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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