AVALON HOLDINGS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

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,

2022

2021

2022

2021

Net operating revenues:

Waste management services

$          15,036

$          11,444

$          35,092

$          31,279

Food, beverage and merchandise sales

4,077

3,984

9,305

8,608

Other golf and related operations

6,600

5,873

15,147

12,917

Total golf and related operations

10,677

9,857

24,452

21,525

Total net operating revenues

25,713

21,301

59,544

52,804

Costs and expenses:

Waste management services operating costs

12,173

9,385

28,243

25,055

Cost of food, beverage and merchandise

1,721

1,657

3,994

3,598

Golf and related operations operating costs

6,511

5,692

16,297

13,356

Depreciation and amortization expense

882

777

2,553

2,308

Selling, general and administrative expenses

2,913

2,743

7,518

7,559

Operating income

1,513

1,047

939

928

Other income (expense):

Interest expense

(408)

(290)

(960)

(878)

Gain on debt extinguishment

-

-

-

1,964

Other income, net

22

85

205

298

Income before income taxes

1,127

842

184

2,312

Provision for income taxes

55

27

108

85

Net income 

1,072

815

76

2,227

Less net loss attributable to non-controlling interest in subsidiary

(96)

(168)

(314)

(214)

Net income attributable to Avalon Holdings Corporation common shareholders

$            1,168

$               983

$               390

$            2,441

Income per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income per share

$              0.30

$              0.25

$              0.10

$              0.63

Diluted net income per share

$              0.30

$              0.25

$              0.10

$              0.62

Weighted average shares outstanding - basic 

3,899

3,899

3,899

3,899

Weighted average shares outstanding - diluted

3,919

3,931

3,922

3,935

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30,

December 31,

2022

2021

Assets

Current Assets:

Cash and cash equivalents

$              1,476

$              3,254

Accounts receivable, net

13,409

9,933

Unbilled membership dues receivable

878

578

Inventories

1,489

1,105

Prepaid expenses

1,058

996

Other current assets

90

105

Total current assets

18,400

15,971

Property and equipment, net

56,496

53,338

Property and equipment under finance leases, net

5,134

5,390

Operating lease right-of-use assets

1,191

1,598

Restricted cash

10,415

1,696

Noncurrent deferred tax asset

8

8

Other assets, net

36

36

Total assets

$             91,680

$             78,037

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                 494

$              1,126

Current portion of obligations under finance leases

130

167

Current portion of obligations under operating leases

478

534

Accounts payable

10,997

10,164

Accrued payroll and other compensation

1,504

797

Accrued income taxes

128

67

Other accrued taxes

423

541

Deferred membership dues revenue

4,649

3,363

Other liabilities and accrued expenses

1,628

1,265

Total current liabilities

20,431

18,024

Long term debt, net of current portion

29,887

19,376

Line of credit

950

-

Obligations under finance leases, net of current portion

401

496

Obligations under operating leases, net of current portion

713

1,064

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

39,462

39,069

Non-controlling interest in subsidiary

(264)

(92)

Total shareholders' equity

39,198

38,977

Total liabilities and equity

$             91,680

$             78,037