Houston, Texas - Spray foam and roof coating supplier Lapolla Industries Inc, had third quarter 2011 sales up 27.3 percent compared to the prior year's third quarter, and said it was profitable across all segments.
Douglas Kramer, ceo and pesident of Lapolla, commented, "We continued to experience commodity cost challenges during the quarter from volatile oil prices and global allocation of certain coating materials, resulting in higher freight and materials costs across both of our segments, and a reduction in our gross profit for the period."
But Kramer noted that the "short-term spike in materials pricing is reversing, while market softness persists."
Lapolla has continued to invest in its business infrastructure "to support our aggressive growth both domestically and internationally. As we progress through the fourth quarter, we continue to experience sustained growing demand for our products," Kramer concluded.
The company's total sales increased by $5.3 million, or 27.3 percent, in Q3 2011, with its AirTight Division, a turnkey SPF startup equipment and training operation, having $2.8 million and $3.0 million in sales for Q3 of 2011 and 2010, respectively.
By business unit, Lapolla's foam sales increased $3.46 million or 20.3 percent, in Q3, due, said the company, to "energy-conscious building owners and consumers continuing to seek relief from costly energy prices, as spray polyurethane foam (SPF) gains market share away from traditional insulation systems such as fiberglass." Foam equipment sales increased $307 398, or 35.5 percent, in Q3.
Foam segment profit decreased $880 433, or 53.7 percent, in Q3, primarily due to increased freight and spikes in material costs from higher than normal fuel and petroleum based commodity prices. These rises were offset to some extent by increase in sales volumes from higher sales prices and by increasing in sales volumes from market share gains.
In coatings, Lapolla's sales increased $1.85 million or 78.4 percent, in Q3, which the company said resulted from energy saving acrylic coatings regaining traction from pent-up demand in the roofing and construction markets. Gross profit in coatings rose $263 686, or 58.7 percent, due to higher sales volumes, Lapolla noted.