L & L Energy, Inc.

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L&L Energy Announces Second Quarter Financial Results - Production and Earnings Up Four Quarters In a Row

SEATTLE, Dec. 10, 2012 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or "Company"), a Seattle-based company with a track record of profitable coal operations in China, announced its financial results for its second quarter of fiscal 2013.

Second Quarter Highlights:

  • Coal mining production increased 93% year over year to 185,000 tons in the second quarter of fiscal 2013 from 96,000 in the same quarter last year. Quarter over quarter production increased 24% from 149,000 tons in the first quarter.
  • Revenues increased 27% year-over-year to $54.9 million in the second quarter of fiscal 2013. On a quarter over quarter basis, revenues increased 21% from $45.3 million last quarter.
  • Net income attributable to L&L increased 104% year-over-year to $7.7 million for the second quarter of fiscal 2013 and increased quarter over quarter 24% from $6.2 million last quarter.
  • Earnings per share for the quarter was $0.21, an increase of 90% when compared to the same period last year and an increase of 24% quarter over quarter.

Trailing Four Quarter Highlights:


Mining Production

Net Income Attributable to L&L

Earnings Per Share

Q2 FY2013

185,000 tons

$7.7 million

$0.21

Q1 FY2013

149,000 tons

$6.2 million

$0.17

Q4 FY2012

108,000 tons

$4.2 million

$0.12

Q3 FY2012

66,000 tons

$3.9 million

$0.11

"We have seen four consecutive quarters of increased production, net income, and earnings per share," commented Ian Robinson, Chief Financial Officer of L&L. "Currently our newly acquired Luozhou and Lashu mines are producing. These two, along with Weishe, will be organically expanded to produce, in aggregate, approximately one million tons of coal annually when fully expanded."

Mr. Robinson continued saying, "In addition to our expansion in mining, we have also continued to grow our wholesale operations. In October we inked a new contract with Datang Power International, one of China's largest energy producers, to provide 360,000 tons of coal over the next 10 months to one of Datang's power plants. In September, GuangYeh, a local sales company, was rolled under L&L's Tai Fung subsidiary to expand our wholesale capacity in Yunnan. It is expected to substantially grow its coal sales over the next year. "

L&L's Vice President and Director Clayton Fong summarized, "We saw consistent production growth in our mining and continue to increase our foothold as a wholesaler in China. This quarter's coal mining production was our best ever. We are on track for a record year in coal production, which is the primary driver of our earnings."

Conference Call

Management will host a conference call to discuss these financial results Tuesday, December 11, 2012 at 12:00 p.m. EDT. Investors may access the call as follows:

The audio call of the meeting will be available via telephone at:
North America Toll Free: (800) 893-5360
Conference ID: 78879010
Please call five minutes prior to 12:00 p.m. EDT. A live webcast of the call will also be available at http://www.llenergyinc.com.

Forward Looking Statements

The release contains statements related to Company's future performance and is within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve uncertainties and actual results of the future events described in this release could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contacts:
L&L Energy Inc.
(206)-264-8065
ir@llenergyinc.com

 

L & L ENERGY,  INC. 

 CONSOLIDATED BALANCE SHEETS 

 AS OF OCTOBER 31, 2012 AND APRIL 30, 2012 


 (Unaudited) 










October 31, 2012


April 30, 2012

 ASSETS 






 CURRENT ASSETS: 






 Cash and cash equivalents 

$

3,765,662

$

3,547,953


 Accounts receivables 


35,763,902


26,032,123


 Prepaid and other current assets 


19,908,993


17,540,206


 Other receivables 


4,771,564


8,738,868


 Inventories 


4,724,191


4,701,954


 Asset held for discontinued operations


74,776,538


68,769,279


      Total current assets 


143,710,850


129,330,383








 Property, plant, equipment, and mine development, net 


111,424,080


85,469,222


 Construction-in-progress 


6,361,387


26,417,686


 Intangible assets, net 


70,578


79,491


 Goodwill 


915,881


919,017


 Other assets 


773,041


404,689


 Long term receivable 


26,310,365


27,840,433


 Related party notes receivable 


6,055,964


6,096,617


      Total non-current assets   


151,911,296


147,227,155







 TOTAL ASSETS 

$

295,622,146

$

276,557,538







 LIABILITIES AND EQUITY 





 CURRENT LIABILITIES: 






 Accounts payable 

$

1,491,284

$

799,101


 Accrued expenses and other current liabilities 


831,193


916,001


 Other payables 


20,041,264


19,102,859


 Related party payables 


12,693,932


17,251,921


 Due to officers 


926,333


414,667


 Tax payable 


13,301,805


12,633,204


 Customer deposits 


1,390,697


1,381,300


 Liabilities held for  discontinued operations


6,982,280


6,126,253


      Total current liabilities 


57,658,788


58,625,307







 LONG-TERM LIABILITIES 






 Related party payable- Long term 


303,910


304,951


 Asset retirement obligations 


1,836,735


1,772,833


      Total long-term liabilities 


2,140,645


2,077,784








            Total Liabilities  


59,799,433


60,703,091







 EQUITY: 





 L&L ENERGY STOCKHOLDERS' EQUITY: 






 Preferred stock, no par value, 2,500,000 shares authorized, none issued and outstanding 


-


-


 Common stock ($0.001 par value, 120,000,000 shares authorized: 37,381,775  and 36,991,397 shares issued and outstanding at October 31, 2012 and April 30, 2012 respectively)


37,382


36,991


 Additional paid-in capital 


66,805,328


65,752,560


 Accumulated other comprehensive income 


10,291,270


10,622,683


 Retained Earnings 


110,064,192


96,134,782


 Treasury stock (86,595 shares and 143,093 shares at October 31, 2012 and April 30, 2012 respectively)


(68,035)


(123,968)


      Total L & L Energy stockholders' equity 


187,130,137


172,423,048


 Non-controlling interest 


48,692,576


43,431,399


      Total equity 


235,822,713


215,854,447

 TOTAL LIABILITIES AND  EQUITY 

$

295,622,146

$

276,557,538







The accompanying notes are an integral part of these consolidated financial statements


L & L ENERGY, INC. 

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

 FOR THE THREE AND SIX MONTHS PERIODS ENDED OCTOBER 31, 2012 AND 2011

 (Unaudited) 









 For The Three Months Periods Ended October 31, 



 For The Six Months Periods Ended October 31, 



2012


2011



2012


2011

 NET REVENUES 

$

45,504,279

$

29,452,302


$

84,952,377

$

58,952,062

 COST OF REVENUES 


33,625,414


21,030,857



63,173,428


43,033,617

 GROSS PROFIT 


11,878,865


8,421,445



21,778,949


15,918,445











 OPERATING COSTS AND EXPENSES: 










 Salaries & wages-selling, general and administrative 


856,801


2,611,902



1,894,514


3,515,862

 Selling, general and administrative expenses, excluding salaries and wages 

3,304,418


2,302,624



5,902,374


4,493,423

      Total operating expenses 


4,161,219


4,914,526



7,796,888


8,009,285











 INCOME FROM OPERATIONS 


7,717,646


3,506,919



13,982,061


7,909,160

 OTHER INCOME (EXPENSE): 










    Interest income (expense) 


117,069


179,740



224,335


376,373

    Other income, net 


562,188


(482,050)



890,414


(1,117,599)

      Total other income  


679,257


(302,311)



1,114,749


(741,227)











 INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 

8,396,903


3,204,608



15,096,810


7,167,933

 PROVISION FOR INCOME TAXES 


805,527


540,310



1,497,967


1,090,327

 INCOME FROM CONTINUING OPERATIONS 


7,591,376


2,664,298



13,598,843


6,077,606











 Income attributable to non-controlling interests  


1,949,832


945,361



3,327,195


1,706,870

 Income attributable to L & L 


5,641,544


1,718,937



10,271,648


4,370,736











 DISCONTINUED OPERATIONS - NET OF TAX










 Net income from discontinued operations attributable to non-controlling interests 

1,091,865


520,080



2,060,027


455,884

 Net income from discontinued operations attributable to L & L 


2,101,397


2,071,003



3,657,762


1,805,093

 TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS 


3,193,262


2,591,083



5,717,789


2,260,977











 NET INCOME 

$

10,784,638

$

5,255,381


$

19,316,632

$

8,338,583











 Net income attributable to non-controlling interests 

$

3,041,697

$

1,465,441


$

5,387,222

$

2,162,754

 Net income attributable to L & L 


7,742,941


3,789,940



13,929,410


6,175,829











 OTHER COMPREHENSIVE INCOME: 










 Foreign currency translation gain 


1,015,096


3,273,921



(331,413)


4,486,501

 COMPREHENSIVE INCOME 

$

11,799,734

$

8,529,302


$

18,985,219

$

12,825,084











 Comprehensive  income attributable to non-controlling interests 

$

3,233,916

$

2,006,831


$

5,328,203

$

2,867,882

 Comprehensive  income attributable to L & L 


8,565,818


6,522,471



13,657,017


9,957,202





















 INCOME PER COMMON SHARE – basic from continuing operations  

$

0.15

$

0.05


$

0.27

$

0.14

 (LOSS) INCOME PER COMMON SHARE – basic from discontinued operations 

$

0.06

$

0.07


$

0.1

$

0.05

 INCOME PER COMMON SHARE – basic    

$

0.21

$

0.12


$

0.37

$

0.19











 INCOME PER COMMON SHARE – diluted from continuing operations  

$

0.15

$

0.05


$

0.27

$

0.13

 (LOSS) INCOME PER COMMON SHARE – diluted from discontinued operations 

$

0.06

$

0.06


$

0.1

$

0.06

 INCOME PER COMMON SHARE – diluted 

$

0.21

$

0.11


$

0.37

$

0.19











 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic 


36,988,915


32,225,085



37,569,600


31,788,767











 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted 


36,988,915


33,385,777



37,569,600


32,949,459











The accompanying notes are an integral part of these consolidated financial statements


L & L ENERGY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS 

FOR THE PERIOD ENDED OCTOBER 31, 2012 AND 2011






For The Six Months Periods Ended October 31,




2012


2011

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income

$

19,316,632

$

8,338,583


Income from discontinued operations, net of income taxes


(5,717,789)


(2,260,977)


Income from continuing operations, net of income taxes


13,598,843


6,077,606

Adjustments to reconcile net income to net cash provided by operating activities:






Income from non-controlling interest






Depreciation and amortization


1,936,195


3,512,864


Stock compensation


1,053,157


2,261,045


Accretion of asset retirement obligation


63,903


69,941

Changes in assets and liabilities, net of businesses acquisitions:






Accounts receivable


(9,731,778)


(1,218,393)


Prepaid and other current assets


(2,368,787)


4,206,102


Inventories


(22,237)


(1,486,658)


Other receivable


3,967,304


1,726,323


Accounts payable 


1,415,108


196,031


Customer deposit


9,397


(1,483,066)


Accrued and other liabilities


(85,849)


138,424


Taxes payable


670,120


327,203


Note receivable


40,653


(3,412,052)

Net cash provided by continuing operating activities 


10,546,028


10,915,369

Net cash provided by discontinued operation


566,557


2,154,032

Net cash provided by operating activities 


11,112,585


13,069,401







CASH FLOWS FROM INVESTING ACTIVITIES:






Acquisition of property and equipment


(660,412)


(665,714)


Construction-in-progress


(9,807,917)


(10,722,505)


Increase in restricted cash


-


(118,651)


Proceeds from repayment of long term receivable


1,530,069


-


Cash received from HSC disposal


-


963,651

Net cash used in continuing investing activities 


(8,938,260)


(10,543,219)

Net cash used in discontinuing investing activities 


-


(4,735,424)

Net cash used in investing operation


(8,938,260)


(15,278,643)







CASH FLOWS FROM FINANCING ACTIVITIES:






Due to officers


511,666


(75,000)


Proceeds from Treasury stock sold


55,933


3,585,951


Payment to previous owner of acquired mine


(4,342,510)


(1,676,307)

Net cash (used in) provided by continuing  financing activities 


(3,774,911)


1,834,644

Net cash (used in) provided by financing activities 


(3,774,911)


1,834,644







Effect of exchange rate changes on cash and cash equivalents


1,818,295


1,254,471







INCREASE IN CASH AND CASH EQUIVALENTS


217,709


879,873

CASH AND CASH EQUIVALENTS, BEGINNING OF YEARS


3,547,953


4,914,425

CASH AND CASH EQUIVALENTS, END OF YEARS

$

3,765,662

$

5,794,298




-



SUPPLEMENTAL INFORMATION





INTEREST PAID

$

43,216

$

72,819

INCOME TAX PAID

$

580,334

$

400,668







NON-CASH INVESTING AND FINANCING ACTIVITY:





Recovery of treasury stock

$

-

$

1,299

Payable to Daping shareholders

$

11,045,999

$

17,064,815 

SOURCE L & L Energy, Inc.

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