Avalon Holdings Corporation Announces Second Quarter Results

WARREN, Ohio, Aug. 9, 2019 /PRNewswire/ -- Avalon Holdings Corporation (NYSE 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