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,

2018

2017

2018

2017

Net operating revenues:

Waste management services

$          11,510

$            9,490

$          19,968

$          17,103

Food, beverage and merchandise sales

2,206

2,270

3,246

3,376

Other golf and related operations

2,989

2,817

5,007

4,800

 Total golf and related operations

5,195

5,087

8,253

8,176

Total net operating revenues

16,705

14,577

28,221

25,279

Costs and expenses:

Waste management services operating costs

9,090

7,533

15,752

13,427

Cost of food, beverage and merchandise

932

961

1,399

1,514

Golf and related operations operating costs

3,146

3,150

5,363

5,556

Depreciation and amortization expense

726

761

1,455

1,509

Selling, general and administrative expenses

2,215

2,063

4,440

4,065

Operating income (loss)

596

109

(188)

(792)

Other income (expense):

Interest expense

(174)

(177)

(345)

(352)

Other income, net

113

109

173

186

Income (loss) before income taxes

535

41

(360)

(958)

Provision for income taxes

41

32

60

52

Net income (loss)

494

9

(420)

(1,010)

Less net loss attributable to non-controlling interest in subsidiary

(129)

(112)

(244)

(205)

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

$               623

$               121

$              (176)

$              (805)

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

Basic net income (loss) per share

$              0.16

$              0.03

$             (0.05)

$             (0.21)

Diluted net income (loss) per share

$              0.16

$              0.03

$             (0.05)

$             (0.21)

Weighted average shares outstanding - basic 

3,803

3,803

3,803

3,803

Weighted average shares outstanding - diluted

3,818

3,827

3,803

3,803

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

June 30,

December 31,

2018

2017

Assets

Current Assets:

Cash and cash equivalents

$              2,409

$              1,025

Accounts receivable, net

11,046

9,906

Unbilled membership dues receivable

1,009

580

Inventories

1,010

850

Prepaid expenses

378

512

Other current assets

26

34

 Total current assets

15,878

12,907

Property and equipment, net

43,992

43,215

Leased property under capital leases, net

6,311

6,360

Restricted cash

1,326

2,826

Noncurrent deferred tax asset

8

8

Other assets, net

56

62

Total assets

$             67,571

$             65,378

Liabilities and Equity

Current liabilities:

Current portion of obligations under capital leases

$                 231

$                 212

Current portion of long term debt

562

547

Accounts payable

9,131

7,832

Accrued payroll and other compensation

1,050

739

Accrued income taxes

31

26

Other accrued taxes

242

372

Deferred membership dues revenue

4,034

2,718

Other liabilities and accrued expenses

734

658

Total current liabilities

16,015

13,104

Long term debt, net of current portion

10,460

10,745

Obligations under capital leases, net of current portion

841

857

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,273

38,446

Non-controlling interest in subsidiary

1,882

2,126

Total shareholders' equity

40,155

40,572

Total liabilities and equity

$             67,571

$             65,378