Avalon Holdings Corporation Announces Third Quarter Results

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Nov 13, 2014, 05:49 ET

WARREN, Ohio, Nov. 13, 2014 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2014.

Net operating revenues in the third quarter of 2014 were $14.4 million compared with $16.4 million in the third quarter of 2013. The Company recorded net income of $.1 million, or $.03 per share for the third quarter of 2014 compared with net income of $.4 million, or $.11 per share for the third quarter of 2013.

For the first nine months of 2014, net operating revenues were $37.4 million compared with $46.8 million for the first nine months of 2013. The Company incurred a net loss of $.7 million, or $.18 per share for the first nine months of 2014 compared with net income of $.7 million or $.19 per share for the first nine 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 Resort and Spa, which includes the operations of a hotel and 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 September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013

Net operating revenues	$ 14,437	$ 16,386	$ 37,436	$ 46,788

Costs and expenses:
Costs of operations	11,572	13,432	30,872	39,024
Depreciation and Amortization	579	408	1,562	1,217
Selling, general and administrative expenses	2,155	2,145	5,831	5,939
Operating income (loss)	131	401	(829)	608

Other income (expense):
Interest expense	(21)	(6)	(31)	(16)
Interest income	1	—	1	1
Other income, net	51	56	213	232
Income (Loss) before income taxes	162	451	(646)	825

Provision for income taxes	28	36	58	95

Net income (loss)	$ 134	$ 415	$ (704)	$ 730

Less income (loss) attributable to non-controlling interest in subsidiary	36	—	(15)	—

Net income (loss) attributable to Avalon Holdings Corporation Income (Loss) per share attributable to Avalon Holdings Corporation common shareholders:	$ 98	$ 415	$ (689)	$ 730

Net income(loss) per share- basic	$ .03	$ .11	$ (.18)	$ .19
Net income (loss) per share- diluted	$ .02	$ .10	$ (.18)	$ .18

Weighted average shares outstanding – basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding – diluted	4,078	4,103	3,803	4,060

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

	September 30, 2014	December 31, 2013
	(Unaudited)
Assets:
Current Assets:
Cash and cash equivalents	$ 6,166	$ 9,798
Accounts receivable, net	9,656	10,201
Prepaid expenses	591	349
Refundable income taxes	3	3
Other current assets	1,015	830
Total current assets	17,431	21,181

Property and equipment, net	33,254	27,563
Leased property under capital leases, net	6,511	6,719
Noncurrent deferred tax asset	8	8
Other assets, net	911	108
Total assets	$ 58,115	$ 55,579

Liabilities and Equity
Current Liabilities:
Current portion of obligations under capital leases	$ 57	$ 56
Revolving line of credit	2,900	—
Accounts payable	6,485	8,101
Accrued payroll and other compensation	888	549
Accrued income taxes	6	1
Other accrued taxes	315	307
Deferred revenues	2,623	2,265
Other liabilities and accrued expenses	802	365
Total current liabilities	14,076	11,644

Obligations under capital leases	349	390
Noncurrent liabilities	75	75
Deferred rental income	160	—

Total equity	43,455	43,470

Total liabilities and equity	$ 58,115	$ 55,579