AVALON HOLDINGS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

Rhea-AI Summary

Avalon Holdings (NYSE Amex: AWX) reported strong Q3 2024 financial results. Net operating revenues reached $24.2 million, up from $24.0 million in Q3 2023. Net income attributable to shareholders doubled to $1.8 million ($0.47 per share) compared to $0.9 million ($0.23 per share) in Q3 2023. For the first nine months of 2024, revenues increased to $66.2 million from $63.2 million, with net income of $1.8 million versus a $0.9 million loss in the same period of 2023.

Positive

• Net income doubled to $1.8 million in Q3 2024 vs $0.9 million in Q3 2023
• Nine-month revenues increased to $66.2 million from $63.2 million YoY
• Turned $0.9 million loss into $1.8 million profit for first nine months YoY
• EPS improved to $0.47 from $0.23 in Q3 YoY

Negative

• Waste management services revenue declined to $11.46M from $11.74M in Q3 YoY
• Operating lease obligations increased to $1.42M from $1.27M

Insights

Financial Analyst

Avalon Holdings delivered a strong third quarter with significant improvements in profitability. $24.2M in revenue represents a modest 0.8% YoY growth, but net income doubled to $1.8M from $0.9M. The EPS jumped to $0.47 from $0.23.

The company's diversified business model is showing resilience. While waste management revenues slightly declined, golf and related operations grew by 4.8% to $12.8M. The balance sheet strengthened with cash positions increasing to $3.9M from $1.2M at year-end 2023. Debt levels remained stable, with total long-term debt at $28.8M.

Notable operational efficiency improvements are evident in cost management, particularly in waste management services where operating costs decreased despite inflationary pressures. The company's ability to maintain margins while growing revenue suggests strong operational execution.

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

Net operating revenues in the third quarter of 2024 were $24.2 million compared with $24.0 million in the third quarter of 2023. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.8 million in the third quarter of 2024 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.9 million in the third quarter of 2023. For the third quarter of 2024, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.47 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.23 in the third quarter of 2023.

For the first nine months of 2024, net operating revenues were $66.2 million compared with $63.2 million for the first nine months of 2023. The Company recorded a net income attributable to Avalon Holdings Corporation common shareholders of approximately $1.8 million in the first nine months of 2024 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $0.9 million in the first nine months of 2023. For the first nine months of 2024, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.47 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.24 in the first nine months 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				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net operating revenues:
Waste management services	$          11,461		$          11,744		$          36,151		$          34,694
Food, beverage and merchandise sales	4,615		4,609		10,622		10,577
Other golf and related operations	8,159		7,576		19,377		17,907
Total golf and related operations	12,774		12,185		29,999		28,484
Total net operating revenues	24,235		23,929		66,150		63,178
Costs and expenses:
Waste management services operating costs	8,949		9,262		28,372		27,866
Cost of food, beverage and merchandise	2,010		1,984		4,717		4,818
Golf and related operations operating costs	7,308		7,519		18,925		19,342
Depreciation and amortization expense	975		963		2,957		2,858
Selling, general and administrative expenses	2,719		2,815		7,970		7,846
Operating income	2,274		1,386		3,209		448
Other income (expense):
Interest expense, net	(502)		(519)		(1,531)		(1,530)
Other income, net	-		-		7		-
Income (loss) before income taxes	1,772		867		1,685		(1,082)
Provision for income taxes	42		39		126		93
Net income (loss)	1,730		828		1,559		(1,175)
Less net loss attributable to non-controlling interest in subsidiary	(110)		(57)		(256)		(231)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$            1,840		$               885		$            1,815		$             (944)
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net income (loss) per share	$              0.47		$              0.23		$              0.47		$            (0.24)
Weighted average shares outstanding - basic and diluted	3,899		3,899		3,899		3,899

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	September 30,		December 31,
	2024		2023
Assets
Current Assets:
Cash and cash equivalents	$               3,946		$               1,187
Accounts receivable, net	10,003		9,499
Unbilled membership dues receivable	845		567
Inventories	1,713		1,662
Prepaid expenses	680		1,116
Other current assets	15		14
Total current assets	17,202		14,045
Property and equipment, net	55,792		56,630
Property and equipment under finance leases, net	5,523		5,711
Operating lease right-of-use assets	1,418		1,270
Restricted cash	9,141		10,265
Noncurrent deferred tax asset	8		8
Other assets, net	34		36
Total assets	$             89,118		$             87,965
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$                  565		$                  538
Current portion of obligations under finance leases	189		198
Current portion of obligations under operating leases	340		432
Accounts payable	7,680		9,657
Accrued payroll and other compensation	1,750		1,277
Accrued taxes	560		539
Deferred membership dues revenue	4,671		3,443
Other liabilities and accrued expenses	1,899		1,825
Total current liabilities	17,654		17,909
Long term debt, net of current portion	28,793		29,220
Line of credit	3,200		3,200
Obligations under finance leases, net of current portion	634		598
Obligations under operating leases, net of current portion	1,078		838
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	38,531		36,716
Non-controlling interest in subsidiary	(872)		(616)
Total shareholders' equity	37,659		36,100
Total liabilities and equity	$             89,118		$             87,965

 

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SOURCE Avalon Holdings Corporation

FAQ

What was Avalon Holdings (AWX) earnings per share in Q3 2024?

Avalon Holdings reported earnings of $0.47 per share in Q3 2024, compared to $0.23 per share in Q3 2023.

How much revenue did Avalon Holdings (AWX) generate in Q3 2024?

Avalon Holdings generated net operating revenues of $24.2 million in Q3 2024, slightly up from $24.0 million in Q3 2023.

What was Avalon Holdings (AWX) net income for Q3 2024?

Avalon Holdings reported net income attributable to shareholders of $1.8 million in Q3 2024, up from $0.9 million in Q3 2023.