AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

WARREN, Ohio, Aug. 11, 2023 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2023.

Net operating revenues in the second quarter of 2023 were $20.6 million compared with $19.5 million in the second quarter of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the second quarter of 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2022. For the second quarter of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.04 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the second quarter of 2022.

For the first six months of 2023, net operating revenues were $39.0 million compared with $33.8 million for the first six months of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.8 million in the first six months of 2023 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the first six months of 2022. For the first six months of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.47 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.20 in the first six months of 2022.

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,
	2023	2022	2023	2022

Net operating revenues:
Waste management services	$ 10,298	$ 10,717	$ 22,950	$ 20,056

Food, beverage and merchandise sales	3,995	3,563	5,968	5,228
Other golf and related operations	6,328	5,242	10,077	8,547
Total golf and related operations	10,323	8,805	16,045	13,775

Total net operating revenues	20,621	19,522	38,995	33,831

Costs and expenses:
Waste management services operating costs	8,224	8,492	18,604	16,070
Cost of food, beverage and merchandise	1,811	1,525	2,834	2,273
Golf and related operations operating costs	6,987	5,731	11,823	9,786
Depreciation and amortization expense	955	842	1,895	1,671
Selling, general and administrative expenses	2,501	2,340	5,030	4,605
Operating income (loss)	143	592	(1,191)	(574)

Other income (expense):
Interest expense	(529)	(274)	(1,044)	(552)
Other income, net	205	119	286	183
Income (loss) before income taxes	(181)	437	(1,949)	(943)

Provision for income taxes	23	33	54	53
Net income (loss)	(204)	404	(2,003)	(996)

Less net loss attributable to non-controlling interest in subsidiary	(52)	(80)	(174)	(218)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ (152)	$ 484	$ (1,829)	$ (778)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ (0.04)	$ 0.12	$ (0.47)	$ (0.20)
Diluted net income (loss) per share	$ (0.04)	$ 0.12	$ (0.47)	$ (0.20)

Weighted average shares outstanding - basic	3,899	3,899	3,899	3,899
Weighted average shares outstanding - diluted	3,899	3,922	3,899	3,899

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


	June 30,	December 31,
	2023	2022
Assets
Current Assets:
Cash and cash equivalents	$ 2,217	$ 1,624
Accounts receivable, net	11,081	11,127
Unbilled membership dues receivable	1,083	599
Inventories	1,830	1,461
Prepaid expenses	1,046	1,172
Other current assets	15	105
Total current assets	17,272	16,088

Property and equipment, net	57,112	56,805
Property and equipment under finance leases, net	5,187	5,001
Operating lease right-of-use assets	1,293	1,386
Restricted cash	10,450	10,426
Noncurrent deferred tax asset	8	8
Other assets, net	35	36
Total assets	$ 91,357	$ 89,750

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 520	$ 503
Current portion of obligations under finance leases	139	115
Current portion of obligations under operating leases	423	424
Accounts payable	11,614	10,995
Accrued payroll and other compensation	1,171	989
Accrued income taxes	91	103
Other accrued taxes	507	540
Deferred membership dues revenue	5,737	3,643
Other liabilities and accrued expenses	1,891	1,544
Total current liabilities	22,093	18,856

Long term debt, net of current portion	29,489	29,758
Line of credit	2,200	1,550
Obligations under finance leases, net of current portion	463	381
Obligations under operating leases, net of current portion	871	962
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,662	38,490
Non-controlling interest in subsidiary	(521)	(347)
Total shareholders' equity	36,141	38,143
Total liabilities and equity	$ 91,357	$ 89,750