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Lapolla Industries Reports First Quarter 2016 Earnings Results

Lapolla Industries Reports First Quarter 2016 Earnings Results


Houston, TX, April 28, 2016 –
Lapolla Industries, Inc. (“Lapolla” or the “Company”) (PINK: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, today announced financial results for the three months ended March 31, 2016.

First Quarter 2016 Highlights:
Total Sales increased by 18% compared to the same period in 2015
Gross Profit increased 58% compared to the same period in 2015
Net Income increased 159% compared to the same period in 2015
Adjusted EBITDA increased 2,057% compared to the same period in 2015

“The first quarter is indicative of the positive direction of our Company on all fronts,” stated Douglas J. Kramer, Chief Executive Officer and President of Lapolla. “We remain steadfast on growing sales and focused on operational and manufacturing efficiencies to drive our bottom line to build shareholder value.”

Mr. Kramer continued, “Lapolla continues to innovate technology and refine support for customers and consumers alike. While much of the industry is cutting back on contractor support, Lapolla offers the most qualified technical services in the industry, including an engineering department to provide needed guidance to engineers and architects. This depth and capability will help ensure Lapolla as the preferred supplier for quality Spray Polyurethane Foam.”

For further information regarding Lapolla’s financial results as of March 31, 2016, including Adjusted EBITDA, and a reconciliation of Adjusted EBITDA to net income or loss for the three months ended March 31, 2016 and 2015, respectively (see below), and risks, uncertainties, and other factors associated with Lapolla’s business, 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, 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 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, 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.

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 March 31, 2016 and March 31, 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 months ended March 31, 2016, filed with the Securities and Exchange Commission.

Lapolla Reports 1st Qtr 16 Results-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 provision for income taxes. Because the payment of income taxes is a necessary element of our costs, any measure that excludes income 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.

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

 

Lapolla Industries Reports 2015 Year End Earnings Results

Lapolla Industries Reports 2015 Year End Earnings Results

 

Houston, TX, March 28, 2016 – Lapolla Industries, Inc. (“Lapolla” or the “Company”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, today announced financial results for the fiscal year ended December 31, 2015.

Douglas J. Kramer, CEO and President of Lapolla, stated “Lapolla’s continued commitment to net income remains steadfast, which is evident by the Company’s improvement in net income by 126%, less non-cash – share based compensation, in 2015 over 2014. Adjusted EBITDA increased to $4,087,697 from $504,961 in 2015 from 2014, a positive change of 710%. Overall revenue continues to grow as a result of continued company focus on sales leadership and market mainstreaming of spray foam technology in residential and commercial applications.”

Mr. Kramer continued, “Lapolla continues to lead that charge, being the first in the world to develop and commercialize next generation spray foam insulation products, utilizing HFO technology, the most environmentally friendly products on the market today. With an expanding global footprint, Lapolla will continue to capture market share and aggressively promote the LAPOLLA brand, driving market recognition in the most strategic markets around the world.”

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 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, 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.

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. All December 31, 2015 financial information is derived from the Company’s 2015 audited financial statements and all December 31, 2014 financial information is derived from the Company’s 2014 audited financial statements, as disclosed in the Company’s Annual Report on Form 10-K, for the twelve months ended December 31, 2015 filed with the Securities and Exchange Commission.

LAPOLLA Reports YE 2015 Results-Final-3-28-16-2


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 provision for income taxes. Because the payment of
income taxes is a necessary element of our costs, any measure that excludes income 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.

Investor Relations:

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

Lapolla Industries Announces 2015 Third Quarter Results

Lapolla Industries Announces 2015 Third Quarter Results


Houston, TX, November 12, 2015
– Lapolla Industries, Inc. (“Lapolla” or the “Company”) (OTCQB: LPAD) a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, today announced financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 Highlights:

  • Total Sales increased by 12.9% compared to the same period in 2014
  • Gross Profit increased 47.4% compared to the same period in 2014
  • Net Income was $215,489 compared to a net loss of $1,014,359 for the same period in 2014

“The third quarter is representative of the positive direction of our Company,” stated Douglas J. Kramer, Chief Executive Officer and President of Lapolla. “Lapolla’s inclusion in President Obama’s Climate Action Plan is telling as we are driving technology and innovation within our industry. We remain steadfast on growing our top line from domestic and international prospects and focused on operational and manufacturing efficiencies to drive our bottom line to build shareholder value.”

For further information regarding Lapolla’s financial results as of September 30, 2015, including Adjusted EBITDA, and a reconciliation of Adjusted EBITDA to net income or loss for the nine months ended September 30, 2015 and September 30, 2014, and risks, uncertainties, and other factors associated with Lapolla’s business, 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, 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 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, 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

Lapolla Industries CEO Invited To White House Roundtable

Lapolla Industries CEO, Doug Kramer, Invited To White House Roundtable

President Obama’s Climate Action Plan


Houston, TX, October 22, 2015
– Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD) – Doug Kramer, CEO of Lapolla, attended a White House Roundtable on Thursday, October 15 in Washington, DC to discuss the private sector’s commitment to reduce the use and emissions of potent greenhouse gases known as hydrofluorocarbons (HCFs).

“In 2014 Lapolla made a commitment to the White House to transition all lines of technology by the end of 2016. We are significantly ahead of schedule, as of now, our entire product line of foam systems no longer uses high HFCs,” stated Kramer. “In fact, we are urging others in our industry to follow our lead and transition their products ahead of the EPA target date.” He further commented, “Now our goal is to transition the global markets to Next Generation 4G technology. Lapolla’s 4G already has approval in the United States, Europe and other important regions of the world.”

Lapolla has been a leader in the private sector developing new technologies addressing the issues in President Obama’s Climate Action Plan creating more climate-friendly products that are less harmful to the environment. In addition Lapolla has spray foam technology for both insulation and roofing systems and is in the process of converting all of its customers to this technology.

Gina McCarthy, Administrator of the EPA confirmed, “It is incredible to see the innovation that is out there and the commitment of the private sector.”

Leaders of the discussion included Gina McCarthy, Administrator of the EPA, Dr. Ernest Moniz, US Secretary of Energy, John Conger, Assistant Secretary of Defense, and Dan Utech, Deputy Assistant to the President for Energy and Climate Change.

For more information, go to https://www.whitehouse.gov/share/climate-action-plan.

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

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 the Company about its business. All information herein is as of the date hereof. The Company undertakes no duty to update any forward-looking statement.

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

Lapolla Industries Announces David Feitl

Lapolla Industries Announces David Feitl as New Vice President of Sales


Houston, TX, October 21, 2015
– Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD) is pleased to announce that David Feitl has joined the company as the new Vice President of Sales reporting to CEO and President, Doug Kramer.

Mr. Feitl has worked on the contracting side of the business as well as the manufacturing starting as a foam contractor and most recently as Director of Sales for the Building Products Group for the Rhino Linings Corporation. He also held the role of COO in charge of sales for Demilec USA in Arlington, TX.

As VP of Sales, Mr. Feitl will oversee all of the sales activities which include the strategic direction and management of Lapolla’s sales initiatives. He will also be developing new business opportunities in North America.

“We are excited to have David join our team at Lapolla,” commented Kramer. “He brings 20 plus years of industry experience to the role as well as being a strong sales professional that can help lead our revenue growth to the next level.”

“When the opportunity came up to join the Lapolla family I embraced it as I believe they are well positioned due to their leadership in technology and the spray foam insulation market. It is this technology and company vision of the growing demand by consumers that will continue to differentiate Lapolla,” stated Feitl.

Mr. Feitl is a retired NBA player who was selected by the Houston Rockets in the 2nd round (43rd overall) of the 1986 NBA Draft. He played five seasons for the Golden State Warriors, Washington Bullets, New Jersey Nets as well as the Rockets, concluding his career playing three years overseas. He is a graduate of the University of Texas at El Paso with a degree in Business.

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

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 the Company about its business. All information herein is as of the date hereof. The Company undertakes no duty to update any forward-looking statement.

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

home improvement insulation spray foam pennington

ProudGreenHome.com – 2015 IBS Interview with Ty Pennington

IBS Interview: Ty Pennington talks spray foam insulation

ProudGreenHome.com talked with Ty at the Lapolla Industries booth at the International Builders’ Show, where the conversation ranged over many building science topics, along with Doug Kramer, president and CEO of Lapolla.

Pennington talked about the benefits of spray foam insulation, which can maximize a homeowners investment by sealing the building envelope to stop conditioned indoor air from escaping and prevent unconditioned air from entering a home. Air exchange in and out of a home is a leading cause of escalated energy bills. The mechanical systems that heat and cool buildings are continuously operating; reducing extreme temperature variations saves on the overuse of mechanical systems and leads to lower energy bills.

Read the full article at proudgreenhome.com

Lapolla Industries Reports Third Quarter 2014 Results

HOUSTON — Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based 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, today announced financial results for the three month period ended September 30, 2014.

Third Quarter Financial Highlights

For the third quarter of 2014, Lapolla generated sales of $17.9 million, as compared to $18.1 million during the same period in 2013. During the third quarter of 2014, Lapolla’s gross profit was $3.3 million, as compared to $3.9 million for the third quarter of 2013. Adjusted EBITDA for the third quarter was a loss of $20,630, as compared to a gain of $689,602 in the same period of 2013.

For the third quarter of 2014, Lapolla reported foam segment sales were $15.4 million as compared to $15.3 million in the same period of 2013. Foam segment profit was $90,515 during the third quarter 2014, as compared to $695,746 for the same quarter in 2013. The third quarter 2014 coatings segment sales were $2.5 million versus $2.8 million for the same period in 2013. Coatings segment profit was $204,884, as compared to $412,992 for the third quarter in 2013.

“During the third quarter of 2014, our revenues roughly held in line with last year and our operating expenses were lower by over 3%,” stated Doug Kramer, CEO and President of Lapolla Industries. “While this past quarter did not show substantial changes from a financial perspective, there were notable shifts in the regulatory landscape in United States and internationally that are promising for Lapolla moving forward. As noted in last quarter’s results, Lapolla is the industry’s first-mover on Next Generation technology, utilizing the latest blowing agent that essentially eliminates ODP and GDP, making our product green and environmentally friendly. This innovation was rewarded in September, when the White House named Lapolla an official private sector partner of the President’s Climate Action Plan, and further announced an Executive Action requiring US government agencies to show preference to low-HFC products. Positive regulatory news has continued since the third quarter’s close with the European Union committing to lowering greenhouse gases to 40% of 1990 levels by 2030, and in late November, the United States, Canada, and Mexico will formally propose an amendment to the Montreal Protocol at a meeting of the UNEP that will further phase down use of HFCs. Notably, Lapolla remains the only firm in the world to deliver this cutting edge technology for wall foam insulation. To maximize this new market opportunity, Lapolla has engaged communications and government relations consultants to assist in accessing new potential customers. Aside from these regulatory considerations, market trends remain strong as SPF insulation continues to move mainstream with consumers, building owners and multi-family facility managers recognizing the environmental and financial benefits Lapolla products provide,” concluded Mr. Kramer.

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, 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.

Non-GAAP Financial Measures:

Lapolla Industries utilizes Adjusted EBITDA to assist it in reviewing financial results and for management incentives. Adjusted EBITDA is defined as EBITDA increased by total share based compensation included in net income or loss. Lapolla’s management utilizes Adjusted EBITDA in an effort to provide information that reflects the Company’s economic performance. Lapolla’s management team reviews their monthly financial results on an Adjusted EBITDA basis. Adjusted EBITDA has no impact on reported sales. Adjusted EBITDA is used as a supplemental financial measure by management to describe Lapolla’s operations and economic performance to financial institutions, including the economic results of Lapolla’s operations; and repeatable operating performance that is not distorted by non-recurring items, certain other non-cash items, or market volatility. Adjusted EBITDA is not prepared in accordance with GAAP. Adjusted EBITDA should not be considered as an alternative to net income or loss, income or loss from operations, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

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

LAPOLLA INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)

 

September 30, 2014 December 31, 2013
Assets
Current Assets:
Cash

$

$

Trade Receivables, Net 8,865,019 7,694,589
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contract 226,033

Inventories 4,117,012 5,421,935
Prepaid Expenses and Other Current Assets 628,702 1,250,314
Total Current Assets 13,836,766 14,366,838
Property, Plant and Equipment 1,457,539 1,600,679
Other Assets:
Goodwill 4,234,828 4,234,828
Other Intangible Assets, Net 1,177,837 1,165,157
Deposits and Other Non-Current Assets, Net 449,832 686,658
Total Other Assets 5,862,497 6,086,643
Total Assets $ 21,156,802 $ 22,054,160
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts Payable $ 5,994,722 $ 6,694,633
Accrued Expenses and Other Current Liabilities 1,156,979 1,456,895
Current Portion of Long-Term Debt

4,599
Total Current Liabilities 7,151,701 8,156,127
Other Liabilities:
Non-Current Portion of Revolver Loan 5,442,030 4,539,163
Non-Current Portion of Notes Payable – New Enhanced Note 7,027,882 6,683,561
Non-Current Portion of Note Payable – Related Party 1,300,000 1,300,000
Accrued Interest – Note Payable – Related Party 172,300 117,633
Total Other Liabilities 13,942,212 12,640,357
Total Liabilities 21,093,913 20,796,484
Stockholders’ Equity:
Common Stock, $.01 Par Value; 140,000,000 Shares Authorized; 115,423,903 and 114,148,378
Issued and Outstanding for September 30, 2014 and December 31, 2013, respectively. 1,154,239 1,141,484
Additional Paid-In Capital 87,855,480 86,734,757
Accumulated (Deficit) (88,823,919 ) (86,495,654 )
Accumulated Other Comprehensive (Loss) (122,911 ) (122,911 )
Total Stockholders’ Equity 62,889 1,257,676
Total Liabilities and Stockholders’ Equity $ 21,156,802 $ 22,054,160

LAPOLLA INDUSTRIES, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

Three Months Ended September 30, Nine Months Ended September 30,
2014 2013 2014 2013
Sales $ 17,874,308 $ 18,074,101 $ 52,661,376 $ 52,837,387
Cost of Sales 14,588,682 14,136,145 42,437,341 41,416,495
Gross Profit 3,285,626 3,937,956 10,224,035 11,420,892
Operating Expenses:
Selling, General and Administrative 3,341,230 3,396,028 9,774,425 9,873,835
Professional Fees 129,295 192,196 485,243 816,688
Depreciation 42,216 41,786 126,995 131,046
Amortization of Other Intangible Assets 78,653 80,325 212,428 338,776
Consulting Fees 130,309 133,327 365,072 351,656
Total Operating Expenses 3,721,703 3,843,662 10,964,163 11,512,001
Operating Income (Loss) (436,077 ) 94,294 (740,128 ) (91,109 )
Other (Income) Expense:
Interest Expense 306,505 226,808 879,052 783,590
Interest Expense – Related Party 203,877 187,870 604,298 557,585
Interest Expense – Amortization of Discount 46,007

136,512

(Gain) Loss on Derivative Liability

(65,656 )
Other, Net 21,893 (23,206 ) (31,725 ) (41,540 )
Total Other (Income) Expense 578,282 391,472 1,588,137 1,233,979
Net (Loss) $ (1,014,359 ) $ (297,178 ) $ (2,328,265 ) $ (1,325,088 )
Net (Loss) Per Share – Basic and Diluted $ (0.01 ) $ (0.00 ) $ (0.02 ) $ (0.01 )
Weighted Average Shares Outstanding 115,204,510 112,155,974 114,821,758 110,945,316
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment (Loss) (2,205 )
Total Other Comprehensive (Loss)

$

$

$

$ (2,205 )
Comprehensive (Loss) $ (1,014,359 ) $ (297,178 ) $ (2,328,265 ) $ (1,327,293 )

LAPOLLA INDUSTRIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended September 30,
2014 2013
Cash Flows From Operating Activities
Net Loss: $ (2,328,265 ) $ (1,325,088 )
Adjustments to Reconcile Net Loss to Net Cash (Used in) Operating Activities:
Depreciation 300,619 343,538
Amortization of Other Intangible Assets 212,428 338,776
Provision for Losses on Accounts Receivable 603,796 190,654
Share Based Compensation Expense 583,844 1,008,063
Interest Expense – Related Party 604,298 557,585
Interest Expense – Enhanced Notes PIK 207,809

Interest Expense – Amortization of Discount 136,512

Loss on Foreign Currency Exchange 46,391

Gain on Derivative Liability

(65,656 )
Gain on Disposal of Asset (4,052 ) (7,148 )
Changes in Assets and Liabilities:
Trade Receivables (1,821,303 ) (1,179,635 )
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contract (226,033 )

Inventories 1,304,923 (313,396 )
Prepaid Expenses and Other Current Assets 621,612 (4,804 )
Other Intangible Assets (225,108 ) (96,715 )
Deposits and Other Non-Current Assets 236,826 (274,871 )
Accounts Payable (699,221 ) 711,582
Accrued Expenses and Other Current Liabilities (299,916 ) 105,651
Net Cash (Used in) Operating Activities (744,840 ) (11,464 )
Cash Flows From Investing Activities
Acquisitions of Property, Plant and Equipment (206,427 ) (40,401 )
Proceeds from Disposal of Property, Plant and Equipment 53,000 28,786
Net Cash Provided by (Used in) Investing Activities $ (153,427 ) $ (11,615 )
Cash Flows From Financing Activities
Proceeds from Revolver Loan 54,567,575 56,715,217
Principal Repayments to Revolver Loan (53,664,709 ) (56,000,604 )
Principal Repayments to Notes Payable – Enhanced (673,331 )
Principal Repayments on Long Term Debt (4,599 ) (15,998 )
Net Cash Provided by Financing Activities 898,267 25,284
Net Effect of Exchange Rate Changes on Cash

(2,205 )
Net Change in Cash

Cash at Beginning of Period

Cash at End of Period

$

$

Supplemental Disclosure of Cash Flow Information:
Cash Payments for Interest $ 790,575 $ 598,769
Supplemental Schedule of Non Cash Investing and Financing Activities:
Issuance of Restricted Common Stock for Related Party Personal Guaranty on Note Payable $ 329,074 $ 504,863

Reconciliation of EBITDA and Adjusted EBITDA to Net Loss

(Unaudited)

Nine Months Ended September 30,
2014 2013
Net Loss: $ (2,328,265 ) $ (1,325,088 )
Additions / (Deductions):
Interest Expense 879,052 783,590
Interest Expense – Related Party 604,298 557,585
Interest Expense – Amortization of Discount 136,512

Tax Expense (Benefit) 108,131 129,463
Depreciation 300,619 343,538
Amortization of Other Intangible Assets 212,428 338,776
EBITDA $ (87,225 ) $ 827,864
Additions / (Deductions):

Share Based Compensation (1)

583,844 969,676
Adjusted EBITDA $ 496,619 $ 1,797,540

(1) Represents non-cash share based compensation for the periods then ended.

 

lpad lapolla industries home improvement insulation video series

Behind-The-Scenes With Lapolla & Ty Pennington

lapolla ty pennington spray foam insulation movieRecently, Lapolla's new spokesperson Ty Pennington visited Houston, TX, for a 2-day studio shoot with Lapolla Industries. New footage was recorded for our #LiveGreenEveryDay campaign, which started on Earth Day 2014 educating our audience on the green characteristics of insulating with Lapolla's spray foam insulation, in addition to several other new campaigns.

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We hosted Ty at the Emmy award winning Silver Rock studios in The Woodlands, TX, with video production by Skyline Movement. It was an absolute pleasure to record in an inspirational structure with such a talented group of professionals.

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Be sure to visit our social media channels (Facebook, Google+, Twitter, Pinterest, and Tumblr) for more behind-the-scenes footage.

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Always stay connected to Lapolla for more information on our upcoming campaigns with Ty Pennington, the latest updates on Solstice LBA, FOAM-LOK, the AirTight Multifamily Energy Reduction Program, spray foam insulation and roofing education, and more.

Photo credits: Lapolla Industries, Silver Rock Studios, Epic Software Group

richard kurtz lapolla spray foam airtight multi-family

Lapolla Chairman, Richard Kurtz, Cutting Energy Costs At His and Others’ Buildings

ricahrd kurtz lapolla airtight spray foam multi-family

Kevin R. Wexler/Photographer

As a landlord, Richard Kurtz of the Kamson Corp. in Englewood Cliffs faced a few expenses that just seemed to keep growing: insurance. Taxes. And heating costs.

He couldn't do much about the first two, but he decided to tackle energy costs at the roughly 14,000 apartments Kamson owns in the Northeast. That led him to become a majority shareholder about a decade ago in a Houston-based company, Lapolla Industries Inc., which makes spray foam insulation and other energy-saving products.

Kurtz, who also is the chairman of Lapolla's board, said that through Lapolla's AirTight division, he has cut energy costs in half at his apartment complexes in Lodi and Garfield by adding spray foam insulation, wireless thermostats and more efficient boilers and water heaters.

Now, Kurtz plans to do the same at his other complexes, and he's also reaching out to other landlords. Lapolla's AirTight division recently signed a $1 million-plus contract to improve the energy efficiency at Jacob Ford Village, a 270-unit Morristown complex owned by Rochester, N.Y.-based Home Properties.

"This is serious savings for a landlord," Kurtz said. "I feel saving on energy offers the greatest upside and success for property owners." It's also better for the environment, he added.

The AirTight program costs $3,000 to $4,000 per apartment, Kurtz said, but the savings on utility bills will allow property owners to recover those costs in five to eight years. Most of Kamson's portfolio consists of two-and three-story garden apartment complexes, and the company pays heating costs in 90 percent of them.

Brent Kohere, regional vice president for Home Properties, said he was drawn to AirTight's program because AirTight offers a turnkey package, including helping his company get state rebates for the improvements.

"We're looking at some substantial energy savings," Kohere said. Between the rebates and the energy savings, he said, "it essentially pays for itself over a few years."

Kurtz gives much of the credit for AirTight to Bill Murphy, a longtime Kamson employee who developed the program.

"Landlords seem to be more interested now in getting more efficient heating systems than in the past," said Murphy.

 

Ty Pennington with Spray Hose

Ty Pennington Signs on as Spokesperson for Lapolla Industries, Leading Spray Foam Insulation Brand

Star of “Extreme Makeover: Home Edition” to Raise Awareness about the Advantages of Choosing Spray Foam Insulation during Home Construction and Renovations
Houston, TX, May 19, 2014Lapolla Industries, Inc. (“Lapolla”) (OTCQB: LPAD), a Houston-based global supplier and manufacturer of spray polyurethane foam insulation, reflective roof coatings, and equipment, has announced that home improvement superstar, Ty Pennington, will act as the Company’s official spokesperson. Ty will promote Lapolla’s products in upcoming national and local campaigns, as well as make appearances at international trade shows and participate in consumer events, media relations and social media activities.

“Ty Pennington is one of the most trusted names and faces in home improvement and renovation. We view our partnership with Ty as an opportunity to reach a broader audience to educate them on the importance and value of spray foam insulation,” said Doug Kramer, President and Chief Executive Officer of Lapolla Industries. “Like Lapolla’s foam insulation, Ty is recognized and respected by contractors, builders, and home owners for his innovative and intelligent techniques for improving homes.”

Mr. Pennington is best known for hosting and leading the design team on “Extreme Makeover: Home Edition.” Prior to that role, he was the lead carpenter on TLC’s “Trading Spaces.” He is also the author of two books on home improvement.

“For years, I’ve been bringing attention to the importance of purposeful and creative home renovation,” said Ty Pennington. “By teaming up with Lapolla, we have an opportunity to build awareness about the importance of proper insulation to create significant energy savings to the entire residential market. The best home construction in the world needs the best, most efficient insulation to be truly effective for home owners.”

Ty’s role with the Company is aligned with the beginning of the home construction and renovation season, a time when Lapolla’s environmentally friendly products are top of mind. The Company’s products are known for their ability to reduce energy consumption in the residential, industrial and commercial markets for both new construction and retrofit applications, preventing heat or air conditioning from escaping. Lapolla’s spray foam can cut a buildings’ energy use by up to 40 percent for the life of the structure.

Lapolla also recently announced that its AirTight®Division is implementing a Multi-Family Energy Savings Program to contribute to additional savings – amounting to more than 55 percent – for landlords and property owners. This four-component program is a turn-key service that provides energy assessments and analysis with the assistance of independent consultants, project design, and regulatory due diligence to secure rebates from state and utility authorities.

Lapolla’s foam products include spray foam insulation for residential and commercial perimeter walls, crawl spaces and attic 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.

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

Investor Contacts:
Todd Fromer / Phil Carlson
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1233
Email: tfromer@kcsa.com / pcarlson@kcsa.com

Media Contacts:
Samantha Wolf / Jon Goldberg
KCSA Strategic Communications
Phone: 212-896-1220 /212-896-1282
Email: swolf@kcsa.com  / jgoldberg@kcsa.com