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,

2021

2020

2021

2020

Net operating revenues:

Waste management services

$            8,685

$            9,088

$          19,835

$          20,221

Food, beverage and merchandise sales

3,283

1,361

4,624

2,396

Other golf and related operations

4,422

2,618

7,044

4,853

Total golf and related operations

3,979

11,668

7,249

Total net operating revenues

16,390

13,067

31,503

27,470

Costs and expenses:

Waste management services operating costs

6,969

7,211

15,670

16,080

Cost of food, beverage and merchandise

1,348

564

1,941

1,092

Golf and related operations operating costs

4,743

2,875

7,664

5,507

Depreciation and amortization expense

767

712

1,531

1,411

Selling, general and administrative expenses

2,536

1,927

4,816

4,159

Operating income (loss)

27

(222)

(119)

(779)

Other income (expense):

Interest expense

(291)

(304)

(588)

(611)

Gain on debt extinguishment

877

-

1,964

-

Other income, net

126

103

213

181

Income (loss) before income taxes

739

(423)

1,470

(1,209)

Provision for income taxes

15

24

58

68

Net income (loss)

724

(447)

1,412

(1,277)

Less net loss attributable to non-controlling interest in subsidiary

(18)

(12)

(46)

(29)

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

$               742

$            1,458

$           (1,248)

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

Basic net income (loss) per share

$              0.19

$             (0.11)

$              0.37

$             (0.32)

Diluted net income (loss) per share

$              0.19

$             (0.11)

$              0.37

$             (0.32)

Weighted average shares outstanding - basic 

3,899

3,875

3,899

3,875

Weighted average shares outstanding - diluted

3,929

3,875

3,927

3,875

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

June 30,

December 31,

2021

2020

Assets

Current Assets:

Cash and cash equivalents

$              4,451

$              4,210

Accounts receivable, net

9,038

8,744

Unbilled membership dues receivable

1,102

585

Inventories

1,234

910

Prepaid expenses

766

730

Other current assets

51

80

Total current assets

15,259

Property and equipment, net

51,856

51,299

Property and equipment under finance leases, net

5,734

5,735

Operating lease right-of-use assets

1,588

1,728

Restricted cash

2,856

3,885

Noncurrent deferred tax asset

8

8

Other assets, net

36

36

Total assets

$             78,720

$             77,950

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$              1,097

$              1,594

Current portion of obligations under finance leases

271

333

Current portion of obligations under operating leases

552

529

Accounts payable

8,581

9,097

Accrued payroll and other compensation

1,324

809

Accrued income taxes

59

43

Other accrued taxes

376

461

Deferred membership dues revenue

5,376

3,196

Other liabilities and accrued expenses

1,118

1,121

Total current liabilities

18,754

17,183

Long term debt, net of current portion

19,946

21,941

Obligations under finance leases, net of current portion

502

560

Obligations under operating leases, net of current portion

1,036

1,199

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,554

37,093

Non-controlling interest in subsidiary

(172)

(126)

Total shareholders' equity

38,382

36,967

Total liabilities and equity

$             78,720

$             77,950