L&L Energy Announces Second Quarter Financial Results - Production and Earnings Up Four Quarters In a Row

    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

PR Newswire

SEATTLE, Dec. 10, 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:

  o 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.
  o 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.
  o 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.
  o 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
ir@llenergyinc.com

 

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       111,424,080        85,469,222
 development, net 
  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         831,193            916,001
 liabilities 
  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         6,982,280          6,126,253
 operations
       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    37,382             36,991
 and outstanding at October 31, 2012 and
 April 30, 2012 respectively)
  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      (68,035)           (123,968)
 April 30, 2012 respectively)
       Total L & L Energy stockholders'      187,130,137        172,423,048
 equity 
  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          For The Six Months Periods
                     Periods Ended October 31,     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,       856,801        2,611,902      1,894,514      3,515,862
general and
administrative 
 Selling, general
and administrative   3,304,418      2,302,624      5,902,374      4,493,423
expenses, excluding
salaries and wages 
      Total
operating            4,161,219      4,914,526      7,796,888      8,009,285
expenses 
 INCOME FROM         7,717,646      3,506,919      13,982,061     7,909,160
OPERATIONS 
 OTHER INCOME
(EXPENSE): 
    Interest         117,069        179,740        224,335        376,373
income (expense) 
    Other income,    562,188        (482,050)      890,414        (1,117,599)
net 
      Total other    679,257        (302,311)      1,114,749      (741,227)
income  
 INCOME FROM
CONTINUING
OPERATIONS BEFORE    8,396,903      3,204,608      15,096,810     7,167,933
PROVISION FOR INCOME
TAXES 
 PROVISION FOR       805,527        540,310        1,497,967      1,090,327
INCOME TAXES 
 INCOME FROM
CONTINUING           7,591,376      2,664,298      13,598,843     6,077,606
OPERATIONS 
 Income
attributable to      1,949,832      945,361        3,327,195      1,706,870
non-controlling
interests  
 Income
attributable to L    5,641,544      1,718,937      10,271,648     4,370,736
& L 
 DISCONTINUED
OPERATIONS - NET
OF TAX
 Net income from
discontinued
operations           1,091,865      520,080        2,060,027      455,884
attributable to
non-controlling
interests 
 Net income from
discontinued
operations           2,101,397      2,071,003      3,657,762      1,805,093
attributable to L
& L 
 TOTAL (LOSS)
INCOME FROM          3,193,262      2,591,083      5,717,789      2,260,977
DISCONTINUED
OPERATIONS 
 NET INCOME        $ 10,784,638  $  5,255,381    $ 19,316,632  $  8,338,583
 Net income
attributable to    $ 3,041,697   $  1,465,441    $ 5,387,222   $  2,162,754
non-controlling
interests 
 Net income
attributable to L    7,742,941      3,789,940      13,929,410     6,175,829
& L 
 OTHER
COMPREHENSIVE
INCOME: 
 Foreign currency    1,015,096      3,273,921      (331,413)      4,486,501
translation gain 
 COMPREHENSIVE     $ 11,799,734  $  8,529,302    $ 18,985,219  $  12,825,084
INCOME 
 Comprehensive 
income
attributable to    $ 3,233,916   $  2,006,831    $ 5,328,203   $  2,867,882
non-controlling
interests 
 Comprehensive 
income               8,565,818      6,522,471      13,657,017     9,957,202
attributable to L
& L 
 INCOME PER COMMON
SHARE – basic from $ 0.15        $  0.05         $ 0.27        $  0.14
continuing
operations  
 (LOSS) INCOME PER
COMMON SHARE –
basic from         $ 0.06        $  0.07         $ 0.1         $  0.05
discontinued
operations 
 INCOME PER COMMON $ 0.21        $  0.12         $ 0.37        $  0.19
SHARE – basic    
 INCOME PER COMMON
SHARE – diluted    $ 0.15        $  0.05         $ 0.27        $  0.13
from continuing
operations  
 (LOSS) INCOME PER
COMMON SHARE –
diluted from       $ 0.06        $  0.06         $ 0.1         $  0.06
discontinued
operations 
 INCOME PER COMMON $ 0.21        $  0.11         $ 0.37        $  0.19
SHARE – diluted 
 WEIGHTED AVERAGE
COMMON SHARES        36,988,915     32,225,085     37,569,600     31,788,767
OUTSTANDING –
basic 
 WEIGHTED AVERAGE
COMMON SHARES        36,988,915     33,385,777     37,569,600     32,949,459
OUTSTANDING -
diluted 
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     (5,717,789)     (2,260,977)
    of income taxes
    Income from continuing operations, net of    13,598,843      6,077,606
    income taxes
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        10,546,028      10,915,369
activities 
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         1,530,069       -
    receivable
    Cash received from HSC disposal              -               963,651
Net cash used in continuing investing            (8,938,260)     (10,543,219)
activities 
Net cash used in discontinuing investing         -               (4,735,424)
activities 
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        (4,342,510)     (1,676,307)
    mine
Net cash (used in) provided by continuing        (3,774,911)     1,834,644
financing activities 
Net cash (used in) provided by financing         (3,774,911)     1,834,644
activities 
Effect of exchange rate changes on cash and      1,818,295       1,254,471
cash equivalents
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.

Website: http://www.lnlinternational.com