HOUSTON, Aug. 22, 2012 /PRNewswire/ -- Lapolla Industries, Inc. ("Lapolla") (OTC BB:LPAD.OB), a Houston based manufacturer and supplier of spray foam insulation, cool roof coatings and equipment designed to reduce energy consumption in the residential and commercial markets, for both new construction and retrofit applications, announces quarterly sales of $17.8 million for the quarter ended June 30, 2012, a 17.9% decrease from the prior year period. Operating loss and earnings per share for the quarter were $2.1 million, and $0.02 per share, compared with $0.6 million and $0.01 per share, respectively, in the prior year period.
"The second quarter presented industry-wide challenges including record high commodity and raw material costs, shortages in availability of materials from a force majeure event, and declining sales from an elective process of elimination of low margin or generally unfavorable business. Lapolla responded decisively to these challenges and positive results are occurring," said Douglas J. Kramer, CEO and President at Lapolla.
Mr. Kramer continued, "We knew when the company hit a certain point of critical mass that a strong COO would be necessary to strengthen the organization and executive management team regardless of market conditions. To that end, we concluded our COO search and hired the COO that I identified, Mr. Harvey L. Schnitzer. He quickly established a leadership role both financially and operationally and immediately began to focus on margin control, cost cutting, and effective execution of new and existing policies and procedures to ensure improved results."
The foam segment reported $14.5 million in second quarter sales, a 16.2% decrease from the prior year period, while the coatings segment reported $3.3 million in sales, a 24.4% decrease from the prior year period.
"We are seeing very positive indications mid-way through the third quarter. We believe the swift steps taken to address the rapidly changing market conditions from the second quarter to significantly cut overhead costs, improve margins, and identify new solid growth opportunities, will lead to sustained value," 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 on the World Wide Web at www.lapollaindustries.com.
About Lapolla Industries, Inc.
Lapolla Industries, Inc. is a manufacturer of spray foam insulation and cool roof coating products targeting commercial, industrial and residential applications in the roofing and insulation construction industries. Additional information about Lapolla is available at www.Lapolla.com.
Forward Looking Statements
Statements made in this press release that are not historical facts constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are necessarily estimates reflecting the best judgment of senior management and express the Company's opinions about trends and factors which may impact future operating results. Such statements rely on a number of assumptions concerning future events, many of which are outside of the Company's control, and involve risks and uncertainties that could cause actual results to differ materially from opinions and expectations. Any such forward-looking statements should be considered in context with the various disclosures made by the Company about its businesses. All information in this release is as of the date hereof. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. Copies of Lapolla's press releases and additional information about Lapolla is available at on the World Wide Web at www.lapollaindustries.com.
Douglas J. Kramer, CEO
Harvey L. Schnitzer, COO
Michael T. Adams, CGO
Charles A. Zajaczkowski, CFO
SOURCE Lapolla Industries, Inc.