AVALON HOLDINGS CORPORATION ANNOUNCES 2022 FULL YEAR AND FOURTH QUARTER RESULTS

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

Year Ended

December 31,

December 31,

2022

2021

2022

2021

Net operating revenues:

Waste management services

$          14,671

$          11,431

$          49,763

$          42,710

Food, beverage and merchandise sales

2,832

2,437

12,137

11,045

Other golf and related operations

4,133

3,711

19,280

16,628

Total golf and related operations

6,965

6,148

31,417

27,673

Total net operating revenues

21,636

17,579

81,180

70,383

Costs and expenses:

Waste management services operating costs

12,137

9,204

40,380

34,259

Cost of food, beverage and merchandise

1,506

1,150

5,500

4,748

Golf and related operations operating costs

5,040

4,469

21,337

17,825

Depreciation and amortization expense

930

804

3,483

3,112

Selling, general and administrative expenses

2,615

2,319

10,133

9,878

Operating income (loss)

(592)

(367)

347

561

Other income (expense):

Interest expense

(504)

(280)

(1,464)

(1,158)

Gain on debt extinguishment

-

-

-

1,964

Other income, net

26

71

231

369

Income (loss) before income taxes

(1,070)

(576)

(886)

1,736

Income tax provision (benefit)

(14)

4

94

89

Net income (loss)

(1,056)

(580)

(980)

1,647

Less net loss attributable to non-controlling interest in subsidiaries

(83)

(110)

(397)

(324)

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

$              (973)

$              (470)

$              (583)

$            1,971

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

Basic net income (loss) per share

$             (0.25)

$             (0.12)

$             (0.15)

$              0.51

Diluted net income (loss) per share

$             (0.25)

$             (0.12)

$             (0.15)

$              0.50

Weighted average shares outstanding - basic

3,899

3,899

3,899

3,899

Weighted average shares outstanding - diluted

3,899

3,899

3,899

3,933

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

December 31,

December 31,

2022

2021

Assets

Current Assets:

Cash and cash equivalents

$               1,624

$               3,254

Accounts receivable, net

11,127

9,933

Unbilled membership dues receivable

599

578

Inventories

1,461

1,105

Prepaid expenses

1,172

996

Other current assets

105

105

Total current assets

16,088

15,971

Property and equipment, net

56,805

53,338

Property and equipment under finance leases, net

5,001

5,390

Operating lease right-of-use assets

1,386

1,598

Restricted cash

10,426

1,696

Noncurrent deferred tax asset

8

8

Other assets, net

36

36

Total assets

$              89,750

$              78,037

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                  503

$               1,126

Current portion of obligations under finance leases

115

167

Current portion of obligations under operating leases

424

534

Accounts payable

10,995

10,164

Accrued payroll and other compensation

989

797

Accrued income taxes

103

67

Other accrued taxes

540

541

Deferred membership dues revenue

3,643

3,363

Other liabilities and accrued expenses

1,544

1,265

Total current liabilities

18,856

18,024

Long term debt, net of current portion

29,758

19,376

Line of credit

1,550

-

Obligations under finance leases, net of current portion

381

496

Obligations under operating leases, net of current portion

962

1,064

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,490

39,069

Non-controlling interest in subsidiaries

(347)

(92)

Total shareholders' equity

38,143

38,977

Total liabilities and equity

$              89,750

$              78,037