Avalon Holdings Corporation Announces Third Quarter Results

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

Nine Months Ended 

September 30,

September 30,

2017

2016

2017

2016

Net operating revenues:

Waste management services

$          10,831

$          13,593

$          27,934

$          32,625

Food, beverage and merchandise sales

2,326

2,354

5,702

5,605

Other golf and related operations

3,207

3,186

8,007

7,544

Total golf and related operations

5,533

5,540

13,709

13,149

Total net operating revenues

16,364

19,133

41,643

45,774

Costs and expenses:

Waste management services operating costs

8,792

11,295

22,219

26,901

Cost of food, beverage and merchandise

970

997

2,484

2,456

Golf and related operations operating costs

3,090

3,204

8,646

8,250

Depreciation and amortization expense

747

714

2,256

2,093

Selling, general and administrative expenses

2,240

2,108

6,305

5,865

Operating income (loss)

525

815

(267)

209

Other income (expense):

Interest expense

(176)

(94)

(528)

(273)

Other income, net

50

57

236

218

Income (loss) before income taxes

399

778

(559)

154

Provision for income taxes

29

43

81

79

Net income (loss)

370

735

(640)

75

Less net loss attributable to non-controlling interest in subsidiary

(177)

(71)

(382)

(244)

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

$               547

$               806

$               319

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

Basic net income (loss) per share

$              0.14

$              0.21

$             (0.07)

$              0.08

Diluted net income (loss) per share

$              0.14

$              0.21

$             (0.07)

$              0.08

Weighted average shares outstanding - basic 

3,803

3,803

3,803

3,803

Weighted average shares outstanding - diluted

3,817

3,893

3,803

3,836

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30,

December 31,

2017

2016

Assets

Current Assets:

Cash and cash equivalents

$                      1,615

$                      2,299

Accounts receivable, net

10,839

11,349

Inventories

925

773

Prepaid expenses

576

462

Other current assets

39

35

   Total current assets

13,994

14,918

Property and equipment, net

43,575

43,971

Leased property under capital leases, net

6,370

6,035

Restricted cash

2,826

2,905

Noncurrent deferred tax asset

8

8

Other assets, net

65

61

Total assets

$                    66,838

$                    67,898

Liabilities and Equity

Current liabilities:

Current portion of obligations under capital leases

$                         186

$                         112

Current portion of long term debt

539

517

Accounts payable

8,215

9,387

Accrued payroll and other compensation

984

684

Accrued income taxes

7

48

Other accrued taxes

296

448

Deferred revenues

3,262

2,716

Other liabilities and accrued expenses

801

764

   Total current liabilities

14,290

14,676

Long term debt, net of current portion

10,887

11,294

Obligations under capital leases, net of current portion

815

452

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,493

38,741

Non-controlling interest in subsidiary

2,253

2,635

Total shareholders' equity

40,746

41,376

Total liabilities and equity

$                    66,838

$                    67,898