AVALON HOLDINGS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

News provided by

Nov 10, 2022, 17:01 ET

WARREN, Ohio, Nov. 10, 2022 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2022.

Net operating revenues in the third quarter of 2022 were $25.7 million compared with $21.3 million in the third quarter of 2021. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.2 million in the third quarter of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the third quarter of 2021. For the third quarter of 2022, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.30 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.25 in the third quarter of 2021.

For the first nine months of 2022, net operating revenues were $59.5 million compared with $52.8 million for the first nine months of 2021. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the first nine months of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $2.4 million in the first nine months of 2021. For the first nine months of 2022, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.10 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.63 in the first nine months of 2021.

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,
	2022	2021	2022	2021

Net operating revenues:
Waste management services	$ 15,036	$ 11,444	$ 35,092	$ 31,279

Food, beverage and merchandise sales	4,077	3,984	9,305	8,608
Other golf and related operations	6,600	5,873	15,147	12,917
Total golf and related operations	10,677	9,857	24,452	21,525

Total net operating revenues	25,713	21,301	59,544	52,804

Costs and expenses:
Waste management services operating costs	12,173	9,385	28,243	25,055
Cost of food, beverage and merchandise	1,721	1,657	3,994	3,598
Golf and related operations operating costs	6,511	5,692	16,297	13,356
Depreciation and amortization expense	882	777	2,553	2,308
Selling, general and administrative expenses	2,913	2,743	7,518	7,559
Operating income	1,513	1,047	939	928

Other income (expense):
Interest expense	(408)	(290)	(960)	(878)
Gain on debt extinguishment	-	-	-	1,964
Other income, net	22	85	205	298
Income before income taxes	1,127	842	184	2,312

Provision for income taxes	55	27	108	85
Net income	1,072	815	76	2,227

Less net loss attributable to non-controlling interest in subsidiary	(96)	(168)	(314)	(214)
Net income attributable to Avalon Holdings Corporation common shareholders	$ 1,168	$ 983	$ 390	$ 2,441

Income per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income per share	$ 0.30	$ 0.25	$ 0.10	$ 0.63
Diluted net income per share	$ 0.30	$ 0.25	$ 0.10	$ 0.62

Weighted average shares outstanding - basic	3,899	3,899	3,899	3,899
Weighted average shares outstanding - diluted	3,919	3,931	3,922	3,935

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


	September 30,	December 31,
	2022	2021
Assets
Current Assets:
Cash and cash equivalents	$ 1,476	$ 3,254
Accounts receivable, net	13,409	9,933
Unbilled membership dues receivable	878	578
Inventories	1,489	1,105
Prepaid expenses	1,058	996
Other current assets	90	105
Total current assets	18,400	15,971

Property and equipment, net	56,496	53,338
Property and equipment under finance leases, net	5,134	5,390
Operating lease right-of-use assets	1,191	1,598
Restricted cash	10,415	1,696
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 91,680	$ 78,037

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 494	$ 1,126
Current portion of obligations under finance leases	130	167
Current portion of obligations under operating leases	478	534
Accounts payable	10,997	10,164
Accrued payroll and other compensation	1,504	797
Accrued income taxes	128	67
Other accrued taxes	423	541
Deferred membership dues revenue	4,649	3,363
Other liabilities and accrued expenses	1,628	1,265
Total current liabilities	20,431	18,024

Long term debt, net of current portion	29,887	19,376
Line of credit	950	-
Obligations under finance leases, net of current portion	401	496
Obligations under operating leases, net of current portion	713	1,064
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	39,462	39,069
Non-controlling interest in subsidiary	(264)	(92)
Total shareholders' equity	39,198	38,977
Total liabilities and equity	$ 91,680	$ 78,037