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March 29, 2013 /PRNewswire/ -- Lapolla Industries, Inc. ("Lapolla") (OTCQB:LPAD), a
Houston based global supplier, and manufacturer of spray foam insulation, and equipment designed to reduce energy consumption in the residential and commercial markets, for both new construction and retrofit applications, announces 2012 year results and outlook for 2013.
"The 2012 year was challenging with industry-wide concerns including record high raw material costs, shortages in availability of materials from a force majeure event, and elective reductions in sales through elimination of low margin or generally unfavorable business throughout the year. Lapolla responded decisively to these challenges by hiring a COO to enforce the required shift in focus to improving margins and reducing expenses. We continued to exercise stringent credit criteria and significantly reduced overhead, closing unprofitable locations and eliminating other overhead related expenses. Although this was not enough to offset the earlier quarterly losses, the progress as a result of the aggressive steps was evident. Margins increased 25% from the first half of 2012 to the second half of 2012, and SG&A for 2012 was reduced by
$1.6 Million for an annualized savings of
$3.2 Million," said
Douglas J. Kramer, CEO and President at Lapolla.
For 2012, Lapolla reported annual sales of
$70.4 Million, a decrease of 18.4%, comprehensive loss of
$4.4 Million, an increase of 3.9%, and loss per share of
$0.04, a decrease of 20%, from 2011, respectively.
Mr. Kramer continued, "Lapolla initiated its first global summit in 2011 which included representatives from 16 countries and those seeds are paying dividends so far in 2013. The uptick in international as well as expected increases in domestic business puts Lapolla back on its aggressive growth track, as we expect sales to grow to record levels in 2013 and beyond. Nobody can deny growing global consumer awareness about energy efficient foams and coatings and their reductions in energy costs."