Avalon Holdings Corporation Announces Third Quarter Results

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Nov 13, 2012, 05:17 ET

WARREN, Ohio, Nov. 13, 2012 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2012.

Net operating revenues in the third quarter of 2012 were $13.2 million compared with $15.8 million in the third quarter of 2011. The Company recorded net income of $.1 million, or $.02 per share for the third quarter of 2012 compared with net income of $.3 million, or $.08 per share, for the third quarter of 2011.

For the first nine months of 2012, net operating revenues were $36.8 million compared with $37.1 million for the first nine months of 2011. The Company incurred a net loss of $32,000, or $.01 per share for the first nine months of 2012 compared with net income of $41,000 or $.01 per share, for the first nine months of 2011.

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,
	2012	2011	2012	2011

Net operating revenues	$ 13,230	$ 15,835	$ 36,777	$ 37,104

Costs and expenses:
Costs of operations	10,963	13,267	30,194	30,856
Depreciation and Amortization	406	415	1,226	1,250
Selling, general and administrative expenses	1,815	1,877	5,534	5,200

Operating income (loss)	46	276	(177)	(202)

Other income (expense):
Interest expense	(3)	(3)	(10)	(10)
Interest income	—	1	2	4
Other income, net	57	54	202	297
Income before income taxes	100	328	17	89

Provision for income taxes	13	24	49	48

Net income (loss)	$ 87	$ 304	$ (32)	$ 41

Net income (loss) per share- basic	$ .02	$ .08	$ (.01)	$ .01
Net income (loss) per share- diluted	$ .02	$ .08	$ (.01)	$ .01

Weighted average shares outstanding – basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding – diluted	4,041	3,826	3,803	3,865

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
	September 30,		December 31,
	2012		2011
Assets:	(Unaudited)
Current Assets:
Cash and cash equivalents	$	6,876	$	7,324
Accounts receivable, net		9,890		12,885
Prepaid expenses		338		281
Refundable income taxes		2		2
Other current assets		829		717
Total current assets		17,935		21,209

Property and equipment, net		25,363		26,079
Leased property under capital leases, net		6,747		5,984
Noncurrent deferred tax asset		8		8
Other assets, net		100		87
Total assets	$	50,153	$	53,367

Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of obligations under capital leases	$	1	$	1
Accounts payable		6,052		9,643
Accrued payroll and other compensation		662		755
Accrued income taxes		3		20
Other accrued taxes		208		260
Deferred revenues		2,486		2,105
Other liabilities and accrued expenses		390		406
Total current liabilities		9,802		13,190

Obligations under capital leases		227		227

Total shareholders' equity		40,124		39,950
Total liabilities and shareholders' equity	$	50,153	$	53,367