Avalon Holdings Corporation Announces 2016 Full Year And Fourth Quarter Results

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Mar 16, 2017, 17:01 ET

WARREN, Ohio, March 16, 2017 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the fiscal year and fourth quarter ended December 31, 2016.

Net operating revenues in the fourth quarter of 2016 were $15.6 million compared with $13.9 million in the fourth quarter of 2015. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the fourth quarter of 2016 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the fourth quarter of 2015. For the fourth quarter of 2016, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.10 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.05 in the fourth quarter of 2015.

For the year ended December 31, 2016, net operating revenues were $61.4 million compared with $53.1 million for the year ended December 31, 2015. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.1 million for the year ended December 31, 2016 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.7 million for the year ended December 31, 2015. For the year ended December 31, 2016, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.02 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.19 for year ended December 31, 2015.

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 amenities, three golf courses and related country clubs and facilities.

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


	Three Months Ended		Year Ended
	December 31,		December 31,
	2016	2015	2016	2015

Net operating revenues	$ 15,578	$ 13,858	$ 61,352	$ 53,090

Costs and expenses:
Costs of operations	12,912	11,459	50,519	44,197
Depreciation and amortization expense	723	724	2,816	2,560
Selling, general and administrative expenses	2,338	1,910	8,203	7,635
Operating loss	(395)	(235)	(186)	(1,302)

Other income (expense):
Interest expense	(106)	(80)	(379)	(147)
Other income, net	63	49	281	286
Loss before income taxes	(438)	(266)	(284)	(1,163)

Provision for income taxes	46	17	125	59
Net loss	(484)	(283)	(409)	(1,222)

Less net loss attributable to non-controlling interest in subsidiary	(96)	(87)	(340)	(510)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (388)	$ (196)	$ (69)	$ (712)

Loss per share attributable to Avalon Holdings Corporation common shareholders
Basic and diluted net loss per share	$ (0.10)	$ (0.05)	$ (0.02)	$ (0.19)

Weighted average shares outstanding - basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding - diluted	3,803	3,803	3,803	3,803

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


	December 31,
	2016	2015
Assets
Current Assets:
Cash and cash equivalents	$ 2,299	$ 1,814
Accounts receivable, net	11,349	9,579
Inventories	773	830
Prepaid expenses	462	487
Refundable income taxes	-	33
Other current assets	35	45
Total current assets	14,918	12,788

Property and equipment, net	43,971	43,386
Leased property under capital leases, net	6,035	6,042
Restricted cash	2,905	-
Noncurrent deferred tax asset	8	8
Other assets, net	61	78
Total assets	$ 67,898	$ 62,302

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 112	$ 59
Current portion of long term debt	517	-
Accounts payable	9,387	8,022
Accrued payroll and other compensation	684	618
Accrued income taxes	48	-
Other accrued taxes	448	380
Deferred revenues	2,716	2,401
Other liabilities and accrued expenses	764	667
Total current liabilities	14,676	12,147

Revolving line of credit	-	7,975
Long term debt, net of current portion	11,294	-
Obligations under capital leases, net of current portion	452	274
Asset retirement obligation	100	100
Deferred rental income	-	50

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,741	38,781
Non-controlling interest in subsidiary	2,635	2,975
Total shareholders' equity	41,376	41,756
Total liabilities and equity	$ 67,898	$ 62,302