L&L Energy Announces Third Quarter Financial Results - Record Production and Earnings

Mining

 Production

Net Income Attributable

to L&L

Earnings Per

Share

Q3 FY2013

233,000 tons

$15.6 million

$0.42

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

L & L ENERGY,  INC. 

 CONSOLIDATED BALANCE SHEETS 

 AS OF JANUARY 31, 2013 AND APRIL 30, 2012 

 (Unaudited) 

31-Jan-13

30-Apr-12

 ASSETS 

 CURRENT ASSETS: 

 Cash and cash equivalents 

$

5,117,515

$

3,547,953

 Accounts receivables 

38,499,154

26,032,123

 Prepaid and other current assets 

23,045,587

17,540,206

 Other receivables 

21,094,124

8,738,868

 Inventories 

8,722,746

4,701,954

 Assets held for sales 

-

68,769,279

      Total current assets 

96,479,126

129,330,383

 Property, plant, equipment, and mine development, net 

159,220,393

85,469,222

 Construction-in-progress 

11,200,140

26,417,686

 Intangible assets, net 

221,176

79,491

 Goodwill 

2,914,424

919,017

 Other assets 

993,355

404,689

 Long term receivable 

26,280,607

27,840,433

 Related party notes receivable 

6,040,433

6,096,617

      Total non-current assets   

206,870,528

147,227,155

 TOTAL ASSETS 

$

303,349,654

$

276,557,538

 LIABILITIES AND EQUITY 

 CURRENT LIABILITIES: 

 Accounts payable 

$

3,790,146

$

799,102

 Accrued expenses and other current liabilities 

916,908

916,001

 Other payables 

32,047,140

34,491,367

 Related party payables 

2,759,608

1,863,413

 Due to officers 

1,450,375

414,667

 Tax payable 

15,240,845

12,633,204

 Customer deposits 

978,194

1,381,300

 Liabilities held for sales 

-

6,126,253

      Total current liabilities 

57,183,216

58,625,307

 LONG-TERM LIABILITIES 

 Related party payable- Long term 

-

304,951

 Asset retirement obligations 

3,514,215

1,772,833

      Total long-term liabilities 

3,514,215

2,077,784

            Total Liabilities  

60,697,431

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: 37,979,414  and 36,991,397 shares issued and outstanding at January 31, 2013 and April 30, 2012 respectively)

37,979

36,991

 Additional paid-in capital 

67,850,688

65,752,560

 Accumulated other comprehensive income 

9,313,948

10,622,683

 Retained Earnings 

125,660,995

96,134,782

 Treasury stock (86,595 shares and 143,093 shares at January 31, 2013 and April 30, 2012 respectively)

(68,035)

(123,968)

      Total L & L Energy stockholders' equity 

202,795,575

172,423,048

 Non-controlling interest 

39,856,648

43,431,399

      Total equity 

242,652,223

215,854,447

 TOTAL LIABILITIES AND  EQUITY 

$

303,349,654

$

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 NINE MONTHS PERIODS ENDED JANUARY 31, 2013 AND 2012 

 (Unaudited) 

 For The Three Months Periods Ended January 31, 

 For The Nine Months Periods Ended January 31, 

2013

2012

2013

2012

 NET REVENUES 

$

59,852,361

$

19,384,566

$

144,804,738

$

78,336,628

 COST OF REVENUES 

39,396,382

14,238,311

102,569,810

57,271,928

 GROSS PROFIT 

20,455,979

5,146,255

42,234,928

21,064,700

 OPERATING COSTS AND EXPENSES: 

 Salaries & wages-selling, general and administrative 

703,121

1,014,187

2,597,634

4,530,049

 Selling, general and administrative expenses, excluding salaries and wages 

3,358,112

1,502,100

9,260,485

5,995,523

      Total operating expenses 

4,061,233

2,516,287

11,858,119

10,525,572

 INCOME FROM OPERATIONS 

16,394,746

2,629,968

30,376,809

10,539,128

 OTHER INCOME (EXPENSE): 

    Interest income (expense) 

116,926

85,078

341,261

461,451

    Other income (expense),net 

71,828

(208,967)

962,243

(1,326,566)

      Total other income (expense)

188,754

(123,889)

1,303,504

(865,116)

 INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 

16,583,500

2,506,079

31,680,313

9,674,012

 PROVISION FOR INCOME TAXES 

1,574,799

336,085

3,072,766

1,426,412

 INCOME FROM CONTINUING OPERATIONS 

15,008,701

2,169,994

28,607,547

8,247,600

 Income attributable to non-controlling interests  

3,007,604

510,282

6,334,799

2,217,152

 Income attributable to L & L 

12,001,097

1,659,712

22,272,748

6,030,448

 DISCONTINUED OPERATIONS 

 Gain on disposal 

3,260,086

-

3,260,086

-

 Net income from discontinued operations attributable to non-controlling interests 

176,375

527,243

2,236,402

983,128

 Net income from discontinued operations attributable to L & L 

335,615

2,199,758

3,993,377

4,004,851

 Divestiture net present value cost 

-

-

-

-

 TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS 

3,772,076

2,727,001

9,489,865

4,987,979

 NET INCOME 

$

18,780,777

$

4,896,996

$

38,097,412

$

13,235,579

 Net income attributable to non-controlling interests 

$

3,183,979

$

1,037,525

$

8,571,201

$

3,200,279

 Net income attributable to L & L 

15,596,798

3,859,471

29,526,211

10,035,300

 OTHER COMPREHENSIVE INCOME: 

 Foreign currency translation (loss) gain 

(977,322)

347,024

(1,308,735)

4,833,525

 COMPREHENSIVE INCOME 

$

17,803,455

$

5,244,020

$

36,788,677

$

18,069,104

 Comprehensive  income attributable to non-controlling interests 

$

3,049,642

$

1,093,359

$

8,377,845

$

3,961,242

 Comprehensive  income attributable to L & L 

14,753,813

4,150,661

28,410,832

14,107,862

 INCOME PER COMMON SHARE – basic from continuing operations  

$

0.32

$

0.05

$

0.60

$

0.19

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

$

0.10

$

0.07

$

0.19

$

0.12

 INCOME PER COMMON SHARE – basic    

$

0.42

$

0.12

$

0.79

$

0.31

 INCOME PER COMMON SHARE – diluted from continuing operations  

$

0.32

$

0.05

$

0.60

$

0.18

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

$

0.10

$

0.07

$

0.19

$

0.12

 INCOME PER COMMON SHARE – diluted 

$

0.42

$

0.12

$

0.79

$

0.30

 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic 

37,318,789

32,723,159

37,562,695

32,093,512

 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted 

37,318,789

33,539,928

37,562,695

33,004,193

L & L ENERGY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS 

FOR THE PERIOD ENDED JANUARY 31,  2013 AND 2012

For The Nine Months Periods Ended

January 31,

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

38,097,412

$

13,235,579

Loss from discontinued operations, net of income taxes

(6,229,779)

(4,987,979)

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

Gain on sale of subsidiary

(3,260,086)

-

Income from continuing operations, net of income taxes

28,607,547

8,247,600

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

Depreciation and amortization

5,124,945

2,752,804

Stock compensation

2,099,117

2,913,347

Accretion of asset retirement obligation

137,134

108,240

Accounts receivable

(11,457,863)

(4,486,640)

Prepaid and other current assets

(3,584,643)

7,680,822

Inventories

(2,303,922)

(3,463,461)

Other receivable

(17,249,745)

755,196

Accounts payable and other payable

8,358,088

169,917

Customer deposit

(1,273,992)

405,791

Accrued and other liabilities

(417,174)

202,299

Taxes payable

2,513,694

1,107,490

Note receivable

56,184

(3,852,434)

Net cash provided by continuing operating activities 

10,609,369

12,540,971

Net cash provided by discontinued operation

9,489,865

6,308,946

Net cash provided by operating activities 

20,099,234

18,849,917

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment

(1,596,161)

(681,228)

Construction-in-progress

(27,442,341)

(19,497,219)

Acquisition of businesses, net of cash acquired

(1,748,669)

-

Proceeds from repayment of long term receivable

1,559,826

-

Increase in investments

-

397,860

Cash received from HSC disposal

5,125,291

1,030,260

Net cash used in continuing investing activities 

(24,102,054)

(18,750,327)

Net cash used in discontinuing investing activities 

12,555,005

(1,988,052)

Net cash used in investing  activities

(11,547,049)

(20,738,379)

CASH FLOWS FROM FINANCING ACTIVITIES:

Due to officers

1,035,708

(1,200)

Proceeds from Treasury stock sold

55,933

3,840,795

Payment to previous owner of acquired mine

(8,708,978)

Net cash provided by (used in) continuing financing  activities 

(7,617,337)

3,839,595

Net cash provided by discontinued financing activities

-

Net cash provided by (used in) financing activities 

(7,617,337)

3,839,595

Effect of exchange rate changes on cash and cash equivalents

634,714

430,595

INCREASE IN CASH AND CASH EQUIVALENTS

1,569,562

2,381,728

CASH AND CASH EQUIVALENTS, BEGINNING OF YEARS

3,547,953

4,914,425

CASH AND CASH EQUIVALENTS, END OF YEARS

$

5,117,515

$

7,296,153

-

SUPPLEMENTAL INFORMATION

INTEREST PAID

$

-

$

344,116

INCOME TAX PAID

$

2,114,059

$

1,012,634

NON-CASH INVESTING AND FINANCING ACTIVITY:

Acquisition of business, net of cash acquired

$

(36,795,600)

$

Divestiture of business, net of cash disposed

$

35,046,931

$