SEATTLE, March 17, 2010 (GLOBE NEWSWIRE) -- L & L Energy, Inc. (Nasdaq:LLEN) ("L&L"), a U.S. company operating coal businesses in China, announced financial results for the third fiscal quarter ended January 31, 2010. Earnings in the third quarter of fiscal year 2010 totaled $9.5 million, or $0.37 EPS, 9 month year to date EPS is $0.82.
Highlights for Third Quarter Fiscal 2010 Financial Results:
- Quarterly revenues increased by approximately 280% year-over-year to $37.9 million.
- Quarterly Net income increased by 440% year-over-year to $9.5 million.
- Nine month revenues ended January 31, 2010 increased by $44.3 million to $75.2 versus $30.9 for the same period a year ago.
- Nine month net income increased by $12.5 million to $19.2 million versus $6.7 million for the same period a year ago.
"Successful execution of our expansion plan in China resulted in outstanding sales and net income in the quarter," said Dickson Lee, Chairman and CEO of L&L." As planned, we will continue to expand production at our coal operations taking advantage of the China coal consolidation policy."
Results of Operations
Coal revenues for the third fiscal quarter of 2010 were derived entirely in China, from coal mining, coal washing, coking, and coal wholesale operations. The Company expanded its coal (energy) operations from Yunnan province into Guangzhou province and Guizhou province. As a result, the company operates in 3 provinces in south China, including KMC coal wholesale, DaPuAn Coal Mine, SuTsong Mine, and Ping Yi Mine, Hon Shen Coal Co, and TNI operations.
Business Outlook
L&L will continue to execute its expansion in coal mining operations and coal related business. It also plans to increase coal sales and gain access to higher margin markets.
About L & L Energy, Inc.
Founded in 1995 and headquartered in Seattle, L&L (http://www.LLEnergyInc.com) focuses on serving the energy market in China. Through its subsidiaries, it operates profitable coal mines, coal wholesale, coking, and coal-washing facilities.
Forward-Looking Statements
The statements contained in this release that are not statements of historical fact, including, statements such as "estimate," "expect," "intend,", "plan" "should," and other terms. All such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Although the Company believes that the expectations reflected in these statements are reasonable, the Company's actual results could differ materially from those anticipated in these forward-looking statements. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
This information is intended to be reviewed in conjunction with the Company's filings with the Securities and Exchange Commission.
| L & L ENERGY, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| JANUARY 31, 2010 and APRIL 30, 2009 | ||
| (UNAUDITED) | ||
| January 31, 2010 | April 30, 2009 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $15,204,321 | $5,098,711 |
| Accounts receivable | 18,863,097 | 16,906,010 |
| Prepaid and other current assets | 8,882,608 | 3,611,371 |
| Other Receivables | 634,426 | 9,360,881 |
| Inventories | 5,973,640 | 1,524,493 |
| Loan from business associates | 0 | 5,983,636 |
| Total current assets | 49,558,092 | 42,485,102 |
| Property, plant, equipment, and mine development, net | 43,810,748 | 11,111,267 |
| Asset retirement costs, net | 8,368,961 | 0 |
| Intangible assets, net | 2,061,337 | 0 |
| Minority interest held in a subsidiary disposed of | 0 | 573,677 |
| Related party notes receivable | 7,602,319 | 0 |
| Deferred tax assets | 105,175 | 105,329 |
| Total non-current assets | 61,948,540 | 11,790,273 |
| TOTAL ASSETS | $111,506,632 | $54,275,375 |
| LIABILITIES AND EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $1,733,193 | $4,930,866 |
| Accrued and other liabilities | 756,474 | 953,395 |
| Other payables | 6,128,253 | 3,000,000 |
| Taxes payable | 7,802,895 | 6,014,922 |
| Customer deposits | 4,155,232 | 300,435 |
| Bank loans | 1,742,313 | 0 |
| Due to shareholder | 0 | 910,791 |
| Total current liabilities | 22,318,360 | 16,110,409 |
| LONG-TERM LIABILITIES | ||
| Long-term bank loans | 4,146,950 | 0 |
| Long-term payables | 3,392,235 | 3,000,000 |
| Asset retirement obligation | 8,406,296 | 0 |
| Total long-term liabilities | 15,945,481 | 3,000,000 |
| Total Liabilities | 38,263,841 | 19,110,409 |
| Commitments and contingencies | ||
| EQUITY: | ||
| 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: 27,475,492 and 21,202,200 shares issued for January 31, 2010 and April 30, 2009 respectively | 27,476 | 21,201 |
| Paid-in Capital | 36,054,613 | 9,604,694 |
| Service cost being amortized | (5,612,576) | 0 |
| Deferred stock compensation | (36,667) | (63,667) |
| Accumulated other comprehensive income | 629,955 | 669,913 |
| Retained Earnings | 31,399,873 | 12,200,838 |
| Total stockholders' equity | 62,462,674 | 22,432,979 |
| Non-controlling interest | 10,780,117 | 12,731,987 |
| Total Equity | 73,242,791 | 35,164,966 |
| TOTAL LIABILITIES AND EQUITY | $111,506,632 | $54,275,375 |
| L & L ENERGY, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||
| THREE MONTHS AND NINE MONTHS ENDED JANUARY 31, 2010 AND 2009 | ||||
| (UNAUDITED) | ||||
|
For the Three Months Ended January 31 |
For the Nine Months Ended January 31 |
|||
| 2010 | 2009 | 2010 | 2009 | |
| NET REVENUES | $37,956,263 | $9,989,470 | $75,183,989 | $30,900,400 |
| COST OF REVENUES | 21,908,104 | 4,321,136 | 40,402,155 | 13,787,078 |
| GROSS PROFIT | 16,048,159 | 5,668,334 | 34,781,834 | 17,113,322 |
| OPERATING COSTS AND EXPENSES: | ||||
| Salaries and wages | 703,580 | 937,012 | 2,624,145 | 1,811,398 |
| Selling, general and administrative expenses | 2,282,464 | 572,288 | 5,039,388 | 1,898,915 |
| Total operating expenses | 2,986,044 | 1,509,300 | 7,663,533 | 3,710,313 |
| INCOME FROM OPERATIONS | 13,062,115 | 4,159,034 | 27,118,301 | 13,403,009 |
| OTHER EXPENSES (INCOME): | ||||
| Interest expense | 60,672 | 344,739 | 93,974 | 439,960 |
| Other expenses (income), net | (12,907) | (87,719) | (641,962) | (2,717) |
| Total other expenses (income) | 47,765 | 257,020 | (547,988) | 437,243 |
| INCOME FROM CONTINUED OPERATIONS BEFORE PROVISION FOR INCOME TAXES, DISCONTINUED OPERATIONS AND NON-CONTROLLING INTEREST | 13,014,350 | 3,902,014 | 27,666,289 | 12,965,766 |
| LESS PROVISION FOR INCOME TAXES | 1,924,006 | 260,882 | 3,091,404 | 833,039 |
| INCOME FROM CONTINUED OPERATIONS BEFORE DISCONTINUED OPERATIONS AND NON-CONTROLLING INTEREST | 11,090,344 | 3,641,132 | 24,574,885 | 12,132,727 |
| NET INCOME FROM DISCONTINUED OPERATIONS | 0 | 76,082 | 0 | 145,220 |
| LOSS ON DISPOSAL | 0 | (382,961) | 0 | (382,961) |
| DISCONTINUED OPERATIONS, Net of tax | 0 | (306,879) | 0 | (237,741) |
| NET INCOME | 11,090,344 | 3,334,253 | 24,574,885 | 11,894,986 |
| LESS NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 1,532,219 | 1,565,812 | 5,375,850 | 5,192,309 |
| NET INCOME ATTRIBUTABLE TO THE COMPANY | 9,558,125 | 1,768,441 | 19,199,035 | 6,702,677 |
| OTHER COMPREHENSIVE INCOME: | ||||
| Foreign currency translation income (loss) | 1,853 | (434) | (39,958) | 569,810 |
| COMPREHENSIVE INCOME | $9,559,978 | $1,768,007 | $19,159,077 | $7,272,487 |
| INCOME PER COMMON SHARE – basic | $0.37 | $0.08 | $0.82 | $0.31 |
| INCOME PER COMMON SHARE – diluted | $0.34 | $0.08 | $0.77 | $0.30 |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic |
26,085,648 | 22,089,898 | 23,312,703 | 21,768,966 |
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – diluted |
27,850,355 | 22,488,896 | 25,077,410 | 22,167,964 |