s not repairable. So a moisture survey is required when it’s going to be a warranty coating job in Miami.” Any evidence of moisture-related intrusions meant repair in those areas. And by far, the roof over the restaurant — with its “many, many penetrations,” according to O’Brien — required the most repair.

“That was going to be a challenging reroof because of the penetrations and equipment,” O’Brien explained. “So in order to stay under their budget and prolong the life of that restaurant roof they opted for coating.” He continued, “The zoo was not in a position to reroof that so coating was the best option there even though the roof was in a degraded condition.”

So the coating solution was optimal, as was the strategy for the A1 crew to work on all three concurrently. They started on the prep of the restaurant, then the hospital, and finally the commissary roofs. As the prep team finished up the final roof, a few other guys started in on any repairs and then began the coating system application. In total, it took one day to pressure wash, three days for repairs, and six days to complete the coatings.

On each built-up roof (BUR), work started with a cleaning using 4,000 psi (27.6 MPa) equipment and Simple Green degreaser. On the veterinary hospital rooftop, this was the only step that the five-person crew had to be particularly careful about.

“One of the other advantages to the client was the coating system was far less intrusive for the animals than a reroof would have been,” O’Brien explained. “That was a plus for the zoo staff because the coating isn’t noisy besides pressure cleaning.” That meant “low impact on the animals that were in rehab in that building.”

Welcome to Miami

With a flagged perimeter, the crew focused on any necessary repairs. Most of the intrusion issues were around penetrations, such as scuppers. Those areas required a little attention: “We removed any wet insulation, replaced it, sealed with like materials, sealed to adjacent membrane, and caulked all penetrations and flashings with silicone,” O’Brien explained.

Once repaired, the crew was able to move into the coatings portion of the job, although not before they prepped the ground. As O’Brien explained, “dealing with overspray was a challenge within the zoo, especially at the hospital where there were a lot of employees’ cars that we had to move.”

Up top, the crew used respiratory and ear protection while applying the coatings: brush applying the primer and spray applying the topcoat. That was a two-party epoxy, used to “stop bleed-through and maintain color” over the asphalt-based substrate, according to O’Brien. Once that had cured, the crew picked up the guns attached to the truck-bound Graco 933 rig — with one guy down below to monitor it.

They applied two coats of Lapolla’s Thermo Sil 3200 HS silicone to achieve approximately 28 mils (711.2 microns) total dry film thickness (DFT). Because the crew was on top of the buildings and the truck with the materials was on the ground, they used their typical 120-foot-long (36.6 m) hoses to breach the distance. “It will pump to seven stories, so it’s a workhorse,” said O’Brien of the equipment.

The crew also had to contend with humidity on this job, which was completed during Miami’s rainy season. In fact, they had to wait until about 10 a.m. each morning to have a dry substrate. “We did humidity readings on a daily basis in order to ensure we met manufacturer’s specifications,” O’Brien said.

Roof Preservation

After two weeks, the total 8,000-square-foot (743.2 m²) project came to an end. And according to O’Brien, it ended successfully. “The zoo was very happy that we were able to restore the restaurant and both of these buildings and stay under their annual budget — so much so that we got the next year’s contract also,” he said.

With a 10-year warranty, the newly coated roofs went the way of the grizzly bear and were finally taken off the endangered list!

VENDOR TEAM

A1 Property Services
Coatings contractor
890 SW 69th Ave.
Miami, FL 33144
(305) 547-8355
Website

Graco Inc.
Equipment manufacturer
88 11th Ave. NE
Minneapolis, MN 55413
(612) 623-6000
Website

Lapolla
Coating manufacturer
15402 Vantage Pkwy. E,
Ste. 322
Houston, TX 77032
(281) 219-4100
Website

Simple Green
Material manufacturer
15922 Pacific Coast Hwy.
Huntington Beach, CA 92649
(562) 795-6000
Website

Zoo Miami
Coatings client
1 Zoo Blvd.
12400 SW 152 St.
Miami, FL 33177
(305) 251-0400
Website

Original Article:  http://www.coatingspromag.com/articles/roof-coatings/2017/05/ornamental-plumage-for-miami-zoo-roofs

Photos courtesy of A1 Property Services

Lapolla Industries Introduces WALL-LOK™ Exterior Elastomeric Wall Coating for Waterproofing

Lapolla Industries Introduces WALL-LOK™ Exterior Elastomeric
Wall Coating for Waterproofing

Exterior Wall Coating Protects Commercial Structures from Water Intrusion and UV Penetration,
Enhances Curb Appeal

Houston, TX (November 30, 2016) – Lapolla Industries, Inc. (OTCQX: LPAD), the global supplier and manufacturer of high performance, energy efficient building products, today announced the launch of WALL-LOK™ exterior elastomeric wall coating for waterproofing. A preventative exterior maintenance product for commercial structures, WALL-LOK™ is a coating solution that acts as both an effective waterproofing and UV protective barrier.

“WALL-LOK™ is a solution aimed at protecting the structural integrity of the building by preventing moisture from getting into the interior of the walls,” said Doug Kramer, President and CEO of Lapolla Industries. “This coating provides exceptional value to commercial facility owners and managers looking to protect their properties from the moisture intrusion, enhance curb appeal and extend the longevity of the exterior structure.”

Optimal for use across brick, concrete, masonry and exterior insulation finishing systems, WALL-LOK™ forms a durable, tough waterproofing film on the surface of the building. The barrier created by the acrylic-based coating and sealer is ten times thicker than standard paint. WALL-LOK™ prevents water penetration, one of the most significant enemies to a building. The coating blocks the formation of harmful mold, algae and mildew by eliminating moisture migration into the vertical and horizontal grout line of walls, protecting valuable inventories from damage. Additionally, it prevents mortar from crumbling due to water penetration, as well as inhibits salt stains and the rusting of steel and iron.

The high-performance product also contains reflective material that shields the structure from harmful ultraviolet rays, which are a common cause of both exterior color fading and degradation and the transfer of heat into the building. The product effectively maintains the outer appearance of the building exterior while reducing interior cooling needs and costs.

WALL-LOK™ is optimal for use on commercial structures including existing apartment communities, industrial warehouse facilities, retail properties and office buildings. The high-fill thick coating and sealer is both flexible and stretchable. These characteristics make it ideal for bridging non-structural cracks and defective joints from hairline cracks up to 1/16 of an inch wide.

WALL-LOK™ is available in a variety of colors including shades of white, tan and gray. Custom colors are also available.

“WALL-LOK™ is an excellent addition to our existing product line,” added Kramer. “The product aligns with our goal of providing best-in-class materials to achieve the highest performance in buildings.”

To learn more about WALL-LOK™ exterior elastomeric wall coating for waterproofing, as well as Lapolla’s entire high performance building product line, visit lapolla.com.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. (OTCQX: LPAD) is a global supplier and manufacturer of spray polyurethane foam for insulation and roofing applications, reflective roof coatings and equipment. Based in Houston, Texas, the company’s building envelope and roofing product solutions are designed to reduce energy consumption in the built environment, across the residential, commercial and industrial sectors, in both new construction and retrofits. Visit Lapolla Industries at lapolla.com.

Thinking About Going Global?

texasceo_logo

Thinking About Going Global?
CONSIDER THESE FOUR THINGS BEFORE YOU DECIDE
By Doug Kramer

International markets represent a wealth of opportunity for Texas businesses looking to expand revenue
streams. However, growing the footprint of a business outside of the United States comes with serious
challenges. Fortunately, whether an organization provides goods or services to its customers, many of
the considerations for going global will be the same. These four keys form the necessary baseline for
planning an expansion beyond U.S. soil.

Global Demand
Before pursuing markets outside of the U.S., it is important to understand current demand for products or
services intended for export, and to identify growth potential. This potential may be based on (or limited
by) a number of elements such as pricing, technology, innovation, competition, population and the
maturity and general acceptance of the product or service to be provided in the global market. These
analyses may be available through industry organizations and other market research firms, but it is likely
best to seek answers from known and knowledgeable industry contacts with experience in the markets of
interest.

Competitiveness
It is essential to identify the organization’s potential to be competitive in international markets where
demand exists. Remember, demand alone does not represent opportunity. There are other important
variables that must align with demand for a global expansion to make sense. For example, one
consideration specific to goods-based businesses is the amount of freight and import duties assigned in
the target expansion regions. It’s imperative to understand the impact of these duties and their influence
on the cost structure of the company’s sales model.

Evaluating the true impact of duties and other costs requires a number of examinations, including the
feasibility of the business model to turn profit in markets where demand exists, the ability of the
organization to compete against alternative providers in those same markets and the likelihood of the
business to accrue market share.

Reliable, Local Partnerships
After global demand and competitive potential, a local partner should be the next key consideration. The
benefits of a partner with boots on the ground include an increased likelihood of buy-in from foreign
customers, inside cultural knowledge and minimization of the inherent risk of conducting business outside
the organization and its personnel’s home region.

Despite all its benefits, local partnership still brings another party to the table, which means it’s imperative
to find a trustworthy partner with whom to build a strong relationship. When vetting potential partners,
make sure they are not only experts in the industry and members of the regional business community, but
that they are respected business people. The right partner should speak the local language and possess a
deep level of cultural and customary knowledge — specifically pertaining to business. This cultural
knowledge will prove essential for the organization in all negotiations, contracts and business
development initiatives.

The right partner should also be able to provide access to channels in the market and represent the
company’s values and brand in the local region — all while maintaining the reputation of a true “local”
among potential clients and customers.

Don’t leave the partner relationship to chance. Invest in training partners to ensure they fully understand
the brand, corporate values and growth goals. In much the same way a local partner learns from training,
company leadership should invest in learning as much from its local partner as possible.

Marketing 101: One Size Does Not Fit All
As all marketers know, one size doesn’t fit all, and adapting the company’s marketing strategy for
international audiences is another primary consideration for taking a business global. As a domestic
marketing strategy must align with its intended target audience, so must an international marketing
campaign.

First, make sure all marketing is culturally appropriate, utilizing the local language, dialect and
nomenclatures, and ensuring the messages both incorporate and address regional expectations for the
industry. Employ imagery and graphics that speak to the local culture and belief system, and pay
attention to the smallest detail. For example, even measurements, which may seem like minutiae, should
be presented in the local measurement system. And finally, use the local marketing channels, which will
likely differ from the ones the company’s domestic audience uses. Just like at home, it’s important to
identify the correct channels — otherwise, even the most perfect marketing will go unseen.

Does Everything Align? Go for It.
If all of these considerations align — global demand and regional competitiveness are established, a
trustworthy and well-respected regional partner can be identified, and there is a firm grasp on culturally
appropriate international marketing across the right channels — the baseline essentials for a successful
global expansion have been established. In addition to eliminating unnecessary risk, this foundation will
provide a path to additional avenues for increasing profitability, competitiveness, market share and the
rewards of a global business.

Doug Kramer is President and CEO of Houston-based Lapolla Industries, a spray foam and coatings manufacturer. In 2010, he led the global expansion of the company and Lapolla’s products are now distributed in over 40 countries.

Lapolla Industries Reports Financial Results for the Third Quarter

Lapolla Industries Reports Financial Results for the Third Quarter
Ended September 30, 2016

Climate-Friendly FOAM-LOK® 4G Spray Foam Insulation
Taking Hold of Market Share

Houston, TX, October 31, 2016 – Lapolla Industries, Inc. (“Lapolla” or the “Company”)(LPAD), a Houston-based publicly traded manufacturer and global supplier of high performance, energy efficient building products, today announced its financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Highlights:

  • Sales for the nine months ended September 30, 2016 increased by 8% to $61.7 million compared to the same period in 2015
  • Net Income from the nine months ended September 30, 2016 was $4.0 million, an increase of $5.3 Million compared to the same period in 2015
  • Adjusted EBITDA for the nine months ended September 30, 2016 was $7.1 million, an increase of $4.8 million compared to the same period in 2015
  • Paid off $5.8 million debt with Enhanced Capital and $2.7 million revolver loan with Bank of America with new line of credit
  • New $15 million line of credit with Bank of America reduced average cost of capital from 9.7% to 3.0% resulting in annual interest savings of $583,000
  • Reduced debt by $5.7 million for the nine months ended September 30, 2016 resulting in annual interest savings of $382,000
  • Overall interest savings of $965,000 on an annual basis

“Lapolla’s continued positive financial performance correlates directly to enhanced sales both domestically and internationally of our high performance building envelope and roofing product lines,” stated Douglas J. Kramer, Chief Executive Officer and President of Lapolla. “Additionally, we believe our market share growth is tied to the environmental stewardship we have driven through our energy efficient spray polyurethane foam roofing and insulation offerings, as well as our company being recognized as the first spray foam manufacturer to bring to market a spray foam system that reduces Global Warming Potential (GWP) and eliminates Ozone Depletion Potential (ODP), in line with, and as a partner to, the White House in its Climate Action Plan,” concluded Mr. Kramer.

The company’s Chief Financial Officer, Jomarc Marukot added, “In the third quarter, Lapolla achieved strong revenue and profitability. We remain focused on delivering value to our shareholders. The reductions in our debt and cost of capital will contribute significantly to our bottom line, improve our cash flow, and further strengthen our balance sheet.”

For further information regarding Lapolla’s financial results as of September 30, 2016, including Adjusted EBITDA, and a reconciliation of Adjusted EBITDA to net income or loss for the three and nine months ended September 30, 2016 and 2015, respectively (see below), refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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. (LPAD) is a global supplier and manufacturer of spray polyurethane foam for insulation and roofing applications, reflective roof coatings and equipment. Based in Houston, Texas, the company’s building envelope and roofing product solutions are designed to reduce energy consumption in the building environment, across the residential, commercial and industrial sectors, in both new construction and retrofits. Visit Lapolla Industries at www.lapolla.com.
FORWARD LOOKING STATEMENTS
Certain statements in this press release that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of our control that can make such statements untrue, including, but not limited to, adverse economic conditions and their effect on demand for foams and coating; adverse effects of fluctuations in sales; intense competition from competitors that are better established and have significantly greater resources than us; our dependence on a few large suppliers for a large portion of materials required for production and sales of our products; loss or departure of key personnel; market acceptance of our existing and new products; unanticipated increases in raw material prices or disruptions in supply; restrictive loan covenants and/or our ability to repay or refinance debt under our credit facilities; operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, labor or overhead cost increases, interest rate risk and commodity risk; the fact that our chairman controls a majority of our combined voting power, and may have, or may develop in the future, interests that may diverge from those of other stockholders; future sales of large blocks of our common stock, which may adversely impact our stock price; and the liquidity and trading volume of our common stock. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Investor Relations:
Michael T. Adams, EVP
Phone: 281-219-4700
Email: IR@lapolla.com

Results of Operations

Summary
The following table presents selected financial and operating data derived from the audited financial statements of the Company as of the dates and for the periods indicated. In addition, the table presents our unaudited non-GAAP financial measures, EBITDA and Adjusted EBITDA, and includes our reconciliation to net income or loss, its most directly comparable financial measure calculated and presented in accordance with GAAP. The table is presented in thousands. All financial information for September 30, 2016 and September 30, 2015, is derived from the Company’s unaudited financial statements, as disclosed in the Company’s Quarterly Report on Form 10-Q, for the three and nine months ended September 30, 2016, filed with the SEC.

lapolla-reports-third-quarter-ended-9-30-16-results-final-2

Non-GAAP Financial Measures
To supplement our financial statements presented on a GAAP basis, we disclose non-GAAP measures as EBITDA and Adjusted EBITDA because management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in its business, and to establish operational goals and forecasts that are used in allocating resources. In addition, we believe many investors use these non-GAAP measures to monitor the Company’s performance. Our presentation includes these non-GAAP financial measures, and a reconciliation of EBITDA and Adjusted EBITDA to the GAAP measures most directly comparable thereto. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income or loss. The non-GAAP financial measures of EBITDA and Adjusted EBITDA should not be considered as an alternative to net income or loss or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA are not presentations made in accordance with GAAP and have important limitations as analytical tools. You should not consider EBITDA or Adjusted EBITDA in isolation or as substitutes for analysis of our results as reported under GAAP. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and is defined differently by different companies, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

EBITDA
We define EBITDA as net income or loss before interest, income taxes, depreciation and amortization of other intangible assets.

Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss. The Company believes that presenting EBITDA and Adjusted EBITDA, in addition to the corresponding GAAP financial measures, provides investors greater transparency to the information used by management for financial and operational decision-making, and allows investors to see the Company’s results “through the eyes” of management. We further believe that providing this information assists investors in understanding the Company’s operating performance and the methodology used by management to evaluate and measure such performance.

 

We recognize that the usefulness of EBITDA and Adjusted EBITDA as an evaluative tool may have certain limitations, including:

  • EBITDA and Adjusted EBITDA do not include interest expense. Because we have borrowed money in order to finance our operations, interest expense is a necessary element of our costs and impacts our ability to generate profits and cash flows. Therefore, any measure that excludes interest expense may have material limitations;
  • EBITDA and Adjusted EBITDA do not include depreciation and amortization of other intangible assets expense. Because we use capital assets, depreciation and amortization of other intangible assets expense is a necessary element of our costs and ability to generate profits. Therefore, any measure that excludes depreciation and amortization of other intangible assets expense may have material limitations;
  • EBITDA and Adjusted EBITDA do not include tax expenses. Because the payment of taxes is a necessary element of our costs, any measure that excludes tax expense may have material limitations;
  • EBITDA and Adjusted EBITDA do not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;
  • EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and
  • Adjusted EBITDA does not include share-based compensation expense.

Lapolla Industries Closes on New Line of Credit

Lapolla Industries Closes on New Line of Credit
New Facility and Reduction of Debt Provides Substantial Savings

Houston, TX, September 12, 2016 – Lapolla Industries, Inc. (“Lapolla” or the “Company”) (OTCQX: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, roofing foam, reflective roof coatings, and equipment for their application, announced today that by significantly reducing outstanding debt and obtaining a $15 million line of credit with Bank of America, N.A. on September 7, 2016, the Company will be able to reduce interest expense by 78%.

Douglas J. Kramer, CEO and President of Lapolla stated, “During the first half of 2016, we reduced our debt by $5.9 million, reducing interest by $373,000 on an annual basis. We have also amended our Loan and Security Agreement with Bank of America which now provides the Company with a $15 million line of credit that has a substantially lower interest rate and very favorable terms. This allowed us to pay off our higher interest Term Notes, which reduced our average cost of capital from 9.7% to 3.0%, resulting in further interest savings of $583,000 on an annual basis. The overall interest savings will be $936,000 on an annual basis.”

“This is a significant milestone for Lapolla and is the direct result of our corporate commitment to success and financial diligence. The reduction of debt and lower cost of capital will provide significant value to Lapolla and our shareholders while supporting our continued growth. We have been extremely fortunate to have had Enhanced Capital and Bank of America as our partners over the years and we are very appreciative of their support.” concluded Mr. Kramer.

Lapolla’s Chief Financial Officer, Jomarc C. Marukot added, “The Agreement with Bank of America provides the Company with greater flexibility and significantly reduces interest expense, this will have a positive impact on cash flow and increase net income, further strengthening the Company’s balance sheet.”

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier and manufacturer of spray polyurethane foam insulation, roofing foam, reflective roof coatings, and equipment for their application designed to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications. More information is available at www.lapolla.com.

Forward Looking Statements

Certain statements in this press release that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of our control that can make such statements untrue. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Investor Relations:
Michael T. Adams, EVP
Phone: 281-219-4700
Email: info@lapolla.com

The Unintended Results of Doing the Right Thing

by Doug Kramer, President & CEO for Entrepreneur Magazine

Click here to view the article in Entrepreneur Magazine

Typically, a company’s success is commonly measured by financial indicators, such as growth in revenue, market share and profitability. But what happens when you apply a different standard of measurement to the success of your company?

Environmental responsibility is one such standard that some organizations are now striving to achieve. Rather than measure success in financial terms, environmental responsibility assesses whether a company is doing the right thing for the community and environment.

So another question to ask is: Can doing the right thing create potential business opportunities? And can these opportunities – in addition to financial measurements — be another indicator of organizational success?

Companies are often driven by, and toward, financial results. But environmental responsibility is often associated with higher costs.

Because of that, many companies do not view sustainability practices as a measurement of success, which makes it uncommon for companies to do the right thing for the environment. There usually needs to be an expectation that the environmental effort will also benefit the business in some way.

When our team began to consider making environmentally positive changes to its product line, we believed there would be a benefit to our business.

In a previous post, I mentioned that we expected our environmental stewardship to positively influence our bottom line, as we had conducted a lot of research and identified ways to achieve both savings and greater product yield through this innovation.

These assumptions proved to be correct. But what our team did not presume was that there would be additional positive results beyond those directly affecting the environment and our bottom line. We’ve been pleasantly surprised.

First and foremost, environmental stewardship has the power to showcase the organization as a true leader. If you are the first in your industry to uniquely employ sustainability measures, that effort will be recognized by your clients and industry.

Depending on how you are driving that stewardship, you may also showcase innovation of other kinds via technology advancements, efficiencies and new ideas. And you may be able to achieve and drive additional product or service enhancements through your environmental stewardship efforts.

Driving sustainability practices within your company may lead to something else you haven’t even thought of – improved employee morale. When workers know that their company is influencing positive change in the world, they tend to feel good about working for that organization. In essence, they are proud to be part of it. This in turn will likely lead to increased loyalty, good word-of-mouth referrals, PR and even improved performance.

In addition to the positive influence on your company and its team members, you may also be able to forge a path within your industry. This can showcase your organization as the catalyst for positive change industry-wide, garnering improved recognition for the company and even attracting new talent, who want to be part of the movement you’ve started.

When you decide as an organization to employ sustainability measures, it also puts you in the unique position to stay ahead of regulators and to be a model of inspiration to them, rather than a subject that needs to be policed. As such, you become an example of what to do, rather than what not to do, spotlighting the organization as one that is both progressive and responsible.

In 2014, in parallel with our commitment to re-engineer the chemistry of our product line to eliminate ozone depletion potential and reduce global warming impacts, we were invited to participate in the President’s Climate Action Plan Executive Roundtable at the White House alongside both the U.S. Environmental Protection Agency (EPA), Department of Energy and a short list of CEOs from some of the country’s most recognized companies.

The goal of the roundtable was to lead the discussion toward real actions that would “green” American made products in an effort to protect the climate.

Our invitation to participate in this prestigious discussion was a catalyst that allowed us to help drive environmental change in both its industry and the business community at-large, prior to regulations being instated which would force those changes upon us. In essence, we were able to drive positive change, rather than be driven reluctantly by regulations.

We had never expected to have a seat at a discussion of this caliber, and we never would have had we not been the first in our industry sector to drive the environmental stewardship we believed was truly needed. Our product innovations led us to not only being invited to participate in the President’s Climate Action Plan roundtable discussions two years in a row, but it also resulted in the EPA showcasing Lapolla as an environmental leader with both domestic and international business audiences.

For example, in 2015, the EPA and State Department brought a delegation from India to our headquarters to educate them on the company’s innovations and the positive environmental impacts garnered from them.

In short, if you drive sustainability measures and practices in your company and industry, it is not only possible to positively impact your bottom line, but also to garner surprising results.

Whether these include an elevated reputation in the business community, improved employee morale or being showcased by regulators as a model of best practices, you might be surprised what positives await you through environmental stewardship.

Lapolla Industries Reports Financial Results for the Second Quarter

Lapolla Industries Reports Financial Results for the Second Quarter
Results Focus on Driving Shareholder Value

Houston, TX, July 27, 2016 – Lapolla Industries, Inc. (“Lapolla” or the “Company”) (OTCQX: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, today announced its financial results for the second quarter ended June 30, 2016.

Second Quarter 2016 Highlights:
–  Sales in the six months ended June 30, 2016 increased by 10% to $40.7 million compared to the same period in 2015
–  Net Income from the six months ended June 30, 2016 was $2.5 million, an increase of $4.0 Million compared to the same period in 2015
–  Adjusted EBITDA for the six months ended June 30, 2016 was $4.5 million, an increase of $3.6 million compared to the same period in 2015
“The first half results of 2016 further demonstrate the resolve our Company has to providing value to our shareholders,” stated Douglas J. Kramer, Chief Executive Officer and President of Lapolla. “All of our strategies and efforts revolve around delivering a quality product that is designed to reduce energy consumption in a cost efficient manner to select target markets around the globe. We see our business as a moral imperative towards combatting climate change. Having been in this business for over 25 years I have never been more excited about our industry and our company. We are more determined than ever on growing the bottom line and building shareholder value.”
Kramer continued, “We have built a great team of professionals in all aspects of our company from Sales, to having by the far the most qualified experienced Technical Service team in the industry, to our Finance and Operations team; as a result of their hard work and dedication, Lapolla has achieved a record Net Income and Adjusted EBITDA for the first six months of 2016. It is tremendously rewarding to be a part of a company that has come so far in such a short period of time.”

The company’s Chief Financial Officer, Jomarc Marukot added, “Our goal is to continue to grow profitably and provide a return to our shareholders. Our Fixed Charge Coverage Ratio (excluding non-scheduled principal payments) was 5.57:1 at June 30, 2016 vs 3.73:1 at December 31, 2015 and our leverage ratio was 2.2 at June 30, 2016 vs 3.5 at December 31, 2015. Adjusted EBITDA for the trailing twelve months ended June 30, 2016 was $7.6 million vs $4.1 million for the period ended December 31, 2015. These are demonstrations of the significant financial performance the company has achieved in 2016.”

As a further commitment to our shareholders, Lapolla has moved to the OTCQX, “Moving up to the OTCQX is an important strategic step in our investor outreach commitment. Being traded on the OTCQX will allow for greater exposure, accessibility, and liquidity from the investment community,” commented Michael T. Adams, the company’s Chief Governance Officer.

“Lapolla continues to seek top industry performers, in terms of personnel and independent installers and distributors, to facilitate growth and promote our value proposition,” concluded Mr. Kramer.

For further information regarding Lapolla’s financial results as of June 30, 2016, including Adjusted EBITDA, and a reconciliation of Adjusted EBITDA to net income or loss for the three and six months ended June 30, 2016 and 2015, respectively (see below), refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 at www.lapolla.com.

FORWARD LOOKING STATEMENTS
Certain statements in this press release that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of our control that can make such statements untrue, including, but not limited to, adverse economic conditions and their effect on demand for foams and coating; adverse effects of fluctuations in sales; intense competition from competitors that are better established and have significantly greater resources than us; our dependence on a few large suppliers for a large portion of materials required for production and sales of our products; loss or departure of key personnel; market acceptance of our existing and new products; unanticipated increases in raw material prices or disruptions in supply; restrictive loan covenants and/or our ability to repay or refinance debt under our credit facilities; operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, labor or overhead cost increases, interest rate risk and commodity risk; the fact that our chairman controls a majority of our combined voting power, and may have, or may develop in the future, interests that may diverge from those of other stockholders; future sales of large blocks of our common stock, which may adversely impact our stock price; and the liquidity and trading volume of our common stock. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Investor Relations:
Michael T. Adams, EVP
Phone: 281-219-4700
Email: info@lapolla.com

Results of Operations

Summary
The following table presents selected financial and operating data derived from the audited financial statements of the Company as of the dates and for the periods indicated. In addition, the table presents our unaudited non-GAAP financial measures, EBITDA and Adjusted EBITDA, and includes our reconciliation to net income or loss, its most directly comparable financial measure calculated and presented in accordance with GAAP. The table is presented in thousands. All financial information for June 30, 2016 and June 30, 2015, is derived from the Company’s unaudited financial statements, as disclosed in the Company’s Quarterly Report on Form 10-Q, for the three and six months ended June 30, 2016, filed with the Securities and Exchange Commission.

Lapolla Reports Second Quarter Ended 6-30-16 Results-Final-7-27-16-2 - Chart

Non-GAAP Financial Measures
To supplement our financial statements presented on a GAAP basis, we disclose non-GAAP measures as EBITDA and Adjusted EBITDA because management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in its business, and to establish operational goals and forecasts that are used in allocating resources. In addition, we believe many investors use these non-GAAP measures to monitor the Company’s performance. Our presentation includes these non-GAAP financial measures, and a reconciliation of EBITDA and Adjusted EBITDA to the GAAP measures most directly comparable thereto. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income or loss. The non-GAAP financial measures of EBITDA and Adjusted EBITDA should not be considered as an alternative to net income or loss or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA are not presentations made in accordance with GAAP and have important limitations as analytical tools. You should not consider EBITDA or Adjusted EBITDA in isolation or as substitutes for analysis of our results as reported under GAAP. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and is defined differently by different companies, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

EBITDA
We define EBITDA as net income or loss before interest, income taxes, depreciation and amortization of other intangible assets.

Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss.

The Company believes that presenting EBITDA and Adjusted EBITDA, in addition to the corresponding GAAP financial measures, provides investors greater transparency to the information used by management for financial and operational decision-making, and allows investors to see the Company’s results “through the eyes” of management. We further believe that providing this information assists investors in understanding the Company’s operating performance and the methodology used by management to evaluate and measure such performance.
We recognize that the usefulness of EBITDA and Adjusted EBITDA as an evaluative tool may have certain limitations, including:

• EBITDA and Adjusted EBITDA do not include interest expense. Because we have borrowed money in order to finance our operations, interest expense is a necessary element of our costs and impacts our ability to generate profits and cash flows. Therefore, any measure that excludes interest expense may have material limitations;
• EBITDA and Adjusted EBITDA do not include depreciation and amortization of other intangible assets expense. Because we use capital assets, depreciation and amortization of other intangible assets expense is a necessary element of our costs and ability to generate profits. Therefore, any measure that excludes depreciation
and amortization of other intangible assets expense may have material limitations;
• EBITDA and Adjusted EBITDA do not include tax expenses. Because the payment of taxes is a necessary element of our costs, any measure that excludes tax expense may have material limitations;
• EBITDA and Adjusted EBITDA do not reflect capital expenditures or future requirements for capital expenditures or contractual commitments;
• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and
• Adjusted EBITDA does not include share-based compensation expense.

Lapolla Industries Announces Upgrade to OTCQX®

Lapolla Industries Announces Upgrade to OTCQX

HOUSTON–(BUSINESS WIRE) — Lapolla Industries, Inc. (“Lapolla” or “Company”) (LPAD), a Houston-based global supplier of energy saving products, today announced it has qualified and started trading on the OTCQX® Best Market, operated by OTC Markets Group, effective July 1, 2016.

The OTCQX market is reserved for established, investor-focused U.S. and global companies that meet high financial standards, provide timely news and disclosure to investors, and are sponsored by a professional third-party advisor.

Douglas J. Kramer, President and CEO of Lapolla, stated, “Moving up to OTCQX is an important strategic step in our investor outreach commitment. Being traded on OTCQX will allow for greater exposure, accessibility, and liquidity from the investment community as we execute on our global strategy to deliver our energy saving products to key markets around the world.”

Lapolla is the first manufacturer, globally, to commercialize a third party tested and approved wall foam insulation system that uses an HFO cutting edge technology, offering an environmentally friendly, zero ODP and ultra low GWP. Lapolla’s FOAM-LOK 2000-4G (4th Generation) not only delivers environmental benefits that are 99.9 percent better than today’s most commonly-used blowing agents, the 4G now provides enhanced insulation values and yield from previous generation technology, bringing economic and bottom-line value to contractors and consumers.

Kramer continued, “Our global network of independent distribution and installing contractors continues to grow. The technology is at a tipping point of becoming mainstream around the world, providing Lapolla an opportunity to lead the transition from traditional insulation systems to advanced technology, literally changing the way in which we design and construct buildings, with an outcome of tighter, stronger and more energy efficient structures. Lapolla’s 4G advanced technology enters the global markets well ahead of eventual mandates by the US EPA and other foreign government mandates for change. These changes come as a result of the globally recognized initiatives, such as the Montreal Protocol, requiring reductions in greenhouse gases. Many countries around the world, from Europe, Scandinavia, the Middle East and South America, have already set required timelines for change, some currently implementing tariffs on old technology to encourage quicker adoption.”

As a result of Lapolla’s leadership in driving change, Kramer was invited to the White House to participate in the Executive Roundtable of the President’s Climate Action Plan. Kramer is now a regular participant at this annual event at the White House and Lapolla has since been named a Partner to the White House in the President’s Climate Action Plan. Kramer commented, “It’s been gratifying to get this recognition and to help lead such an important charge while knowing that the ultimate consumer value is so profound.”

Ty Pennington, from two time Emmy award winning Extreme Makeover – Home Edition (broadcasted on ABC), is the celebrity spokesman for Lapolla. Kramer said, “Driving consumer awareness and pull through is our goal as all consumers are looking for ways to gain not only energy savings, but also high performance homes.” Pennington commented, “This is personal for me. My mother struggled for many years with asthma and we are all aware of the growing epidemic levels of respiratory sensitivities. Lapolla’s 4G helps create better air quality by eliminating unwanted, unconditioned air, from entering the building. These airborne pollutants are one of the growing reasons for the surge in asthma among children. I have Lapolla 4G technology in my home,” said Pennington.

“At the end of the day, the clear global strategy, the strong management team, the 4G advanced technology, the global network, the consumer messaging, and the financial results, will drive shareholder value,” Kramer concluded.

U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for Lapolla on www.otcmarkets.com.

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier and manufacturer of spray polyurethane foam for insulation and roofing applications, reflective roof coatings and equipment. Based in Houston, Texas, the company’s building envelope and roofing product solutions are designed to reduce energy consumption in the built environment, across the residential, commercial and industrial sectors, in both new construction and retrofits. Visit Lapolla Industries at www.lapolla.com.

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 as of date hereof. Company undertakes no duty to update any forward-looking statement.

 

Investor Relations Contact:

Michael T. Adams, EVP

Tel: (281) 219-4700

Email: info@lapolla.com

Foam-LOK Roof Coating System

Lapolla Industries Introduces FOAM-LOK™ 2800-4G Spray Polyurethane Foam for Roofing Applications

Lapolla Industries Introduces FOAM-LOK™ 2800-4G Spray Polyurethane Foam for Roofing Applications

Next-Generation SPF for Roofing Makes Industry-wide Environmental Strides with Elimination of Ozone Depletion and Reduction of Global Warming Impact

 

Houston, TX (June 6, 2016) – Lapolla Industries, Inc. (OTCQB: LPAD), the global supplier and manufacturer of spray polyurethane foam insulation and roofing solutions, reflective roof coatings and equipment, today announced the launch of FOAM-LOK™ 2800-4G Spray Polyurethane Foam for Roofing. The fourth-generation spray polyurethane foam represents the company’s next stand-out product innovation pushing the industry forward in environmental stewardship with the elimination of ozone depletion potential (ODP) and the reduction of global warming potential (GWP).

“FOAM-LOK™ 2800-4G Spray Foam for Roofing is a result of Lapolla’s continued commitment to improve its product line with advancements aimed at protecting the climate and environment and achieving the highest measures of energy efficiency performance,” said Doug Kramer, President and CEO of Lapolla Industries.

FOAM-LOK™ 2800-4G Spray Foam Roofing is a rigid, closed-cell spray polyurethane foam that may be applied over most new or retrofit roofing substrates. A sustainable roofing material, FOAM-LOK™ offers a wide range of commercial, industrial, agricultural and residential applications. As the name implies, FOAM-LOK™ locks every portion of the roof into place, creating a monolithic membrane and eliminating the need for mechanical fasteners.

FOAM-LOK™ 2800-4G is notable for its superb ability to seal the envelope and prevent heat transfer through the roof deck. This seal minimizes the escape of conditioned air and dramatically reduces the structure’s energy consumption for heating and cooling, in turn significantly reducing energy costs over the life of the roof. The low maintenance material also resists wind uplift and acts as a waterproofing solution, protecting the structure underneath from water intrusion and the significant damage, which may accompany either.

“The FOAM-LOK™ roofing spray foam system’s waterproofing, weather proofing and wind uplift resistance makes it an ideal solution for resilient construction,” said Kramer.

The introduction of FOAM-LOK™ for roofing applications follows Lapolla’s 2015 debut of FOAM-LOK™ 2000-4G Spray Foam Insulation – a product recognized as the first SPF insulation product in the global marketplace to, like its sister roofing spray foam system, eliminate ozone depletion potential (ODP) and reduce global warming potential (GWP) – two environmentally detrimental attributes of all previous generation spray polyurethane foam systems. Both products reduce ozone depletion potential by 100 percent, offering an ODP value of zero, representing no ozone depletion whatsoever. Additionally, both products reduce GWP, a measure of how much heat a substance can trap in the atmosphere, down to a value of <1, representing significant reduction in CO2 and improved air quality with widespread adoption.

These new sustainability advancements achieved with Lapolla’s FOAM-LOK™ systems for roofing and insulation were made possible with technological innovation in product chemistry. In addition to the significant environmental benefits resulting, the innovation also provides additional product yield, resulting in lower installation cost and greater ROI and savings to the consumer.

“The commercialization of Lapolla’s next generation FOAM-LOK™ 2800-4G now completes Lapolla’s ability to address the entire building envelope with best-in-class spray polyurethane foam systems for both roofing and insulation,” said Kramer. “Not only do our next generation products protect the environment, but they continue to provide the incredible energy efficiency benefits that spray foam has always been known for.”

A structure insulated with FOAM-LOK™ 2000-4G Spray Polyurethane Foam Insulation and FOAM-LOK™ 2800-4G Spray Foam for Roofing is able to achieve a meaningful reduction in the energy load required for heating and cooling, providing as much as 45% percent energy cost savings over the life of the structure.

“Lapolla’s entire product line, whether spray foam, reflective coatings, or equipment, is aimed at conserving energy within the built environment while maintaining the highest level of comfort for all inhabitants,” added Kramer. “FOAM-LOK™ 2800-4G Spray Foam for Roofing is our latest product innovation that meets both goals.”

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier and manufacturer of spray polyurethane foam for insulation and roofing applications, reflective roof coatings and equipment. Based in Houston, Texas, the company’s building envelope and roofing product solutions are designed to reduce energy consumption in the built environment, across the residential, commercial and industrial sectors, in both new construction and retrofits. Visit Lapolla Industries at www.lapolla.com.

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 as of date hereof. Company undertakes no duty to update any forward-looking statement.

 

Investor Relations Contact:

Michael T. Adams, EVP

Tel: (281) 219-4700

Email: info@lapolla.com

Lapolla Industries to Attend Grand Designs Live in London

Lapolla Industries to Attend Grand Designs Live in London

FOAM-LOK 2000-4G™ to highlight show

London, England, April 25, 2016Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD) – a Houston, Texas-based global supplier and manufacturer of spray polyurethane foam insulation and other energy saving products, today announced it will be showcasing its FOAM-LOK 2000-4G insulation at the Grand Design Live Show April 30 – May 8 in London.

Steve Jewell, Corporate Director in the UK, stated “We are looking forward to showcasing the incredible energy efficiency of Lapolla Spray foam.  Grand Designs Live is an amazing venue for innovative products to be viewed and demonstrated for consumers. I am excited to show people how they can save on their energy bills!”

“Our FOAM-LOK 2000-4G was named one of Green Builders Hot Top 50 Products in the US because of its ultra-low global warming potential. This product is used in roof and wall applications and has superior yield and U-Value compared to other products on the market,” Mr. Jewell concluded.

Lapolla is the first manufacturer, globally, to offer a third party tested and approved wall foam system that uses the FOAM-LOK 2000-4G. The product not only improves foam performance, but also delivers environmental benefits and has an ultra-low global warming potential of 1, which is 99.9 percent lower than today’s most commonly-used blowing agents while retaining its insulating performance.

”Being selected in the Award-Winning Coverage of Sustainable Construction, Products and Lifestyles Green Builder Magazine, speaks volumes about Lapolla being a leader in the private sector developing new technologies and more climate-friendly products that are less harmful to the environment,” stated Doug Kramer, CEO of Lapolla. “We are excited to bring this product to the European market.”

Lapolla’s foam products include spray foam insulation for residential and commercial walls, crawl spaces and attic/loft space applications. The Company also supplies spray foam and elastomeric coatings for low slope residential and commercial roofing. Lapolla supplies polyurethane as an adhesive for board stock insulation to roofing substrates for commercial and industrial applications as well as sundry items.

Check us out at http://www.greenbuildermedia.com/hot502016-products/lapolla-industries-foam-lok-2000-4g. For a full list of the 2016 Hot 50 Products visit www.greenbuildermedia.com/hot50-2016.

About Grand Designs Live

Grand Designs Live, proudly sponsored by Anglian Home Improvements, returns to London’s ExCeL from the April 30 – May 8, 2016. Running for 9 days, the show offers visitors a unique opportunity to see all the latest trends for the home as well as many products never seen before. Based on the Channel 4 TV series, and presented by design guru Kevin McCloud, the event will be packed with over 500 exhibitors, across seven different sections where you can take away ideas and inspiration for your own GRAND design. For more information go to www.granddesignslive.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 residential, industrial and commercial markets, for both new construction and retrofit applications. For more information go to lapolla.co.uk.

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 as of date hereof. Company undertakes no duty to update any forward-looking statement.

 

Investor Relations Contact:

Michael T. Adams, EVP
Tel: (281) 219-4700
Email: info@lapolla.com