PR Newswire | Nov 12, 2021 07:00AM EST

11/12 06:00 CST

Avalon Holdings Corporation Announces Third Quarter Results WARREN, Ohio, Nov. 12, 2021

WARREN, Ohio, Nov. 12, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2021.

Net operating revenues in the third quarter of 2021 were $21.3 million compared with $16.6 million in the third quarter of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the third quarter of 2021 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020. For the third quarter of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.25 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.20 in the third quarter of 2020.

For the first nine months of 2021, net operating revenues were $52.8 million compared with $44.1 million for the first nine months of 2020. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $2.4 million in the first nine months of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the first nine months of 2020. For the first nine months of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.63 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the first nine 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 Nine Months Ended

September 30, September 30,

2021 2020 2021 2020

Net operatingrevenues:

Wastemanagement $ 11,444 $ 9,326 $ 31,279 $ 29,547services

Food, beverageand merchandise 3,984 2,851 8,608 5,247sales

Other golf andrelated 5,873 4,448 12,917 9,301operations

Total golf andrelated 9,857 7,299 21,525 14,548operations

Total netoperating 21,301 16,625 52,804 44,095revenues

Costs andexpenses:

Wastemanagement 9,385 7,393 25,055 23,473servicesoperating costs

Cost of food,beverage and 1,657 1,092 3,598 2,184merchandise

Golf andrelated 5,692 4,270 13,356 9,777operationsoperating costs

Depreciationand 777 741 2,308 2,152amortizationexpense

Selling,general and 2,743 2,110 7,559 6,269administrativeexpenses

Operating 1,047 1,019 928 240income

Other income(expense):

Interest (290) (302) (878) (913)expense

Gain on debt - - 1,964 -extinguishment

Other income, 85 83 298 264net

Income (loss)before income 842 800 2,312 (409)taxes

Provision for 27 27 85 95income taxes

Net income 815 773 2,227 (504)(loss)

Less net lossattributable tonon-controlling (168) (8) (214) (37)interest insubsidiaries

Net income(loss)attributable toAvalon Holdings $ 983 $ 781 $ 2,441 $ (467)Corporationcommonshareholders

Income (loss)per shareattributable toAvalon HoldingsCorporationcommonshareholders:

Basic netincome (loss) $ 0.25 $ 0.20 $ 0.63 $ (0.12)per share

Diluted netincome (loss) $ 0.25 $ 0.20 $ 0.62 $ (0.12)per share

Weightedaverage shares 3,899 3,875 3,899 3,875outstanding -basic

Weightedaverage shares 3,931 3,875 3,935 3,875outstanding -diluted

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30, December 31,

2021 2020

Assets

Current Assets:

Cash and cash equivalents $ 4,106 $ 4,210

Accounts receivable, net 9,919 8,744

Unbilled membership dues receivable 839 585

Inventories 1,154 910

Prepaid expenses 751 730

Other current assets 66 80

Total current assets 16,835 15,259

Property and equipment, net 52,625 51,299

Property and equipment under finance 5,644 5,735leases, net

Operating lease right-of-use assets 1,354 1,728

Restricted cash 2,092 3,885

Noncurrent deferred tax asset 8 8

Other assets, net 36 36

Total assets $ 78,594 $ 77,950

Liabilities and Equity

Current liabilities:

Current portion of long term debt $ 1,111 $ 1,594

Current portion of obligations under 178 333finance leases

Current portion of obligations under 540 529operating leases

Accounts payable 8,973 9,097

Accrued payroll and other 1,226 809compensation

Accrued income taxes 97 43

Other accrued taxes 428 461

Deferred membership dues revenue 4,422 3,196

Other liabilities and accrued 1,042 1,121expenses

Total current liabilities 18,017 17,183

Long term debt, net of current 19,663 21,941portion

Obligations under finance leases, 444 560net of current portion

Obligations under operating leases, 814 1,199net of current portion

Asset retirement obligation 100 100

Equity:

Total Avalon Holdings Corporation 39,538 37,093Shareholders' Equity

Non-controlling interest in 18 (126)subsidiaries

Total shareholders' equity 39,556 36,967

Total liabilities and equity $ 78,594 $ 77,950

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SOURCE Avalon Holdings Corporation