Avalon Holdings Corporation Announces Second Quarter Results

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Aug 06, 2021, 17:01 ET

WARREN, Ohio, Aug. 6, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2021.

Net operating revenues in the second quarter of 2021 were $16.4 million compared with $13.1 million in the second quarter of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the second quarter of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2020. For the second quarter of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.19 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.11 in the second quarter of 2020.

For the first six months of 2021, net operating revenues were $31.5 million compared with $27.5 million for the first six months of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of approximately $1.5 million in the first six months of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.2 million in the first six months of 2020. For the first six months of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.37 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.32 in the first six months of 2020.

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		Six Months Ended
	June 30,		June 30,
	2021	2020	2021	2020

Net operating revenues:
Waste management services	$ 8,685	$ 9,088	$ 19,835	$ 20,221

Food, beverage and merchandise sales	3,283	1,361	4,624	2,396
Other golf and related operations	4,422	2,618	7,044	4,853
Total golf and related operations	7,705	3,979	11,668	7,249

Total net operating revenues	16,390	13,067	31,503	27,470

Costs and expenses:
Waste management services operating costs	6,969	7,211	15,670	16,080
Cost of food, beverage and merchandise	1,348	564	1,941	1,092
Golf and related operations operating costs	4,743	2,875	7,664	5,507
Depreciation and amortization expense	767	712	1,531	1,411
Selling, general and administrative expenses	2,536	1,927	4,816	4,159
Operating income (loss)	27	(222)	(119)	(779)

Other income (expense):
Interest expense	(291)	(304)	(588)	(611)
Gain on debt extinguishment	877	-	1,964	-
Other income, net	126	103	213	181
Income (loss) before income taxes	739	(423)	1,470	(1,209)

Provision for income taxes	15	24	58	68
Net income (loss)	724	(447)	1,412	(1,277)

Less net loss attributable to non-controlling interest in subsidiary	(18)	(12)	(46)	(29)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 742	$ (435)	$ 1,458	$ (1,248)

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$ 0.19	$ (0.11)	$ 0.37	$ (0.32)
Diluted net income (loss) per share	$ 0.19	$ (0.11)	$ 0.37	$ (0.32)

Weighted average shares outstanding - basic	3,899	3,875	3,899	3,875
Weighted average shares outstanding - diluted	3,929	3,875	3,927	3,875

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


	June 30,	December 31,
	2021	2020
Assets
Current Assets:
Cash and cash equivalents	$ 4,451	$ 4,210
Accounts receivable, net	9,038	8,744
Unbilled membership dues receivable	1,102	585
Inventories	1,234	910
Prepaid expenses	766	730
Other current assets	51	80
Total current assets	16,642	15,259

Property and equipment, net	51,856	51,299
Property and equipment under finance leases, net	5,734	5,735
Operating lease right-of-use assets	1,588	1,728
Restricted cash	2,856	3,885
Noncurrent deferred tax asset	8	8
Other assets, net	36	36
Total assets	$ 78,720	$ 77,950

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 1,097	$ 1,594
Current portion of obligations under finance leases	271	333
Current portion of obligations under operating leases	552	529
Accounts payable	8,581	9,097
Accrued payroll and other compensation	1,324	809
Accrued income taxes	59	43
Other accrued taxes	376	461
Deferred membership dues revenue	5,376	3,196
Other liabilities and accrued expenses	1,118	1,121
Total current liabilities	18,754	17,183

Long term debt, net of current portion	19,946	21,941
Obligations under finance leases, net of current portion	502	560
Obligations under operating leases, net of current portion	1,036	1,199
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,554	37,093
Non-controlling interest in subsidiary	(172)	(126)
Total shareholders' equity	38,382	36,967
Total liabilities and equity	$ 78,720	$ 77,950