AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

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May 12, 2022, 17:01 ET

WARREN, Ohio, May 12, 2022 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2022.

Net operating revenues in the first quarter of 2022 were $14.3 million compared with $15.1 million in the first quarter of 2021. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.3 million in the first quarter of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the first quarter of 2021. For the first quarter of 2022, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.32 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.18 in the first quarter of 2021.

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
	March 31,
	2022	2021

Net operating revenues:
Waste management services	$ 9,339	$ 11,150

Food, beverage and merchandise sales	1,665	1,341
Other golf and related operations	3,305	2,622
Total golf and related operations	4,970	3,963

Total net operating revenues	14,309	15,113

Costs and expenses:
Waste management services operating costs	7,578	8,701
Cost of food, beverage and merchandise	748	593
Golf and related operations operating costs	4,055	2,921
Depreciation and amortization expense	829	764
Selling, general and administrative expenses	2,265	2,280
Operating loss	(1,166)	(146)

Other income (expense):
Interest expense	(278)	(297)
Gain on debt extinguishment	-	1,087
Other income, net	64	87
Income (loss) before income taxes	(1,380)	731

Provision for income taxes	20	43
Net income (loss)	(1,400)	688

Less net loss attributable to non-controlling interest in subsidiaries	(138)	(28)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ (1,262)	$ 716

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ (0.32)	$ 0.18
Diluted net income (loss) per share	$ (0.32)	$ 0.18

Weighted average shares outstanding - basic	3,899	3,899
Weighted average shares outstanding - diluted	3,899	3,945

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


	March 31,	December 31,
	2022	2021
Assets
Current Assets:
Cash and cash equivalents	$ 2,430	$ 3,254
Accounts receivable, net	10,737	9,933
Unbilled membership dues receivable	760	578
Inventories	1,358	1,105
Prepaid expenses	1,180	996
Other current assets	44	105
Total current assets	16,509	15,971

Property and equipment, net	54,496	53,338
Property and equipment under finance leases, net	5,301	5,390
Operating lease right-of-use assets	1,588	1,598
Restricted cash	676	1,696
Noncurrent deferred tax asset	8	8
Other assets, net	35	36
Total assets	$ 78,613	$ 78,037

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,140	$ 1,126
Current portion of obligations under finance leases	157	167
Current portion of obligations under operating leases	519	534
Accounts payable	10,196	10,164
Accrued payroll and other compensation	1,261	797
Accrued income taxes	74	67
Other accrued taxes	474	541
Deferred membership dues revenue	4,943	3,363
Other liabilities and accrued expenses	1,381	1,265
Total current liabilities	20,145	18,024

Long term debt, net of current portion	19,086	19,376
Obligations under finance leases, net of current portion	493	496
Obligations under operating leases, net of current portion	1,069	1,064
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,808	39,069
Non-controlling interest in subsidiaries	(88)	(92)
Total shareholders' equity	37,720	38,977
Total liabilities and equity	$ 78,613	$ 78,037