Avalon Holdings Corporation Announces Second Quarter Results

Rhea-AI Summary

Avalon Holdings Corporation (AWX) reported a net operating revenue of $13.1 million for Q2 2020, a decline from $18.4 million in Q2 2019. The company experienced a net loss of $0.4 million, reversing the net income of $0.5 million from the previous year. For the first half of 2020, revenues totaled $27.5 million, down from $33.0 million in H1 2019, with a net loss of $1.2 million compared to a loss of $0.2 million last year. Basic net loss per share was $0.32, up from $0.04.

Positive

• Cash and cash equivalents increased to $5.53 million from $1.45 million.
• Accounts receivable decreased, indicating improved collection efficiency.

Negative

• Net operating revenues fell by 29% year-over-year.
• Net loss of $0.4 million in Q2 2020 compared to a profit in Q2 2019.
• Current liabilities increased to $18.73 million, highlighting potential cash flow issues.

WARREN, Ohio, Aug. 7, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2020.

Net operating revenues in the second quarter of 2020 were $13.1 million compared with $18.4 million in the second quarter of 2019.  The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.4 million in the second quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the second quarter of 2019.  For the second quarter of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.11 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the second quarter of 2019.

For the first six months of 2020, net operating revenues were $27.5 million compared with $33.0 million for the first six months of 2019.  The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.2 million in the first six months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.2 million in the first six months of 2019.  For the first six months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.32 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the first six months of 2019.

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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net operating revenues:
Waste management services	$            9,088		$          12,902		$          20,221		$          24,336
Food, beverage and merchandise sales	1,361		2,358		2,396		3,440
Other golf and related operations	2,618		3,165		4,853		5,257
Total golf and related operations	3,979		5,523		7,249		8,697
Total net operating revenues	13,067		18,425		27,470		33,033
Costs and expenses:
Waste management services operating costs	7,211		10,296		16,080		19,544
Cost of food, beverage and merchandise	564		999		1,092		1,514
Golf and related operations operating costs	2,875		3,563		5,507		6,095
Depreciation and amortization expense	712		618		1,411		1,218
Selling, general and administrative expenses	1,927		2,380		4,159		4,611
Operating income (loss)	(222)		569		(779)		51
Other income (expense):
Interest expense	(304)		(215)		(611)		(378)
Other income, net	103		148		181		216
Income (loss) before income taxes	(423)		502		(1,209)		(111)
Provision for income taxes	24		57		68		97
Net income (loss)	(447)		445		(1,277)		(208)
Less net loss attributable to non-controlling interest in subsidiary	(12)		(34)		(29)		(49)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$              (435)		$               479		$           (1,248)		$              (159)
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$             (0.11)		$              0.12		$             (0.32)		$             (0.04)
Diluted net income (loss) per share	$             (0.11)		$              0.12		$             (0.32)		$             (0.04)
Weighted average shares outstanding - basic	3,875		3,875		3,875		3,875
Weighted average shares outstanding - diluted	3,875		3,894		3,875		3,875

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	June 30,		December 31,
	2020		2019
Assets
Current Assets:
Cash and cash equivalents	$              5,529		$              1,446
Accounts receivable, net	7,809		12,009
Unbilled membership dues receivable	1,109		602
Inventories	1,072		813
Prepaid expenses	559		725
Other current assets	15		15
Total current assets	16,093		15,610
Property and equipment, net	50,341		48,978
Property and equipment under finance leases, net	6,053		5,878
Operating lease right-of-use assets	1,500		1,466
Restricted cash	4,934		7,185
Noncurrent deferred tax asset	8		8
Other assets, net	37		39
Total assets	$             78,966		$             79,164
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$              2,146		$              1,015
Current portion of obligations under finance leases	353		295
Current portion of obligations under operating leases	528		513
Accounts payable	8,661		11,719
Accrued payroll and other compensation	1,052		961
Accrued income taxes	41		93
Other accrued taxes	252		434
Deferred membership dues revenue	4,776		3,153
Other liabilities and accrued expenses	919		839
Total current liabilities	18,728		19,022
Long term debt, net of current portion	22,703		21,570
Obligations under finance leases, net of current portion	773		555
Obligations under operating leases, net of current portion	972		953
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	35,785		37,030
Non-controlling interest in subsidiary	(95)		(66)
Total shareholders' equity	35,690		36,964
Total liabilities and equity	$             78,966		$             79,164

 

 

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SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings Corporation's Q2 2020 financial results?

Avalon Holdings Corporation reported net operating revenues of $13.1 million and a net loss of $0.4 million for Q2 2020.

How did Avalon Holdings Corporation's revenue change in 2020?

The company's revenues decreased from $18.4 million in Q2 2019 to $13.1 million in Q2 2020.

What is Avalon Holdings Corporation's basic net loss per share for 2020?

The basic net loss per share for Avalon Holdings Corporation in the first half of 2020 was $0.32.

What were the total revenues for Avalon Holdings Corporation in the first six months of 2020?

Total revenues for Avalon Holdings Corporation in the first six months of 2020 were $27.5 million.

How did Avalon Holdings Corporation perform compared to 2019?

Avalon Holdings Corporation's net loss increased from a $0.2 million loss in the first half of 2019 to $1.2 million in the same period in 2020.