Avalon Holdings Corporation Announces Third Quarter Results

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Nov 12, 2015, 05:01 ET

WARREN, Ohio, Nov. 12, 2015 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2015.

Net operating revenues in the third quarter of 2015 were $14.6 million compared with $14.4 million in the third quarter of 2014. The Company recorded net income of $0.5 million in the third quarter of 2015 compared with net income of $0.1 million in the third quarter of 2014. For the third quarter of 2015, basic net income per share was $0.14 compared with basic net income per share of $0.03 in the third quarter of 2014.

For the first nine months of 2015, net operating revenues were $39.2 million compared with $37.4 million for the first nine months of 2014. The Company incurred a net loss of $0.5 million for the first nine months of 2015 compared with a net loss of $0.7 million for the first nine months of 2014. For the first nine months of 2015, basic net loss per share was $0.14 compared with a basic net loss per share of $0.18 for the first nine months of 2014.

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 the Avalon Golf and Country Club, which includes the operation of golf courses, country clubs and related facilities and The Avalon Inn which operates a hotel and related amenities offered by the facility.

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


	Three Months Ended ,		Nine Months Ended ,
	September 30,		September 30,
	2015	2014	2015	2014

Net operating revenues	$ 14,577	$ 14,437	$ 39,232	$ 37,436

Costs and expenses:
Costs of operations	11,766	11,572	32,738	30,872
Depreciation and amortization expense	603	579	1,836	1,562
Selling, general and administrative expenses	1,782	2,155	5,725	5,831
Operating income (loss)	426	131	(1,067)	(829)

Other income (expense):
Interest expense	(55)	(21)	(67)	(31)
Interest income	-	1	-	1
Other income, net	64	51	237	213
Income (loss) before income taxes	435	162	(897)	(646)

Provision for income taxes	18	28	42	58
Net income (loss)	417	134	(939)	(704)

Less net income (loss) attributable to non-controlling interest in subsidiary	(112)	36	(423)	(15)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$ 529	$ 98	$ (516)	$ (689)

Income (loss) per share attributable to Avalon Holdings
Corporation common shareholders:
Basic net income (loss) per share	$ 0.14	$ 0.03	$ (0.14)	$ (0.18)
Dilutive net income (loss) per share	$ 0.14	$ 0.02	$ (0.14)	$ (0.18)

Weighted average shares outstanding - basic	3,803	3,803	3,803	3,803
Weighted average shares outstanding - diluted	3,803	4,078	3,803	3,803

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


	September 30,	December 31,
	2015	2014
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	$ 1,841	$ 4,329
Accounts receivable, net	9,242	8,750
Inventories	984	947
Prepaid expenses	572	474
Refundable income taxes	29	8
Other current assets	45	45
Total current assets	12,713	14,553

Property and equipment, net	42,192	35,954
Leased property under capital leases, net	6,142	6,418
Noncurrent deferred tax asset	8	8
Other assets, net	85	911
Total assets	$ 61,140	$ 57,844

Liabilities and Equity
Current liabilities:
Current portion of obligations under capital leases	$ 59	$ 58
Revolving line of credit	7,600	-
Accounts payable	6,266	6,429
Accrued payroll and other compensation	929	714
Accrued income taxes	-	8
Other accrued taxes	332	379
Deferred revenues	2,748	2,256
Other liabilities and accrued expenses	718	707
Total current liabilities	18,652	10,551

Revolving line of credit	-	3,800
Obligations under capital leases	290	333
Asset retirement obligation	100	100
Deferred rental income	72	138

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,964	39,437
Non-controlling interest in subsidiary	3,062	3,485
Total shareholders' equity	42,026	42,922
Total liabilities and equity	$ 61,140	$ 57,844