LaPolla Industries Inc. (LPAD.OB), a manufacturer and supplier of spray polyurethane foam insulation and coatings designed to reduce energy consumption in commercial and residential construction and retrofit markets, reported second quarter financial results this afternoon after the close. Revenues rose 26% to $12.0 million, compared to $9.5 million for the same period in fiscal 2007. Sales of foam products surged 63% to $9.1 million from $5.6 million, while the coatings segment experienced a 25% decline to $2.9 million from $3.9 million in Q2 2007. Gross profit rose to $2.7 million, a 53% increase from $1.8 million. Operating net income was $69,000, or $0.001 per share, compared to a net loss of $621,000, or $0.01 per share in the prior year.
“Delivering 63% sales growth in our foam business and our move into profitability this quarter was a direct result of execution of our business strategies and underscores consumer demand for sustainable energy efficient materials to meet market requirements,” stated Douglas J. Kramer, CEO and President, of LaPolla Industries, Inc.
He continued, “Economic conditions have helped raise awareness and further escalate the growing momentum of energy conserving spray polyurethane foam. Our products provide long term appeal to consumers as volatile energy costs will likely remain a continuing concern. With our infrastructure and vertical integration in place, LaPolla remains positioned for continued aggressive sales and margin growth. LaPolla differentiates itself from its competition by focusing on customer dynamics, product technology and performance, and market responsiveness.”
Shares of LPAD closed at $0.56 today and have traded in a 52-week range of $0.30 – $0.89. With 59.2 million shares outstanding, LPAD has a market cap of $33 million. No analysts currently cover the stock.
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