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Lapolla Reports Record First Quarter 2010 Results

Published on 2010-08-30. Author : SpecialChem

HOUSTON, TX -- Lapolla Industries, Inc., a leading national manufacturer and supplier of insulation foam, coatings, and equipment, focused on commercial, industrial and residential applications in the insulation and construction industries, announced results for the first quarter of 2010.

First Quarter Overall Results

The Company reported sales of $13,404,335 for the first quarter ended March 31, 2010, as compared to $9,740,079 in the comparable period in 2009, an increase of $3,664,255 or 37.6% year-over-year. Gross profit was $3,382,376, as compared to $2,305,752 in the same period in 2009, an increase of $1,076,624 or 47%. Gross margin percentage increased 1.5% to 25.2% as compared to the comparable period in 2009. Net income was $164,424, as compared to a net loss of $1,178,652 in the same period 2009. Net income per share was $0.00, as compared to a net loss of $0.02 in the same period of 2009, an increase of $0.02, or 100%.

Douglas J. Kramer, CEO and President of Lapolla, commented, "Lapolla's first quarter's results reflect record sales growth and profitability. Despite this historically being the slowest quarter of the year for the Company, organic growth was robust and yielded a net profit in both of our business segments. Volatile energy prices, increased demand for green building materials, government tax incentives for energy saving home improvements, and pent up demand from the recession has accelerated our sales growth. In particular, our foam sales experienced a marked improvement of over 40%. Due to manufacturing efficiencies from increased volumes, we experienced a greater gross profit for the quarter."

Mr. Kramer continued, "As we enter the second quarter we are encouraged by continued strong demand and order flow. We fully expect the upward trends of the first quarter to continue in the near term. As the economy maintains its steady recovery and credit markets loosen, cost conscious building owners and consumers alike will continue to seek and invest in cost effective ways to reduce their energy costs, improve their air quality, and create a healthier living environment for their occupants and families."

Results of Business Segments

Foam sales were $11,871,302 for the first quarter ended March 31, 2010, as compared to $8,459,784 in the comparable quarter in 2009, an increase of $3,411,518, or 40.3%. Foam segment profit was $913,337 in the first quarter of 2010, as compared to a loss of $164,214 in the same period in 2009.

Coatings sales were $1,533,033 for the first quarter ended March 31, 2010, as compared to $1,280,296 in the first quarter ended March 31, 2009, an increase of $252,737, or 19.7%. Coating segment profit was $97,648 in the first quarter of 2010, as compared to a loss of $79,609 in the same period in 2009.

Total foam and coatings segment net profit was $1,010,985 in the first quarter of 2010 compared to a net loss of $243,822 in the first quarter of 2009, due primarily to increases in foam sales of $3,441,518, coatings sales of $252,737, and a gross margin percentage increase of 1.5%.

About Lapolla Industries, Inc.:

Lapolla Industries, Inc. is a national manufacturer of insulation foam and coating products targeting commercial, industrial and residential applications in the roofing and insulation construction industries.

Forward-Looking Statements

No statement herein should be considered an offer or a solicitation of an offer for the purchase or sale of any securities. This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although New Energy Technologies, Inc. (the "Company" or "New Energy Technologies") believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "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, including but not limited to adverse economic conditions, intense competition, lack of meaningful research results, entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs, termination of contracts or agreements, technological obsolescence of the Company's products, technical problems with the Company's research and products, price increases for supplies and components, litigation and administrative proceedings involving the Company, the possible acquisition of new businesses or technologies that result in operating losses or that do not perform as anticipated, unanticipated losses, the possible fluctuation and volatility of the Company's operating results, financial condition and stock price, losses incurred in litigating and settling cases, dilution in the Company's ownership of its business, adverse publicity and news coverage, inability to carry out research, development and commercialization plans, loss or retirement of key executives and research scientists, changes in interest rates, inflationary factors, and other specific risks. There can be no assurance that further research and development will validate and support the results of our preliminary research and studies. Further, there can be no assurance that the necessary regulatory approvals will be obtained or that New Energy Technologies, Inc. will be able to develop commercially viable products on the basis of its technologies. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent Form 10-Q and Form 10-K filings with the Securities and Exchange Commission. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities & Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities & Exchange Commission at 1-800-SEC-0330. The Company undertakes no obligation to publicly release the results of any revisions to these forward looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Source: Lapolla Industries, Inc.


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