L & L Energy Announces Audited Financial Results -- Net Income and EPS Exceed Previously Stated Estimates


SEATTLE, July 28, 2010 (GLOBE NEWSWIRE) -- L & L Energy, Inc., (Nasdaq:LLEN) ("L&L" or the "Company"), a U.S.-based company operating coal businesses in China, today announced its fully audited financial results for the fiscal year ended April 30, 2010. Full details of the Company's financial results are available in the Company's Form 10-K filed with the SEC at www.sec.gov.

Highlights of Audited Financials for Fiscal Year Ended April 30, 2010

--    Revenue $109 million for FY2010, up 167% from $41 million in FY2009

--    Net income $33 million for FY2010, up 230% from $10 million in FY2009

--    Fully diluted earnings per share $1.28 for FY2010, up 178% from $0.46 in FY2009

Dickson Lee, CEO of L&L, commented: "We are extremely pleased to report our tremendous growth during the past 12 months, ended April 30, 2010. These audited financials delineate our team's ability to successfully execute acquisitions and grow our existing operations in China, meeting market demands. Our growth has laid a solid foundation, ensuring continued increases in shareholder value."

Lee continued, "As previously stated, L&L will double its revenue in the current fiscal year ending April 30, 2011."

About L & L Energy, Inc.

Founded in 1995 and headquartered in Seattle, L&L Energy, Inc. ("L&L") (http://www.LLEnergyInc.com) focuses on serving the vast energy needs of the Chinese market. L&L's China operations are headquartered in Kunming City, which operates three coal mines, three coal washing facilities, a coking facility, and a coal wholesale network in both Yunnan Province and Guizhou Province of China. Marketing offices are also located in Shenzhen and Guangzhou of Guangdou Province and Taipei, Taiwan.

Forward-Looking Statements

The statements contained words that are not historical fact, including but not limited to, statements related to Company's future performance, and  are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. Actual results of the future events described in this document could differ materially due to numerous factors and other made by the company filing with the Securities and Exchange Commission. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

L & L ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
AS OF APRIL 30,
     
  2010 2009
ASSETS    
CURRENT ASSETS:    
Cash and cash equivalents  $7,327,369  $5,098,711
Accounts receivable 17,304,949 16,906,010
Prepaid and other current assets 22,670,529 12,611,760
Other receivables 7,956,069 465,821
Inventories 9,605,103 1,524,493
Total current assets 64,864,019 36,606,795
     
Property, plant, equipment, and mine development, net  33,657,410  6,518,802
Construction-in-progress  17,211,093  2,085,134
Intangible assets, net  5,028,253  2,507,331
Equity interest held in a subsidiary for sale  --   573,677
Long term receivable  1,259,151  -- 
Related party notes receivable  7,141,800  5,983,636
Total non-current assets  64,297,707 17,668,580
     
TOTAL ASSETS  $129,161,726  $54,275,375
     
LIABILITIES AND EQUITY    
CURRENT LIABILITIES:    
Accounts payable  $1,995,513  $4,930,866
Accrued and other liabilities 1,225,294 953,395
Other payables 15,344,920 3,000,000
Taxes payable 10,387,265 6,014,922
Customer deposits 3,937,770 300,435
Due to shareholder  --  910,791
Total current liabilities 32,890,762 16,110,409
     
LONG-TERM LIABILITIES    
Bank loans  4,146,950 3,000,000
Long-term payable  800,000  -- 
Asset retirement obligation 507,279  -- 
Total long-term liabilities 5,454,229 3,000,000
     
Total Liabilities  38,344,991 19,110,409
     
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: 28,791,735 and 28,391,735 shares issued and outstanding at April 30, 2010, respectively; 21,202,200 and 20,802,200 shares issued and outstanding at April 30, 2009, respectively 28,792 21,202
Additional paid-in capital 32,781,365 10,000,693
Deferred stock compensation  --  (63,667)
Accumulated other comprehensive income 699,755 669,913
Retained Earnings 45,108,530 12,200,838
Treasury stock (400,000 shares)  (396,000)  (396,000)
Total L & L Energy stockholders' equity 78,222,442 22,432,979
Non-controlling interest 12,594,293 12,731,987
Total equity 90,816,735 35,164,966
TOTAL LIABILITIES AND EQUITY  $129,161,726  $54,275,375
     
The accompanying notes are an integral part of these consolidated financial statements.
 
 
L & L ENERGY, INC.
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED APRIL 30,
       
  2010 2009 2008
NET REVENUES  $109,217,838  $40,938,128  $23,381,508
COST OF REVENUES 57,036,887 17,946,206 21,994,429
GROSS PROFIT 52,180,951 22,991,922 1,387,079
       
OPERATING COSTS AND EXPENSES:      
Salaries & wages 2,560,128 481,128 191,808
Selling, general and administrative expenses, excluding salaries and wages 7,295,223 3,515,667 695,656
 Total operating expenses 9,855,351 3,996,795 887,464
       
INCOME FROM OPERATIONS 42,325,600 18,995,127 499,615
OTHER INCOME (EXPENSE):      
 Interest expense (196,558) (265,186) (24,935)
 Other income (expense) 498,184 (170) (239)
 Total other income (expense)  301,626 (265,356) (25,174)
       
INCOME BEFORE PROVISION FOR INCOME TAXES 42,627,226 18,729,771 474,441
LESS PROVISION FOR INCOME TAXES 4,531,088 1,219,457 186,461
INCOME FROM CONTINUED OPERATIONS BEFORE NON-CONTROLLING INTEREST 38,096,138 17,510,314 287,980
LESS: NONCONTROLLING INTEREST  7,040,555 7,315,330 119,879
NET INCOME FROM CONTINUED OPERATIONS 31,055,583 10,194,984 168,101
       
DISCONTINUED OPERATIONS      
Gain (loss) on disposal 1,017,928 (382,961)  -- 
Net income from discontinued operations 834,181 145,220 806,368
TOTAL INCOME (LOSS) FROM DISCONTINUED OPERATIONS 1,852,109 (237,741) 806,368
       
NET INCOME 32,907,692 9,957,243 974,469
       
OTHER COMPREHENSIVE INCOME:      
Foreign currency translation gain  29,842 569,574 100,339
       
COMPREHENSIVE INCOME  $32,937,534  $10,526,817  $1,074,808
       
INCOME PER COMMON SHARE – basic from continued operation   $1.27  $0.47  $0.01
INCOME PER COMMON SHARE – basic from discontinued operation   $0.08 $(0.01)  $0.04
INCOME PER COMMON SHARE – basic   $1.35  $0.46  $0.05
       
INCOME PER COMMON SHARE – diluted from continued operation   $1.21  $0.47  $0.01
INCOME PER COMMON SHARE – diluted from discontinued operation   $0.07 $(0.01)  $0.04
INCOME PER COMMON SHARE – diluted  $1.28  $0.46  $0.05
       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic 24,375,508 21,492,215 20,854,212
       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - diluted 25,748,036 21,822,215 21,255,210
       
       
The accompanying notes are an integral part of these consolidated financial statements.


            

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