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Avalon Holdings Corporation Announces Second Quarter Results

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WARREN, Ohio, Aug. 9, 2019 /PRNewswire/ -- Avalon Holdings Corporation (AMEX:AWX) today announced financial results for the second quarter of 2019.

Net operating revenues in the second quarter of 2019 were $18.4 million compared with $16.7 million in the second quarter of 2018.  The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2019 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.6 million in the second quarter of 2018.  For the second quarter of 2019, 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 $0.16 in the second quarter of 2018.

For the first six months of 2019, net operating revenues were $33.0 million compared with $28.2 million for the first six months of 2018.  The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.2 million in both the first six months of 2019 and 2018.  For the first six months of 2019, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.04 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.05 in the first six 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


Six Months Ended 


June 30,


June 30,


2019


2018


2019


2018









Net operating revenues:








Waste management services

$          12,902


$          11,510


$          24,336


$          19,968









Food, beverage and merchandise sales

2,358


2,206


3,440


3,246

Other golf and related operations

3,165


2,989


5,257


5,007

Total golf and related operations

5,523


5,195


8,697


8,253









Total net operating revenues

18,425


16,705


33,033


28,221









Costs and expenses:








Waste management services operating costs

10,296


9,090


19,544


15,752

Cost of food, beverage and merchandise

999


932


1,514


1,399

Golf and related operations operating costs

3,563


3,146


6,095


5,363

Depreciation and amortization expense

618


726


1,218


1,455

Selling, general and administrative expenses

2,380


2,215


4,611


4,440

Operating income (loss)

569


596


51


(188)









Other income (expense):








Interest expense

(215)


(174)


(378)


(345)

Other income, net

148


113


216


173

Income (loss) before income taxes

502


535


(111)


(360)









Provision for income taxes

57


41


97


60

Net income (loss)

445


494


(208)


(420)









Less net loss attributable to non-controlling interest in subsidiary

(34)


(129)


(49)


(244)

Net income (loss) attributable to Avalon Holdings Corporation common shareholders

$               479


$               623


$              (159)


$              (176)









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








Basic net income (loss) per share

$              0.12


$              0.16


$             (0.04)


$             (0.05)

Diluted net income (loss) per share

$              0.12


$              0.16


$             (0.04)


$             (0.05)









Weighted average shares outstanding - basic 

3,875


3,803


3,875


3,803

Weighted average shares outstanding - diluted

3,894


3,818


3,875


3,803

 

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)










June 30,


December 31,


2019


2018

Assets




Current Assets:




Cash and cash equivalents

$              3,280


$              1,406

Accounts receivable, net

12,271


12,197

Unbilled membership dues receivable

1,101


554

Inventories

913


820

Prepaid expenses

512


622

Other current assets

48


31

Total current assets

18,125


15,630





Property and equipment, net

46,794


42,534

Property and equipment under finance leases, net

5,942


6,068

Operating lease right-of-use assets

1,726


-

Restricted cash

501


502

Noncurrent deferred tax asset

8


8

Other assets, net

42


27

Total assets

$             73,138


$             64,769





Liabilities and Equity




Current liabilities:




Current portion of long term debt

$                 771


$                 578

Current portion of obligations under finance leases

247


236

Current portion of obligations under operating leases

551


-

Accounts payable

12,098


10,454

Accrued payroll and other compensation

1,222


872

Accrued income taxes

102


84

Other accrued taxes

296


405

Deferred membership dues revenue

4,497


2,899

Other liabilities and accrued expenses

907


793

Total current liabilities

20,691


16,321





Long term debt, net of current portion

13,258


10,167

Obligations under finance leases, net of current portion

626


688

Obligations under operating leases, net of current portion

1,175


-

Asset retirement obligation

100


100





Equity:




Total Avalon Holdings Corporation Shareholders' Equity

37,323


37,479

Non-controlling interest in subsidiary

(35)


14

Total shareholders' equity

37,288


37,493

Total liabilities and equity

$             73,138


$             64,769

 

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SOURCE Avalon Holdings Corporation

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