PR Newswire | Aug 7, 2020 05:01PM EDT

08/07 16:01 CDT

Avalon Holdings Corporation Announces Second Quarter Results WARREN, Ohio, Aug. 7, 2020

WARREN, Ohio, Aug. 7, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2020.

Net operating revenues in the second quarter of 2020 were $13.1 million compared with $18.4 million in the second quarter of 2019. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2019. For the second quarter of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.11 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the second quarter of 2019.

For the first six months of 2020, net operating revenues were $27.5 million compared with $33.0 million for the first six months of 2019. The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.2 million in the first six months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the first six months of 2019. For the first six months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.32 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the first six 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 Six Months Ended

June 30, June 30,

2020 2019 2020 2019

Net operatingrevenues:

Wastemanagement $ 9,088 $ 12,902 $ 20,221 $ 24,336services

Food, beverageand merchandise 1,361 2,358 2,396 3,440sales

Other golf andrelated 2,618 3,165 4,853 5,257operations

Total golf andrelated 3,979 5,523 7,249 8,697operations

Total netoperating 13,067 18,425 27,470 33,033revenues

Costs andexpenses:

Wastemanagement 7,211 10,296 16,080 19,544servicesoperating costs

Cost of food,beverage and 564 999 1,092 1,514merchandise

Golf andrelated 2,875 3,563 5,507 6,095operationsoperating costs

Depreciationand 712 618 1,411 1,218amortizationexpense

Selling,general and 1,927 2,380 4,159 4,611administrativeexpenses

Operating (222) 569 (779) 51income (loss)

Other income(expense):

Interest (304) (215) (611) (378)expense

Other income, 103 148 181 216net

Income (loss)before income (423) 502 (1,209) (111)taxes

Provision for 24 57 68 97income taxes

Net income (447) 445 (1,277) (208)(loss)

Less net lossattributable tonon-controlling (12) (34) (29) (49)interest insubsidiary

Net income(loss)attributable toAvalon Holdings $ (435) $ 479 $ (1,248) $ (159)Corporationcommonshareholders

Income (loss)per shareattributable toAvalon HoldingsCorporationcommonshareholders:

Basic netincome (loss) $ (0.11) $ 0.12 $ (0.32) $ (0.04)per share

Diluted netincome (loss) $ (0.11) $ 0.12 $ (0.32) $ (0.04)per share

Weightedaverage shares 3,875 3,875 3,875 3,875outstanding -basic

Weightedaverage shares 3,875 3,894 3,875 3,875outstanding -diluted

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

June 30, December 31,

2020 2019

Assets

Current Assets:

Cash and cash equivalents $ $ 5,529 1,446

Accounts receivable, net 7,809 12,009

Unbilled membership dues receivable 1,109 602

Inventories 1,072 813

Prepaid expenses 559 725

Other current assets 15 15

Total current assets 16,093 15,610

Property and equipment, net 50,341 48,978

Property and equipment under finance leases, 6,053 5,878net

Operating lease right-of-use assets 1,500 1,466

Restricted cash 4,934 7,185

Noncurrent deferred tax asset 8 8

Other assets, net 37 39

Total assets $ $ 78,966 79,164

Liabilities and Equity

Current liabilities:

Current portion of long term debt $ $ 2,146 1,015

Current portion of obligations under finance 353 295leases

Current portion of obligations under 528 513operating leases

Accounts payable 8,661 11,719

Accrued payroll and other compensation 1,052 961

Accrued income taxes 41 93

Other accrued taxes 252 434

Deferred membership dues revenue 4,776 3,153

Other liabilities and accrued expenses 919 839

Total current liabilities 18,728 19,022

Long term debt, net of current portion 22,703 21,570

Obligations under finance leases, net of 773 555current portion

Obligations under operating leases, net of 972 953current portion

Asset retirement obligation 100 100

Equity:

Total Avalon Holdings Corporation 35,785 37,030Shareholders' Equity

Non-controlling interest in subsidiary (95) (66)

Total shareholders' equity 35,690 36,964

Total liabilities and equity $ $ 78,966 79,164

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SOURCE Avalon Holdings Corporation