AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

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,

2023

2022

2023

2022

Net operating revenues:

Waste management services

$          10,298

$          10,717

$          22,950

$          20,056

Food, beverage and merchandise sales

3,995

3,563

5,968

5,228

Other golf and related operations

6,328

5,242

10,077

8,547

Total golf and related operations

10,323

8,805

16,045

13,775

Total net operating revenues

20,621

19,522

38,995

33,831

Costs and expenses:

Waste management services operating costs

8,224

8,492

18,604

16,070

Cost of food, beverage and merchandise

1,811

1,525

2,834

2,273

Golf and related operations operating costs

6,987

5,731

11,823

9,786

Depreciation and amortization expense

955

842

1,895

1,671

Selling, general and administrative expenses

2,501

2,340

5,030

4,605

Operating income (loss)

143

592

(1,191)

(574)

Other income (expense):

Interest expense

(529)

(274)

(1,044)

(552)

Other income, net

205

119

286

183

Income (loss) before income taxes

(181)

437

(1,949)

(943)

Provision for income taxes

23

33

54

53

Net income (loss)

(204)

404

(2,003)

(996)

Less net loss attributable to non-controlling interest in subsidiary

(52)

(80)

(174)

(218)

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

$             (152)

$               484

$           (1,829)

$             (778)

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

Basic net income (loss) per share

$            (0.04)

$              0.12

$            (0.47)

$            (0.20)

Diluted net income (loss) per share

$            (0.04)

$              0.12

$            (0.47)

$            (0.20)

Weighted average shares outstanding - basic

3,899

3,899

3,899

3,899

Weighted average shares outstanding - diluted

3,899

3,922

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

June 30,

December 31,

2023

2022

Assets

Current Assets:

Cash and cash equivalents

$               2,217

$               1,624

Accounts receivable, net

11,081

11,127

Unbilled membership dues receivable

1,083

599

Inventories

1,830

1,461

Prepaid expenses

1,046

1,172

Other current assets

15

105

Total current assets

17,272

16,088

Property and equipment, net

57,112

56,805

Property and equipment under finance leases, net

5,187

5,001

Operating lease right-of-use assets

1,293

1,386

Restricted cash

10,450

10,426

Noncurrent deferred tax asset

8

8

Other assets, net

35

36

Total assets

$             91,357

$             89,750

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                  520

$                  503

Current portion of obligations under finance leases

139

115

Current portion of obligations under operating leases

423

424

Accounts payable

11,614

10,995

Accrued payroll and other compensation

1,171

989

Accrued income taxes

91

103

Other accrued taxes

507

540

Deferred membership dues revenue

5,737

3,643

Other liabilities and accrued expenses

1,891

1,544

Total current liabilities

22,093

18,856

Long term debt, net of current portion

29,489

29,758

Line of credit

2,200

1,550

Obligations under finance leases, net of current portion

463

381

Obligations under operating leases, net of current portion

871

962

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

36,662

38,490

Non-controlling interest in subsidiary

(521)

(347)

Total shareholders' equity

36,141

38,143

Total liabilities and equity

$             91,357

$             89,750