L&L Energy Announces Second Quarter Fiscal 2014 Financial Results

      L&L Energy Announces Second Quarter Fiscal 2014 Financial Results

Conference call scheduled for 4:30 p.m. Eastern Time on Tuesday, December 17,
2013

PR Newswire

SEATTLE, Dec. 13, 2013

SEATTLE, Dec. 13, 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
second quarter of the fiscal year 2014, ended October 31, 2013.

Second Quarter Continuing Operations Highlights

  oCoal Production was up 60% to 211,000 tons compared to the same quarter
    last year
  oGross profit up 45.2% to $17.2 million
  oGross margin up to 40.1% compared with 26.1% in same quarter last year

L&L's Chief Financial Officer, Ian Robinson, commented, "The second quarter of
fiscal 2014 was challenging, as we responded to inaccurate and defamatory
attacks on our company and reputation. We formed a special committee of
independent board members to review the allegations and have provided them
with detailed documentation to refute the claims. On November 18^th, NASDAQ
placed a T-12 temporary trading halt on our stock pending a request for
additional information. The Company has responded to the request and continues
to be in steady communication with NASDAQ. L&L shares will remain halted until
NASDAQ completes their review of the information provided."

Robinson continued, "In spite of our challenges, we continued strong execution
of our coal operations and expansion of our clean energy initiatives.On
target growth of our coal mining production continues to deliver good
operational results. However a onetime non-cash charge reduced our net income
by $6.1 million to $1.4 million for the quarter. During the second half of
fiscal 2014, we remain committed to our growth plans which include acquiring
additional mining operations, expanding our wholesaling business, pursuing new
clean energy projects, and completing our TDR listing."

Second 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 $43.0 million in the second quarter, a decrease of 6% from $45.5
million in the same quarter last year. The modest reduction was primarily
driven by the temporary idling of the Company's Hong Xing Washing Facility.
Mining, the primary driver of the Company's earnings, grew substantially
year-over-year.

Coal Mining net revenue was $24.3 million in the second quarter, an increase
of 76% from $13.8 million in the same quarter last year. Coal production for
the quarter was 211,000 tons, an increase of 60% from 132,000 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 $12.8 million in the second quarter, an increase of
27% from $10.1 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 $7.0 million in the second quarter, a decrease of 68%
from $21.6 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.

Gross Profit was $17.2 million in the second quarter, an increase of 45% from
$11.9 million in the same quarter last year. Gross margin was 40% in the
second quarter, compared with 26% 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 $8.0 million in the second quarter, compared
with $4.2 million in the same quarter last year. Operating expenses as a
percentage of revenue in the second quarter was 19%, compared with 9% in the
same quarter last year.

Income from Operations was $9.3 million in the second quarter, a 20% increase
from $7.7 million in the same quarter last year.

Net income attributable to L&L common shareholders decreased from $5.6 million
to $1.4 million primarily due to a onetime, non-recurring, non-cash charge of
$6.1 million. Diluted per share earnings attributable to L&L common
shareholders was $0.03 in the second quarter.

The Company's fully diluted shares outstanding were 44.4 million.

Conference Call Information
L&L's Chief Executive Officer Dickson Lee, Chief Financial Officer Ian
Robinson, and Vice President Clayton Fong, will host a conference call to
discuss its second quarter financial results at 4:30 p.m. Eastern Time (1:30
p.m. Pacific) on Tuesday, December 17, 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: 24650982

Please call five minutes prior to 4:30 p.m. Eastern. A live webcast of the
call will also be available at http://www.llenergyinc.com. A replay will be
available from December 17, 2013 to December 24, 2013. The number for the
replay is +1 (855) 859-2056 or for international calls, +1 (404) 537-3406,
using conference ID#: 24650982.

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
ir@llenergyinc.com



L & L ENERGY, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF OCTOBER 31, 2013 AND APRIL 30, 2013
(Unaudited)
                                             October 31, 2013   April 30, 2013
ASSETS
 CURRENT ASSETS:
 Cash and cash equivalents               $ 8,209,516        $ 9,565,084
 Accounts receivables                      34,425,178         35,431,260
 Prepaid and other current assets          25,796,596         23,139,756
 Other receivables, net                    4,136,879          12,895,304
 Due from related parties                  5,382,884          3,434,502
 Related party notes receivable -           4,305,137          4,237,715
 current
 Inventories                               8,092,437          7,154,544
  Total current assets                 90,348,627         95,858,165
 Property, plant, equipment, and mine       210,583,848        173,409,488
 development, net
 Construction-in-progress                  41,885,124         34,679,059
 Intangible assets, net                    840,194            214,883
 Goodwill                                  2,788,822          2,753,439
 Prepaid and other assets, non-current     5,926,886          3,094,830
 Deferred finance fee                      101,215            146,072
 Long term receivable, net                 12,441,007         12,441,007
  Total non-current assets           274,567,096        226,738,778
TOTAL ASSETS                             $ 364,915,723      $ 322,596,943
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
 Accounts payable                        $ 4,059,127        $ 3,794,840
 Accrued expenses and other current         1,157,651          1,011,100
 liabilities
 Other payables                            23,799,316         21,373,835
 Related party payables - current          10,786,214         6,808,798
 Due to officers                           1,214,432          1,304,431
 Tax payable                               20,829,158         17,792,612
 Customer deposits                         464,743            745,200
 Bank loans                                4,999,985          4,999,985
  Total current liabilities            67,310,626         57,830,801
LONG-TERM LIABILITIES
 Convertible note payable, net             928,819            543,367
 Derivative liabilities                    961,726            4,594,912
 Asset retirement obligations              3,805,834          3,616,643
  Total long-term liabilities          5,696,379          8,754,922
  Total Liabilities             73,007,005         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:
 44,140,938 and 38,385,050 shares issued    44,141             38,385
 and outstanding at October 31, 2013 and
 April 30, 2013 respectively)
 Additional paid-in capital                84,036,975         69,588,550
 Accumulated other comprehensive income    12,715,639         9,814,087
 Retained Earnings                         146,653,330        134,487,028
 Treasury stock (286,595 shares and
 286,595 shares at October 31, 2013 and      (68,035)           (68,035)
 April 30, 2013 respectively, including
 shared held by subsidiary)
  Total L & L Energy stockholders'      243,382,050        213,860,015
 equity
 Non-controlling interest                  48,526,668         42,151,205
  Total equity                         291,908,718        256,011,220
TOTAL LIABILITIES AND EQUITY            $ 364,915,723      $ 322,596,943



L & L ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2013 AND 2012
(Unaudited)
                       For The Three Months Ended   For The Six Months Ended
                       October 31,                  October 31,
                       2013            2012          2013           2012
NET REVENUES       $ 42,966,509   $  45,504,279  $ 94,147,879   $ 84,952,377
COST OF REVENUES     25,723,806      33,625,414    57,850,369     63,173,428
GROSS PROFIT         17,242,703      11,878,865    36,297,510     21,778,949
OPERATING COSTS AND
EXPENSES:
Salaries &
wages-selling,         3,037,852       856,801       4,201,146      1,894,514
general and
administrative
Selling, general
and administrative     4,927,012       3,304,418     8,151,997      5,902,374
expenses, excluding
salaries and wages
 Total            7,964,864       4,161,219     12,353,143     7,796,888
operating expenses
INCOME FROM           9,277,839       7,717,646     23,944,367     13,982,061
OPERATIONS
OTHER INCOME
(EXPENSE):
 Interest           4,884           117,069       10,016         224,335
income
 Other income       (493,454)       562,188       (494,790)      890,414
(expense), net
 Loss on debt       (6,101,488)                   (6,101,488)
settlement
 Derivative gain   3,184,062       -             3,633,186      -
 Total other      (3,405,996)     679,257       (2,953,076)    1,114,749
income (expense)
INCOME FROM
CONTINUING
OPERATIONS BEFORE      5,871,843       8,396,903     20,991,291     15,096,810
PROVISION FOR INCOME
TAXES
PROVISION FOR         1,694,850       805,527       3,387,301      1,497,967
INCOME TAXES
INCOME FROM
CONTINUING             4,176,993       7,591,376     17,603,990     13,598,843
OPERATIONS
Income attributable
to non-controlling     2,764,508       1,949,832     5,437,688      3,327,195
interests
Income attributable   1,430,537       5,641,544     12,166,302     10,271,648
to L & L
DISCONTINUED
OPERATIONS, NET OF
TAX
Net income from
discontinued
operations             -               1,091,865     -              2,060,027
attributable to
non-controlling
interests
Net income from
discontinued
operations             -               2,101,397     -              3,657,762
attributable to L &
L
TOTAL (LOSS) INCOME
FROM DISCONTINUED      -               3,193,262     -              5,717,789
OPERATIONS, NET OF
TAX
NET INCOME         $ 4,176,993    $  10,784,638  $ 17,603,990   $ 19,316,632
Net income
attributable to      $ 2,764,508    $  3,041,697   $ 5,437,688    $ 5,387,222
non-controlling
interests
Net income
attributable to L &    1,412,485       7,742,941     12,166,302     13,929,410
L
OTHER COMPREHENSIVE
INCOME:
Foreign currency      1,325,345       1,015,096     2,901,552      (331,413)
translation gain
COMPREHENSIVE       $ 5,502,338    $  11,799,734  $ 20,505,542   $ 18,985,219
INCOME
Comprehensive
income attributable  $ 3,022,055    $  3,233,916   $ 6,004,598    $ 5,328,203
to non-controlling
interests
Comprehensive
income attributable    2,480,283       8,565,818     14,500,944     13,657,016
to L & L
INCOME PER COMMON
SHARE – basic from   $ 0.03         $  0.15        $ 0.30         $ 0.27
continuing
operations
(LOSS) INCOME PER
COMMON SHARE – basic $ -            $  0.06        $ -            $ 0.10
from discontinued
operations
INCOME PER COMMON   $ 0.03         $  0.21        $ 0.30         $ 0.37
SHARE – basic
INCOME PER COMMON
SHARE – diluted from $ 0.03         $  0.15        $ 0.28         $ 0.27
continuing
operations
(LOSS) INCOME PER
COMMON SHARE –
diluted from         $ -            $  0.06        $ -            $ 0.10
discontinued
operations
INCOME PER COMMON   $ 0.03         $  0.21        $ 0.28         $ 0.37
SHARE – diluted
WEIGHTED AVERAGE
COMMON SHARES          42,462,474      36,988,915    40,337,131     37,569,600
OUTSTANDING – basic
WEIGHTED AVERAGE
COMMON SHARES          44,411,324      36,988,915    42,745,653     37,569,600
OUTSTANDING -
diluted

SOURCE L & L Energy, Inc.

Website: http://www.llenergyinc.com
 
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