LaPolla Grows in Third Quarter
“LaPolla continues to grow sales dramatically despite the current economic crisis. Mainstream acceptance in conventional construction as well as increased consumer demand for superior insulation, are at the forefront of our charge,” said Douglas J. Kramer, CEO and President, of LaPolla Industries Inc. He said the company has met steep declines in the housing market with strong market share gains. “Consumers at all levels are realizing that insulation has an incredible impact on the conservation of energy and reduction in costs.”
For the third quarter of 2008 total sales increased 66 percent to $13.9 million, compared to $8.4 million in the third quarter of 2007. Foam sales increased 96 percent to record levels due to market share gains, primarily from displacement of conventional insulation products like fiberglass with spray foam insulation, despite steep declines in the new housing market.
LaPolla’s acquisition of certain AirTight SprayFoam’s assets, effective in July, shows the company’s initiative of converting traditional insulators to spray foam insulation.
Gross profit increased 50 percent to $2.6 million from $1.7 million in the third quarter of 2007 primarily due the aggressive sales growth of foam products as well as a smaller increase in coatings volumes, partially offset by rising raw material and freight costs. Operating expenses were $2.6 million in the third quarter of 2008 compared to $2.5 million in the same period last year, reflecting anticipated increases associated with an aggressive growth in sales. Operations in the third quarter produced a net income of $25,000, compared to a net loss of $777,000 for the same period in 2007.
For the nine months ended Sept. 30, total sales increased 36 percent to $34.1 million. Foam sales escalated 66 percent due to market share gains. Gross margin percentage increased 1.3 percent compared to same period in 2007 as efficiencies recognized from a new foam resin plant were partially offset by higher raw material, chemical prices associated with oil. Operating expenses were $7.8 million in the nine-month period of 2008 compared to $7.1 million in the same period last year.