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
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.
[email protected]| 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 |
||||
| 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. |
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| 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.
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