AVALON HOLDINGS CORPORATION ANNOUNCES 2021 FULL YEAR AND FOURTH QUARTER RESULTS

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,

2021

2020

2021

2020

Net operating revenues:

Waste management services

$          11,431

$          10,824

$          42,710

$          40,371

Food, beverage and merchandise sales

2,437

1,169

11,045

6,416

Other golf and related operations

3,711

2,632

16,628

11,933

Total golf and related operations

3,801

27,673

18,349

Total net operating revenues

17,579

14,625

70,383

58,720

Costs and expenses:

Waste management services operating costs

9,204

8,185

34,259

31,658

Cost of food, beverage and merchandise

1,150

626

4,748

2,810

Golf and related operations operating costs

4,469

2,770

17,825

12,547

Depreciation and amortization expense

804

757

3,112

2,909

Selling, general and administrative expenses

2,319

2,403

9,878

8,672

Operating income (loss)

(367)

(116)

561

124

Other income (expense):

Interest expense

(280)

(297)

(1,158)

(1,210)

Gain on debt extinguishment

-

801

1,964

801

Other income, net

71

73

369

337

Income (loss) before income taxes

(576)

461

1,736

52

Provision for income taxes

4

3

89

98

Net income (loss)

(580)

458

1,647

(46)

Less net loss attributable to non-controlling interest in subsidiaries

(110)

(23)

(324)

(60)

Net income (loss) attributable to Avalon Holdings Corporation common shareholders

$               481

$            1,971

$                 14

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

Basic net income (loss) per share

$             (0.12)

$              0.12

$              0.51

$              0.00

Diluted net income (loss) per share

$             (0.12)

$              0.12

$              0.50

$              0.00

Weighted average shares outstanding - basic

3,899

3,876

3,899

3,876

Weighted average shares outstanding - diluted

3,899

3,885

3,933

3,878

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

December 31,

December 31,

2021

2020

Assets

Current Assets:

Cash and cash equivalents

$               3,254

$               4,210

Accounts receivable, net

9,933

8,744

Unbilled membership dues receivable

578

585

Inventories

1,105

910

Prepaid expenses

996

730

Other current assets

105

80

Total current assets

15,259

Property and equipment, net

53,338

51,299

Property and equipment under finance leases, net

5,390

5,735

Operating lease right-of-use assets

1,598

1,728

Restricted cash

1,696

3,885

Noncurrent deferred tax asset

8

8

Other assets, net

36

36

Total assets

$              78,037

$              77,950

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$               1,126

$               1,594

Current portion of obligations under finance leases

167

333

Current portion of obligations under operating leases

534

529

Accounts payable

10,164

9,097

Accrued payroll and other compensation

797

809

Accrued income taxes

67

43

Other accrued taxes

541

461

Deferred membership dues revenue

3,363

3,196

Other liabilities and accrued expenses

1,265

1,121

Total current liabilities

18,024

17,183

Long term debt, net of current portion

19,376

21,941

Obligations under finance leases, net of current portion

496

560

Obligations under operating leases, net of current portion

1,064

1,199

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

39,069

37,093

Non-controlling interest in subsidiaries

(92)

(126)

Total shareholders' equity

38,977

36,967

Total liabilities and equity

$              78,037

$              77,950