L&L Energy Announces Fourth Quarter and Fiscal Year 2012 Financial Results
Conference call scheduled for 12:00 p.m. Eastern Time on August 1, 2012
SEATTLE, July 31, 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 the fourth quarter and fiscal year 2012. Select highlights include:
- Coal production reached 108,000 tons in the fourth quarter, an increase of 61.2% from 67,000 tons in the third quarter of fiscal 2012.
- Revenues from continuing operations increased 52.0% quarter-over-quarter to $41.0 million, up from $27.0 million in the third quarter of 2012.
- Net Earnings from continuing operations increased 128.0% from $3.2 million in third quarter to $7.3million in fourth quarter.
- Coal washing revenues from continuing operations increased 11.0% year-over-year to $69.6 million in fiscal year 2012.
- Earnings per share from continuing operations were $0.21 in the fourth quarter, an increase of 75.0% from the third quarter of fiscal 2012; a one-time adjustment of $0.08 per share related to the disposition of Ping Yi reduced EPS to $0.13 per share for the quarter.
- Tangible book value per share increased 13.9% to $5.72 compared to $5.02 in fiscal 2011.
"Our efforts have resulted in a surge in production the last quarter of the fiscal year," commented Dickson Lee, L&L's Chairman and Chief Executive Officer. "With the success we've seen from the Weishe mine ("Weishe") acquisition, we are pursuing opportunities to acquire larger and more modern mine operations. To that end, we are currently focused on Union Energy's LuoZhou Mine, which recently began trial production."
Mr. Lee continued, "While we execute our consolidation strategy in Guizhou Province, we are aggressively pursuing the expansion of our wholesale operations in the region. Smaller mine operators, often unable to meet the demands of larger coal purchasers, provide an opportunity for us to aggregate coal supplies in our wholesale operation, meeting the requirements of major customers such as Datang International. Partnerships, like the one we have established with AVIC Sichuan, will also enable us to further strengthen this business segment by increasing our logistics network. I believe fiscal 2013 will be an impressive year of growth and improving shareholder value for our Company."
Fiscal Year 2012 Financial Summary
Ian Robinson, Chief Financial Officer of L&L, stated, "We believe we have turned the corner from the difficult environment of previous quarters in fiscal 2012. During the fourth quarter our mines produced 108,000 tons, representing 35.6% of our total fiscal year production."
Mr. Robinson continued, "Our revenues for the fiscal year were $143.6 million, with gross profit of $39.8 million. Our income and earnings per share from continuing operations were $22.0 million and $0.51, respectively."
"Moving forward, we anticipate the strength we've seen in the fourth quarter to continue to improve," stated Mr. Robinson. "Weishe, which began trial production in February, will ramp up considerably in the quarters ahead. This added production, in combination with other anticipated acquisitions, sets the stage for L&L to reach two to three million tons in annualized production by the end of 2013. As new mines are acquired or other verticals are expanded, we will update expectations accordingly."
Mr. Lee concluded, "We expect our expanded production capacity, strong safety record, and the further development of our logistics and wholesale platform to be key factors in our ability to grow beyond our record fiscal 2011 results."
Conference Call
Management will host a conference call to discuss these financial results on Wednesday, August 1, 2012 at 12:00 p.m. Eastern time (9:00 a.m. Pacific). Investors may access the call as follows:
Dial-In Numbers:
(800) 893-5360 (Toll-Free)
(404) 665-9534 (International)
Conference ID#: 15999879
Please call five minutes prior to 12:00 p.m. Eastern Daylight Time. A live webcast of the call will also be available at http://www.llenergyinc.com. A replay will be available from August 1, 2012 at 12:00 p.m. EDT to August 8, 2012 at 11:59 p.m. EDT. The number for the replay is (855) 859-2056 or for international calls, (404) 537-3406. Conference ID#: 15999879.
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.
Contacts:
L&L Energy Inc.
(206)-264-8065
[email protected]
| L & L ENERGY, INC. |
|||||
| CONSOLIDATED BALANCE SHEETS |
|||||
| AS OF APRIL 30, |
|||||
| 2012 |
2011 |
||||
| ASSETS |
|||||
| CURRENT ASSETS: |
|||||
| Cash and cash equivalents |
$ |
4,040,020 |
$ |
4,914,425 |
|
| Accounts receivables |
33,099,101 |
24,017,391 |
|||
| Prepaid and other current assets |
22,824,020 |
28,641,462 |
|||
| Other receivables, net |
8,738,868 |
2,586,147 |
|||
| Inventories |
4,946,231 |
6,633,019 |
|||
| Total current assets |
73,648,240 |
66,792,444 |
|||
| Property, plant, equipment, and mine development, net |
132,630,829 |
96,479,551 |
|||
| Construction-in-progress |
31,259,260 |
44,943,609 |
|||
| Intangible assets, net |
428,036 |
902,555 |
|||
| Goodwill |
3,768,443 |
2,988,175 |
|||
| Other assets |
885,680 |
544,588 |
|||
| Long term receivable, net |
27,840,433 |
7,272,828 |
|||
| Related party notes receivable |
6,096,617 |
7,428,574 |
|||
| Total non-current assets |
202,909,298 |
160,559,880 |
|||
| TOTAL ASSETS |
$ |
276,557,538 |
$ |
227,352,324 |
|
| LIABILITIES AND EQUITY |
|||||
| CURRENT LIABILITIES: |
|||||
| Accounts payable |
$ |
803,975 |
$ |
3,439,460 |
|
| Accrued expenses and other current liabilities |
1,090,310 |
717,298 |
|||
| Other payables |
20,969,802 |
7,546,391 |
|||
| Related party payables |
17,251,921 |
17,914,815 |
|||
| Due to officers |
414,667 |
420,000 |
|||
| Taxes payable |
13,636,288 |
18,835,276 |
|||
| Customer deposits |
1,542,064 |
4,338,424 |
|||
| Bank loans |
2,229,761 |
5,385,030 |
|||
| Total current liabilities |
57,938,788 |
58,596,694 |
|||
| LONG-TERM LIABILITIES |
|||||
| Related party payable- Long term |
304,951 |
800,000 |
|||
| Asset retirement obligations |
2,459,352 |
1,978,877 |
|||
| Total long-term liabilities |
2,764,303 |
2,778,877 |
|||
| Total Liabilities |
60,703,091 |
61,375,571 |
|||
| Commitments and Contingencies |
|||||
| 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: 36,991,397 and 32,277,579 shares issued and outstanding at April 30, 2012 and 2011 respectively) |
36,991 |
32,278 |
|||
| Additional paid-in capital |
65,752,560 |
48,420,321 |
|||
| Accumulated other comprehensive income |
10,622,683 |
6,502,542 |
|||
| Retained Earnings |
96,134,782 |
81,888,339 |
|||
| Treasury stock (143,093 shares and 1,259,000 shares at April 30, 2012 and 2011 respectively) |
-123,968 |
-396,859 |
|||
| Total L & L Energy stockholders' equity |
172,423,048 |
136,446,621 |
|||
| Non-controlling interest |
43,431,399 |
29,530,133 |
|||
| Total equity |
215,854,447 |
165,976,754 |
|||
| TOTAL LIABILITIES AND EQUITY |
$ |
276,557,538 |
$ |
227,352,325 |
|
| L & L ENERGY, INC. |
||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||
| FOR THE YEARS ENDED APRIL 30, |
||||||
| 2012 |
2011 |
2010 |
||||
| NET REVENUES |
$ |
143,557,915 |
$ |
166,208,946 |
$ |
88,462,984 |
| COST OF REVENUES |
103,721,842 |
120,156,182 |
48,452,314 |
|||
| GROSS PROFIT |
39,836,073 |
46,052,764 |
40,010,670 |
|||
| OPERATING COSTS AND EXPENSES: |
||||||
| Salaries & wages-selling, general and administrative |
6,408,059 |
8,649,292 |
2,560,128 |
|||
| Selling, general and administrative expenses, excluding salaries and wages |
10,602,922 |
9,468,416 |
6,685,083 |
|||
| Total operating expenses |
17,010,981 |
18,117,708 |
9,245,211 |
|||
| INCOME FROM OPERATIONS |
22,825,092 |
27,935,056 |
30,765,459 |
|||
| OTHER INCOME (EXPENSE): |
||||||
| Interest income (expense) |
316,173 |
-419,364 |
-194,256 |
|||
| Other income, net |
1,911,670 |
1,415,884 |
499,084 |
|||
| Total other income |
2,227,843 |
996,520 |
304,828 |
|||
| INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES |
25,052,935 |
28,931,576 |
31,070,287 |
|||
| PROVISION FOR INCOME TAXES |
3,036,057 |
2,276,277 |
1,587,775 |
|||
| INCOME FROM CONTINUING OPERATIONS |
22,016,878 |
26,655,299 |
29,482,512 |
|||
| Income attributable to non-controlling interests |
4,994,669 |
5,620,679 |
7,040,555 |
|||
| Income attributable to L & L |
17,022,209 |
21,034,620 |
22,441,957 |
|||
| DISCONTINUED OPERATIONS |
||||||
| Gain on disposal |
- |
1,017,928 |
||||
| Net income from discontinued operations |
408,020 |
15,745,189 |
9,447,807 |
|||
| Divestiture net present value cost |
-3,183,786 |
|||||
| TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS |
-2,775,766 |
15,745,189 |
10,465,735 |
|||
| NET INCOME |
$ |
19,241,112 |
$ |
42,400,488 |
$ |
39,948,247 |
| Net income attributable to non-controlling interests |
$ |
4,994,669 |
$ |
5,620,679 |
$ |
7,040,555 |
| Net income attributable to L & L |
14,246,443 |
36,779,809 |
32,907,692 |
|||
| OTHER COMPREHENSIVE INCOME: |
||||||
| Foreign currency translation gain |
4,120,141 |
6,502,542 |
29,842 |
|||
| COMPREHENSIVE INCOME |
$ |
23,361,253 |
$ |
48,903,030 |
$ |
39,978,089 |
| Comprehensive income attributable to non-controlling interests |
$ |
5,767,281 |
$ |
6,327,858 |
$ |
7,041,402 |
| Comprehensive income attributable to L & L |
17,593,972 |
42,575,172 |
32,936,687 |
|||
| INCOME PER COMMON SHARE – basic from continuing operations |
$ |
0.51 |
$ |
0.71 |
$ |
0.92 |
| (LOSS) INCOME PER COMMON SHARE – basic from discontinued operations |
$ |
-0.08 |
$ |
0.53 |
$ |
0.43 |
| INCOME PER COMMON SHARE – basic |
$ |
0.43 |
$ |
1.24 |
$ |
1.35 |
| INCOME PER COMMON SHARE – diluted from continuing operations |
$ |
0.5 |
$ |
0.69 |
$ |
0.87 |
| (LOSS) INCOME PER COMMON SHARE – diluted from discontinued operations |
$ |
-0.08 |
$ |
0.52 |
$ |
0.41 |
| INCOME PER COMMON SHARE – diluted |
$ |
0.42 |
$ |
1.21 |
$ |
1.28 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic |
33,108,863 |
29,764,705 |
24,375,508 |
|||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted |
33,544,354 |
30,422,393 |
25,748,036 |
|||
| L & L ENERGY, INC. |
|||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||||
| FOR THE YEARS ENDED APRIL 30, |
|||||||||
| 2012 |
2011 |
2010 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
| Net income |
$ |
19,241,112 |
$ |
42,400,488 |
$ |
39,948,247 |
|||
| Loss (income) from discontinued operations, net of income taxes |
2,775,766 |
-15,745,189 |
-10,465,735 |
||||||
| Adjustments to reconcile net income to net cash provided by operating activities net of businesses acquired: |
|||||||||
| Depreciation and amortization |
6,466,061 |
4,223,681 |
1,398,727 |
||||||
| Stock compensation |
4,359,498 |
5,050,542 |
505,800 |
||||||
| Amortization of debt discount |
- |
- |
100,000 |
||||||
| Accretion of asset retirement obligation |
251,511 |
98,165 |
|||||||
| Accounts receivable |
-12,645,163 |
-5,052,892 |
-95,469 |
||||||
| Prepaid and other current assets |
2,939,086 |
-5,976,486 |
-10,237,627 |
||||||
| Inventories |
1,664,695 |
1,667,625 |
-7,459,437 |
||||||
| Other receivable |
845,027 |
725,843 |
-10,784,507 |
||||||
| Accounts payable and other payable |
-479,381 |
-14,755,013 |
9,208,435 |
||||||
| Customer deposit |
-1,288,101 |
-949,820 |
4,185,463 |
||||||
| Accrued and other liabilities |
-117,518 |
-604,782 |
275,517 |
||||||
| Taxes payable |
3,197,470 |
2,894,553 |
3,833,131 |
||||||
| Note receivable |
1,331,957 |
-2,657,088 |
- |
||||||
| Net cash provided by continuing operating activities |
28,542,020 |
11,319,627 |
20,412,545 |
||||||
| Net cash provided by (used in) discontinued operation |
-2,775,766 |
14,781,050 |
10,465,735 |
||||||
| Net cash provided by operating activities |
25,766,254 |
26,100,677 |
30,878,280 |
||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
| Acquisition of property and equipment |
-912,810 |
-4,208,457 |
-18,310,477 |
||||||
| Construction-in-progress |
-29,970,691 |
-26,821,677 |
-15,125,959 |
||||||
| Change in non-controlling interest due to acquisition and disposal |
- |
- |
-427,894 |
||||||
| Acquisition of businesses, net of cash acquired |
566,805 |
-639,985 |
-4,561,561 |
||||||
| Increase in restricted cash |
- |
-544,588 |
- |
||||||
| Divestiture of business, net of cash disposed |
-1,247,083 |
- |
- |
||||||
| Proceeds from repayment of long term receivable |
354,206 |
- |
- |
||||||
| Loan to related party receivable |
5,393,737 |
-1,158,164 |
|||||||
| Long term receivable |
2,363,315 |
-1,259,151 |
|||||||
| Cash received from HSC disposal |
457,895 |
1,259,151 |
- |
||||||
| Net cash used in continuing activities |
-28,388,363 |
-25,561,819 |
-40,843,206 |
||||||
| Net cash used in discontinuing activities |
- |
-8,813,934 |
- |
||||||
| Net cash used in investing operation |
-28,388,363 |
-34,375,753 |
-40,843,206 |
||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
| Payment on bank loans |
- |
-1,839,080 |
-141,703 |
||||||
| Due to officers |
-5,333 |
420,000 |
- |
||||||
| Repayment of advances to shareholders |
- |
-6,948,529 |
-910,791 |
||||||
| Advances from shareholders |
997,933 |
||||||||
| Proceeds from issuance of convertible debt |
419,951 |
- |
100,000 |
||||||
| Proceeds from issuance of common stock |
399,800 |
4,333,493 |
9,865,629 |
||||||
| Proceeds from warrant extension |
50,000 |
- |
|||||||
| Proceeds from Treasury stock sold |
2,391,000 |
2,035,000 |
- |
||||||
| Payments for costs related to issuance of common stock |
- |
- |
-688,398 |
||||||
| Payment to previous owner of acquired mine |
-1,876,307 |
- |
- |
||||||
| Proceeds from exercise of warrants |
379,594 |
4,729,750 |
3,915,955 |
||||||
| Net cash provided by financing activities |
2,706,638 |
2,780,634 |
12,140,692 |
||||||
| Effect of exchange rate changes on cash and cash equivalents |
-958,934 |
3,081,498 |
52,892 |
||||||
| (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
-874,405 |
-2,412,944 |
2,228,658 |
||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEARS |
4,914,425 |
7,327,369 |
5,098,711 |
||||||
| CASH AND CASH EQUIVALENTS, END OF YEARS |
$ |
4,040,020 |
$ |
4,914,425 |
$ |
7,327,369 |
|||
| - |
- |
||||||||
| SUPPLEMENTAL INFORMATION |
|||||||||
| INTEREST PAID |
$ |
360,863 |
$ |
196,418 |
$ |
196,558 |
|||
| INCOME TAX PAID |
$ |
446,435 |
$ |
773,738 |
$ |
158,746 |
|||
| NON-CASH INVESTING AND FINANCING ACTIVITY: |
|||||||||
| 3 million shares issued for acquisition of 51% interest in WeiShe Coal Mine. |
$ |
9,660,000 |
$ |
- |
$ |
- |
|||
| Increase controlling interest in subsidiary |
$ |
- |
$ |
- |
$ |
7,760,824 |
|||
| Issue 160,000 shares on conversion of $100,000 note and accrued interest |
$ |
- |
$ |
- |
$ |
104,000 |
|||
| Recovery of treasury stock |
$ |
- |
$ |
1,299 |
$ |
- |
|||
| Payable to DaPing shareholders |
$ |
15,388,508 |
$ |
17,064,815 |
$ |
- |
|||
SOURCE L & L Energy, Inc.
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