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

March 31,

2018

2017

Net operating revenues:

Waste management services

$           8,458

$           7,613

Food, beverage and merchandise sales

1,040

1,106

Other golf and related operations

2,018

1,983

Total golf and related operations

3,058

3,089

Total net operating revenues

11,516

10,702

Costs and expenses:

Waste management services operating costs

6,662

5,894

Cost of food, beverage and merchandise

467

553

Golf and related operations operating costs

2,217

2,406

Depreciation and amortization expense

729

748

Selling, general and administrative expenses

2,225

2,002

Operating loss

(784)

(901)

Other income (expense):

Interest expense

(171)

(175)

Other income, net

60

77

Loss before income taxes

(895)

(999)

Provision for income taxes

19

20

Net loss

(914)

(1,019)

Less net loss attributable to non-controlling interest in subsidiary

(115)

(93)

Net loss attributable to Avalon Holdings Corporation common shareholders

$             (799)

$             (926)

Loss per share attributable to Avalon Holdings Corporation common shareholders:

Basic and diluted net loss per share

$            (0.21)

$            (0.24)

Weighted average shares outstanding - basic and diluted

3,803

3,803

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

March 31,

December 31,

2018

2017

Assets

Current Assets:

Cash and cash equivalents

$              1,612

$              1,025

Accounts receivable, net

8,280

9,906

Unbilled membership dues receivable

694

580

Inventories

982

850

Prepaid expenses

506

512

Other current assets

25

34

Total current assets

12,099

12,907

Property and equipment, net

44,161

43,215

Leased property under capital leases, net

6,284

6,360

Restricted cash

1,326

2,826

Noncurrent deferred tax asset

8

8

Other assets, net

62

62

Total assets

$             63,940

$             65,378

Liabilities and Equity

Current liabilities:

Current portion of obligations under capital leases

$                 215

$                 212

Current portion of long term debt

554

547

Accounts payable

6,969

7,832

Accrued payroll and other compensation

668

739

Accrued income taxes

13

26

Other accrued taxes

314

372

Deferred membership dues revenue

3,147

2,718

Other liabilities and accrued expenses

845

658

Total current liabilities

12,725

13,104

Long term debt, net of current portion

10,604

10,745

Obligations under capital leases, net of current portion

851

857

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

37,649

38,446

Non-controlling interest in subsidiary

2,011

2,126

Total shareholders' equity

39,660

40,572

Total liabilities and equity

$             63,940

$             65,378