AVALON HOLDINGS CORPORATION ANNOUNCES 2023 FULL YEAR AND FOURTH QUARTER RESULTS

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Mar 21, 2024, 17:05 ET

WARREN, Ohio, March 21, 2024 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Net operating revenues in the fourth quarter of 2023 were $17.6 million compared with $21.6 million in the fourth quarter of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the fourth quarter of 2023 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the fourth quarter of 2022. For the fourth quarter of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.21 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.25 in the fourth quarter of 2022.

For the year ended December 31, 2023, net operating revenues were $80.5 million compared with $81.2 million for the year ended December 31, 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million for the year ended December 31, 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.6 million for the year ended December 31, 2022. For the year ended December 31, 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.46 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.15 for year ended December 31, 2022.

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,
	2023	2022	2023	2022

Net operating revenues:
Waste management services	$ 9,917	$ 14,671	$ 44,611	$ 49,763

Food, beverage and merchandise sales	2,914	2,832	13,491	12,137
Other golf and related operations	4,786	4,133	22,413	19,280
Total golf and related operations	7,700	6,965	35,904	31,417

Total net operating revenues	17,617	21,636	80,515	81,180

Costs and expenses:
Waste management services operating costs	7,776	12,137	35,642	40,380
Cost of food, beverage and merchandise	1,500	1,506	6,318	5,500
Golf and related operations operating costs	5,433	5,040	24,775	21,337
Depreciation and amortization expense	968	930	3,826	3,483
Selling, general and administrative expenses	2,381	2,615	10,227	10,133
Operating (loss) income	(441)	(592)	(273)	347

Other income (expense):
Interest expense	(525)	(504)	(2,098)	(1,464)
Other income, net	61	26	384	231
Loss before income taxes	(905)	(1,070)	(1,987)	(886)

Provision for income taxes	(36)	(14)	57	94
Net loss	(869)	(1,056)	(2,044)	(980)

Less net loss attributable to non-controlling interest in subsidiaries	(38)	(83)	(269)	(397)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (831)	$ (973)	$ (1,775)	$ (583)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic net loss per share	$ (0.21)	$ (0.25)	$ (0.46)	$ (0.15)

Weighted average shares outstanding - basic	3,899	3,899	3,899	3,899

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


	December 31,	December 31,
	2023	2022
Assets
Current Assets:
Cash and cash equivalents	$ 1,187	$ 1,624
Accounts receivable, net	9,499	11,127
Unbilled membership dues receivable	567	599
Inventories	1,662	1,461
Prepaid expenses	1,116	1,172
Other current assets	14	105
Total current assets	14,045	16,088

Property and equipment, net	56,630	56,805
Property and equipment under finance leases, net	5,711	5,001
Operating lease right-of-use assets	1,270	1,386
Restricted cash	10,265	10,426
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 87,965	$ 89,750

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 538	$ 503
Current portion of obligations under finance leases	198	115
Current portion of obligations under operating leases	432	424
Accounts payable	9,657	10,995
Accrued payroll and other compensation	1,277	989
Other taxes	539	643
Deferred membership dues revenue	3,443	3,643
Other liabilities and accrued expenses	1,825	1,544
Total current liabilities	17,909	18,856

Long term debt, net of current portion	29,220	29,758
Line of credit	3,200	1,550
Obligations under finance leases, net of current portion	598	381
Obligations under operating leases, net of current portion	838	962
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,716	38,490
Non-controlling interest in subsidiaries	(616)	(347)
Total shareholders' equity	36,100	38,143
Total liabilities and equity	$ 87,965	$ 89,750