AVALON HOLDINGS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

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Nov 09, 2023, 17:05 ET

WARREN, Ohio, Nov. 9, 2023 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2023.

Net operating revenues in the third quarter of 2023 were $23.9 million compared with $25.7 million in the third quarter of 2022. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.9 million in the third quarter of 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $1.2 million in the third quarter of 2022. For the third quarter of 2023, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.23 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.30 in the third quarter of 2022.

For the first nine months of 2023, net operating revenues were $62.9 million compared with $59.5 million for the first nine months of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.9 million in the first nine months of 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the first nine months of 2022. For the first nine months of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.24 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.10 in the first nine months of 2022.

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,
	2023	2022	2023	2022

Net operating revenues:
Waste management services	$ 11,744	$ 15,036	$ 34,694	$ 35,092

Food, beverage and merchandise sales	4,609	4,077	10,577	9,305
Other golf and related operations	7,550	6,600	17,627	15,147
Total golf and related operations	12,159	10,677	28,204	24,452

Total net operating revenues	23,903	25,713	62,898	59,544

Costs and expenses:
Waste management services operating costs	9,262	12,173	27,866	28,243
Cost of food, beverage and merchandise	1,984	1,721	4,818	3,994
Golf and related operations operating costs	7,519	6,511	19,342	16,297
Depreciation and amortization expense	963	882	2,858	2,553
Selling, general and administrative expenses	2,815	2,913	7,846	7,518
Operating income	1,360	1,513	168	939

Other income (expense):
Interest expense	(530)	(408)	(1,573)	(960)
Other income, net	37	22	323	205
Income (loss) before income taxes	867	1,127	(1,082)	184

Provision for income taxes	39	55	93	108
Net income (loss)	828	1,072	(1,175)	76

Less net loss attributable to non-controlling interest in subsidiary	(57)	(96)	(231)	(314)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 885	$ 1,168	$ (944)	$ 390

Income per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.23	$ 0.30	$ (0.24)	$ 0.10
Diluted net income (loss) per share	$ 0.23	$ 0.30	$ (0.24)	$ 0.10

Weighted average shares outstanding - basic	3,899	3,899	3,899	3,899
Weighted average shares outstanding - diluted	3,899	3,919	3,899	3,922

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


	September 30,	December 31,
	2023	2022
Assets
Current Assets:
Cash and cash equivalents	$ 673	$ 1,624
Accounts receivable, net	11,603	11,127
Unbilled membership dues receivable	813	599
Inventories	1,716	1,461
Prepaid expenses	948	1,172
Other current assets	14	105
Total current assets	15,767	16,088

Property and equipment, net	56,912	56,805
Property and equipment under finance leases, net	5,490	5,001
Operating lease right-of-use assets	1,375	1,386
Restricted cash	10,462	10,426
Noncurrent deferred tax asset	8	8
Other assets, net	34	36
Total assets	$ 90,048	$ 89,750

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 529	$ 503
Current portion of obligations under finance leases	139	115
Current portion of obligations under operating leases	446	424
Accounts payable	10,753	10,995
Accrued payroll and other compensation	1,327	989
Accrued income taxes	130	103
Other accrued taxes	452	540
Deferred membership dues revenue	4,618	3,643
Other liabilities and accrued expenses	1,710	1,544
Total current liabilities	20,104	18,856

Long term debt, net of current portion	29,353	29,758
Line of credit	2,200	1,550
Obligations under finance leases, net of current portion	393	381
Obligations under operating leases, net of current portion	929	962
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,547	38,490
Non-controlling interest in subsidiary	(578)	(347)
Total shareholders' equity	36,969	38,143
Total liabilities and equity	$ 90,048	$ 89,750