AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

Rhea-AI Summary

Avalon Holdings Corporation (AWX) reported a net loss of $1.3 million for Q1 2022, a decline from a net income of $0.7 million in Q1 2021. Net operating revenues fell to $14.3 million, down from $15.1 million from the previous year. Basic and diluted net loss per share was $0.32, contrasting with $0.18 income per share a year earlier. Operating costs increased in both waste management services and associated operations, impacting profitability.

Positive

• Net operating revenues from waste management services were $9.3 million, despite a decline from $11.2 million in Q1 2021.
• The company’s total current assets increased to $16.5 million compared to $15.9 million in the previous year.

Negative

• Net loss attributable to Avalon shareholders was $1.3 million compared to a profit of $0.7 million last year.
• Basic and diluted net loss per share decreased to $0.32 from $0.18 earnings per share in Q1 2021.
• Total net operating revenues decreased by 5.3% year-over-year.

WARREN, Ohio, May 12, 2022 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2022.

Net operating revenues in the first quarter of 2022 were $14.3 million compared with $15.1 million in the first quarter of 2021.  The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.3 million in the first quarter of 2022 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.7 million in the first quarter of 2021. For the first quarter of 2022, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.32 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.18 in the first quarter of 2021.       

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,
	2022		2021
Net operating revenues:
Waste management services	$                       9,339		$                     11,150
Food, beverage and merchandise sales	1,665		1,341
Other golf and related operations	3,305		2,622
Total golf and related operations	4,970		3,963
Total net operating revenues	14,309		15,113
Costs and expenses:
Waste management services operating costs	7,578		8,701
Cost of food, beverage and merchandise	748		593
Golf and related operations operating costs	4,055		2,921
Depreciation and amortization expense	829		764
Selling, general and administrative expenses	2,265		2,280
Operating loss	(1,166)		(146)
Other income (expense):
Interest expense	(278)		(297)
Gain on debt extinguishment	-		1,087
Other income, net	64		87
Income (loss) before income taxes	(1,380)		731
Provision for income taxes	20		43
Net income (loss)	(1,400)		688
Less net loss attributable to non-controlling interest in subsidiaries	(138)		(28)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$                     (1,262)		$                          716
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$                       (0.32)		$                         0.18
Diluted net income (loss) per share	$                       (0.32)		$                         0.18
Weighted average shares outstanding - basic	3,899		3,899
Weighted average shares outstanding - diluted	3,899		3,945

 

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	March 31,		December 31,
	2022		2021
Assets
Current Assets:
Cash and cash equivalents	$               2,430		$               3,254
Accounts receivable, net	10,737		9,933
Unbilled membership dues receivable	760		578
Inventories	1,358		1,105
Prepaid expenses	1,180		996
Other current assets	44		105
Total current assets	16,509		15,971
Property and equipment, net	54,496		53,338
Property and equipment under finance leases, net	5,301		5,390
Operating lease right-of-use assets	1,588		1,598
Restricted cash	676		1,696
Noncurrent deferred tax asset	8		8
Other assets, net	35		36
Total assets	$              78,613		$              78,037
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$               1,140		$               1,126
Current portion of obligations under finance leases	157		167
Current portion of obligations under operating leases	519		534
Accounts payable	10,196		10,164
Accrued payroll and other compensation	1,261		797
Accrued income taxes	74		67
Other accrued taxes	474		541
Deferred membership dues revenue	4,943		3,363
Other liabilities and accrued expenses	1,381		1,265
Total current liabilities	20,145		18,024
Long term debt, net of current portion	19,086		19,376
Obligations under finance leases, net of current portion	493		496
Obligations under operating leases, net of current portion	1,069		1,064
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	37,808		39,069
Non-controlling interest in subsidiaries	(88)		(92)
Total shareholders' equity	37,720		38,977
Total liabilities and equity	$              78,613		$              78,037

 

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SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings Corporation's Q1 2022 financial results?

Avalon Holdings reported a net loss of $1.3 million and net operating revenues of $14.3 million for Q1 2022.

How did Avalon Holdings' revenues change from Q1 2021 to Q1 2022?

Revenues decreased from $15.1 million in Q1 2021 to $14.3 million in Q1 2022.

What was Avalon Holdings' net loss per share in Q1 2022?

Basic and diluted net loss per share attributable to Avalon Holdings was $0.32 in Q1 2022.

How much did Avalon Holdings spend on operating costs in Q1 2022?

Avalon Holdings experienced increased operating costs in both waste management and related operations.