Avalon Holdings Corporation Announces 2020 Full Year And Fourth Quarter Results

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Mar 11, 2021, 17:01 ET

WARREN, Ohio, March 11, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2020.

Net operating revenues in the fourth quarter of 2020 were $14.6 million compared with $17.3 million in the fourth quarter of 2019. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the fourth quarter of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the fourth quarter of 2019. For the fourth quarter of 2020, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.11 in the fourth quarter of 2019.

For the year ended December 31, 2020, net operating revenues were $58.7 million compared with $68.4 million for the year ended December 31, 2019. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million for the year ended December 31, 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million for the year ended December 31, 2019. For the year ended December 31, 2020, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.00 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.12 for year ended December 31, 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		Year Ended
	December 31,		December 31,
	2020	2019	2020	2019

Net operating revenues:
Waste management services	$ 10,824	$ 12,823	$ 40,371	$ 48,731

Food, beverage and merchandise sales	1,169	1,866	6,416	7,893
Other golf and related operations	2,632	2,617	11,933	11,733
Total golf and related operations	3,801	4,483	18,349	19,626

Total net operating revenues	14,625	17,306	58,720	68,357

Costs and expenses:
Waste management services operating costs	8,185	10,418	31,658	39,191
Cost of food, beverage and merchandise	626	811	2,810	3,494
Golf and related operations operating costs	2,770	3,226	12,547	13,587
Depreciation and amortization expense	757	674	2,909	2,522
Selling, general and administrative expenses	2,403	2,440	8,672	9,430
Operating income (loss)	(116)	(263)	124	133

Other income (expense):
Interest expense	(297)	(237)	(1,210)	(837)
Gain on debt extinguishment	801	-	801	-
Other income, net	73	72	337	329
Income (loss) before income taxes	461	(428)	52	(375)

Provision for income taxes	3	25	98	160
Net income (loss)	458	(453)	(46)	(535)

Less net loss attributable to non-controlling interest in subsidiary	(23)	(13)	(60)	(80)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 481	$ (440)	$ 14	$ (455)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.12	$ (0.11)	$ 0.00	$ (0.12)
Diluted net income (loss) per share	$ 0.12	$ (0.11)	$ 0.00	$ (0.12)

Weighted average shares outstanding - basic	3,876	3,875	3,876	3,875
Weighted average shares outstanding - diluted	3,885	3,875	3,878	3,875

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


	December 31,	December 31,
	2020	2019
Assets
Current Assets:
Cash and cash equivalents	$ 4,210	$ 1,446
Accounts receivable, net	8,744	12,009
Unbilled membership dues receivable	585	602
Inventories	910	813
Prepaid expenses	730	725
Other current assets	80	15
Total current assets	15,259	15,610

Property and equipment, net	51,299	48,978
Property and equipment under finance leases, net	5,735	5,878
Operating lease right-of-use assets	1,728	1,466
Restricted cash	3,885	7,185
Noncurrent deferred tax asset	8	8
Other assets, net	36	39
Total assets	$ 77,950	$ 79,164

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,594	$ 1,015
Current portion of obligations under finance leases	333	295
Current portion of obligations under operating leases	529	513
Accounts payable	9,097	11,719
Accrued payroll and other compensation	809	961
Accrued income taxes	43	93
Other accrued taxes	461	434
Deferred membership dues revenue	3,196	3,153
Other liabilities and accrued expenses	1,121	839
Total current liabilities	17,183	19,022

Long term debt, net of current portion	21,941	21,570
Obligations under finance leases, net of current portion	560	555
Obligations under operating leases, net of current portion	1,199	953
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,093	37,030
Non-controlling interest in subsidiary	(126)	(66)
Total shareholders' equity	36,967	36,964
Total liabilities and equity	$ 77,950	$ 79,164