Houston, Texas - Spray foam and roof coating specialist Lapolla Industries Inc. has seen "aggressive sales growth in our foam segment, while sales volumes declined due to seasonal conditions in our coatings segment," in the first quarter of 2012, according to Douglas Kramer, ceo and president.
"After two years of strategic planning, Lapolla is only now beginning to realise international growth as demand for our products increases and our international plans materialise," Kramer commented, in a statement discussing the company's Q1 results.
"High and increasingly volatile energy prices continue to heighten the public's interest for green building materials and sustainable energy solutions," the Lapolla chief added.
Foam sales increased $1.28 million or 8.6 percent in Q1 2012 compared to Q1 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 fibreglass, the Houston, Texas-based company said.
Foam equipment sales increased $177 289, or 19.4 percent quarter over quarter.
Foam cost of sales increased $1.41 million or 12.2%v in Q1 2012 compared to Q1 2011, due to increases of $1.3 million or 8.6 percent, in sales, $201 5 72 in freight, and about 7.4 percent in material costs, partially offset by purchasing power with key vendor alliances and manufacturing efficiencies, Lapolla said.
Foam gross profit decreased $131 040, or 4.0 percent, primarily from higher freight and material costs, offset by increased sales volumes and product prices.
Coatings sales decreased $601 276, or 19.1 percent quarter on quarter, due to seasonal factors in the roofing markets. Coatings equipment sales increased $9,331, or 24.0 percent, quarter over quarter.
In total, Lapolla's sales increased $677 397, or 3.8 percent quarter on quarter, while cost of sales increased $924 337, or 6.5 percent.
Gross profit decreased $246 940, or 6.5 percent, for the first quarter of 2012 compared to the first quarter of 2011, due to rising freight and material costs, and the decrease of 19.1% in coatings sales, partially offset by the 8.6 percent increase in foam sales.
Net loss increased $421 590, or 94.0 percent, quarter on quarter.