Avalon Holdings Corporation Announces Third Quarter Results

WARREN, Ohio, Nov. 12, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2020.

Net operating revenues in the third quarter of 2020 were $16.6 million compared with $18.0 million in the third quarter of 2019. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the third quarter of 2019. For the third quarter of 2020, basic net income 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 $0.04 in the third quarter of 2019.

For the first nine months of 2020, net operating revenues were $44.1 million compared with $51.1 million for the first nine months of 2019. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.5 million in the first nine months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the first nine months of 2019. For the first nine months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.00 in the first nine 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		Nine Months Ended
	September 30,		September 30,
	2020	2019	2020	2019

Net operating revenues:
Waste management services	$ 9,326	$ 11,572	$ 29,547	$ 35,908

Food, beverage and merchandise sales	2,851	2,587	5,247	6,027
Other golf and related operations	4,448	3,859	9,301	9,116
Total golf and related operations	7,299	6,446	14,548	15,143

Total net operating revenues	16,625	18,018	44,095	51,051

Costs and expenses:
Waste management services operating costs	7,393	9,229	23,473	28,773
Cost of food, beverage and merchandise	1,092	1,169	2,184	2,683
Golf and related operations operating costs	4,270	4,266	9,777	10,361
Depreciation and amortization expense	741	630	2,152	1,848
Selling, general and administrative expenses	2,110	2,379	6,269	6,990
Operating income	1,019	345	240	396

Other income (expense):
Interest expense	(302)	(222)	(913)	(600)
Other income, net	83	41	264	257
Income (loss) before income taxes	800	164	(409)	53

Provision for income taxes	27	38	95	135
Net income (loss)	773	126	(504)	(82)

Less net loss attributable to non-controlling interest in subsidiary	(8)	(18)	(37)	(67)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 781	$ 144	$ (467)	$ (15)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.20	$ 0.04	$ (0.12)	$ (0.00)
Diluted net income (loss) per share	$ 0.20	$ 0.04	$ (0.12)	$ (0.00)

Weighted average shares outstanding - basic	3,875	3,875	3,875	3,875
Weighted average shares outstanding - diluted	3,875	3,893	3,875	3,875

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


	September 30,	December 31,
	2020	2019
Assets
Current Assets:
Cash and cash equivalents	$ 4,667	$ 1,446
Accounts receivable, net	8,679	12,009
Unbilled membership dues receivable	866	602
Inventories	1,034	813
Prepaid expenses	810	725
Other current assets	15	15
Total current assets	16,071	15,610

Property and equipment, net	50,473	48,978
Property and equipment under finance leases, net	5,913	5,878
Operating lease right-of-use assets	1,280	1,466
Restricted cash	4,246	7,185
Noncurrent deferred tax asset	8	8
Other assets, net	36	39
Total assets	$ 78,027	$ 79,164

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 2,622	$ 1,015
Current portion of obligations under finance leases	343	295
Current portion of obligations under operating leases	533	513
Accounts payable	8,094	11,719
Accrued payroll and other compensation	956	961
Accrued income taxes	46	93
Other accrued taxes	362	434
Deferred membership dues revenue	4,041	3,153
Other liabilities and accrued expenses	1,125	839
Total current liabilities	18,122	19,022

Long term debt, net of current portion	21,972	21,570
Obligations under finance leases, net of current portion	622	555
Obligations under operating leases, net of current portion	747	953
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,567	37,030
Non-controlling interest in subsidiary	(103)	(66)
Total shareholders' equity	36,464	36,964
Total liabilities and equity	$ 78,027	$ 79,164