Houston, Texas - Spray foam manufacturer LaPolla Industries Inc. has reported strong increases in sales in the third quarter of 2008 (Q3), despite the current economic crisis.
Foam sales increased by 96 percent to record levels due to market share gains, "primarily from displacement of conventional insulation products like fibreglass with spray foam insulation, despite steep declines in the new housing market," the company said 20 Nov. Coatings sales increased 5 percent as foam roofing products continue to provide a pull through advantage for its energy efficient coatings, the company added.
LaPolla attributed the increases in foam sales, in part, to the fact that construction industry professionals such as contractors, builders and architects now generally accept spray polyurethane foam as a mainstream product.
Total sales in Q3 increased to $13.9 million compared to $8.4 million in Q3 of 2007. Gross profit increased 50 percent to $2.6 million from $1.7 million in Q3 2007, operating costs were up from $2.5 million to $2.6 million in Q3 2008 whilst operating income was $25 000 compared to a net loss of $777 000 in the same period in 2007.
"Our third quarter results are further evidence of LaPolla's solid business plan and managements execution ability. The acquisition of AirTight SprayFoam's assets during the quarter is allowing us to more aggressively pursue conventional insulators interested in converting to spray foam insulation to meet escalating demand and growing market opportunities," said Douglas Kramer, LaPolla president and ceo.
"LaPolla has met steep declines in the housing market with strong market share gains. Consumers at all levels are realising that insulation has an incredible impact on the conservation of energy and reduction in costs," he added.