SEATTLE, Sept. 9, 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 financial results for its first fiscal quarter ended July 31, 2010. The Company generated $55.3 million in sales for the first quarter, representing 395% growth over the same period in fiscal 2010. Net income in the first quarter totaled $10.9 million, an increase of 306% from the prior-year period.
Fiscal 2011 First Quarter Financial Highlights
- Revenues for the first quarter increased approximately 395% year-over-year to $55.3 million, compared with $11.2 million in the same period a year ago.
- Net income for the quarter was $10.9 million, versus $2.7 million for the first quarter of fiscal 2010, representing a year-over-year increase of 306% or $8.2 million.
- Earnings per share totaled $0.36 per diluted share, a 177% increase over $0.13 per diluted share reported for the same period a year ago.
- Operating profit in the first quarter increased 208% year-over-year to $14.6 million, compared with $4.7 million in the first quarter of fiscal 2010.
- Gross profit increased to $18.6 million, an increase of 217% over gross profit of $5.9 million reported for the same period a year ago.
"We are very pleased with our strong performance in the first quarter," said Dickson Lee, Chairman and CEO of L&L. "Propelled by our acquisitions over the past year and the recent growth of our washing and coking businesses, we were able to more than triple both first quarter revenues and net profit when compared with last year's first quarter. As we mentioned on our preliminary earnings call, we have decided not to continue pursuing an acquisition of Shunda Mining based on concerns of Shunda's past safety record. However, we remain confident about the potential for larger acquisitions to be incurred later in fiscal 2011."
Total Revenue and Gross Profit
During the first fiscal quarter 2011, L&L sales increased approximately 395% to $55.3 million, up from $11.2 million in the first quarter of 2010. The sales increase was mainly a result of the Company's acquisitions over the past year as well as higher coal demand in China, which led to higher coal prices and an increase in sales volume for the Company.
Gross profit in the first quarter was $18.6 million, representing 217% growth from gross profit of $5.9 million in the first quarter of fiscal 2010. Gross margin decreased year-over-year from 52.5% in the first quarter of fiscal 2010 to 33.6% in the first quarter of fiscal 2011. The decrease was largely attributable to the Company's expansion into the coal washing and coking businesses over the past year. While profitable for the Company, washing and coking tend to have lower margins than mining operations. Because a large portion of first quarter sales growth was generated by the Company's coal washing segment, the shift in this quarter's revenue mix caused gross margin to decline.
Net Income and Earnings per Share
Net income totaled $10.9 million in the first quarter, representing 306% growth from $2.7 million in the first quarter of fiscal year 2010. The increase was mainly due to corresponding growth in revenue, and reduced selling, general, and administrative costs as a percent of sales as a result of cost reduction and streamlining measures. Net margin for the first quarter of fiscal 2011 was 19.8%, versus 24.1% in the previous year. First quarter EPS was $0.36 per diluted share, an increase of 177% or $0.23, from $0.13 in the first quarter of fiscal 2010.
About L & L Energy
L & L Energy (Nasdaq:LLEN) was founded in 1995 and headquartered in Seattle is engaged in coal mining, washing, coking and distribution in Yunnan and Guizhou Provinces. The Company has offices in Kunming, Shenzhen, Guangzhou, Hong Kong and Taipei. The Company produces thermal and metallurgical coals. During the year ended April 30, 2010, the Company has achieved impressive revenue growth of 167% and net income growth of 230% from the previous year. In June, 2010, L & L's stock was added to the Russell 3000® Index. For more information, see .
Various statements in this press release, including those that express a belief, expectation or intention, including but not limited to the potential larger acquisitions later in fiscal 2011, as well as those that are not statements of historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to various risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements.
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