L & L Energy Announces Third Quarter Fiscal 2012 Financial Results
SEATTLE, March 12, 2012 /PRNewswire/ -- L & L Energy, Inc., (NASDAQ: LLEN)("L&L" or the "Company"), a U.S.-based company operating coal businesses in China, today announced its financial results for the third fiscal quarter ended January 31, 2012. The Company generated $30.2 million in sales for the third quarter and net income totaled $4.9 million. L&L also entered into an agreement acquiring controlling interest in its fifth coal mine.
L&L Acquires the Weishe Mine
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Estimated FY2013 (Ended April 30) Impact of Weishe |
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Production: |
124,000 tons |
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Price per ton: |
$158 |
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Revenues: |
$19.6 million |
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EBITA: |
$9.8 million |
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Cash flow attributable to L&L: $3.75 million |
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Weishe Mine is designed with high standards of safety and mechanization |
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Weishe is currently approved for 150,000 tons of annual production. The planned addition of a second |
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Dickson Lee, Chairman and CEO of L&L commented, "We are pleased with our progress in becoming a consolidator in Guizhou, targeting 2-3 million tons of production by the end of 2013. We have begun our execution plans and our acquisition of the Weishe Mine ("Weishe") was an important milestone. Weishe is a great addition to our portfolio and our new partners and former majority owners of Weishe, Union Energy, Co. are very experienced with strong connections throughout Guizhou."
Lee went on to say, "We have a pipeline of other acquisitions in place, including two additional Union Energy mines. These additional acquisitions will meet our standards for safety, scalability, and operational efficiency. With the support of the government and our new partnership with Union Energy, I anticipate a strong finish to our fiscal 2012 year and have an optimistic outlook for 2013."
Third Quarter FY2012 Financial Summary and Fourth Quarter Outlook
Ian Robinson, Chief Financial Officer stated, "As we have stated in the past several quarters, the Guizhou consolidation would provide tremendous growth opportunities to acquire mines at highly accretive prices. However, in the short term, the operating environment would be challenging. The last four quarters have been difficult, but we seem to have turned the corner going forward."
"In this third quarter of FY2012, our mines produced 67,000 tons. This reduction was the result of two temporary setbacks which the Company does not anticipate will affect our fourth quarter. First, a government mandated slowdown as a result of a major accident in the early part of the third quarter near our DaPuAn mine caused its production to drop over 50%. However, during the early part of the fourth quarter the Chinese government notified the Company that DaPuAn has passed its safety inspection and was approved to ramp up production. The second contributor to the decreased production in the third quarter was the Chinese New Year holiday, which traditionally results in a two week idling of nearly all businesses throughout China. We estimate that this annual holiday celebration impacted the Company's quarterly revenues by approximately 15%. Our revenues, net income, gross profit and diluted EPS for the third quarter were as follows:"
-- Revenues were $30.2 million
-- Gross profit was $8.8 million
-- Net income was $4.9 million
-- Earnings per share was $0.11 per diluted share
Robinson continued, "We are optimistic that the fourth quarter of FY2012 will see significant improvements from the third quarter. Our DaPuAn, Su Tsong, and Da Ping mines are operating near or at their approved mining permits and our recently acquired Weishe mine began test production this February. Looking forward and assuming four mines at or near approved production, combined with even minimal production at Ping Yi, we believe our revenues next fiscal year would exceed those in FY2011, which for the most part was not impacted by Guizhou's accelerated consolidation. "
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 involve a number of risks and uncertainties. Actual results of the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and Exchange Commission. 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. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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AS OF JANUARY 31,2012 AND APRIL 30,2011 |
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(Unaudited) |
||||||
January 31, 2012 |
April 30, 2011 |
|||||
ASSETS |
||||||
CURRENT ASSETS: |
||||||
Cash and cash equivalents |
$ |
7,296,153 |
$ |
4,914,425 |
||
Accounts receivables |
27,963,397 |
24,017,391 |
||||
Prepaid and other current assets |
23,646,226 |
28,641,462 |
||||
Other receivables |
789,707 |
2,586,147 |
||||
Inventories |
10,021,924 |
6,633,019 |
||||
Total current assets |
69,717,407 |
66,792,444 |
||||
Property, plant, equipment, and mine development, net |
116,469,383 |
96,479,552 |
||||
Construction-in-progress |
45,388,396 |
44,943,609 |
||||
Intangible assets, net |
802,893 |
902,555 |
||||
Goodwill |
3,077,183 |
2,988,175 |
||||
Restricted Cash |
565,606 |
544,588 |
||||
Long term receivable |
6,874,968 |
7,272,828 |
||||
Related party notes receivable |
5,895,978 |
7,428,574 |
||||
Total non-current assets |
179,074,407 |
160,559,881 |
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|
|
|||||
TOTAL ASSETS |
$ |
248,791,814 |
$ |
227,352,325 |
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LIABILITIES AND EQUITY |
||||||
CURRENT LIABILITIES: |
||||||
Accounts payables |
$ |
3,099,413 |
$ |
3,439,460 |
||
Accrued and other liabilities |
925,320 |
717,298 |
||||
Other payables |
6,379,766 |
7,546,391 |
||||
Related party payables |
15,521,963 |
17,264,815 |
||||
Due to officers |
1,068,800 |
1,070,000 |
||||
Taxes payables |
20,440,859 |
18,835,276 |
||||
Customer deposits |
2,114,038 |
4,338,424 |
||||
Shares to be issued |
271,524 |
- |
||||
Bank loans |
4,594,787 |
5,385,030 |
||||
Total current liabilities |
54,416,470 |
58,596,694 |
||||
LONG-TERM LIABILITIES |
||||||
Long-term payable |
800,000 |
800,000 |
||||
Asset retirement obligation |
2,160,091 |
1,978,877 |
||||
Total long-term liabilities |
2,960,091 |
2,778,877 |
||||
Total Liabilities |
57,376,561 |
61,375,571 |
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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: 32,992,151 and 32,277,579 shares issued and outstanding at January 31, 2012 and April 30, 2011 respectively) |
32,992 |
32,278 |
||||
Additional paid-in capital |
54,629,134 |
48,420,321 |
||||
Accumulated other comprehensive income |
11,336,067 |
6,502,542 |
||||
Retained Earnings |
91,923,639 |
81,888,339 |
||||
Treasury stock (143,093 shares and 1,259,000 shares at January 31, 2012 and April 30, 2011 respectively) |
(123,768) |
(396,859) |
||||
Total L & L Energy stockholders' equity |
157,798,064 |
136,446,621 |
||||
Non-controlling interest |
33,617,189 |
29,530,133 |
||||
Total equity |
191,415,253 |
165,976,754 |
||||
TOTAL LIABILITIES AND EQUITY |
$ |
248,791,814 |
$ |
227,352,325 |
||
L & L ENERGY, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME |
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FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2012 AND 2011 |
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(Unaudited) |
||||||||||
For The Three Months Periods Ended January 31, |
For The Nine Months Periods Ended January 31, |
|||||||||
2012 |
2011 |
2012 |
2011 |
|||||||
NET REVENUES |
$ |
30,192,688 |
$ |
65,894,584 |
$ |
108,699,834 |
$ |
178,642,209 |
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COST OF REVENUES |
21,421,144 |
44,504,406 |
79,343,401 |
119,374,564 |
||||||
GROSS PROFIT |
8,771,544 |
21,390,178 |
29,356,433 |
59,267,645 |
||||||
OPERATING COSTS AND EXPENSES: |
||||||||||
Salaries & wages-selling, general and administrative |
1,014,187 |
1,710,726 |
4,559,089 |
4,447,667 |
||||||
Selling, general and administrative expenses, excluding salaries and wages |
2,356,848 |
3,169,118 |
8,741,739 |
9,295,726 |
||||||
Total operating expenses |
3,371,035 |
4,879,844 |
13,300,828 |
13,743,393 |
||||||
INCOME FROM OPERATIONS |
5,400,509 |
16,510,334 |
16,055,605 |
45,524,252 |
||||||
OTHER INCOME (EXPENSE): |
||||||||||
Interest income (expense) |
(45,760) |
(285,359) |
260,895 |
(456,827) |
||||||
Other income (expense) |
160,387 |
444,341 |
(1,088,447) |
852,459 |
||||||
Total other income (expense) |
114,627 |
158,982 |
(827,552) |
395,632 |
||||||
INCOME BEFORE PROVISION FOR INCOME TAXES |
5,515,136 |
16,669,316 |
15,228,053 |
45,919,884 |
||||||
LESS PROVISION FOR INCOME TAXES |
618,140 |
2,147,548 |
1,992,474 |
6,337,053 |
||||||
INCOME BEFORE |
4,896,996 |
14,521,768 |
13,235,579 |
39,582,831 |
||||||
Income attributable to non-controlling interests |
1,037,525 |
1,937,138 |
3,200,280 |
4,998,828 |
||||||
Income attributable to L & L |
3,859,471 |
12,584,630 |
10,035,299 |
34,584,003 |
||||||
NET INCOME |
$ |
4,896,996 |
$ |
14,521,768 |
$ |
13,235,579 |
$ |
39,582,831 |
||
OTHER COMPREHENSIVE INCOME: |
||||||||||
Foreign currency translation gain |
347,024 |
1,707,441 |
4,833,525 |
4,367,017 |
||||||
COMPREHENSIVE INCOME |
$ |
5,244,020 |
$ |
16,229,209 |
$ |
18,069,104 |
$ |
43,949,848 |
||
Comprehensive income attributable to non-controlling interests |
$ |
1,093,359 |
$ |
2,098,255 |
$ |
3,961,242 |
$ |
5,351,049 |
||
Comprehensive income attributable to L & L |
4,150,661 |
14,130,954 |
14,107,862 |
38,598,799 |
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INCOME PER COMMON SHARE – basic |
$ |
0.12 |
$ |
0.42 |
$ |
0.31 |
$ |
1.17 |
||
INCOME PER COMMON SHARE – diluted |
$ |
0.12 |
$ |
0.41 |
$ |
0.30 |
$ |
1.15 |
||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic |
32,723,159 |
30,296,064 |
32,093,512 |
29,490,324 |
||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted |
33,539,928 |
31,018,298 |
33,004,193 |
30,183,227 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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L & L ENERGY, INC. |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
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FOR THE NINE MONTHS ENDED JANUARY 31, 2012 AND 2011 |
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（Unaudited) |
||||||
For The Nine Months Periods Ended January 31, |
||||||
2012 |
2011 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
Net income |
$ |
13,235,579 |
$ |
39,582,831 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
4,786,768 |
6,222,658 |
||||
Stock compensation |
2,913,347 |
4,060,944 |
||||
Accretion of asset retirement obligation |
181,214 |
- |
||||
Accounts receivable |
(3,946,006) |
(10,856,252) |
||||
Prepaid and other current assets |
4,995,236 |
3,936,965 |
||||
Inventories |
(3,388,905) |
(915,667) |
||||
Other receivable |
766,180 |
(782,360) |
||||
Accounts payable and other payable |
(1,704,991) |
(9,785,424) |
||||
Customer deposit |
(2,224,386) |
982,112 |
||||
Accrued and other liabilities |
208,022 |
(375,823) |
||||
Taxes payable |
1,605,583 |
3,721,722 |
||||
Note receivable |
1,532,596 |
- |
||||
Net cash provided by operating activities |
18,960,237 |
35,791,706 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
Acquisition of property and equipment |
(856,378) |
(10,881,933) |
||||
Construction-in-progress |
(19,677,589) |
(29,249,390) |
||||
Decrease (increase) in investments |
397,860 |
(4,445,402) |
||||
Cash received from spin-off HSC |
1,030,260 |
- |
||||
Net cash (used in) investing activities |
(19,105,847) |
(44,576,725) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
Payment on bank loans |
- |
(1,870,775) |
||||
Due to officers |
(1,200) |
- |
||||
Proceeds from warrant extension |
- |
50,000 |
||||
Proceeds from Treasury stock sold |
3,840,795 |
2,500,007 |
||||
Payment to previous owner of acquired mine |
(1,742,852) |
- |
||||
Warrants converted to common stock |
- |
4,669,750 |
||||
Net cash provided by financing activities |
2,096,743 |
5,348,982 |
||||
Effect of exchange rate changes on cash and cash equivalents |
430,595 |
4,255,310 |
||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
2,381,728 |
819,273 |
||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
4,914,425 |
7,327,369 |
||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
7,296,153 |
$ |
8,146,642 |
||
- |
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SUPPLEMENTAL INFORMATION |
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INTEREST PAID |
$ |
344,116 |
$ |
446,055 |
||
INCOME TAX PAID |
$ |
1,012,634 |
$ |
2,615,331 |
||
NON-CASH INVESTING AND FINANCING ACTIVITY: |
||||||
Stock subscription |
$ |
- |
$ |
1,800,000 |
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The accompanying notes are an integral part of these consolidated financial statements |
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SOURCE L & L Energy, Inc.
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