WARREN, Ohio, Nov. 11, 2010 Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the third quarter of 2010.
Net operating revenues in the third quarter of 2010 increased to $11.8 million compared with $9.6 million in the prior year's third quarter. The Company incurred a net loss of $2,000 for the third quarter of 2010 compared with break even for the third quarter of 2009.
For the first nine months of 2010, net operating revenues increased to $32.2 million compared with $26.8 million for the first nine months of 2009. The Company incurred a net loss of $.6 million, or $.16 per share for the first nine months of 2010 compared with a net loss of $.7 million, or $.18 per share for the prior year period.
Steven M. Berry, President and Chief Executive Officer commented, "In the third quarter of 2010, we continued to show improvement in several of our key financial metrics. Revenues of the waste management services segment increased by $2.0 million or 32% compared with the same quarter in 2009. Although the net results were about the same for both quarters, the third quarter of 2010 included approximately $.1 million of non-recurring maintenance expenses at the corporate headquarters building. Conversely, the third quarter of 2009 was favorably impacted by a $.1 million positive adjustment resulting from the suspension of the Company's 401k contribution. Excluding these non-recurring items, we actually experienced a $.2 million improvement in operating income during the current quarter. In summary, we continue to make progress and remain committed to identifying opportunities for the creation of future shareholder value."
Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and Midwestern U.S. markets. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates golf courses and related facilities.
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, ------------- ------------- 2010 2009 2010 2009 ---- -- ---- ---- Net operating revenues $11,789 $9,619 $32,170 $26,834 Costs and expenses: Costs of operations 9,581 7,757 26,408 21,833 Depreciation and Amortization 421 420 1,263 1,268 Selling, general and administrative expenses 1,830 1,484 5,249 4,549 ----- ----- ----- ----- Operating loss (43) (42) (750) (816) Other income (expense): Interest expense (3) (5) (10) (12) Interest income 5 10 21 24 Other income, net 47 41 163 155 --- --- --- --- Income (loss) before income taxes 6 4 (576) (649) Provision for income taxes 8 4 22 18 --- --- --- --- Net loss $(2) $0 $(598) $(667) --- === ===== ===== Net loss per share - basic and diluted $0 $0 $(.16) $(.18) === === ===== ===== Weighted average shares outstanding - basic and diluted 3,803 3,803 3,803 3,803 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 2010 2009 ---- ---- Assets: (Unaudited) Current Assets: Cash and cash equivalents $5,694 $5,862 Accounts receivable, net 7,410 7,094 Prepaid expenses 280 291 Refundable income taxes 24 25 Other current assets 662 568 --- --- Total current assets 14,070 13,840 Property and equipment, net 27,571 28,277 Leased property under capital leases, net 5,404 5,574 Noncurrent deferred tax asset 8 8 Other assets, net 58 58 --- --- Total assets $47,111 47,757 Liabilities and Shareholders' Equity Current Liabilities: Current portion of obligations under capital leases $1 $1 Accounts payable 4,580 5,119 Accrued payroll and other compensation 696 545 Accrued income taxes 8 - Other accrued taxes 204 274 Deferred revenues 2,101 1,943 Other liabilities and accrued expenses 337 246 --- --- Total current liabilities 7,927 8,128 Obligations under capital leases 229 229 Total shareholders' equity 38,955 39,400 ------ ------ Total liabilities and shareholders' equity $47,111 $47,757
Avalon Holdings Corp.
CONTACT: Mr. Timothy C. Coxson, Chief Financial Officer, Avalon Holdings
Corporation, +1-330-856-8800
