L&L Energy Announces Fiscal First Quarter FY2014 Financial Results

 L & L ENERGY,  INC. 

 CONSOLIDATED BALANCE SHEETS 

 AS OF JULY 31, 2013 AND APRIL 30, 2013  

 (Unaudited) 

July 31, 2013

April 30, 2013

 ASSETS 

 CURRENT ASSETS: 

 Cash and cash equivalents 

$

9,041,400

$

9,565,084

 Accounts receivables 

34,793,782

35,431,260

 Prepaid and other current assets 

22,255,894

23,139,756

 Other receivables, net 

6,449,967

12,895,304

 Due from related parties 

5,320,624

3,434,502

 Related party notes receivable - current 

4,185,598

4,237,715

 Inventories 

8,153,457

7,154,544

      Total current assets 

90,200,722

95,858,165

 Property, plant, equipment, and mine development, net 

188,240,373

173,409,488

 Construction-in-progress 

44,825,438

34,679,059

 Intangible assets, net 

836,096

214,883

 Goodwill 

2,772,307

2,753,439

 Other assets 

3,000,000

3,094,830

 Deferred finance fee 

123,731

146,072

 Long term receivable, net 

12,441,007

12,441,007

      Total non-current assets   

252,238,952

226,738,778

 TOTAL ASSETS 

$

342,439,674

$

322,596,943

 LIABILITIES AND EQUITY 

 CURRENT LIABILITIES: 

 Accounts payable 

$

3,479,068

$

3,794,840

 Accrued expenses and other current liabilities 

1,182,254

1,011,100

 Other payables 

21,455,016

21,373,835

 Related party payables - current 

8,141,475

6,808,798

 Due to officers 

2,214,432

1,304,431

 Tax payable 

19,703,878

17,792,612

 Customer deposits 

766,208

745,200

 Bank loans 

4,999,985

4,999,985

      Total current liabilities 

61,942,316

57,830,801

 LONG-TERM LIABILITIES 

 Convertible note payable, net 

710,415

543,367

 Derivative liabilities 

4,145,788

4,594,912

 Asset retirement obligations 

3,712,351

3,616,643

      Total long-term liabilities 

8,568,554

8,754,922

            Total Liabilities  

70,510,870

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: 38,549,283  and 38,385,050 shares issued and outstanding at July 31, 2013 and April 30, 2013 respectively)

38,549

38,385

 Additional paid-in capital 

70,211,536

69,588,550

 Accumulated other comprehensive income 

11,390,294

9,814,087

 Retained Earnings 

145,222,793

134,487,028

 Treasury stock (286,595 shares and 286,595 shares at July 31, 2013 and April 30, 2013 respectively, including shared held by subsidiary)

(68,035)

(68,035)

      Total L & L Energy stockholders' equity 

226,795,137

213,860,015

 Non-controlling interest 

45,133,667

42,151,205

      Total equity 

271,928,804

256,011,220

 TOTAL LIABILITIES AND  EQUITY 

$

342,439,674

$

322,596,943

 The accompanying notes are an integral part of these consolidated financial statements. 

 L & L ENERGY, INC. 

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

 FOR THE THREE MONTHS ENDED JULY 31, 

 (Unaudited) 

2013

2012

 NET REVENUES 

$

51,181,370

$

39,448,098

 COST OF REVENUES 

32,126,563

29,548,014

 GROSS PROFIT 

19,054,807

9,900,084

 OPERATING COSTS AND EXPENSES: 

 Salaries & wages-selling, general and administrative 

1,163,294

1,037,713

 Selling, general and administrative expenses, excluding salaries and wages 

3,224,985

2,597,956

      Total operating expenses 

4,388,279

3,635,669

 INCOME FROM OPERATIONS 

14,666,528

6,264,415

 OTHER INCOME (EXPENSE): 

    Interest income  

5,132

107,266

    Other income (expense), net 

(1,336)

328,228

    Derivative gain 

449,124

-

      Total other income  

452,920

435,494

 INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 

15,119,448

6,699,909

 PROVISION FOR INCOME TAXES 

1,692,451

692,440

 INCOME FROM CONTINUING OPERATIONS 

13,426,997

6,007,469

 Income attributable to non-controlling interests  

2,691,232

1,377,363

 Income attributable to L & L 

10,735,765

4,630,106

 DISCONTINUED OPERATIONS, NET OF TAX 

 Net income from discontinued operations attributable to non-controlling interests 

-

968,162

 Net income from discontinued operations attributable to L & L 

-

1,556,365

 TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 

-

2,524,527

 NET INCOME 

$

13,426,997

$

8,531,996

 Net income attributable to non-controlling interests 

$

2,691,232

$

2,345,525

 Net income attributable to L & L 

10,735,765

6,186,471

 OTHER COMPREHENSIVE INCOME: 

 Foreign currency translation gain (loss) 

1,867,437

 COMPREHENSIVE INCOME 

$

15,294,434

$

7,185,487

 Comprehensive  income attributable to non-controlling interests 

$

2,982,462

$

2,094,286

 Comprehensive  income attributable to L & L 

12,311,972

5,091,201

 INCOME PER COMMON SHARE – basic from continuing operations  

$

0.28

$

0.13

 (LOSS) INCOME PER COMMON SHARE – basic from discontinued operations 

$

-

$

0.04

 INCOME PER COMMON SHARE – basic    

$

0.28

$

0.17

 INCOME PER COMMON SHARE – diluted from continuing operations  

$

0.27

$

0.13

 (LOSS) INCOME PER COMMON SHARE – diluted from discontinued operations 

$

-

$

0.04

 INCOME PER COMMON SHARE – diluted 

$

0.27

$

0.17

 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic 

37,846,470

36,839,324

 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted 

40,138,137

36,839,324

 The accompanying notes are an integral part of these consolidated financial statements. 

L & L ENERGY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS 

FOR THE THREE MONTHS ENDED JULY 31, 

(UNAUDITED)

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

13,426,997

$

8,531,996

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

1,912,951

1,582,219

Stock compensation

623,150

566,111

Accretion of asset retirement obligation

95,708

27,714

Changes in assets and liabilities, net of businesses acquisitions:

Accounts receivable

637,478

(2,240,633)

Prepaid and other current assets

250,845

(5,116,801)

Inventories

(998,913)

(1,525,259)

Other receivable

4,611,332

1,277,909

Accounts payable and other payable

1,296,412

2,989,804

Customer deposit

21,008

(936,538)

Accrued and other liabilities

(110,922)

(225)

Taxes payable

1,911,266

668,942

Net cash provided by operating activities

23,677,312

5,825,239

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment

(668,967)

(98,629)

Construction-in-progress

(24,994,276)

(5,661,986)

Proceeds from repayment of long term receivable

-

1,563,621

Net cash used in  investing activities

(25,663,243)

(4,196,994)

CASH FLOWS FROM FINANCING ACTIVITIES:

Due to officers

910,001

6,666

Net cash provided by (used in) financing activities 

910,001

6,666

Effect of exchange rate changes on cash and cash equivalents

552,246

1,015,359

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(523,684)

2,650,270

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

9,565,084

4,040,020

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

9,041,400

$

6,690,290

SUPPLEMENTAL INFORMATION

INTEREST PAID

$

405,677

$

80,862

INCOME TAX PAID

$

65,924

$

580,334

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Payable to DaPing shareholders

$

-

$

15,388,508

The accompanying notes are an integral part of these consolidated financial statements.