Avalon Holdings Corporation Announces Third Quarter Results

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Nov 10, 2011, 06:04 ET

WARREN, Ohio, Nov. 10, 2011 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the third quarter of 2011.

Net operating revenues in the third quarter of 2011 were $15.8 million compared with $11.8 million in the third quarter of 2010. The Company recorded net income of $.3 million, or $.08 per share for the third quarter of 2011 compared with a net loss of $2,000 or breakeven on a per share basis for the third quarter of 2010.

For the first nine months of 2011, net operating revenues increased to $37.1 million compared with $32.2 million for the first nine months of 2010. The Company recorded net income of $41,000, or $.01 per share for the first nine months of 2011 compared with a net loss of $.6 million or $.16 per share for the first nine months of 2010.

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates golf courses and related facilities.

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for per share amounts)
	Three Months Ended September 30,		Nine Months Ended September 30,
	2011	2010	2011	2010

Net operating revenues	$ 15,835	$ 11,789	$ 37,104	$ 32,170

Costs and expenses:
Costs of operations	13,267	9,581	30,856	26,408
Depreciation and Amortization	415	421	1,250	1,263
Selling, general and administrative expenses	1,877	1,830	5,200	5,249
Operating income (loss)	276	(43)	(202)	(750)

Other income (expense):
Interest expense	(3)	(3)	(10)	(10)
Interest income	1	5	4	21
Other income, net	54	47	297	163
Income (loss) before income taxes	328	6	89	(576)

Provision for income taxes	24	8	48	22
Net income (loss)	$ 304	$ ( 2)	$ 41	$ (598)

Net income (loss) per share- basic	$ .08	$ (0)	$ .01	$ (.16)
Net income (loss) per share- diluted	$ .08	$ (0)	$ .01	$ (.16)

Weighted average shares outstanding – basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding – diluted	3,826	3,803	3,865	3,803

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

	September 30,	December 31,
	2011	2010
	(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents	$6,008	$5,565
Accounts receivable, net	12,158	8,202
Prepaid expenses	289	341
Refundable income taxes	--	14
Other current assets	796	600
Total current assets	19,251	14,722

Property and equipment, net	26,337	27,265
Leased property under capital leases, net	6,059	5,314
Noncurrent deferred tax asset	8	8
Other assets, net	41	28
Total assets	$51,696	$47,337

Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of obligations under capital leases	$1	$1
Accounts payable	8,652	5,173
Accrued payroll and other compensation	718	383
Accrued income taxes	10	—
Other accrued taxes	220	269
Deferred revenues	2,306	1,988
Other liabilities and accrued expenses	398	318
Total current liabilities	12,305	8,132

Obligations under capital leases	228	228

Total shareholders' equity	39,163	38,977
Total liabilities and shareholders' equity	$51,696	$47,337