Avalon Holdings Corporation Announces Second Quarter Results

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Aug 12, 2010, 10:04 ET

WARREN, Ohio, Aug. 12 /PRNewswire-FirstCall/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2010.

Net operating revenues in the second quarter of 2010 were $12.1 million compared with $8.4 million in the second quarter of 2009. The Company recorded a net loss of $12,000, or $.01 per share for the second quarter of 2010 compared with a net loss of $.3 million, or $.07 per share for the second quarter of the 2009.

For the first six months of 2010, net operating revenues increased to $20.4 million compared with $17.2 million for the first six months of 2009. The Company recorded a net loss $.6 million, or $.16 per share for the first six months of 2010 compared with a net loss of $.7 million or $.18 per share for the first six months of 2009.

Steven M. Berry, President and Chief Executive Officer of Avalon Holdings Corporation, commented, "We continued to make steady progress during the second quarter of 2010. Revenues increased by 44% compared with the second quarter of 2009. This increase was driven primarily by our waste management services segment whose revenues increased by 65%. We are pleased with our financial progress in the quarter and look forward to building on this momentum and remain committed to identifying opportunities for the creation of future shareholder value."

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates golf courses and related facilities.

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for per share amounts)

	Three Months Ended June 30,		Six Months Ended June 30,
	2010	2009	2010	2009

Net operating revenue	$ 12,051	$ 8,372	$ 20,381	$ 17,215

Costs and expenses:
Costs of operations	9,842	6,804	16,827	14,076
Depreciation and Amortization	422	423	842	848
Selling, general and administrative expenses	1,851	1,456	3,419	3,065
Operating loss	(64)	(311)	(707)	(774)

Other income (expense):
Interest expense	(4)	(4)	(7)	(7)
Interest income	8	11	16	14
Other income, net	61	55	116	114
Income (loss) before income taxes	1	(249)	(582)	(653)

Provision for income taxes	13	14	14	14
Net loss	(12)	(263)	(596)	(667)

Net loss per share- basic and diluted	$ (.01)	$ (.07)	$ (.16)	$ (.18)

Weighted average shares outstanding – basic and diluted	3,803	3,803	3,803	3,803

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands)
	June 30, 2010	December 31, 2009
Assets:	(Unaudited)
Current Assets:
Cash and cash equivalents	$5,663	$5,862
Accounts receivable, net	8,452	7,094
Prepaid expenses	270	291
Refundable income taxes	25	25
Other current assets	737	568
Total current assets	15,147	13,840

Property and equipment, net	27,695	28,277
Leased property under capital leases, net	5,487	5,574
Noncurrent deferred tax asset	8	8
Other assets, net	58	58
Total assets	$48,395	$47,757

Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of obligations under capital leases	$1	$1
Accounts payable	5,592	5,119
Accrued payroll and other compensation	792	545
Accrued income taxes	7	-
Other accrued taxes	161	274
Deferred revenues	2,348	1,943
Other liabilities and accrued expenses	374	246
Total current liabilities	9,275	8,128

Obligations under capital leases	229	229

Total shareholders' equity	38,891	39,400
Total liabilities and shareholders' equity	$48,395	$47,757