AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

WARREN, Ohio, Aug. 8, 2024 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2024.

Net operating revenues in the second quarter of 2024 were $23.1 million compared with $20.8 million in the second quarter of 2023. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the second quarter of 2024 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the second quarter of 2023. For the second quarter of 2024, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.24 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the second quarter of 2023.

For the first six months of 2024, net operating revenues were $41.9 million compared with $39.3 million for the first six months of 2023. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $25,000 in the first six months of 2024 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million in the first six months of 2023. For the first six months of 2024, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.01 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.47 in the first six months of 2023.

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,


                                                                                                                                                            2024           2023           2024                 2023





     Net operating revenues:



     Waste management services                                                                                                                          $12,220        $10,298        $24,690              $22,950





     Food, beverage and merchandise sales                                                                                                                 3,996          3,995          6,007                5,968



     Other golf and related operations                                                                                                                    6,841          6,533         11,218               10,363



     Total golf and related operations                                                                                                                   10,837         10,528         17,225               16,331





     Total net operating revenues                                                                                                                        23,057         20,826         41,915               39,281





     Costs and expenses:



     Waste management services operating costs                                                                                                            9,527          8,224         19,424               18,604



     Cost of food, beverage and merchandise                                                                                                               1,682          1,811          2,707                2,834



     Golf and related operations operating costs                                                                                                          6,744          6,987         11,617               11,823



     Depreciation and amortization expense                                                                                                                1,002            955          1,982                1,895



     Selling, general and administrative expenses                                                                                                         2,654          2,501          5,251                5,030



     Operating income (loss)                                                                                                                              1,448            348            934                (905)





     Other income (expense):



     Interest expense                                                                                                                                     (521)         (529)       (1,028)             (1,044)



     Other income, net                                                                                                                                        -                           7



     Income (loss) before income taxes                                                                                                                      927          (181)          (87)             (1,949)





     Provision for income taxes                                                                                                                              44             23             84                   54



     Net income (loss)                                                                                                                                      883          (204)         (171)             (2,003)





     Less net loss attributable to non-controlling interest in subsidiary                                                                                  (71)          (52)         (146)               (174)



     Net income (loss) attributable to Avalon Holdings Corporation common shareholders                                                                     $954         $(152)         $(25)            $(1,829)





     Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:



     Basic and diluted net income (loss) per share                                                                                                        $0.24        $(0.04)       $(0.01)             $(0.47)





     Weighted average shares outstanding - basic and diluted                                                                                              3,899          3,899          3,899                3,899

                                     
              
                AVALON HOLDINGS CORPORATION AND SUBSIDIARIES


                                         
              Condensed Consolidated Balance Sheets (Unaudited)


                                                    
              
                (in thousands)






                                                                                                          June 30, December 31,


                                                                                                              2024          2023



     
                Assets



     Current Assets:



     Cash and cash equivalents                                                                             $3,775        $1,187



     Accounts receivable, net                                                                              11,525         9,499



     Unbilled membership dues receivable                                                                    1,110           567



     Inventories                                                                                            1,875         1,662



     Prepaid expenses                                                                                         881         1,116



     Other current assets                                                                                      15            14



     Total current assets                                                                                  19,181        14,045





     Property and equipment, net                                                                           55,701        56,630



     Property and equipment under finance leases, net                                                       5,487         5,711



     Operating lease right-of-use assets                                                                    1,096         1,270



     Restricted cash                                                                                       10,216        10,265



     Noncurrent deferred tax asset                                                                              8             8



     Other assets, net                                                                                         36            36



     Total assets                                                                                         $91,725       $87,965





     
                Liabilities and Equity



     Current liabilities:



     Current portion of long term debt                                                                       $556          $538



     Current portion of obligations under finance leases                                                      216           198



     Current portion of obligations under operating leases                                                    387           432



     Accounts payable                                                                                      11,026         9,657



     Accrued payroll and other compensation                                                                 1,768         1,277



     Accrued taxes                                                                                            418           539



     Deferred membership dues revenue                                                                       5,863         3,443



     Other liabilities and accrued expenses                                                                 2,005         1,825



     Total current liabilities                                                                             22,239        17,909





     Long term debt, net of current portion                                                                28,938        29,220



     Line of credit                                                                                         3,200         3,200



     Obligations under finance leases, net of current portion                                                 610           598



     Obligations under operating leases, net of current portion                                               709           838



     Asset retirement obligation                                                                              100           100





     Equity:



     Total Avalon Holdings Corporation Shareholders' Equity                                                36,691        36,716



     Non-controlling interest in subsidiary                                                                 (762)        (616)



     Total shareholders' equity                                                                            35,929        36,100



     Total liabilities and equity                                                                         $91,725       $87,965

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SOURCE Avalon Holdings Corporation