AVALON HOLDINGS CORPORATION ANNOUNCES 2023 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,

2023

2022

2023

2022

Net operating revenues:

Waste management services

$            9,917

$          14,671

$          44,611

$          49,763

Food, beverage and merchandise sales

2,914

2,832

13,491

12,137

Other golf and related operations

4,786

4,133

22,413

19,280

Total golf and related operations

7,700

6,965

35,904

31,417

Total net operating revenues

17,617

21,636

80,515

81,180

Costs and expenses:

Waste management services operating costs

7,776

12,137

35,642

40,380

Cost of food, beverage and merchandise

1,500

1,506

6,318

5,500

Golf and related operations operating costs

5,433

5,040

24,775

21,337

Depreciation and amortization expense

968

930

3,826

3,483

Selling, general and administrative expenses

2,381

2,615

10,227

10,133

Operating (loss) income

(441)

(592)

(273)

347

Other income (expense):

Interest expense

(525)

(504)

(2,098)

(1,464)

Other income, net

61

26

384

231

Loss before income taxes

(905)

(1,070)

(1,987)

(886)

Provision for income taxes

(36)

(14)

57

94

Net loss

(869)

(1,056)

(2,044)

(980)

Less net loss attributable to non-controlling interest in subsidiaries

(38)

(83)

(269)

(397)

Net loss attributable to Avalon Holdings Corporation common shareholders

$              (831)

$              (973)

$           (1,775)

$              (583)

Loss per share attributable to Avalon Holdings Corporation common shareholders:

Basic net loss per share

$             (0.21)

$             (0.25)

$             (0.46)

$             (0.15)

Weighted average shares outstanding - basic

3,899

3,899

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

December 31,

December 31,

2023

2022

Assets

Current Assets:

Cash and cash equivalents

$              1,187

$              1,624

Accounts receivable, net

9,499

11,127

Unbilled membership dues receivable

567

599

Inventories

1,662

1,461

Prepaid expenses

1,116

1,172

Other current assets

14

105

Total current assets

14,045

16,088

Property and equipment, net

56,630

56,805

Property and equipment under finance leases, net

5,711

5,001

Operating lease right-of-use assets

1,270

1,386

Restricted cash

10,265

10,426

Noncurrent deferred tax asset

8

8

Other assets, net

36

36

Total assets

$             87,965

$             89,750

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                 538

$                 503

Current portion of obligations under finance leases

198

115

Current portion of obligations under operating leases

432

424

Accounts payable

9,657

10,995

Accrued payroll and other compensation

1,277

989

Other taxes

539

643

Deferred membership dues revenue

3,443

3,643

Other liabilities and accrued expenses

1,825

1,544

Total current liabilities

17,909

18,856

Long term debt, net of current portion

29,220

29,758

Line of credit

3,200

1,550

Obligations under finance leases, net of current portion

598

381

Obligations under operating leases, net of current portion

838

962

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

36,716

38,490

Non-controlling interest in subsidiaries

(616)

(347)

Total shareholders' equity

36,100

38,143

Total liabilities and equity

$             87,965

$             89,750