L&L Energy Announces Fiscal First Quarter FY2014 Financial Results
Conference call scheduled for 4:00 p.m. Eastern Time on Tuesday, September 10, 2013
SEATTLE, Sept. 9, 2013 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: LLEN) ("L&L" or "Company"), a U.S.-based company engaged in producing, processing and selling coal in China, today announced its financial results for the first quarter of the fiscal year 2014, ended July 31, 2013.
First Quarter Continuing Operations Highlights
- Coal production up 54% y/y to 228,000 tons
- Revenue up 29% y/y to $51.2 million from 39.4 million
- Gross profit up 92.5% y/y to $19.1 million from 9.9 million
- Net income attributable to L&L shareholders up 133% y/y to $10.7 million from 4.6 million
- Diluted earnings per share up 108% y/y to $0.27 from $0.13.
"The first quarter of fiscal 2014 was one of progress and growth for L&L," stated Clayton Fong, Vice President of US Operations for L&L Energy. "Coal production increased significantly, revenue grew impressively, and we improved profitability as we rework our mix of business toward more profitable segments. Our balance sheet remains strong. We will further enhance our ability to fund growth with our upcoming Taiwan Depository Receipt listing. We believe we are poised for meaningful success in the quarters ahead."
First Quarter 2014 Continuing Operations Results
This press release makes comparisons to only the continuing operations of L&L in previous quarters. The company believes this presentation aids in comparing and understanding its results. When the LuoZhou and LaShu coal mines were acquired in November 2012, they were paid for in part by transferring ownership interests in the Company's ZoneLin Coking plant and DaPing Mine. Financial contributions from those operations are classified as discontinued operations, and all comparisons to fiscal first quarter 2013 exclude those contributions.
Revenue was $51.2 million in the first quarter, an increase of 29% from $39.4 million in the same quarter last year.
Coal Mining net revenue was $25.0 million in the first quarter, an increase of 118% from $11.5 million in the same quarter last year. Coal production for the quarter was 228,000 tons, an increase of 54% from 148,510 tons in the same quarter last year. The increase in production volume was primarily due to the acquisitions of the LaShu and LuoZhou mines in November of 2012, and our continued ramp of operations at the Weishe mine.
Coal Wholesale revenue was $13.0 million in the first quarter, an increase of 5% from $12.3 million in the same quarter last year. The increase was primarily due to expanding market share, and increases in long-term sales contracts to large customers and state-owned enterprises.
Coal Washing revenue was $13.2 million in the first quarter, a decrease of 26% from $17.8 million in the same quarter last year. The decrease in coal washing revenue was due principally to the idling of the Hong Xing washing plant late in the quarter. Management is currently evaluating the Hong Xing facility.
Gross Profit was $19.1 million in the first quarter, an increase of 92% from $9.9 million in the same quarter last year. Gross margin was 37.2% in the first quarter, compared with 25.1% in the same quarter last year. The increase was primarily due to the shift in revenue mix to more mining and away from washing, which is a lower margin business.
Total Operating expenses were $4.4 million in the first quarter, compared with $3.6 million in the same quarter last year. Operating expenses as a percentage of revenue in the first quarter was 8.6%, compared with 9.2% in the same quarter last year.
Net income was $13.4 million in the first quarter, a 123% increase from $6.0 million in the same quarter last year.
Diluted per share earnings attributable to L&L common shareholders was $0.27 in the first quarter, an increase of 108% from $0.13 in the same quarter last year. The Company's fully diluted shares outstanding were 40.1 million.
Conference Call Information
Management will host a conference call to discuss its first quarter financial results at 4:00 p.m. Eastern Daylight Time (1:00 p.m. Pacific Daylight Time) on Tuesday, September 10, 2013.
The audio call of the meeting will be available via telephone at:
North America Toll Free: +1 (800) 893-5360
International Toll: +1 (404) 665-9534
Conference ID: 55365832
Please call five minutes prior to 4:00 p.m. Eastern Time. A live webcast of the call will also be available at http://www.llenergyinc.com. A replay will be available from September 10, 2013 to September 17, 2013. The number for the replay is +1 (855) 859-2056 or for international calls, +1 (404) 537-3406, using conference ID#: 55365832.
About L&L Energy, Inc.
L&L Energy, Inc. (NASDAQ: LLEN) ("L&L Energy" or "the Company") is an American company engaged in producing, processing and selling coal in the People's Republic of China. Its vertically-integrated operations include mining, washing, wholesale, and distribution. The Company is incorporated in the State of Nevada with its US corporate office located in Seattle, Washington. L&L Energy's China headquarters is located in Beijing with additional offices Kunming and Guiyan. L&L Energy is a member of the American Coal Council, one of the country's largest coal trade associations representing the business interests of the American coal industry.
Caution Regarding 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.
For further information, please contact:
L&L Energy Inc.
Investor Relations
+1 (206)-264-8065
[email protected]
ICR, LLC
Gary Dvorchak, CFA
Senior Vice President
U.S.: +1 (310) 954-1123
China: +86 (10) 6583-7528
Email: [email protected]
| L & L ENERGY, INC. |
|||||
| CONSOLIDATED BALANCE SHEETS |
|||||
| AS OF JULY 31, 2013 AND APRIL 30, 2013 |
|||||
| (Unaudited) |
|||||
| July 31, 2013 |
April 30, 2013 |
||||
| ASSETS |
|||||
| CURRENT ASSETS: |
|||||
| Cash and cash equivalents |
$ |
9,041,400 |
$ |
9,565,084 |
|
| Accounts receivables |
34,793,782 |
35,431,260 |
|||
| Prepaid and other current assets |
22,255,894 |
23,139,756 |
|||
| Other receivables, net |
6,449,967 |
12,895,304 |
|||
| Due from related parties |
5,320,624 |
3,434,502 |
|||
| Related party notes receivable - current |
4,185,598 |
4,237,715 |
|||
| Inventories |
8,153,457 |
7,154,544 |
|||
| Total current assets |
90,200,722 |
95,858,165 |
|||
| Property, plant, equipment, and mine development, net |
188,240,373 |
173,409,488 |
|||
| Construction-in-progress |
44,825,438 |
34,679,059 |
|||
| Intangible assets, net |
836,096 |
214,883 |
|||
| Goodwill |
2,772,307 |
2,753,439 |
|||
| Other assets |
3,000,000 |
3,094,830 |
|||
| Deferred finance fee |
123,731 |
146,072 |
|||
| Long term receivable, net |
12,441,007 |
12,441,007 |
|||
| Total non-current assets |
252,238,952 |
226,738,778 |
|||
| TOTAL ASSETS |
$ |
342,439,674 |
$ |
322,596,943 |
|
| LIABILITIES AND EQUITY |
|||||
| CURRENT LIABILITIES: |
|||||
| Accounts payable |
$ |
3,479,068 |
$ |
3,794,840 |
|
| Accrued expenses and other current liabilities |
1,182,254 |
1,011,100 |
|||
| Other payables |
21,455,016 |
21,373,835 |
|||
| Related party payables - current |
8,141,475 |
6,808,798 |
|||
| Due to officers |
2,214,432 |
1,304,431 |
|||
| Tax payable |
19,703,878 |
17,792,612 |
|||
| Customer deposits |
766,208 |
745,200 |
|||
| Bank loans |
4,999,985 |
4,999,985 |
|||
| Total current liabilities |
61,942,316 |
57,830,801 |
|||
| LONG-TERM LIABILITIES |
|||||
| Convertible note payable, net |
710,415 |
543,367 |
|||
| Derivative liabilities |
4,145,788 |
4,594,912 |
|||
| Asset retirement obligations |
3,712,351 |
3,616,643 |
|||
| Total long-term liabilities |
8,568,554 |
8,754,922 |
|||
| Total Liabilities |
70,510,870 |
66,585,723 |
|||
| 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: 38,549,283 and 38,385,050 shares issued and outstanding at July 31, 2013 and April 30, 2013 respectively) |
38,549 |
38,385 |
|||
| Additional paid-in capital |
70,211,536 |
69,588,550 |
|||
| Accumulated other comprehensive income |
11,390,294 |
9,814,087 |
|||
| Retained Earnings |
145,222,793 |
134,487,028 |
|||
| Treasury stock (286,595 shares and 286,595 shares at July 31, 2013 and April 30, 2013 respectively, including shared held by subsidiary) |
(68,035) |
(68,035) |
|||
| Total L & L Energy stockholders' equity |
226,795,137 |
213,860,015 |
|||
| Non-controlling interest |
45,133,667 |
42,151,205 |
|||
| Total equity |
271,928,804 |
256,011,220 |
|||
| TOTAL LIABILITIES AND EQUITY |
$ |
342,439,674 |
$ |
322,596,943 |
|
| The accompanying notes are an integral part of these consolidated financial statements. |
|||||
| L & L ENERGY, INC. |
||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||
| FOR THE THREE MONTHS ENDED JULY 31, |
||||
| (Unaudited) |
||||
| 2013 |
2012 |
|||
| NET REVENUES |
$ |
51,181,370 |
$ |
39,448,098 |
| COST OF REVENUES |
32,126,563 |
29,548,014 |
||
| GROSS PROFIT |
19,054,807 |
9,900,084 |
||
| OPERATING COSTS AND EXPENSES: |
||||
| Salaries & wages-selling, general and administrative |
1,163,294 |
1,037,713 |
||
| Selling, general and administrative expenses, excluding salaries and wages |
3,224,985 |
2,597,956 |
||
| Total operating expenses |
4,388,279 |
3,635,669 |
||
| INCOME FROM OPERATIONS |
14,666,528 |
6,264,415 |
||
| OTHER INCOME (EXPENSE): |
||||
| Interest income |
5,132 |
107,266 |
||
| Other income (expense), net |
(1,336) |
328,228 |
||
| Derivative gain |
449,124 |
- |
||
| Total other income |
452,920 |
435,494 |
||
| INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES |
15,119,448 |
6,699,909 |
||
| PROVISION FOR INCOME TAXES |
1,692,451 |
692,440 |
||
| INCOME FROM CONTINUING OPERATIONS |
13,426,997 |
6,007,469 |
||
| Income attributable to non-controlling interests |
2,691,232 |
1,377,363 |
||
| Income attributable to L & L |
10,735,765 |
4,630,106 |
||
| DISCONTINUED OPERATIONS, NET OF TAX |
||||
| Net income from discontinued operations attributable to non-controlling interests |
- |
968,162 |
||
| Net income from discontinued operations attributable to L & L |
- |
1,556,365 |
||
| TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX |
- |
2,524,527 |
||
| NET INCOME |
$ |
13,426,997 |
$ |
8,531,996 |
| Net income attributable to non-controlling interests |
$ |
2,691,232 |
$ |
2,345,525 |
| Net income attributable to L & L |
10,735,765 |
6,186,471 |
||
| OTHER COMPREHENSIVE INCOME: |
||||
| Foreign currency translation gain (loss) |
1,867,437 |
(1,346,509) |
||
| COMPREHENSIVE INCOME |
$ |
15,294,434 |
$ |
7,185,487 |
| Comprehensive income attributable to non-controlling interests |
$ |
2,982,462 |
$ |
2,094,286 |
| Comprehensive income attributable to L & L |
12,311,972 |
5,091,201 |
||
| INCOME PER COMMON SHARE – basic from continuing operations |
$ |
0.28 |
$ |
0.13 |
| (LOSS) INCOME PER COMMON SHARE – basic from discontinued operations |
$ |
- |
$ |
0.04 |
| INCOME PER COMMON SHARE – basic |
$ |
0.28 |
$ |
0.17 |
| INCOME PER COMMON SHARE – diluted from continuing operations |
$ |
0.27 |
$ |
0.13 |
| (LOSS) INCOME PER COMMON SHARE – diluted from discontinued operations |
$ |
- |
$ |
0.04 |
| INCOME PER COMMON SHARE – diluted |
$ |
0.27 |
$ |
0.17 |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic |
37,846,470 |
36,839,324 |
||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted |
40,138,137 |
36,839,324 |
||
| The accompanying notes are an integral part of these consolidated financial statements. |
||||
| L & L ENERGY, INC. |
|||||
| CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||
| FOR THE THREE MONTHS ENDED JULY 31, |
|||||
| (UNAUDITED) |
|||||
| 2013 |
2012 |
||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
| Net income |
$ |
13,426,997 |
$ |
8,531,996 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||||
| Depreciation and amortization |
1,912,951 |
1,582,219 |
|||
| Stock compensation |
623,150 |
566,111 |
|||
| Accretion of asset retirement obligation |
95,708 |
27,714 |
|||
| Changes in assets and liabilities, net of businesses acquisitions: |
|||||
| Accounts receivable |
637,478 |
(2,240,633) |
|||
| Prepaid and other current assets |
250,845 |
(5,116,801) |
|||
| Inventories |
(998,913) |
(1,525,259) |
|||
| Other receivable |
4,611,332 |
1,277,909 |
|||
| Accounts payable and other payable |
1,296,412 |
2,989,804 |
|||
| Customer deposit |
21,008 |
(936,538) |
|||
| Accrued and other liabilities |
(110,922) |
(225) |
|||
| Taxes payable |
1,911,266 |
668,942 |
|||
| Net cash provided by operating activities |
23,677,312 |
5,825,239 |
|||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
| Acquisition of property and equipment |
(668,967) |
(98,629) |
|||
| Construction-in-progress |
(24,994,276) |
(5,661,986) |
|||
| Proceeds from repayment of long term receivable |
- |
1,563,621 |
|||
| Net cash used in investing activities |
(25,663,243) |
(4,196,994) |
|||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||
| Due to officers |
910,001 |
6,666 |
|||
| Net cash provided by (used in) financing activities |
910,001 |
6,666 |
|||
| Effect of exchange rate changes on cash and cash equivalents |
552,246 |
1,015,359 |
|||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(523,684) |
2,650,270 |
|||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
9,565,084 |
4,040,020 |
|||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
9,041,400 |
$ |
6,690,290 |
|
| SUPPLEMENTAL INFORMATION |
|||||
| INTEREST PAID |
$ |
405,677 |
$ |
80,862 |
|
| INCOME TAX PAID |
$ |
65,924 |
$ |
580,334 |
|
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|||||
| Payable to DaPing shareholders |
$ |
- |
$ |
15,388,508 |
|
| The accompanying notes are an integral part of these consolidated financial statements. |
|||||
SOURCE L & L Energy, Inc.
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