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,

2026

2025

2026

2025

Net operating revenues:

Waste management services

$          10,113

$            9,742

$          21,622

$          19,419

Food, beverage and merchandise sales

4,113

3,760

6,126

5,784

Other golf and related operations

6,672

6,750

10,809

11,117

Total golf and related operations

10,785

10,510

16,935

16,901

Total net operating revenues

20,898

20,252

38,557

36,320

Costs and expenses:

Waste management services operating costs

7,669

7,489

16,552

15,071

Cost of food, beverage and merchandise

1,770

1,717

2,762

2,730

Golf and related operations operating costs

6,571

6,878

11,476

11,975

Depreciation and amortization expense

927

965

1,855

1,935

Selling, general and administrative expenses

2,603

2,453

5,290

5,010

Operating income (loss)

1,358

750

622

(401)

Other income (expense):

Interest expense

(504)

(510)

(1,008)

(1,020)

Loss on disposal

(15)

-

(15)

-

Income (loss) before income taxes

839

240

(401)

(1,421)

Provision for income taxes

30

29

71

54

Net income (loss)

809

211

(472)

(1,475)

Less net loss attributable to non-controlling interest in subsidiary

(75)

(63)

(121)

(250)

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

$               884

$               274

$             (351)

$           (1,225)

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

Basic  net income (loss) per share

$              0.23

$              0.07

$            (0.09)

$            (0.31)

Weighted average shares outstanding - basic 

3,899

3,899

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

June 30,

December 31,

2026

2025

Assets

Current Assets:

Cash and cash equivalents

$               4,795

$               4,114

Accounts receivable, net

10,183

9,819

Unbilled membership dues receivable

988

541

Inventories

1,838

1,555

Prepaid expenses

677

919

Other current assets

15

15

Total current assets

18,496

16,963

Property and equipment, net

53,147

53,982

Property and equipment under finance leases, net

6,485

6,267

Operating lease right-of-use assets

1,269

1,379

Restricted cash

8,166

8,730

Noncurrent deferred tax asset

32

32

Other assets, net

27

28

Total assets

$             87,622

$             87,381

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                  634

$                  614

Current portion of obligations under finance leases

376

384

Current portion of obligations under operating leases

372

362

Accounts payable

6,598

7,984

Accrued payroll and other compensation

1,620

1,244

Accrued taxes

660

660

Deferred membership dues revenue

5,766

3,529

Other liabilities and accrued expenses

2,090

2,054

Total current liabilities

18,116

16,831

Long term debt, net of current portion

27,710

28,032

Line of credit

3,200

3,200

Obligations under finance leases, net of current portion

1,118

1,248

Obligations under operating leases, net of current portion

897

1,017

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,004

38,355

Non-controlling interest in subsidiary

(1,523)

(1,402)

Total shareholders' equity

36,481

36,953

Total liabilities and equity

$             87,622

$             87,381