HOUSTON, May 16, 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, today announced results for the first quarter of 2012.
Douglas J. Kramer, CEO and President of Lapolla, commented, "High and increasingly volatile energy prices continue to heighten the public's interest for green building materials and sustainable energy solutions. Lapolla's first quarter 2012 results reflect sustained aggressive sales growth in our foam segment, while sales volumes declined due to seasonal conditions in our coatings segment. After two years of strategic planning, Lapolla is only now beginning to realize international growth as demand for our products increases and our international plans materialize," concluded Mr. Kramer.
Results of Business Segments
Foam sales increased $1,278,673, or 8.6%, in the first quarter of 2012 compared to the first quarter of 2011, due to energy conscious building owners and consumers continuing to seek relief from costly energy prices, as spray polyurethane foam (SPF) gains market share from replacing traditional insulation systems such as fiberglass. Foam equipment sales increased $177,289, or 19.4%, quarter over quarter. Foam cost of sales increased $1,409,713, or 12.2%, in the first quarter of 2012 compared to the first quarter of 2011, due to increases of $1,278,673, or 8.6%, in sales, $201,572, or 25.4%, in freight, and approximately 7.4% in material costs, partially offset by purchasing power with key vendor alliances and manufacturing efficiencies. Foam gross profit decreased $131,040, or 4.0%, and gross margin percentage decreased 2.6%, primarily from higher freight and material costs, offset by increased sales volumes and product prices, from the first quarter of 2012 compared to the first quarter of 2011. Foam segment profit decreased $201,134, or 31.6%, for the first quarter of 2012 compared to the first quarter of 2011, primarily due to higher freight and material costs, offset by an approximate 6.5% increase in sales prices and 93.5% increase in sales volumes.
Coatings sales decreased $601,276, or 19.1%, in the first quarter of 2012 compared to the first quarter of 2011, due to seasonal factors in the roofing markets. Coatings equipment sales increased $9,331, or 24.0%, quarter over quarter.