Avalon Holdings Corporation Announces First Quarter Results

WARREN, Ohio, May 9, 2019 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the first quarter of 2019.

Net operating revenues in the first quarter of 2019 were $14.6 million compared with $11.5 million in the first quarter of 2018. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.6 million in the first quarter of 2019 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first quarter of 2018. For the first quarter of 2019, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.16 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.21 in the first quarter 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, three 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 March 31,
	Three Months Ended March 31,
	2019	2018

Net operating revenues:
Waste management services	$ 11,434	$ 8,458

Food, beverage and merchandise sales	1,082	1,040
Other golf and related operations	2,092	2,018
Total golf and related operations	3,174	3,058

Total net operating revenues	14,608	11,516

Costs and expenses:
Waste management services operating costs	9,248	6,662
Cost of food, beverage and merchandise	515	467
Golf and related operations operating costs	2,532	2,217
Depreciation and amortization expense	600	729
Selling, general and administrative expenses	2,231	2,225
Operating loss	(518)	(784)

Other income (expense):
Interest expense	(163)	(171)
Other income, net	68	60
Loss before income taxes	(613)	(895)

Provision for income taxes	40	19
Net loss	(653)	(914)

Less net loss attributable to non-controlling interest in subsidiary	(15)	(115)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (638)	$ (799)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net loss per share	$ (0.16)	$ (0.21)

Weighted average shares outstanding - basic and diluted	3,875	3,803

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


	March 31,	December 31,
	2019	2018
Assets
Current Assets:
Cash and cash equivalents	$ 1,237	$ 1,406
Accounts receivable, net	11,185	12,197
Unbilled membership dues receivable	672	554
Inventories	919	820
Prepaid expenses	646	622
Other current assets	39	31
Total current assets	14,698	15,630

Property and equipment, net	43,311	42,534
Property and equipment under finance leases, net	5,984	6,068
Operating lease right-of-use assets	1,631	-
Restricted cash	2,976	502
Noncurrent deferred tax asset	8	8
Other assets, net	26	27
Total assets	$ 68,634	$ 64,769

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 709	$ 578
Current portion of obligations under finance leases	239	236
Current portion of obligations under operating leases	493	-
Accounts payable	10,274	10,454
Accrued payroll and other compensation	824	872
Accrued income taxes	81	84
Other accrued taxes	306	405
Deferred membership dues revenue	3,316	2,899
Other liabilities and accrued expenses	784	793
Total current liabilities	17,026	16,321

Long term debt, net of current portion	12,853	10,167
Obligations under finance leases, net of current portion	676	688
Obligations under operating leases, net of current portion	1,138	-
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,842	37,479
Non-controlling interest in subsidiary	(1)	14
Total shareholders' equity	36,841	37,493
Total liabilities and equity	$ 68,634	$ 64,769