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L&L Energy Announces First Quarter Financial Results -- Production and Earnings Up

Conference call scheduled for 11:30 a.m. Eastern Time on September 11, 2012
By PR Newswire
Article Rating:
September 10, 2012 09:50 PM EDT
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 289

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

  • Coal production increased 116% year over year from 69,000 tons the first quarter of FY 2012 to 149,000 tons first quarter of 2013. Quarter over quarter production increased 38% from 108,000 tons to 149,000 tons.
  • Revenues from continuing operations increased 26% year-over-year to $45.3 million in the first quarter of fiscal 2013. On a quarter-on-quarter basis, revenues from continuing operations increased 11%, compared with $41.0 million last quarter.
  • Wholesale revenues increased 174% year-over-year to $12.2 million in the first quarter of fiscal 2013. On a quarter-on-quarter basis, wholesale revenues increased 94%, compared with 6.3 million last quarter.
  • Net income attributable to L&L increased 159% year-over-year to $6.2 million for the first quarter of fiscal 2013 and increased 48% from $4.2 million in the fourth quarter.
  • Tangible book value per share, on a controlling interest basis, reached $4.78 as of July 31, 2012. On September 10, 2012 LLEN shares closed at $2.09, which represents LLEN trading at 44% of book value.

"Our production and net income are up substantially on both a year-over-year and quarter-on-quarter basis," commented Ian Robinson, Chief Financial Officer of L&L. "The rebound that began in the fourth quarter is expected to accelerate as our Weishe mine, which recently passed its final safety inspection, ramps up production."

Mr. Robinson continued, "We anticipate seasonal improvement to coal sale prices moving forward, driving further revenue and earnings growth. Our efforts to expand our wholesale business are producing solid results. We remain optimistic that these initiatives, in combination with our continued focus on consolidation opportunities in Guizhou Province, will produce long-term shareholder benefits."

Conference Call

Management will host a conference call to discuss these financial results on Tuesday, September 11, 2012 at 11:30 a.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: 28541983

Please call five minutes prior to 11:30 a.m. EDT. A live webcast of the call will also be available at http://www.llenergyinc.com.

Forward Looking Statements

The statements contained words that are not historical fact, including statements related to Company's future performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and that involve a number uncertainties. Actual results of the future events described in this document could differ materially. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.




ir@llenergyinc.com

L & L ENERGY,  INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JULY 31,2012 AND APRIL 30,2012

(Unaudited)

July 31, 2012

April 30, 2012

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$

6,690,290

$

4,040,020

Accounts receivables

35,339,734

33,099,101

Prepaid and other current assets

27,940,821

22,824,020

Other receivables, net

7,806,753

8,738,868

Inventories

6,471,490

4,946,231

     Total current assets

84,249,088

73,648,240





Property, plant, equipment, and mine development, net

153,260,042

132,630,829

Construction-in-progress

12,125,833

31,259,260

Intangible assets, net

400,933

428,036

Goodwill

3,736,722

3,768,443

Other assets

873,444

885,680

Long term receivable, net

26,276,812

27,840,433

Related party notes receivable

5,750,823

6,096,617

     Total non-current assets 


202,424,609

202,909,298




TOTAL ASSETS

$

286,673,697

$

276,557,538




LIABILITIES AND EQUITY



CURRENT LIABILITIES:




Accounts payables

$

3,326,436

$

803,975

Accrued and other liabilities

1,092,652

1,090,310

Other payables

21,652,625

20,969,802

Related party payables

17,036,441

17,251,921

Due to officers

421,333

414,667

Taxes payables

14,303,719

13,636,288

Customer deposits

605,526

1,542,064

Bank loans

2,210,992

2,229,761

     Total current liabilities

60,649,724

57,938,788




LONG-TERM LIABILITIES




Long-term payable

302,384

304,951

Asset retirement obligation

2,487,066

2,459,352

     Total long-term liabilities

2,789,450

2,764,303





           Total Liabilities


63,439,174

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: 37,224,073 and 36,991,397 shares issued and outstanding at July 31, 2012 and April 30, 2012 respectively)

37,224

36,991

Additional paid-in capital

66,318,438

65,752,560

Accumulated other comprehensive income

9,276,174

10,622,683

Retained Earnings

102,321,253

96,134,782

Treasury stock (143,093 shares and 143,093 shares at July 31, 2012 and April 30, 2012 respectively)

(123,968)

(123,968)

     Total L & L Energy stockholders' equity

177,829,121

172,423,048

Non-controlling interest

45,405,402

43,431,399

     Total equity

223,234,523

215,854,447

TOTAL LIABILITIES AND  EQUITY

$

286,673,697

$

276,557,538




L & L ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JULY 31, 2012 AND 2011

(Unaudited)

For The Three Months Periods
Ended

July 31,

2012

2011

NET REVENUES

$

45,305,935

$

36,143,879

COST OF REVENUES

32,253,021

27,762,280

GROSS PROFIT

13,052,914

8,381,599



OPERATING COSTS AND EXPENSES:



Salaries & wages-selling, general and administrative

1,037,714

933,000

Selling, general and administrative expenses, excluding salaries and wages

2,865,806

2,397,516

     Total operating expenses

3,903,520

3,330,516



INCOME FROM OPERATIONS

9,149,394

5,051,083

OTHER INCOME (EXPENSE):



   Interest income (expense)

63,924

197,184

   Other income (expense)

328,123

(762,483)

     Total other income (expense)


392,047

(565,299)



INCOME BEFORE FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES

9,541,441

4,485,784

LESS PROVISION FOR INCOME TAXES

1,009,445

585,867

INCOME FROM CONTINUING OPERATIONS

8,531,996

3,899,917



Income attributable to non-controlling interests


2,345,525

697,314

Income attributable to L & L

6,186,471

3,202,603



DISCONTINUED OPERATIONS



Net loss from discontinued operations

-

(816,715)

TOTAL LOSS FROM DISCONTINUED OPERATIONS

-

(816,715)



NET INCOME

$

8,531,996

$

3,083,202



Net income attributable to non-controlling interests

2,345,525

697,314

Net income attributable to L & L

6,186,471

2,385,888



OTHER COMPREHENSIVE INCOME:



Foreign currency translation (loss) gain

(1,346,509)

1,212,580

COMPREHENSIVE INCOME

$

7,185,487

$

4,295,782



Comprehensive  income attributable to non-controlling interests

$

2,094,286

$

1,740,794

Comprehensive  income attributable to L & L

5,091,201

2,554,988








INCOME PER COMMON SHARE – basic from continuing operations

$

0.17

$

0.1

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

$

-

$

(0.02)

INCOME PER COMMON SHARE – basic

$

0.17

$

0.08








INCOME PER COMMON SHARE – diluted from continuing operations

$

0.17

$

0.1

$

$

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

-

(0.02)

INCOME PER COMMON SHARE – diluted

$

0.17

$

0.08



WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic

36,839,324

31,355,781



WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted

36,839,324

31,704,978




L & L ENERGY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED JULY 31,










2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:



Net income

$

8,531,996

$

3,899,917

Loss from discontinued operations, net of income taxes

-

(816,715)

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

Income from continuing operations, net of income taxes

8,531,996

3,083,202

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




Depreciation and amortization

1,582,219

1,001,138

Stock compensation

566,111

262,190

Accretion of asset retirement obligation

27,714

56,899

Accounts receivable

(2,240,633)

(7,420,621)

Prepaid and other current assets

(5,116,801)

12,186,844

Inventories

(1,525,259)

(1,142,871)

Other receivable

932,115

243,836

Accounts payable and other payable

2,989,804

(361,067)

Customer deposit

(936,538)

(492,168)

Accrued and other liabilities

(225)

107,516

Taxes payable

668,942

229,752

Note receivable

345,794

(195,806)

Net cash provided by continuing operating activities


5,825,239

7,558,844

Net cash provided by discontinued operating activities


-

513,730

Net cash provided by operating activities


5,825,239

8,072,574




CASH FLOWS FROM INVESTING ACTIVITIES:




Acquisition of property and equipment

(98,629)

(376,833)

Construction-in-progress

(5,661,986)

(7,558,723)

Increase in restricted cash

-

(19,130)

Proceeds from repayment of long term receivable

1,563,621

-

Cash received from HSC disposal

-

1,088,524

Net cash used in continuing investing activities


(4,196,994)

(6,866,162)

Net cash used in discontinued investing activities


-

(3,138,231)

Net cash used in investing activities

(4,196,994)

(10,004,393)




CASH FLOWS FROM FINANCING ACTIVITIES:




Due to officers

6,666

-

Proceeds from Treasury stock sold

-

2,443,000

Payment to previous owner of acquired mine

-

(1,676,307)

Increase in related party receivable

-

(2,533,512)

Net cash provided by (used in) continued financing  activities


6,666

(1,766,819)

Net cash provided by discontinued financing activities


-

4,615,740

Net cash provided by financing activities


6,666

2,848,921




Effect of exchange rate changes on cash and cash equivalents

1,015,359

265,562




INCREASE IN CASH AND CASH EQUIVALENTS

2,650,270

1,182,664

CASH AND CASH EQUIVALENTS, BEGINNING BALANCE

4,040,020

4,914,425

CASH AND CASH EQUIVALENTS, ENDING BALANCE

$

6,690,290

$

6,097,089




SUPPLEMENTAL INFORMATION



INTEREST PAID

$

80,862

$

72,819

INCOME TAX PAID

$

580,334

$

400,668

 

 

SOURCE L & L Energy, Inc.

Published September 10, 2012 – Reads 289
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