/C O R R E C T I O N - L & L Energy, Inc./ - InvestingChannel

/C O R R E C T I O N — L & L Energy, Inc./

In the news release, L&L Energy Announces Third Quarter Financial Results – Record Production and Earnings, issued 11-Mar-2013

SEATTLE

Third Quarter Highlights:

Trailing Five Quarter Highlights:

Mining Production Net Income Attributable to L&L Earnings Per Share

Q3 FY2013

233,000 tons

$15.6 million

$0.42

Q2 FY2013

185,000 tons

$7.7 million

$0.21

Q1 FY2013

149,000 tons

$6.2 million

$0.17

Q4 FY2012

108,000 tons

$4.2 million

$0.12

Q3 FY2012

66,000 tons

$3.9 million

$0.11

“Our third quarter results show five quarters of consecutive growth,” commented Ian Robinson

Mr. Robinson continued saying, “Our wholesale segment also recorded solid growth this quarter as L&L increased shipments to Datang Power under the previously increased contract, signed in October 2012.” L&L’s Vice President and Director Clayton Fong

Conference Call

Management will host a conference call to discuss these financial results Tuesday, March 12, 2013

The audio call of the meeting will be available via telephone at:

North America Toll Free

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. Contacts: L&L Energy Inc. (206)-264-8065

ir@llenergyinc.com L & L ENERGY, INC. CONSOLIDATED BALANCE SHEETS AS OF JANUARY 31, 2013 AND APRIL 30, 2012 (Unaudited) 31-Jan-13

30-Apr-12 ASSETS CURRENT ASSETS: Cash and cash equivalents $

5,117,515

$

3,547,953 Accounts receivables 38,499,154

26,032,123 Prepaid and other current assets 23,045,587

17,540,206 Other receivables 21,094,124

8,738,868 Inventories 8,722,746

4,701,954 Assets held for sales –

68,769,279 Total current assets 96,479,126

129,330,383 Property, plant, equipment, and mine development, net 159,220,393

85,469,222 Construction-in-progress 11,200,140

26,417,686 Intangible assets, net 221,176

79,491 Goodwill 2,914,424

919,017 Other assets 993,355

404,689 Long term receivable 26,280,607

27,840,433 Related party notes receivable 6,040,433

6,096,617 Total non-current assets 206,870,528

147,227,155 TOTAL ASSETS $

303,349,654

$

276,557,538 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $

3,790,146

$

799,102 Accrued expenses and other current liabilities 916,908

916,001 Other payables 32,047,140

34,491,367 Related party payables 2,759,608

1,863,413 Due to officers 1,450,375

414,667 Tax payable 15,240,845

12,633,204 Customer deposits 978,194

1,381,300 Liabilities held for sales –

6,126,253 Total current liabilities 57,183,216

58,625,307 LONG-TERM LIABILITIES Related party payable- Long term – 304,951 Asset retirement obligations 3,514,215

1,772,833 Total long-term liabilities 3,514,215

2,077,784 Total Liabilities 60,697,431

60,703,091 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: 37,979,414 and 36,991,397 shares issued and outstanding at January 31, 2013 and April 30, 2012 respectively)

37,979

36,991 Additional paid-in capital 67,850,688

65,752,560 Accumulated other comprehensive income 9,313,948

10,622,683 Retained Earnings 125,660,995

96,134,782 Treasury stock (86,595 shares and 143,093 shares at January 31, 2013 and April 30, 2012 respectively)

(68,035)

(123,968) Total L & L Energy stockholders’ equity 202,795,575

172,423,048 Non-controlling interest 39,856,648

43,431,399 Total equity 242,652,223

215,854,447 TOTAL LIABILITIES AND EQUITY $

303,349,654

$

276,557,538

The accompanying notes are an integral part of these consolidated financial statements L & L ENERGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS PERIODS ENDED JANUARY 31, 2013 AND 2012 (Unaudited) For The Three Months Periods Ended January 31, For The Nine Months Periods Ended January 31, 2013 2012 2013 2012 NET REVENUES $

59,852,361

$

19,384,566

$

144,804,738

$

78,336,628 COST OF REVENUES 39,396,382

14,238,311

102,569,810

57,271,928 GROSS PROFIT 20,455,979

5,146,255

42,234,928

21,064,700 OPERATING COSTS AND EXPENSES: Salaries & wages-selling, general and administrative 703,121

1,014,187

2,597,634

4,530,049 Selling, general and administrative expenses, excluding salaries and wages 3,358,112

1,502,100

9,260,485

5,995,523 Total operating expenses 4,061,233

2,516,287

11,858,119

10,525,572 INCOME FROM OPERATIONS 16,394,746

2,629,968

30,376,809

10,539,128 OTHER INCOME (EXPENSE): Interest income (expense) 116,926

85,078

341,261

461,451 Other income (expense),net 71,828

(208,967)

962,243

(1,326,566) Total other income (expense)

188,754

(123,889)

1,303,504

(865,116) INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES 16,583,500

2,506,079

31,680,313

9,674,012 PROVISION FOR INCOME TAXES 1,574,799

336,085

3,072,766

1,426,412 INCOME FROM CONTINUING OPERATIONS 15,008,701

2,169,994

28,607,547

8,247,600 Income attributable to non-controlling interests 3,007,604

510,282

6,334,799

2,217,152 Income attributable to L & L 12,001,097

1,659,712

22,272,748

6,030,448 DISCONTINUED OPERATIONS Gain on disposal 3,260,086

3,260,086

– Net income from discontinued operations attributable to non-controlling interests 176,375

527,243

2,236,402

983,128 Net income from discontinued operations attributable to L & L 335,615

2,199,758

3,993,377

4,004,851 Divestiture net present value cost –

– – – – TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS 3,772,076

2,727,001

9,489,865

4,987,979 NET INCOME $

18,780,777

$

4,896,996

$

38,097,412

$

13,235,579 Net income attributable to non-controlling interests $

3,183,979

$

1,037,525

$

8,571,201

$

3,200,279 Net income attributable to L & L 15,596,798

3,859,471

29,526,211

10,035,300 OTHER COMPREHENSIVE INCOME: Foreign currency translation (loss) gain (977,322)

347,024

(1,308,735)

4,833,525 COMPREHENSIVE INCOME $

17,803,455

$

5,244,020

$

36,788,677

$

18,069,104 Comprehensive income attributable to non-controlling interests $

3,049,642

$

1,093,359

$

8,377,845

$

3,961,242 Comprehensive income attributable to L & L 14,753,813

4,150,661

28,410,832

14,107,862 INCOME PER COMMON SHARE – basic from continuing operations $

0.32

$

0.05

$

0.60

$

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

0.10

$

0.07

$

0.19

$

0.12 INCOME PER COMMON SHARE – basic $

0.42

$

0.12

$

0.79

$

0.31 INCOME PER COMMON SHARE – diluted from continuing operations $

0.32

$

0.05

$

0.60

$

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

0.10

$

0.07

$

0.19

$

0.12 INCOME PER COMMON SHARE – diluted $

0.42

$

0.12

$

0.79

$

0.30 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – basic 37,318,789

32,723,159

37,562,695

32,093,512 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – diluted 37,318,789

33,539,928

37,562,695

33,004,193 L & L ENERGY, INC. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JANUARY 31, 2013 AND 2012 For The Nine Months Periods Ended January 31, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

38,097,412

$

13,235,579

Loss from discontinued operations, net of income taxes

(6,229,779)

(4,987,979)

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

Gain on sale of subsidiary

(3,260,086)

Income from continuing operations, net of income taxes

28,607,547

8,247,600

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

Depreciation and amortization

5,124,945

2,752,804

Stock compensation

2,099,117

2,913,347

Accretion of asset retirement obligation

137,134

108,240

Accounts receivable

(11,457,863)

(4,486,640)

Prepaid and other current assets

(3,584,643)

7,680,822

Inventories

(2,303,922)

(3,463,461)

Other receivable

(17,249,745)

755,196

Accounts payable and other payable

8,358,088

169,917

Customer deposit

(1,273,992)

405,791

Accrued and other liabilities

(417,174)

202,299

Taxes payable

2,513,694

1,107,490

Note receivable

56,184

(3,852,434)

Net cash provided by continuing operating activities 10,609,369

12,540,971

Net cash provided by discontinued operation

9,489,865

6,308,946

Net cash provided by operating activities 20,099,234

18,849,917

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment

(1,596,161)

(681,228)

Construction-in-progress

(27,442,341)

(19,497,219)

Acquisition of businesses, net of cash acquired

(1,748,669)

Proceeds from repayment of long term receivable

1,559,826

Increase in investments

397,860

Cash received from HSC disposal

5,125,291

1,030,260

Net cash used in continuing investing activities (24,102,054)

(18,750,327)

Net cash used in discontinuing investing activities 12,555,005

(1,988,052)

Net cash used in investing activities (11,547,049)

(20,738,379)

CASH FLOWS FROM FINANCING ACTIVITIES:

Due to officers

1,035,708

(1,200)

Proceeds from Treasury stock sold

55,933

3,840,795

Payment to previous owner of acquired mine

(8,708,978)

Net cash provided by (used in) continuing financing activities (7,617,337)

3,839,595

Net cash provided by discontinued financing activities

Net cash provided by (used in) financing activities (7,617,337)

3,839,595

Effect of exchange rate changes on cash and cash equivalents

634,714

430,595

INCREASE IN CASH AND CASH EQUIVALENTS

1,569,562

2,381,728

CASH AND CASH EQUIVALENTS, BEGINNING OF YEARS

3,547,953

4,914,425

CASH AND CASH EQUIVALENTS, END OF YEARS

$

5,117,515

$

7,296,153

SUPPLEMENTAL INFORMATION

INTEREST PAID

$

$

344,116

INCOME TAX PAID

$

2,114,059

$

1,012,634

NON-CASH INVESTING AND FINANCING ACTIVITY:

Acquisition of business, net of cash acquired

$

(36,795,600)

$

Divestiture of business, net of cash disposed

$

35,046,931

$ SOURCE L & L Energy, Inc.