Avalon Holdings Corporation Announces Third Quarter Results

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Nov 10, 2016, 04:31 ET

WARREN, Ohio, Nov. 10, 2016 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the third quarter of 2016.

Net operating revenues in the third quarter of 2016 were $19.1 million compared with $14.6 million in the third quarter of 2015. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2016 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the third quarter of 2015. For the third quarter of 2016, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.21 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.14 in the third quarter of 2015.

For the first nine months of 2016, net operating revenues were $45.8 million compared with $39.2 million for the first nine months of 2015. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.3 million in the first nine months of 2016 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the first nine months of 2015. For the first nine months of 2016, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.08 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.14 in the first nine months of 2015.

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, 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 per share amounts)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2016	2015	2016	2015

Net operating revenues	$ 19,133	$ 14,577	$ 45,774	$ 39,232

Costs and expenses:
Costs of operations	15,496	11,766	37,607	32,738
Depreciation and amortization expense	714	603	2,093	1,836
Selling, general and administrative expenses	2,108	1,782	5,865	5,725
Operating income (loss)	815	426	209	(1,067)

Other income (expense):
Interest expense	(94)	(55)	(273)	(67)
Other income, net	57	64	218	237
Income (loss) before income taxes	778	435	154	(897)

Provision for income taxes	43	18	79	42
Net income (loss)	735	417	75	(939)

Less net loss attributable to non-controlling interest in subsidiary	(71)	(112)	(244)	(423)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 806	$ 529	$ 319	$ (516)


Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income (loss) per share	$ 0.21	$ 0.14	$ 0.08	$ (0.14)
Diluted net income (loss) per share	$ 0.21	$ 0.14	$ 0.08	$ (0.14)

Weighted average shares outstanding - basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding - diluted	3,893	3,803	3,836	3,803

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


	September 30,	December 31,
	2016	2015
Assets
Current Assets:
Cash and cash equivalents	$ 1,604	$ 1,814
Accounts receivable, net	13,737	9,579
Inventories	863	830
Prepaid expenses	578	487
Refundable income taxes	-	33
Other current assets	39	45
Total current assets	16,821	12,788

Property and equipment, net	44,009	43,386
Leased property under capital leases, net	5,901	6,042
Noncurrent deferred tax asset	8	8
Other assets, net	69	78
Total assets	$ 66,808	$ 62,302

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 73	$ 59
Revolving line of credit	9,000	-
Accounts payable	10,208	8,022
Accrued payroll and other compensation	745	618
Accrued income taxes	21	-
Other accrued taxes	376	380
Deferred revenues	3,273	2,401
Other liabilities and accrued expenses	879	667
Total current liabilities	24,575	12,147

Revolving line of credit	-	7,975
Obligations under capital leases, net of current portion	280	274
Asset retirement obligation	100	100
Deferred rental income	-	50

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	39,122	38,781
Non-controlling interest in subsidiary	2,731	2,975
Total shareholders' equity	41,853	41,756
Total liabilities and equity	$ 66,808	$ 62,302