Avalon Holdings Corporation Announces Third Quarter Results - Avalon Holdings (AMEX:AWX)

WARREN, Ohio, Nov. 13, 2019 /PRNewswire/ -- Avalon Holdings Corporation AWX today announced financial results for the third quarter of 2019.

Net operating revenues in the third quarter of 2019 were $18.0 million compared with $18.1 million in the third quarter of 2018. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the third quarter of 2019 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2018. For the third quarter of 2019, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.04 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.22 in the third quarter of 2018.

For the first nine months of 2019, net operating revenues were $51.0 million compared with $46.4 million for the first nine months of 2018. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the first nine months of 2019 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the first nine months of 2018. For the first nine months of 2019, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.00 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.18 in the first nine months of 2018.

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,
	2019	2018	2019	2018

Net operating revenues:
Waste management services	$ 11,572	$ 12,557	$ 35,908	$ 32,525

Food, beverage and merchandise sales	2,587	2,285	6,027	5,531
Other golf and related operations	3,859	3,306	9,116	8,313
Total golf and related operations	6,446	5,591	15,143	13,844

Total net operating revenues	18,018	18,148	51,051	46,369

Costs and expenses:
Waste management services operating costs	9,229	9,863	28,773	25,615
Cost of food, beverage and merchandise	1,169	992	2,683	2,391
Golf and related operations operating costs	4,266	3,337	10,361	8,700
Depreciation and amortization expense	630	732	1,848	2,187
Selling, general and administrative expenses	2,379	2,297	6,990	6,737
Operating income	345	927	396	739

Other income (expense):
Interest expense	(222)	(167)	(600)	(512)
Other income, net	41	45	257	218
Income before income taxes	164	805	53	445

Provision for income taxes	38	52	135	112
Net income (loss)	126	753	(82)	333

Less net loss attributable to non-controlling interest in subsidiary	(18)	(96)	(67)	(340)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 144	$ 849	$ (15)	$ 673

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.04	$ 0.22	$ (0.00)	$ 0.18
Diluted net income (loss) per share	$ 0.04	$ 0.21	$ (0.00)	$ 0.17

Weighted average shares outstanding - basic	3,875	3,803	3,875	3,803
Weighted average shares outstanding - diluted	3,893	4,049	3,875	3,895

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


	September 30,	December 31,
	2019	2018
Assets
Current Assets:
Cash and cash equivalents	$ 1,942	$ 1,406
Accounts receivable, net	10,995	12,197
Unbilled membership dues receivable	853	554
Inventories	853	820
Prepaid expenses	766	622
Other current assets	26	31
Total current assets	15,435	15,630

Property and equipment, net	48,219	42,534
Property and equipment under finance leases, net	5,854	6,068
Operating lease right-of-use assets	1,505	-
Restricted cash	-	502
Noncurrent deferred tax asset	8	8
Other assets, net	38	27
Total assets	$ 71,059	$ 64,769

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 782	$ 578
Current portion of obligations under finance leases	250	236
Current portion of obligations under operating leases	528	-
Accounts payable	10,530	10,454
Accrued payroll and other compensation	1,024	872
Accrued income taxes	106	84
Other accrued taxes	358	405
Deferred membership dues revenue	3,854	2,899
Other liabilities and accrued expenses	987	793
Total current liabilities	18,419	16,321

Long term debt, net of current portion	13,058	10,167
Line of credit	575	-
Obligations under finance leases, net of current portion	515	688
Obligations under operating leases, net of current portion	977	-
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,468	37,479
Non-controlling interest in subsidiary	(53)	14
Total shareholders' equity	37,415	37,493
Total liabilities and equity	$ 71,059	$ 64,769

SOURCE Avalon Holdings Corporation

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