Avalon Holdings Corporation Announces Third Quarter Results

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Avalon Holdings Corporation (NYSE Amex: AWX) reported a net operating revenue of $21.3 million for Q3 2021, an increase from $16.6 million in Q3 2020. Net income for common shareholders rose to $1.0 million compared to $0.8 million in the previous year. For the first nine months of 2021, revenues reached $52.8 million, up from $44.1 million in 2020. The company shifted from a net loss of $0.5 million to a net income of $2.4 million during this period.

Positive

• Net operating revenues increased by 28.4% year-over-year in Q3 2021, rising from $16.6 million to $21.3 million.
• Net income attributable to common shareholders increased to $1.0 million in Q3 2021, up from $0.8 million in Q3 2020.
• For the first nine months of 2021, the company reported $52.8 million in revenues, an increase of 19.1% compared to $44.1 million in the same period of 2020.
• The company transitioned from a net loss of $0.5 million to a net income of $2.4 million for the first nine months of 2021.

Negative

• The current portion of long-term debt increased to $1.111 million in Q3 2021 compared to $1.594 million in December 2020, indicating a rising financial obligation.

WARREN, Ohio, Nov. 12, 2021 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2021.

Net operating revenues in the third quarter of 2021 were $21.3 million compared with $16.6 million in the third quarter of 2020.  The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the third quarter of 2021 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the third quarter of 2020.  For the third quarter of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.25 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.20 in the third quarter of 2020.

For the first nine months of 2021, net operating revenues were $52.8 million compared with $44.1 million for the first nine months of 2020.  The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $2.4 million in the first nine months of 2021 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $0.5 million in the first nine months of 2020.  For the first nine months of 2021, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.63 compared with a basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.12 in the first nine months of 2020.

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,
	2021		2020		2021		2020
Net operating revenues:
Waste management services	$          11,444		$            9,326		$          31,279		$          29,547
Food, beverage and merchandise sales	3,984		2,851		8,608		5,247
Other golf and related operations	5,873		4,448		12,917		9,301
Total golf and related operations	9,857		7,299		21,525		14,548
Total net operating revenues	21,301		16,625		52,804		44,095
Costs and expenses:
Waste management services operating costs	9,385		7,393		25,055		23,473
Cost of food, beverage and merchandise	1,657		1,092		3,598		2,184
Golf and related operations operating costs	5,692		4,270		13,356		9,777
Depreciation and amortization expense	777		741		2,308		2,152
Selling, general and administrative expenses	2,743		2,110		7,559		6,269
Operating income	1,047		1,019		928		240
Other income (expense):
Interest expense	(290)		(302)		(878)		(913)
Gain on debt extinguishment	-		-		1,964		-
Other income, net	85		83		298		264
Income (loss) before income taxes	842		800		2,312		(409)
Provision for income taxes	27		27		85		95
Net income (loss)	815		773		2,227		(504)
Less net loss attributable to non-controlling interest in subsidiaries	(168)		(8)		(214)		(37)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$               983		$               781		$            2,441		$              (467)
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic net income (loss) per share	$              0.25		$              0.20		$              0.63		$             (0.12)
Diluted net income (loss) per share	$              0.25		$              0.20		$              0.62		$             (0.12)
Weighted average shares outstanding - basic	3,899		3,875		3,899		3,875
Weighted average shares outstanding - diluted	3,931		3,875		3,935		3,875

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	September 30,		December 31,
	2021		2020
Assets
Current Assets:
Cash and cash equivalents	$              4,106		$              4,210
Accounts receivable, net	9,919		8,744
Unbilled membership dues receivable	839		585
Inventories	1,154		910
Prepaid expenses	751		730
Other current assets	66		80
Total current assets	16,835		15,259
Property and equipment, net	52,625		51,299
Property and equipment under finance leases, net	5,644		5,735
Operating lease right-of-use assets	1,354		1,728
Restricted cash	2,092		3,885
Noncurrent deferred tax asset	8		8
Other assets, net	36		36
Total assets	$             78,594		$             77,950
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$              1,111		$              1,594
Current portion of obligations under finance leases	178		333
Current portion of obligations under operating leases	540		529
Accounts payable	8,973		9,097
Accrued payroll and other compensation	1,226		809
Accrued income taxes	97		43
Other accrued taxes	428		461
Deferred membership dues revenue	4,422		3,196
Other liabilities and accrued expenses	1,042		1,121
Total current liabilities	18,017		17,183
Long term debt, net of current portion	19,663		21,941
Obligations under finance leases, net of current portion	444		560
Obligations under operating leases, net of current portion	814		1,199
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	39,538		37,093
Non-controlling interest in subsidiaries	18		(126)
Total shareholders' equity	39,556		36,967
Total liabilities and equity	$             78,594		$             77,950

 

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SOURCE Avalon Holdings Corporation

FAQ

What are the financial results of Avalon Holdings Corporation for Q3 2021?

Avalon Holdings reported net operating revenues of $21.3 million and a net income of $1.0 million for Q3 2021.

How did Avalon Holdings perform in the first nine months of 2021?

For the first nine months of 2021, Avalon Holdings reported revenues of $52.8 million and a net income of $2.4 million.

What was the increase in net income for Avalon Holdings in Q3 2021 compared to Q3 2020?

Net income increased to $1.0 million in Q3 2021 from $0.8 million in Q3 2020.

What does the revenue growth indicate for Avalon Holdings Corporation's stock symbol AWX?

The revenue growth signifies improving financial health, which could positively impact investor sentiment for AWX.