AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

Published: Aug. 12, 2022 at 5:01 PM EDT|Updated: 5 hours ago

WARREN, Ohio, Aug. 12, 2022 /PRNewswire/ — Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2022.

Net operating revenues in the second quarter of 2022 were $19.5 million compared with $16.4 million in the second quarter of 2021. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the second quarter of 2021. For the second quarter of 2022, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.19 in the second quarter of 2021.

For the first six months of 2022, net operating revenues were $33.8 million compared with $31.5 million for the first six months of 2021. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.8 million in the first six months of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $1.5 million in the first six months of 2021. For the first six months of 2022, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.20 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.37 in the first six 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		Six Months Ended
	June 30,		June 30,
	2022	2021	2022	2021

Net operating revenues:
Waste management services	$ 10,717	$ 8,685	$ 20,056	$ 19,835

Food, beverage and merchandise sales	3,563	3,283	5,228	4,624
Other golf and related operations	5,242	4,422	8,547	7,044
Total golf and related operations	8,805	7,705	13,775	11,668

Total net operating revenues	19,522	16,390	33,831	31,503

Costs and expenses:
Waste management services operating costs	8,492	6,969	16,070	15,670
Cost of food, beverage and merchandise	1,525	1,348	2,273	1,941
Golf and related operations operating costs	5,731	4,743	9,786	7,664
Depreciation and amortization expense	842	767	1,671	1,531
Selling, general and administrative expenses	2,340	2,536	4,605	4,816
Operating income (loss)	592	27	(574)	(119)

Other income (expense):
Interest expense	(274)	(291)	(552)	(588)
Gain on debt extinguishment	–	877	–	1,964
Other income, net	119	126	183	213
Income (loss) before income taxes	437	739	(943)	1,470

Provision for income taxes	33	15	53	58
Net income (loss)	404	724	(996)	1,412

Less net loss attributable to non-controlling interest in subsidiary	(80)	(18)	(218)	(46)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 484	$ 742	$ (778)	$ 1,458

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.12	$ 0.19	$ (0.20)	$ 0.37
Diluted net income (loss) per share	$ 0.12	$ 0.19	$ (0.20)	$ 0.37

Weighted average shares outstanding – basic	3,899	3,899	3,899	3,899
Weighted average shares outstanding – diluted	3,922	3,929	3,899	3,927

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


	June 30,	December 31,
	2022	2021
Assets
Current Assets:
Cash and cash equivalents	$ 3,267	$ 3,254
Accounts receivable, net	10,454	9,933
Unbilled membership dues receivable	1,145	578
Inventories	1,530	1,105
Prepaid expenses	939	996
Other current assets	94	105
Total current assets	17,429	15,971

Property and equipment, net	56,279	53,338
Property and equipment under finance leases, net	5,221	5,390
Operating lease right-of-use assets	1,419	1,598
Restricted cash	–	1,696
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 80,392	$ 78,037

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,155	$ 1,126
Current portion of obligations under finance leases	144	167
Current portion of obligations under operating leases	498	534
Accounts payable	10,954	10,164
Accrued payroll and other compensation	1,729	797
Accrued income taxes	95	67
Other accrued taxes	341	541
Deferred membership dues revenue	5,782	3,363
Other liabilities and accrued expenses	1,301	1,265
Total current liabilities	21,999	18,024

Long term debt, net of current portion	18,791	19,376
Obligations under finance leases, net of current portion	456	496
Obligations under operating leases, net of current portion	921	1,064
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders’ Equity	38,293	39,069
Non-controlling interest in subsidiary	(168)	(92)
Total shareholders’ equity	38,125	38,977
Total liabilities and equity	$ 80,392	$ 78,037

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SOURCE Avalon Holdings Corporation

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