Houston, Texas - Coatings and spray foam insulation supplier LaPolla Industries Inc. said its total sales for the second quarter of 2008 rose 26 percent to $12.0 million compared to $9.5 million in Q2 2007. Foam sales "surged 63 percent due to market share gains," the group said, adding that this results form the realisation of the economic advantages foam provides homeowners and commercial landlords, "compared to less energy-efficient conventional insulation products, such as fiberglass."
According to LaPolla. "public awareness of green building materials and sustained energy solutions has greatly risen, and our foam and coatings product lines will provide millions of people the opportunity to realise sought after, environmentally conscious, energy cost savings."
The group's coatings sales declined 25 percent after the 2007 sale of its retail coating distribution channel. Gross profit increased 53 percent to $2.7 million from $1.8 million in Q2 2007, primarily as a result of "aggressive sales growth of our foam products and a more favorable product mix," said LaPolla.
After selling the retail channel, LaPolla said it is able to focus on "higher-margin coatings used in conjunction with our insulating roofing foam."
Gross margin percentage increased 3.9 percent compared to Q2 2007, due primarily to manufacturing efficiencies from a new foam resin plant which LaPolla started up in late 2007. Operations in Q2 2008 produced net income of $69 000, compared to a net loss of $621 000 for Q2 2007.
"Delivering 63-percent sales growth in our foam business and our move into profitability this quarter was a direct result of execution of our business strategies and underscores consumer demand for sustainable energy efficient materials to meet market requirements," commented Douglas Kramer, ceo and president.
"Economic conditions have helped raise awareness and further escalate the growing momentum of energy conserving spray polyurethane foam," Kramer added.