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

WARREN, Ohio, Aug. 7, 2020 /PRNewswire/ -- Avalon Holdings Corporation AWX today announced financial results for the second quarter of 2020.

Net operating revenues in the second quarter of 2020 were $13.1 million compared with $18.4 million in the second quarter of 2019. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2019. For the second quarter of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.11 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the second quarter of 2019.

For the first six months of 2020, net operating revenues were $27.5 million compared with $33.0 million for the first six months of 2019. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.2 million in the first six months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the first six months of 2019. For the first six months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.32 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the first six months of 2019.

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,
	2020	2019	2020	2019

Net operating revenues:
Waste management services	$ 9,088	$ 12,902	$ 20,221	$ 24,336

Food, beverage and merchandise sales	1,361	2,358	2,396	3,440
Other golf and related operations	2,618	3,165	4,853	5,257
Total golf and related operations	3,979	5,523	7,249	8,697

Total net operating revenues	13,067	18,425	27,470	33,033

Costs and expenses:
Waste management services operating costs	7,211	10,296	16,080	19,544
Cost of food, beverage and merchandise	564	999	1,092	1,514
Golf and related operations operating costs	2,875	3,563	5,507	6,095
Depreciation and amortization expense	712	618	1,411	1,218
Selling, general and administrative expenses	1,927	2,380	4,159	4,611
Operating income (loss)	(222)	569	(779)	51

Other income (expense):
Interest expense	(304)	(215)	(611)	(378)
Other income, net	103	148	181	216
Income (loss) before income taxes	(423)	502	(1,209)	(111)

Provision for income taxes	24	57	68	97
Net income (loss)	(447)	445	(1,277)	(208)

Less net loss attributable to non-controlling interest in subsidiary	(12)	(34)	(29)	(49)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ (435)	$ 479	$ (1,248)	$ (159)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ (0.11)	$ 0.12	$ (0.32)	$ (0.04)
Diluted net income (loss) per share	$ (0.11)	$ 0.12	$ (0.32)	$ (0.04)

Weighted average shares outstanding - basic	3,875	3,875	3,875	3,875
Weighted average shares outstanding - diluted	3,875	3,894	3,875	3,875

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


	June 30,	December 31,
	2020	2019
Assets
Current Assets:
Cash and cash equivalents	$ 5,529	$ 1,446
Accounts receivable, net	7,809	12,009
Unbilled membership dues receivable	1,109	602
Inventories	1,072	813
Prepaid expenses	559	725
Other current assets	15	15
Total current assets	16,093	15,610

Property and equipment, net	50,341	48,978
Property and equipment under finance leases, net	6,053	5,878
Operating lease right-of-use assets	1,500	1,466
Restricted cash	4,934	7,185
Noncurrent deferred tax asset	8	8
Other assets, net	37	39
Total assets	$ 78,966	$ 79,164

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 2,146	$ 1,015
Current portion of obligations under finance leases	353	295
Current portion of obligations under operating leases	528	513
Accounts payable	8,661	11,719
Accrued payroll and other compensation	1,052	961
Accrued income taxes	41	93
Other accrued taxes	252	434
Deferred membership dues revenue	4,776	3,153
Other liabilities and accrued expenses	919	839
Total current liabilities	18,728	19,022

Long term debt, net of current portion	22,703	21,570
Obligations under finance leases, net of current portion	773	555
Obligations under operating leases, net of current portion	972	953
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	35,785	37,030
Non-controlling interest in subsidiary	(95)	(66)
Total shareholders' equity	35,690	36,964
Total liabilities and equity	$ 78,966	$ 79,164

SOURCE Avalon Holdings Corporation

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