Avalon Holdings Corporation Announces 2018 Full Year And Fourth Quarter Results

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Mar 14, 2019, 17:01 ET

WARREN, Ohio, March 14, 2019 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2018.

Net operating revenues in the fourth quarter of 2018 were $15.9 million compared with $14.2 million in the fourth quarter of 2017. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million in the fourth quarter of 2018 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the fourth quarter of 2017. For the fourth quarter of 2018, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.47 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.01 in the fourth quarter of 2017.

For the year ended December 31, 2018, net operating revenues were $62.2 million compared with $55.8 million for the year ended December 31, 2017. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $1.1 million for the year ended December 31, 2018 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.3 million for the year ended December 31, 2017. For the year ended December 31, 2018, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.30 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.08 for year ended December 31, 2017.

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, three 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		Year Ended
	December 31,		December 31,
	2018	2017	2018	2017

Net operating revenues:
Waste management services	$ 12,010	$ 10,464	$ 44,535	$ 38,398

Food, beverage and merchandise sales	1,618	1,588	7,149	7,290
Other golf and related operations	2,237	2,153	10,550	10,160
Total golf and related operations	3,855	3,741	17,699	17,450

Total net operating revenues	15,865	14,205	62,234	55,848

Costs and expenses:
Waste management services operating costs	9,566	8,276	35,181	30,495
Cost of food, beverage and merchandise	774	693	3,165	3,177
Golf and related operations operating costs	2,748	2,354	11,448	11,000
Depreciation and amortization expense	690	740	2,877	2,996
Selling, general and administrative expenses	2,263	2,146	9,000	8,451
Impairment of property and equipment	3,261	-	3,261	-
Operating loss	(3,437)	(4)	(2,698)	(271)

Other income (expense):
Interest expense	(163)	(171)	(675)	(699)
Other income, net	66	40	284	276
Loss before income taxes	(3,534)	(135)	(3,089)	(694)

Provision for income taxes	55	41	167	122
Net loss	(3,589)	(176)	(3,256)	(816)

Less net loss attributable to non-controlling interest in subsidiary	(1,772)	(127)	(2,112)	(509)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (1,817)	$ (49)	$ (1,144)	$ (307)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net loss per share	$ (0.47)	$ (0.01)	$ (0.30)	$ (0.08)

Weighted average shares outstanding - basic and diluted	3,845	3,803	3,814	3,803

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


	December 31,
	2018	2017
Assets
Current Assets:
Cash and cash equivalents	$ 1,406	$ 1,025
Accounts receivable, net	12,197	9,906
Unbilled membership dues receivable	554	580
Inventories	820	850
Prepaid expenses	622	512
Other current assets	31	34
Total current assets	15,630	12,907

Property and equipment, net	42,534	43,215
Leased property under capital leases, net	6,068	6,360
Restricted cash	502	2,826
Noncurrent deferred tax asset	8	8
Other assets, net	27	62
Total assets	$ 64,769	$ 65,378

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 236	$ 212
Current portion of long term debt	578	547
Accounts payable	10,454	7,832
Accrued payroll and other compensation	872	739
Accrued income taxes	84	26
Other accrued taxes	405	372
Deferred membership dues revenue	2,899	2,718
Other liabilities and accrued expenses	793	658
Total current liabilities	16,321	13,104

Long term debt, net of current portion	10,167	10,745
Obligations under capital leases, net of current portion	688	857
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,479	38,446
Non-controlling interest in subsidiary	14	2,126
Total shareholders' equity	37,493	40,572
Total liabilities and equity	$ 64,769	$ 65,378