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


    --  Coal Production was up 60% to 211,000 tons compared to the same quarter
        last year
    --  Gross profit up 45.2% to $17.2 million
    --  Gross 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
ir@llenergyinc.com


                                     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
        -
        current                                                  4,305,137                    4,237,715

       Inventories                                               8,092,437                    7,154,544
                                                                 ---------                    ---------

            Total
             current
             assets                                             90,348,627                   95,858,165


        Property,
        plant,
        equipment,
        and
        mine
        development,
        net                                                    210,583,848                  173,409,488

        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
        liabilities                                              1,157,651                    1,011,100

       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,                             outstanding
        no
        par
        value,
        2,500,000
        shares
        authorized,
        none
        issued
        and                                           -                                  -

       Common
        stock                                                30,
        ($0.001                                              2013
        par                                                  respectively)
        value,
        120,000,000
        shares
        authorized:
        44,140,938
         and
         38,385,050                                                 44,141                       38,385

        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                                                       (68,035)                     (68,035)

            Total
             L & L
             Energy
             stockholders'
             equity                                            243,382,050                  213,860,015

       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                         For The Six Months
                                                         Ended October 31,                          Ended 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, general and
      administrative                                    3,037,852                 856,801                   4,201,146              1,894,514

     Selling, general and
      administrative
      expenses, excluding
      salaries and wages                                4,927,012               3,304,418                   8,151,997              5,902,374
                                                        ---------               ---------                   ---------              ---------

          Total operating
           expenses                                     7,964,864               4,161,219                  12,353,143              7,796,888


     INCOME FROM OPERATIONS                             9,277,839               7,717,646                  23,944,367             13,982,061

     OTHER INCOME (EXPENSE):

        Interest income                                     4,884                 117,069                      10,016                224,335

        Other income (expense),
         net                                             (493,454)                562,188                    (494,790)               890,414

        Loss on debt settlement          (6,101,488)                                         (6,101,488)

        Derivative gain                   3,184,062                        -                  3,633,186                        -
                                          ---------                      ---                  ---------                      ---

          Total other income
           (expense)                                   (3,405,996)                679,257                  (2,953,076)             1,114,749


     INCOME FROM CONTINUING
      OPERATIONS BEFORE
      PROVISION FOR INCOME
      TAXES                                             5,871,843               8,396,903                  20,991,291             15,096,810

     PROVISION FOR INCOME
      TAXES                                             1,694,850                 805,527                   3,387,301              1,497,967
                                                        ---------                 -------                   ---------              ---------

     INCOME FROM CONTINUING
      OPERATIONS                                        4,176,993               7,591,376                  17,603,990             13,598,843


     Income attributable to
      non-controlling
      interests                                         2,764,508               1,949,832                   5,437,688              3,327,195

     Income attributable to
      L & L                                             1,430,537               5,641,544                  12,166,302             10,271,648


     DISCONTINUED
      OPERATIONS, NET OF TAX

     Net income from
      discontinued
      operations
      attributable to non-
      controlling interests                       -                1,091,865                          -                2,060,027

     Net income from
      discontinued
      operations
      attributable to L & L                       -                2,101,397                          -                3,657,762
                                                ---                                                 ---

     TOTAL (LOSS) INCOME
      FROM DISCONTINUED
      OPERATIONS, NET OF TAX                      -                3,193,262                          -                5,717,789


     NET INCOME                                        $4,176,993             $10,784,638                 $17,603,990            $19,316,632


     Net income
      attributable to non-
      controlling
      interests                                        $2,764,508              $3,041,697                  $5,437,688             $5,387,222

     Net income attributable
      to L & L                                          1,412,485               7,742,941                  12,166,302             13,929,410


     OTHER COMPREHENSIVE
      INCOME:

     Foreign currency
      translation gain                                  1,325,345               1,015,096                   2,901,552               (331,413)
                                                        ---------               ---------                   ---------               --------

     COMPREHENSIVE INCOME                              $5,502,338             $11,799,734                 $20,505,542            $18,985,219


     Comprehensive  income
      attributable to non-
      controlling
      interests                                        $3,022,055              $3,233,916                  $6,004,598             $5,328,203

     Comprehensive  income
      attributable to L & L                             2,480,283               8,565,818                  14,500,944             13,657,016
                                                        =========               =========                  ==========             ==========



     INCOME PER COMMON
      SHARE - basic from
      continuing
      operations                                            $0.03                   $0.15                       $0.30                  $0.27


     (LOSS) INCOME PER
      COMMON SHARE - basic
      from discontinued
      operations                                  $             -                   $0.06             $             -                  $0.10
                                                ===                                                 ===

     INCOME PER COMMON
      SHARE - basic                                         $0.03                   $0.21                       $0.30                  $0.37



     INCOME PER COMMON
      SHARE - diluted from
      continuing
      operations                                            $0.03                   $0.15                       $0.28                  $0.27


     (LOSS) INCOME PER
      COMMON SHARE -
      diluted from
      discontinued
      operations                                  $             -                   $0.06             $             -                  $0.10
                                                ===                                                 ===

     INCOME PER COMMON
      SHARE - diluted                                       $0.03                   $0.21                       $0.28                  $0.37



     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING -
      basic                                            42,462,474              36,988,915                  40,337,131             37,569,600
                                                       ==========              ==========                  ==========             ==========


     WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING -
      diluted                                          44,411,324              36,988,915                  42,745,653             37,569,600
                                                       ==========              ==========                  ==========             ==========

SOURCE L & L Energy, Inc.