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
Press Release $LLEN L & L Energy, Inc.
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:
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.