Avalon Holdings Corporation Announces 2019 Full Year and Fourth Quarter Results

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Mar 12, 2020, 17:05 ET

WARREN, Ohio, March 12, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2019.

Net operating revenues in the fourth quarter of 2019 were $17.3 million compared with $15.9 million in the fourth quarter of 2018. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the fourth quarter of 2019 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million in the fourth quarter of 2018. For the fourth quarter of 2019, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.11 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.47 in the fourth quarter of 2018.

For the year ended December 31, 2019, net operating revenues were $68.4 million compared with $62.2 million for the year ended December 31, 2018. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million for the year ended December 31, 2019 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.1 million for the year ended December 31, 2018. For the year ended December 31, 2019, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.30 for year ended December 31, 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		Year Ended
	December 31,		December 31,
	2019	2018	2019	2018

Net operating revenues:
Waste management services	$ 12,823	$ 12,010	$ 48,731	$ 44,535

Food, beverage and merchandise sales	1,866	1,618	7,893	7,149
Other golf and related operations	2,617	2,237	11,733	10,550
Total golf and related operations	4,483	3,855	19,626	17,699

Total net operating revenues	17,306	15,865	68,357	62,234

Costs and expenses:
Waste management services operating costs	10,418	9,566	39,191	35,181
Cost of food, beverage and merchandise	811	774	3,494	3,165
Golf and related operations operating costs	3,226	2,748	13,587	11,448
Depreciation and amortization expense	674	690	2,522	2,877
Selling, general and administrative expenses	2,440	2,263	9,430	9,000
Impairment of property and equipment	-	3,261	-	3,261
Operating income (loss)	(263)	(3,437)	133	(2,698)

Other income (expense):
Interest expense	(237)	(163)	(837)	(675)
Other income, net	72	66	329	284
Loss before income taxes	(428)	(3,534)	(375)	(3,089)

Provision for income taxes	25	55	160	167
Net loss	(453)	(3,589)	(535)	(3,256)

Less net loss attributable to non-controlling interest in subsidiary	(13)	(1,772)	(80)	(2,112)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (440)	$ (1,817)	$ (455)	$ (1,144)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net loss per share	$ (0.11)	$ (0.47)	$ (0.12)	$ (0.30)

Weighted average shares outstanding - basic and diluted	3,875	3,845	3,875	3,814

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


	December 31,	December 31,
	2019	2018
Assets
Current Assets:
Cash and cash equivalents	$ 1,446	$ 1,406
Accounts receivable, net	12,009	12,197
Unbilled membership dues receivable	602	554
Inventories	813	820
Prepaid expenses	725	622
Other current assets	15	31
Total current assets	15,610	15,630

Property and equipment, net	48,978	42,534
Property and equipment under finance leases, net	5,878	6,068
Operating lease right-of-use assets	1,466	-
Restricted cash	7,185	502
Noncurrent deferred tax asset	8	8
Other assets, net	39	27
Total assets	$ 79,164	$ 64,769

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,015	$ 578
Current portion of obligations under finance leases	295	236
Current portion of obligations under operating leases	513	-
Accounts payable	11,719	10,454
Accrued payroll and other compensation	961	872
Accrued income taxes	93	84
Other accrued taxes	434	405
Deferred membership dues revenue	3,153	2,899
Other liabilities and accrued expenses	839	793
Total current liabilities	19,022	16,321

Long term debt, net of current portion	21,570	10,167
Obligations under finance leases, net of current portion	555	688
Obligations under operating leases, net of current portion	953	-
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,030	37,479
Non-controlling interest in subsidiary	(66)	14
Total shareholders' equity	36,964	37,493
Total liabilities and equity	$ 79,164	$ 64,769