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AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

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Avalon Holdings reported its first-quarter financial results for 2024. Net operating revenues increased to $18.9 million from $18.4 million in 2023. The net loss attributable to common shareholders decreased to $1.0 million from $1.7 million in 2023. The basic net loss per share also improved to $0.25 from $0.43. Avalon Holdings provides waste management services and owns Avalon Resorts and Clubs Inc., with various operations.

Positive
  • Net operating revenues increased to $18.9 million compared to $18.4 million in 2023.

  • The net loss attributable to common shareholders decreased to $1.0 million from $1.7 million in 2023.

  • Basic net loss per share improved to $0.25 from $0.43 in 2023.

  • Avalon Holdings provides waste management services and owns Avalon Resorts and Clubs Inc., with various operations.

Negative
  • None.

Insights

Avalon Holdings Corporation's Q1 financials indicate a slight increase in net operating revenues year-over-year, suggesting a stable revenue flow. However, the company's ability to reduce its net loss from $1.7 million to $979,000 within a year shows progress in cost management and operational efficiency, which can be a sign of improving financial health. From an investor's perspective, the per share loss reduction from $0.43 to $0.25 might not be significant enough to boost investor confidence significantly, but it indicates a reduced burden on shareholders. This scenario points towards a cautious observation of the company's future quarters for a consistent pattern of improvement before drawing conclusions on its recovery or growth trajectory.

The growth in other golf and related operations is notable as it signifies diversification of revenue streams away from the core waste management services. The increase in revenue in this department could attract investors interested in companies leveraging hospitality and recreation amenities as a growth strategy. The company's pivot or growth in the area of golf courses and related country clubs is strategic, as these sectors can sometimes be less sensitive to economic downturns than others. However, the general market for waste management should be closely monitored as it still constitutes the majority of their revenue and has seen a slight decline.

WARREN, Ohio, May 8, 2024 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2024.              

Net operating revenues in the first quarter of 2024 were $18.9 million compared with $18.4 million in the first quarter of 2023.  The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the first quarter of 2024 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $1.7 million in the first quarter of 2023. For the first quarter of 2024, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.25 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.43 in the first quarter of 2023.              

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


March 31,


2024


2023





Net operating revenues:




Waste management services

$                      12,470


$                      12,652

Food, beverage and merchandise sales

2,011


1,974

Other golf and related operations

4,377


3,819

Total golf and related operations

6,388


5,793

Total net operating revenues

18,858


18,445





Costs and expenses:




Waste management services operating costs

9,897


10,380

Cost of food, beverage and merchandise

1,025


1,023

Golf and related operations operating costs

4,873


4,836

Depreciation and amortization expense

980


940

Selling, general and administrative expenses

2,596


2,530

Operating loss

(513)


(1,264)





Other income (expense):




Interest expense, net

(508)


(504)

Other income, net

7


-

Loss before income taxes

(1,014)


(1,768)





Provision for income taxes

40


31

Net loss

(1,054)


(1,799)





Less net loss attributable to non-controlling interest in subsidiaries

(75)


(122)

Net loss attributable to Avalon Holdings Corporation common shareholders

$                         (979)


$                      (1,677)





Loss per share attributable to Avalon Holdings Corporation common shareholders:




Basic net loss per share

$                        (0.25)


$                        (0.43)





Weighted average shares outstanding - basic 

3,899


3,899

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)










March 31,


December 31,


2024


2023

Assets




Current Assets:




Cash and cash equivalents

$              1,163


$              1,187

Accounts receivable, net

12,265


9,499

Unbilled membership dues receivable

790


567

Inventories

1,861


1,662

Prepaid expenses

1,282


1,116

Other current assets

16


14

Total current assets

17,377


14,045





Property and equipment, net

56,158


56,630

Property and equipment under finance leases, net

5,580


5,711

Operating lease right-of-use assets

1,254


1,270

Restricted cash

10,192


10,265

Noncurrent deferred tax asset

8


8

Other assets, net

34


36

Total assets

$            90,603


$            87,965





Liabilities and Equity




Current liabilities:




Current portion of long term debt

$                 547


$                 538

Current portion of obligations under finance leases

197


198

Current portion of obligations under operating leases

417


432

Accounts payable

11,316


9,657

Accrued payroll and other compensation

1,753


1,277

Accrued taxes

504


539

Deferred membership dues revenue

5,158


3,443

Other liabilities and accrued expenses

1,863


1,825

Total current liabilities

21,755


17,909





Long-term debt, net of current portion

29,080


29,220

Line of credit

3,200


3,200

Obligations under finance leases, net of current portion

585


598

Obligations under operating leases, net of current portion

837


838

Asset retirement obligation

100


100





Equity:




Total Avalon Holdings Corporation Shareholders' Equity

35,737


36,716

Non-controlling interest in subsidiaries

(691)


(616)

Total shareholders' equity

35,046


36,100

Total liabilities and equity

$            90,603


$            87,965

 

Cision View original content:https://www.prnewswire.com/news-releases/avalon-holdings-corporation-announces-first-quarter-results-302136778.html

SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings 's first-quarter 2024 net operating revenues?

Avalon Holdings reported net operating revenues of $18.9 million for the first quarter of 2024.

What was the net loss attributable to Avalon Holdings common shareholders in the first quarter of 2024?

The net loss attributable to Avalon Holdings common shareholders was $1.0 million in the first quarter of 2024.

What is the stock symbol for Avalon Holdings ?

The stock symbol for Avalon Holdings is AWX.

Avalon Holdings Corp.

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Waste Management
Refuse Systems
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United States of America
WARREN