Avalon Holdings Corporation Announces Second Quarter Results

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Aug 09, 2018, 17:01 ET

WARREN, Ohio, Aug. 9, 2018 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2018.

Net operating revenues in the second quarter of 2018 were $16.7 million compared with $14.6 million in the second quarter of 2017. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.6 million in the second quarter of 2018 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the second quarter of 2017. For the second quarter of 2018, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.16 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.03 in the second quarter of 2017.

For the first six months of 2018, net operating revenues were $28.2 million compared with $25.3 million for the first six months of 2017. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the first six months of 2018 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first six months of 2017. For the first six months of 2018, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.05 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.21 in the first six months of 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 amenities, three golf courses and related country clubs and facilities.

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for per share amounts)



	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2018	2017	2018	2017

Net operating revenues:
Waste management services	$ 11,510	$ 9,490	$ 19,968	$ 17,103

Food, beverage and merchandise sales	2,206	2,270	3,246	3,376
Other golf and related operations	2,989	2,817	5,007	4,800
Total golf and related operations	5,195	5,087	8,253	8,176

Total net operating revenues	16,705	14,577	28,221	25,279

Costs and expenses:
Waste management services operating costs	9,090	7,533	15,752	13,427
Cost of food, beverage and merchandise	932	961	1,399	1,514
Golf and related operations operating costs	3,146	3,150	5,363	5,556
Depreciation and amortization expense	726	761	1,455	1,509
Selling, general and administrative expenses	2,215	2,063	4,440	4,065
Operating income (loss)	596	109	(188)	(792)

Other income (expense):
Interest expense	(174)	(177)	(345)	(352)
Other income, net	113	109	173	186
Income (loss) before income taxes	535	41	(360)	(958)

Provision for income taxes	41	32	60	52
Net income (loss)	494	9	(420)	(1,010)

Less net loss attributable to non-controlling interest in subsidiary	(129)	(112)	(244)	(205)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 623	$ 121	$ (176)	$ (805)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.16	$ 0.03	$ (0.05)	$ (0.21)
Diluted net income (loss) per share	$ 0.16	$ 0.03	$ (0.05)	$ (0.21)

Weighted average shares outstanding - basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding - diluted	3,818	3,827	3,803	3,803

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


	June 30,	December 31,
	2018	2017
Assets
Current Assets:
Cash and cash equivalents	$ 2,409	$ 1,025
Accounts receivable, net	11,046	9,906
Unbilled membership dues receivable	1,009	580
Inventories	1,010	850
Prepaid expenses	378	512
Other current assets	26	34
Total current assets	15,878	12,907

Property and equipment, net	43,992	43,215
Leased property under capital leases, net	6,311	6,360
Restricted cash	1,326	2,826
Noncurrent deferred tax asset	8	8
Other assets, net	56	62
Total assets	$ 67,571	$ 65,378

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 231	$ 212
Current portion of long term debt	562	547
Accounts payable	9,131	7,832
Accrued payroll and other compensation	1,050	739
Accrued income taxes	31	26
Other accrued taxes	242	372
Deferred membership dues revenue	4,034	2,718
Other liabilities and accrued expenses	734	658
Total current liabilities	16,015	13,104

Long term debt, net of current portion	10,460	10,745
Obligations under capital leases, net of current portion	841	857
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,273	38,446
Non-controlling interest in subsidiary	1,882	2,126
Total shareholders' equity	40,155	40,572
Total liabilities and equity	$ 67,571	$ 65,378