AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

2022

2021

Net operating revenues:

Waste management services

$                       9,339

$                     11,150

Food, beverage and merchandise sales

1,665

1,341

Other golf and related operations

3,305

2,622

Total golf and related operations

4,970

3,963

Total net operating revenues

14,309

15,113

Costs and expenses:

Waste management services operating costs

7,578

8,701

Cost of food, beverage and merchandise

748

593

Golf and related operations operating costs

4,055

2,921

Depreciation and amortization expense

829

764

Selling, general and administrative expenses

2,265

2,280

Operating loss

(1,166)

(146)

Other income (expense):

Interest expense

(278)

(297)

Gain on debt extinguishment

-

1,087

Other income, net

64

87

Income (loss) before income taxes

(1,380)

731

Provision for income taxes

20

43

Net income (loss)

(1,400)

688

Less net loss attributable to non-controlling interest in subsidiaries

(138)

(28)

Net income (loss) attributable to Avalon Holdings Corporation common shareholders

$                     (1,262)

$                          716

Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income (loss) per share

$                       (0.32)

$                         0.18

Diluted net income (loss) per share

$                       (0.32)

$                         0.18

Weighted average shares outstanding - basic 

3,899

3,899

Weighted average shares outstanding - diluted

3,899

3,945

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

March 31,

December 31,

2022

2021

Assets

Current Assets:

Cash and cash equivalents

$               2,430

$               3,254

Accounts receivable, net

10,737

9,933

Unbilled membership dues receivable

760

578

Inventories

1,358

1,105

Prepaid expenses

1,180

996

Other current assets

44

105

Total current assets

16,509

15,971

Property and equipment, net

54,496

53,338

Property and equipment under finance leases, net

5,301

5,390

Operating lease right-of-use assets

1,588

1,598

Restricted cash

676

1,696

Noncurrent deferred tax asset

8

8

Other assets, net

35

36

Total assets

$              78,613

$              78,037

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$               1,140

$               1,126

Current portion of obligations under finance leases

157

167

Current portion of obligations under operating leases

519

534

Accounts payable

10,196

10,164

Accrued payroll and other compensation

1,261

797

Accrued income taxes

74

67

Other accrued taxes

474

541

Deferred membership dues revenue

4,943

3,363

Other liabilities and accrued expenses

1,381

1,265

Total current liabilities

20,145

18,024

Long term debt, net of current portion

19,086

19,376

Obligations under finance leases, net of current portion

493

496

Obligations under operating leases, net of current portion

1,069

1,064

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

37,808

39,069

Non-controlling interest in subsidiaries

(88)

(92)

Total shareholders' equity

37,720

38,977

Total liabilities and equity

$              78,613

$              78,037