PR Newswire | Nov 12, 2020 05:01PM EST

11/12 16:01 CST

Avalon Holdings Corporation Announces Third Quarter Results WARREN, Ohio, Nov. 12, 2020

WARREN, Ohio, Nov. 12, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2020.

Net operating revenues in the third quarter of 2020 were $16.6 million compared with $18.0 million in the third quarter of 2019. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the third quarter of 2019. For the third quarter of 2020, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.20 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the third quarter of 2019.

For the first nine months of 2020, net operating revenues were $44.1 million compared with $51.1 million for the first nine months of 2019. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.5 million in the first nine months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the first nine months of 2019. For the first nine months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.00 in the first nine months of 2019.

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets, captive landfill management services and salt water injection well operations. Avalon Holdings Corporation also owns Avalon Resorts and Clubs Inc., which includes the operation of a hotel and its associated resort amenities, four golf courses and related country clubs and a multipurpose recreation center.

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,

2020 2019 2020 2019

Net operating revenues:

Waste management services $ 9,326 $ 11,572 $ 29,547 $ 35,908

Food, beverage and merchandise sales 2,851 2,587 5,247 6,027

Other golf and related operations 4,448 3,859 9,301 9,116

Total golf and related operations 7,299 6,446 14,548 15,143

Total net operating revenues 16,625 18,018 44,095 51,051

Costs and expenses:

Waste management services operating costs 7,393 9,229 23,473 28,773

Cost of food, beverage and merchandise 1,092 1,169 2,184 2,683

Golf and related operations operating costs 4,270 4,266 9,777 10,361

Depreciation and amortization expense 741 630 2,152 1,848

Selling, general and administrative expenses 2,110 2,379 6,269 6,990

Operating income 1,019 345 240 396

Other income (expense):

Interest expense (302) (222) (913) (600)

Other income, net 83 41 264 257

Income (loss) before income taxes 800 164 (409) 53

Provision for income taxes 27 38 95 135

Net income (loss) 773 126 (504) (82)

Less net loss attributable to non-controlling interest in subsidiary (8) (18) (37) (67)

Net income (loss) attributable to Avalon Holdings Corporation common $ 781 $ 144 $ (467) $ (15)shareholders

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

Basic net income (loss) per share $ 0.20 $ 0.04 $ (0.12) $ (0.00)

Diluted net income (loss) per share $ 0.20 $ 0.04 $ (0.12) $ (0.00)

Weighted average shares outstanding - basic 3,875 3,875 3,875 3,875

Weighted average shares outstanding - diluted 3,875 3,893 3,875 3,875

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30, December 31,

2020 2019

Assets

Current Assets:

Cash and cash equivalents $ $ 4,667 1,446

Accounts receivable, net 8,679 12,009

Unbilled membership dues receivable 866 602

Inventories 1,034 813

Prepaid expenses 810 725

Other current assets 15 15

Total current assets 16,071 15,610

Property and equipment, net 50,473 48,978

Property and equipment under finance leases, 5,913 5,878net

Operating lease right-of-use assets 1,280 1,466

Restricted cash 4,246 7,185

Noncurrent deferred tax asset 8 8

Other assets, net 36 39

Total assets $ $ 78,027 79,164

Liabilities and Equity

Current liabilities:

Current portion of long term debt $ $ 2,622 1,015

Current portion of obligations under finance 343 295leases

Current portion of obligations under 533 513operating leases

Accounts payable 8,094 11,719

Accrued payroll and other compensation 956 961

Accrued income taxes 46 93

Other accrued taxes 362 434

Deferred membership dues revenue 4,041 3,153

Other liabilities and accrued expenses 1,125 839

Total current liabilities 18,122 19,022

Long term debt, net of current portion 21,972 21,570

Obligations under finance leases, net of 622 555current portion

Obligations under operating leases, net of 747 953current portion

Asset retirement obligation 100 100

Equity:

Total Avalon Holdings Corporation 36,567 37,030Shareholders' Equity

Non-controlling interest in subsidiary (103) (66)

Total shareholders' equity 36,464 36,964

Total liabilities and equity $ $ 78,027 79,164

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SOURCE Avalon Holdings Corporation