Avalon Holdings Corporation Announces Third Quarter Results

Rhea-AI Summary

Avalon Holdings Corporation (AWX) reported third-quarter 2020 financial results with net operating revenues of $16.6 million, down from $18.0 million in Q3 2019. Net income attributable to common shareholders was $0.8 million ($0.20 per share) compared to $0.1 million ($0.04 per share) last year. For the first nine months, revenues totaled $44.1 million, down from $51.1 million in 2019, with a net loss of $0.5 million compared to a loss of less than $0.1 million last year. The company provides waste management services and operates resorts and clubs.

Positive

• Net income increased to $0.8 million in Q3 2020 from $0.1 million in Q3 2019.
• Basic net income per share improved to $0.20 in Q3 2020 from $0.04 in Q3 2019.

Negative

• Net operating revenues declined from $18.0 million in Q3 2019 to $16.6 million in Q3 2020.
• Total revenues for the first nine months fell from $51.1 million in 2019 to $44.1 million in 2020.
• Net loss for the first nine months was $0.5 million compared to a loss of less than $0.1 million in 2019.

WARREN, Ohio, Nov. 12, 2020 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2020.

Net operating revenues in the third quarter of 2020 were $16.6 million compared with $18.0 million in the third quarter of 2019.  The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.1 million in the third quarter of 2019.  For the third quarter of 2020, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.20 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.04 in the third quarter of 2019.

For the first nine months of 2020, net operating revenues were $44.1 million compared with $51.1 million for the first nine months of 2019.  The Company incurred a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $0.5 million in the first nine months of 2020 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of less than $0.1 million in the first nine months of 2019.  For the first nine months of 2020, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.12 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.00 in the first nine 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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Net operating revenues:
Waste management services	$            9,326		$          11,572		$          29,547		$          35,908
Food, beverage and merchandise sales	2,851		2,587		5,247		6,027
Other golf and related operations	4,448		3,859		9,301		9,116
Total golf and related operations	7,299		6,446		14,548		15,143
Total net operating revenues	16,625		18,018		44,095		51,051
Costs and expenses:
Waste management services operating costs	7,393		9,229		23,473		28,773
Cost of food, beverage and merchandise	1,092		1,169		2,184		2,683
Golf and related operations operating costs	4,270		4,266		9,777		10,361
Depreciation and amortization expense	741		630		2,152		1,848
Selling, general and administrative expenses	2,110		2,379		6,269		6,990
Operating income	1,019		345		240		396
Other income (expense):
Interest expense	(302)		(222)		(913)		(600)
Other income, net	83		41		264		257
Income (loss) before income taxes	800		164		(409)		53
Provision for income taxes	27		38		95		135
Net income (loss)	773		126		(504)		(82)
Less net loss attributable to non-controlling interest in subsidiary	(8)		(18)		(37)		(67)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$               781		$               144		$              (467)		$                (15)
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$              0.20		$              0.04		$             (0.12)		$             (0.00)
Diluted net income (loss) per share	$              0.20		$              0.04		$             (0.12)		$             (0.00)
Weighted average shares outstanding - basic	3,875		3,875		3,875		3,875
Weighted average shares outstanding - diluted	3,875		3,893		3,875		3,875

 

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	September 30,		December 31,
	2020		2019
Assets
Current Assets:
Cash and cash equivalents	$              4,667		$              1,446
Accounts receivable, net	8,679		12,009
Unbilled membership dues receivable	866		602
Inventories	1,034		813
Prepaid expenses	810		725
Other current assets	15		15
Total current assets	16,071		15,610
Property and equipment, net	50,473		48,978
Property and equipment under finance leases, net	5,913		5,878
Operating lease right-of-use assets	1,280		1,466
Restricted cash	4,246		7,185
Noncurrent deferred tax asset	8		8
Other assets, net	36		39
Total assets	$             78,027		$             79,164
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$              2,622		$              1,015
Current portion of obligations under finance leases	343		295
Current portion of obligations under operating leases	533		513
Accounts payable	8,094		11,719
Accrued payroll and other compensation	956		961
Accrued income taxes	46		93
Other accrued taxes	362		434
Deferred membership dues revenue	4,041		3,153
Other liabilities and accrued expenses	1,125		839
Total current liabilities	18,122		19,022
Long term debt, net of current portion	21,972		21,570
Obligations under finance leases, net of current portion	622		555
Obligations under operating leases, net of current portion	747		953
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,567		37,030
Non-controlling interest in subsidiary	(103)		(66)
Total shareholders' equity	36,464		36,964
Total liabilities and equity	$             78,027		$             79,164

 

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SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings Corporation's Q3 2020 revenues?

Avalon Holdings Corporation reported Q3 2020 revenues of $16.6 million.

How did Avalon Holdings Corporation's net income change in Q3 2020?

Net income increased to $0.8 million in Q3 2020, compared to $0.1 million in Q3 2019.

What was the basic earnings per share for Avalon Holdings Corporation in Q3 2020?

The basic net income per share was $0.20 in Q3 2020.

How did Avalon Holdings Corporation perform in the first nine months of 2020?

In the first nine months of 2020, Avalon Holdings reported revenues of $44.1 million and a net loss of $0.5 million.

What was the decline in operating revenues for Avalon Holdings Corporation in Q3 2020?

Operating revenues declined from $18.0 million in Q3 2019 to $16.6 million in Q3 2020.