PR Newswire | Aug 6, 2021 05:01PM EDT

08/06 16:01 CDT

Avalon Holdings Corporation Announces Second Quarter Results WARREN, Ohio, Aug. 6, 2021

WARREN, Ohio, Aug. 6, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2021.

Net operating revenues in the second quarter of 2021 were $16.4 million compared with $13.1 million in the second quarter of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the second quarter of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2020. For the second quarter of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.19 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.11 in the second quarter of 2020.

For the first six months of 2021, net operating revenues were $31.5 million compared with $27.5 million for the first six months of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of approximately $1.5 million in the first six months of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.2 million in the first six months of 2020. For the first six months of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.37 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.32 in the first six months of 2020.

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,

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 7,705 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 $ 742 $ (435) $ 1,458 $ (1,248)shareholders

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

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 16,642 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

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SOURCE Avalon Holdings Corporation