Avalon Holdings Corporation Announces Third Quarter Results

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Nov 12, 2021, 07:00 ET

WARREN, Ohio, Nov. 12, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2021.

Net operating revenues in the third quarter of 2021 were $21.3 million compared with $16.6 million in the third quarter of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the third quarter of 2021 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020. For the third quarter of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.25 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.20 in the third quarter of 2020.

For the first nine months of 2021, net operating revenues were $52.8 million compared with $44.1 million for the first nine months of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $2.4 million in the first nine months of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the first nine months of 2020. For the first nine months of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.63 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the first nine months of 2020.

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		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020

Net operating revenues:
Waste management services	$ 11,444	$ 9,326	$ 31,279	$ 29,547

Food, beverage and merchandise sales	3,984	2,851	8,608	5,247
Other golf and related operations	5,873	4,448	12,917	9,301
Total golf and related operations	9,857	7,299	21,525	14,548

Total net operating revenues	21,301	16,625	52,804	44,095

Costs and expenses:
Waste management services operating costs	9,385	7,393	25,055	23,473
Cost of food, beverage and merchandise	1,657	1,092	3,598	2,184
Golf and related operations operating costs	5,692	4,270	13,356	9,777
Depreciation and amortization expense	777	741	2,308	2,152
Selling, general and administrative expenses	2,743	2,110	7,559	6,269
Operating income	1,047	1,019	928	240

Other income (expense):
Interest expense	(290)	(302)	(878)	(913)
Gain on debt extinguishment	-	-	1,964	-
Other income, net	85	83	298	264
Income (loss) before income taxes	842	800	2,312	(409)

Provision for income taxes	27	27	85	95
Net income (loss)	815	773	2,227	(504)

Less net loss attributable to non-controlling interest in subsidiaries	(168)	(8)	(214)	(37)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 983	$ 781	$ 2,441	$ (467)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.25	$ 0.20	$ 0.63	$ (0.12)
Diluted net income (loss) per share	$ 0.25	$ 0.20	$ 0.62	$ (0.12)

Weighted average shares outstanding - basic	3,899	3,875	3,899	3,875
Weighted average shares outstanding - diluted	3,931	3,875	3,935	3,875

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


	September 30,	December 31,
	2021	2020
Assets
Current Assets:
Cash and cash equivalents	$ 4,106	$ 4,210
Accounts receivable, net	9,919	8,744
Unbilled membership dues receivable	839	585
Inventories	1,154	910
Prepaid expenses	751	730
Other current assets	66	80
Total current assets	16,835	15,259

Property and equipment, net	52,625	51,299
Property and equipment under finance leases, net	5,644	5,735
Operating lease right-of-use assets	1,354	1,728
Restricted cash	2,092	3,885
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 78,594	$ 77,950

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,111	$ 1,594
Current portion of obligations under finance leases	178	333
Current portion of obligations under operating leases	540	529
Accounts payable	8,973	9,097
Accrued payroll and other compensation	1,226	809
Accrued income taxes	97	43
Other accrued taxes	428	461
Deferred membership dues revenue	4,422	3,196
Other liabilities and accrued expenses	1,042	1,121
Total current liabilities	18,017	17,183

Long term debt, net of current portion	19,663	21,941
Obligations under finance leases, net of current portion	444	560
Obligations under operating leases, net of current portion	814	1,199
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	39,538	37,093
Non-controlling interest in subsidiaries	18	(126)
Total shareholders' equity	39,556	36,967
Total liabilities and equity	$ 78,594	$ 77,950