Avalon Holdings Corporation Announces First Quarter Results

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May 14, 2020, 17:01 ET

WARREN, Ohio, May 14, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2020.

Net operating revenues in the first quarter of 2020 were $14.4 million compared with $14.6 million in the first quarter of 2019. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first quarter of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.6 million in the first quarter of 2019. For the first quarter of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.21 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.16 in the first quarter of 2019.

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets, captive landfill management services and salt water injection well operations. Avalon Holdings Corporation also owns Avalon Resorts and Clubs Inc., which includes the operation of a hotel and its associated resort amenities, four golf courses and related country clubs and a multipurpose recreation center.

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for per share amounts)



	Three Months Ended
	March 31,
	2020	2019

Net operating revenues:
Waste management services	$ 11,133	$ 11,434

Food, beverage and merchandise sales	1,035	1,082
Other golf and related operations	2,235	2,092
Total golf and related operations	3,270	3,174
Total net operating revenues	14,403	14,608

Costs and expenses:
Waste management services operating costs	8,869	9,248
Cost of food, beverage and merchandise	528	515
Golf and related operations operating costs	2,632	2,532
Depreciation and amortization expense	699	600
Selling, general and administrative expenses	2,232	2,231
Operating loss	(557)	(518)

Other income (expense):
Interest expense	(307)	(163)
Other income, net	78	68
Loss before income taxes	(786)	(613)

Provision for income taxes	44	40
Net loss	(830)	(653)

Less net loss attributable to non-controlling interest in subsidiary	(17)	(15)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (813)	$ (638)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net loss per share	$ (0.21)	$ (0.16)

Weighted average shares outstanding - basic and diluted	3,875	3,875

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)


	March 31,	December 31,
	2020	2019
Assets
Current Assets:
Cash and cash equivalents	$ 1,448	$ 1,446
Accounts receivable, net	10,977	12,009
Unbilled membership dues receivable	813	602
Inventories	1,049	813
Prepaid expenses	860	725
Other current assets	15	15
Total current assets	15,162	15,610

Property and equipment, net	49,740	48,978
Property and equipment under finance leases, net	5,805	5,878
Operating lease right-of-use assets	1,399	1,466
Restricted cash	5,523	7,185
Noncurrent deferred tax asset	8	8
Other assets, net	39	39
Total assets	$ 77,676	$ 79,164

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,028	$ 1,015
Current portion of obligations under finance leases	297	295
Current portion of obligations under operating leases	473	513
Accounts payable	10,407	11,719
Accrued payroll and other compensation	1,035	961
Accrued income taxes	72	93
Other accrued taxes	405	434
Deferred membership dues revenue	4,018	3,153
Other liabilities and accrued expenses	896	839
Total current liabilities	18,631	19,022

Long term debt, net of current portion	21,308	21,570
Obligations under finance leases, net of current portion	576	555
Obligations under operating leases, net of current portion	926	953
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,218	37,030
Non-controlling interest in subsidiary	(83)	(66)
Total shareholders' equity	36,135	36,964
Total liabilities and equity	$ 77,676	$ 79,164