Avalon Holdings Corporation Announces Second Quarter Results

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Aug 12, 2014, 05:24 ET

WARREN, Ohio, Aug. 12, 2014 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2014.

Net operating revenues in the second quarter of 2014 were $13.0 million compared with $15.7 million in the second quarter of 2013. The Company incurred a net loss of $.1 million, or $.03 per share for the second quarter of 2014 compared with net income of $.5 million, or $.12 per share for the second quarter of 2013.

For the first six months of 2014, net operating revenues were $23.0 million compared with $30.4 million for the first six months of 2013. The Company incurred a net loss of $.8 million, or $.21 per share for the first six months of 2014 compared with net income of $.3 million or $.08 per share for the first six months of 2013.

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,
	2014	2013	2014	2013

Net operating revenues	$ 13,016	$ 15,733	$ 22,999	$ 30,402

Costs and expenses:
Costs of operations	10,786	13,038	19,300	25,592
Depreciation and Amortization	555	405	983	809
Selling, general and administrative expenses	1,876	1,894	3,676	3,794
Operating (loss) income	(201)	396	(960)	207

Other income (expense):
Interest expense	(5)	(5)	(10)	(10)
Interest income	—	1	—	1
Other income, net	90	97	162	176
(Loss) income before income taxes	(116)	489	(808)	374

Provision for income taxes	22	30	30	59

Net (loss) income	$ (138)	$ 459	$ (838)	$ 315

Less loss attributable to non-controlling interest in subsidiary	(50)	—	(51)	—

Net loss attributable to Avalon Holdings Corporation

(Loss) income per share attributable to Avalon Holdings Corporation common shareholders:	$ (88)	$ 459	$ (787)	$ 315

Net (loss) income per share- basic	$ (.03)	$ .12	$ (.21)	$ .08
Net (loss) income per share- diluted	$ (.03)	$ .11	$ (.21)	$ .08

Weighted average shares outstanding – basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding – diluted	3,803	4,018	3,803	4,039

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

	June 30, 2014	December 31, 2013
	(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents	$ 7,137	$ 9,798
Accounts receivable, net	9,051	10,201
Prepaid expenses	323	349
Refundable income taxes	3	3
Other current assets	1,107	830
Total current assets	17,621	21,181

Property and equipment, net	30,471	27,563
Leased property under capital leases, net	6,559	6,719
Noncurrent deferred tax asset	8	8
Other assets, net	93	108
Total assets	$ 54,752	$ 55,579

Liabilities and Equity
Current Liabilities:
Current portion of obligations under capital leases	$ 57	$ 56
Accounts payable	6,416	8,101
Accrued payroll and other compensation	827	549
Accrued income taxes	10	1
Other accrued taxes	297	307
Deferred revenues	3,108	2,265
Other liabilities and accrued expenses	509	365
Total current liabilities	11,224	11,644

Obligations under capital leases	363	390
Noncurrent liabilities	75	75

Total equity	43,090	43,470

Total liabilities and equity	$ 54,752	$ 55,579