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:

  oCoal mining production increased 93% year over year to 185,000 tons in the
    second quarter offiscal 2013 from 96,000 in the same quarter last year.
    Quarter over quarter production increased 24% from 149,000 tons in the
    first quarter.
  oRevenues 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.
  oNet 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.
  oEarnings 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
 
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