Avalon Holdings Corporation Announces Second Quarter Results

WARREN, Ohio, Aug. 11, 2017 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2017.

Net operating revenues in the second quarter of 2017 were $14.6 million compared with $15.6 million in the second quarter of 2016. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the second quarter of 2017 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2016. For the second quarter of 2017, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.03 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.11 in the second quarter of 2016.

For the first six months of 2017, net operating revenues were $25.3 million compared with $26.6 million for the first six months of 2016. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first six months of 2017 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the first six months of 2016. For the first six months of 2017, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.21 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.13 in the first six months of 2016.

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 amenities, three golf courses and related country clubs and facilities.

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,
	2017	2016	2017	2016

Net operating revenues	$ 14,577	$ 15,642	$ 25,279	$ 26,641

Costs and expenses:
Costs of operations	11,644	12,688	20,497	22,111
Depreciation and amortization expense	761	693	1,509	1,379
Selling, general and administrative expenses	2,063	1,891	4,065	3,757
Operating income (loss)	109	370	(792)	(606)

Other income (expense):
Interest expense	(177)	(92)	(352)	(179)
Other income, net	109	89	186	161
Income (loss) before income taxes	41	367	(958)	(624)

Provision for income taxes	32	27	52	36
Net income (loss)	9	340	(1,010)	(660)

Less net loss attributable to non-controlling interest in subsidiary	(112)	(81)	(205)	(173)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 121	$ 421	$ (805)	$ (487)


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

Basic net income (loss) per share	$ 0.03	$ 0.11	$ (0.21)	$ (0.13)
Diluted net income (loss) per share	$ 0.03	$ 0.11	$ (0.21)	$ (0.13)

Weighted average shares outstanding - basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding - diluted	3,827	3,811	3,803	3,803

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


	June 30,	December 31,
	2017	2016
Assets
Current Assets:
Cash and cash equivalents	$ 1,675	$ 2,299
Accounts receivable, net	9,899	11,349
Inventories	1,005	773
Prepaid expenses	310	462
Refundable income taxes	1	-
Other current assets	39	35
Total current assets	12,929	14,918

Property and equipment, net	43,721	43,971
Leased property under capital leases, net	6,435	6,035
Restricted cash	2,826	2,905
Noncurrent deferred tax asset	8	8
Other assets, net	82	61
Total assets	$ 66,001	$ 67,898

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 199	$ 112
Current portion of long term debt	532	517
Accounts payable	6,652	9,387
Accrued payroll and other compensation	968	684
Accrued income taxes	-	48
Other accrued taxes	225	448
Deferred revenues	4,167	2,716
Other liabilities and accrued expenses	854	764
Total current liabilities	13,597	14,676

Long term debt, net of current portion	11,024	11,294
Obligations under capital leases, net of current portion	907	452
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,943	38,741
Non-controlling interest in subsidiary	2,430	2,635
Total shareholders' equity	40,373	41,376
Total liabilities and equity	$ 66,001	$ 67,898