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 firstname.lastname@example.org 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
L&L Energy Announces Second Quarter Fiscal 2014 Financial Results
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