L&L Energy Announces Second Quarter Financial Results - Production and Earnings Up Four Quarters In a Row
Conference call scheduled for 12:00 p.m. Eastern Time on December 11, 2012
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
[email protected]
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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