AVALON HOLDINGS CORPORATION ANNOUNCES 2022 FULL YEAR AND FOURTH QUARTER RESULTS

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Mar 23, 2023, 17:01 ET

WARREN, Ohio, March 23, 2023 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.

Net operating revenues in the fourth quarter of 2022 were $21.6 million compared with $17.6 million in the fourth quarter of 2021. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the fourth quarter of 2022 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the fourth quarter of 2021. For the fourth quarter of 2022, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.25 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the fourth quarter of 2021.

For the year ended December 31, 2022, net operating revenues were $81.2 million compared with $70.4 million for the year ended December 31, 2021. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.6 million for the year ended December 31, 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $2.0 million for the year ended December 31, 2021. For the year ended December 31, 2022, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.15 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.51 for year ended December 31, 2021.

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,
	2022	2021	2022	2021

Net operating revenues:
Waste management services	$ 14,671	$ 11,431	$ 49,763	$ 42,710

Food, beverage and merchandise sales	2,832	2,437	12,137	11,045
Other golf and related operations	4,133	3,711	19,280	16,628
Total golf and related operations	6,965	6,148	31,417	27,673

Total net operating revenues	21,636	17,579	81,180	70,383

Costs and expenses:
Waste management services operating costs	12,137	9,204	40,380	34,259
Cost of food, beverage and merchandise	1,506	1,150	5,500	4,748
Golf and related operations operating costs	5,040	4,469	21,337	17,825
Depreciation and amortization expense	930	804	3,483	3,112
Selling, general and administrative expenses	2,615	2,319	10,133	9,878
Operating income (loss)	(592)	(367)	347	561

Other income (expense):
Interest expense	(504)	(280)	(1,464)	(1,158)
Gain on debt extinguishment	-	-	-	1,964
Other income, net	26	71	231	369
Income (loss) before income taxes	(1,070)	(576)	(886)	1,736

Income tax provision (benefit)	(14)	4	94	89
Net income (loss)	(1,056)	(580)	(980)	1,647

Less net loss attributable to non-controlling interest in subsidiaries	(83)	(110)	(397)	(324)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ (973)	$ (470)	$ (583)	$ 1,971

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ (0.25)	$ (0.12)	$ (0.15)	$ 0.51
Diluted net income (loss) per share	$ (0.25)	$ (0.12)	$ (0.15)	$ 0.50

Weighted average shares outstanding - basic	3,899	3,899	3,899	3,899
Weighted average shares outstanding - diluted	3,899	3,899	3,899	3,933

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


	December 31,	December 31,
	2022	2021
Assets
Current Assets:
Cash and cash equivalents	$ 1,624	$ 3,254
Accounts receivable, net	11,127	9,933
Unbilled membership dues receivable	599	578
Inventories	1,461	1,105
Prepaid expenses	1,172	996
Other current assets	105	105
Total current assets	16,088	15,971

Property and equipment, net	56,805	53,338
Property and equipment under finance leases, net	5,001	5,390
Operating lease right-of-use assets	1,386	1,598
Restricted cash	10,426	1,696
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 89,750	$ 78,037

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 503	$ 1,126
Current portion of obligations under finance leases	115	167
Current portion of obligations under operating leases	424	534
Accounts payable	10,995	10,164
Accrued payroll and other compensation	989	797
Accrued income taxes	103	67
Other accrued taxes	540	541
Deferred membership dues revenue	3,643	3,363
Other liabilities and accrued expenses	1,544	1,265
Total current liabilities	18,856	18,024

Long term debt, net of current portion	29,758	19,376
Line of credit	1,550	-
Obligations under finance leases, net of current portion	381	496
Obligations under operating leases, net of current portion	962	1,064
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,490	39,069
Non-controlling interest in subsidiaries	(347)	(92)
Total shareholders' equity	38,143	38,977
Total liabilities and equity	$ 89,750	$ 78,037