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Lapolla Industries Reports 2015 Year End Earnings Results

Lapolla
Industries, Inc.
(“Lapolla” or the “Company”) (OTCQB:
LPAD), a Houston-based global supplier and manufacturer of spray
polyurethane foam insulation, reflective roof coatings, and equipment,
today announced financial results for the fiscal year ended December 31,
2015.

Douglas J. Kramer, CEO and President of Lapolla, stated, “Lapolla’s
continued commitment to net income remains steadfast, which is evident
by the Company’s improvement in net income by 126%, less non-cash –
share based compensation, in 2015 over 2014. Adjusted EBITDA increased
to $4,087,697 from $504,961 in 2015 from 2014, a positive change of
710%. Overall revenue continues to grow as a result of continued company
focus on sales leadership and market mainstreaming of spray foam
technology in residential and commercial applications.”

Mr. Kramer continued, “Lapolla continues to lead that charge, being the
first in the world to develop and commercialize next generation spray
foam insulation products, utilizing HFO technology, the most
environmentally friendly products on the market today. With an expanding
global footprint, Lapolla will continue to capture market share and
aggressively promote the LAPOLLA brand, driving market recognition in
the most strategic markets around the world.”

About Lapolla Industries, Inc.

Lapolla Industries, Inc. is a global supplier and manufacturer of spray
polyurethane foam insulation, reflective roof coatings, and equipment
designed to reduce energy consumption in the residential, industrial and
commercial markets for both new construction and retrofit applications.
More information is available at www.lapolla.com.

Forward Looking Statements

Certain statements in this press release that are forward-looking and
not statements of historical fact are forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are generally
identifiable by the use of words like “may,” “will,” “should,” “could,”
“expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or
the negative of these words or other variations on these words or
comparable terminology. The reader is cautioned not to put undue
reliance on these forward-looking statements, as these statements are
subject to numerous factors and uncertainties outside of our control
that can make such statements untrue, including, but not limited to,
adverse economic conditions and their effect on demand for foams and
coating; adverse effects of fluctuations in sales; intense competition
from competitors that are better established and have significantly
greater resources than us; our dependence on a few large suppliers for a
large portion of materials required for production and sales of our
products; loss or departure of key personnel; market acceptance of our
existing and new products; unanticipated increases in raw material
prices or disruptions in supply; restrictive loan covenants and/or our
ability to repay or refinance debt under our credit facilities;
operating margin risk due to competitive pricing and operating
efficiencies, supply chain risk, material, labor or overhead cost
increases, interest rate risk and commodity risk; the fact that our
chairman controls a majority of our combined voting power, and may have,
or may develop in the future, interests that may diverge from those of
other stockholders; future sales of large blocks of our common stock,
which may adversely impact our stock price; and the liquidity and
trading volume of our common stock. More detailed information about the
Company and the risk factors that may affect the realization of
forward-looking statements is set forth in the Company’s filings with
the Securities and Exchange Commission (SEC), including the Company’s
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
Investors and security holders are urged to read these documents free of
charge on the SEC’s web site at http://www.sec.gov.
The Company assumes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future events
or otherwise.

Results of Operations

Summary

The following table presents selected financial and operating data
derived from the audited financial statements of the Company as of the
dates and for the periods indicated. In addition, the table presents our
unaudited non-GAAP financial measures, EBITDA and Adjusted EBITDA, and
includes our reconciliation to net income or loss, its most directly
comparable financial measure calculated and presented in accordance with
GAAP. All December 31, 2015 financial information is derived from the
Company’s 2015 audited financial statements and all December 31, 2014
financial information is derived from the Company’s 2014 audited
financial statements, as disclosed in the Company’s Annual Report on
Form 10-K, for the twelve months ended December 31, 2015 filed with the
Securities and Exchange Commission.

       
Year Ended December 31,
2015 2014
Summary of Overall Results of Operations
Sales $ 78,649,329 $ 72,065,015
Operating Income (Loss) 2,054,740 (1,515,296 )
Other (Income) Expense 2,239,606 2,145,653
Net Loss (576,881 ) (3,660,949 )
EBITDA (Unaudited) $ 2,858,386 $ (586,234 )
Adjusted EBITDA (Unaudited) $ 4,087,697 $ 504,961
 
Reconciliation of EBITDA and Adjusted EBITDA to Net Loss:
Net Loss: $ (576,881 ) $ (3,660,949 )
Additions / (Deductions):
Interest Expense 1,318,859 1,193,298
Interest Expense – Related Party 775,424 805,608
Interest Expense – Amortization of Discount 181,203 182,444
Tax Expense (Benefit) 517,619 220,230
Depreciation 357,995 394,309
Amortization of Other Intangible Assets   284,167     278,826  
EBITDA $ 2,858,386 $ (586,234 )
Additions / (Deductions):
Share Based Compensation (1)   1,229,311     1,091,195  
Adjusted EBITDA $ 4,087,697   $ 504,961  
 

(1) Represents non-cash share-based compensation expense
for the periods then ended.

 

Non-GAAP Financial Measures

To supplement our financial statements presented on a GAAP basis, we
disclose non-GAAP measures as EBITDA and Adjusted EBITDA because
management uses these supplemental non-GAAP financial measures to
evaluate performance period over period, to analyze the underlying
trends in its business, and to establish operational goals and forecasts
that are used in allocating resources. In addition, we believe many
investors use these non-GAAP measures to monitor the Company’s
performance. Our presentation includes these non-GAAP financial
measures, and a reconciliation of EBITDA and Adjusted EBITDA to the GAAP
measures most directly comparable thereto. The GAAP measure most
directly comparable to EBITDA and Adjusted EBITDA is net income or loss.
The non-GAAP financial measures of EBITDA and Adjusted EBITDA should not
be considered as an alternative to net income or loss or any other
measure of financial performance or liquidity presented in accordance
with GAAP. EBITDA and Adjusted EBITDA are not presentations made in
accordance with GAAP and have important limitations as analytical tools.
You should not consider EBITDA or Adjusted EBITDA in isolation or as
substitutes for analysis of our results as reported under GAAP. Because
EBITDA and Adjusted EBITDA exclude some, but not all, items that affect
net income and is defined differently by different companies, our
definitions of EBITDA and Adjusted EBITDA may not be comparable to
similarly titled measures of other companies.

EBITDA

We define EBITDA as net income or loss before interest, income taxes,
depreciation and amortization of other intangible assets.

Adjusted EBITDA

Adjusted EBITDA is defined as EBITDA increased by total share based
compensation included in net income or loss.

The Company believes that presenting EBITDA and Adjusted EBITDA, in
addition to the corresponding GAAP financial measures, provides
investors greater transparency to the information used by management for
financial and operational decision-making and allows investors to see
the Company’s results “through the eyes” of management. We further
believe that providing this information assists investors in
understanding the Company’s operating performance and the methodology
used by management to evaluate and measure such performance.

We recognize that the usefulness of EBITDA and Adjusted EBITDA as an
evaluative tool may have certain limitations, including:

  • EBITDA and Adjusted EBITDA do not include interest expense. Because we
    have borrowed money in order to finance our operations, interest
    expense is a necessary element of our costs and impacts our ability to
    generate profits and cash flows. Therefore, any measure that excludes
    interest expense may have material limitations;
  • EBITDA and Adjusted EBITDA do not include depreciation and
    amortization of other intangible assets expense. Because we use
    capital assets, depreciation and amortization of other intangible
    assets expense is a necessary element of our costs and ability to
    generate profits. Therefore, any measure that excludes depreciation
    and amortization of other intangible assets expense may have material
    limitations;
  • EBITDA and Adjusted EBITDA do not include provision for income taxes.
    Because the payment of income taxes is a necessary element of our
    costs, any measure that excludes income tax expense may have material
    limitations;
  • EBITDA and Adjusted EBITDA do not reflect capital expenditures or
    future requirements for capital expenditures or contractual
    commitments;
  • EBITDA and Adjusted EBITDA do not reflect changes in, or cash
    requirements for, working capital needs; and
  • Adjusted EBITDA does not include share-based compensation expense.

Lapolla Industries, Inc.
Investor Relations:
Michael
T. Adams, 281-219-4700
EVP
info@lapolla.com



Updated: March 28, 2016 — 11:20 pm
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