AVALON HOLDINGS CORPORATION ANNOUNCES 2021 FULL YEAR AND FOURTH QUARTER RESULTS

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Mar 10, 2022, 17:01 ET

WARREN, Ohio, March 10, 2022 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2021.

Net operating revenues in the fourth quarter of 2021 were $17.6 million compared with $14.6 million in the fourth quarter of 2020. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the fourth quarter of 2021 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the fourth quarter of 2020. For the fourth quarter of 2021, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the fourth quarter of 2020.

For the year ended December 31, 2021, net operating revenues were $70.4 million compared with $58.7 million for the year ended December 31, 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $2.0 million for the year ended December 31, 2021 compared with net income attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million for the year ended December 31, 2020. For the year ended December 31, 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.51 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.00 for year ended December 31, 2020.

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,
	2021	2020	2021	2020

Net operating revenues:
Waste management services	$ 11,431	$ 10,824	$ 42,710	$ 40,371

Food, beverage and merchandise sales	2,437	1,169	11,045	6,416
Other golf and related operations	3,711	2,632	16,628	11,933
Total golf and related operations	6,148	3,801	27,673	18,349

Total net operating revenues	17,579	14,625	70,383	58,720

Costs and expenses:
Waste management services operating costs	9,204	8,185	34,259	31,658
Cost of food, beverage and merchandise	1,150	626	4,748	2,810
Golf and related operations operating costs	4,469	2,770	17,825	12,547
Depreciation and amortization expense	804	757	3,112	2,909
Selling, general and administrative expenses	2,319	2,403	9,878	8,672
Operating income (loss)	(367)	(116)	561	124

Other income (expense):
Interest expense	(280)	(297)	(1,158)	(1,210)
Gain on debt extinguishment	-	801	1,964	801
Other income, net	71	73	369	337
Income (loss) before income taxes	(576)	461	1,736	52

Provision for income taxes	4	3	89	98
Net income (loss)	(580)	458	1,647	(46)

Less net loss attributable to non-controlling interest in subsidiaries	(110)	(23)	(324)	(60)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ (470)	$ 481	$ 1,971	$ 14

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ (0.12)	$ 0.12	$ 0.51	$ 0.00
Diluted net income (loss) per share	$ (0.12)	$ 0.12	$ 0.50	$ 0.00

Weighted average shares outstanding - basic	3,899	3,876	3,899	3,876
Weighted average shares outstanding - diluted	3,899	3,885	3,933	3,878

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


	December 31,	December 31,
	2021	2020
Assets
Current Assets:
Cash and cash equivalents	$ 3,254	$ 4,210
Accounts receivable, net	9,933	8,744
Unbilled membership dues receivable	578	585
Inventories	1,105	910
Prepaid expenses	996	730
Other current assets	105	80
Total current assets	15,971	15,259

Property and equipment, net	53,338	51,299
Property and equipment under finance leases, net	5,390	5,735
Operating lease right-of-use assets	1,598	1,728
Restricted cash	1,696	3,885
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 78,037	$ 77,950

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,126	$ 1,594
Current portion of obligations under finance leases	167	333
Current portion of obligations under operating leases	534	529
Accounts payable	10,164	9,097
Accrued payroll and other compensation	797	809
Accrued income taxes	67	43
Other accrued taxes	541	461
Deferred membership dues revenue	3,363	3,196
Other liabilities and accrued expenses	1,265	1,121
Total current liabilities	18,024	17,183

Long term debt, net of current portion	19,376	21,941
Obligations under finance leases, net of current portion	496	560
Obligations under operating leases, net of current portion	1,064	1,199
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	39,069	37,093
Non-controlling interest in subsidiaries	(92)	(126)
Total shareholders' equity	38,977	36,967
Total liabilities and equity	$ 78,037	$ 77,950