Avalon Holdings Corporation Announces Second Quarter Results

WARREN, Ohio, Aug. 9, 2012 /PRNewswire/ --Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2012.

Net operating revenues in the second quarter of 2012 were $12.6 million compared with $11.4 million in the second quarter of 2011. The Company recorded net income of $.3 million, or $.07 per share for the second quarter of 2012 compared with net income of $.1 million, or $.02 per share for the second quarter of 2011.

For the first six months of 2012, net operating revenues increased to $23.5 million compared with $21.3 million for the first six months of 2011. The Company incurred a net loss of $.1 million, or $.03 per share for the first six months of 2012 compared with a net loss of $.3 million or $.07 per share for the first six months of 2011.

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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Net operating revenues	$ 12,609		$ 11,375		$ 23,547		$ 21,269
Costs and expenses:
Costs of operations	10,195		9,354		19,231		17,589
Depreciation and Amortization	407		416		820		835
Selling, general and administrative expenses	1,781		1,691		3,719		3,323
Operating income (loss)	226		(86)		(223)		(478)
Other income (expense):
Interest expense	(4)		(4)		(7)		(7)
Interest income	1		1		2		3
Other income, net	70		177		145		243
Income (loss) before income taxes	293		88		(83)		(239)
Provision for income taxes	19		11		36		24
Net income (loss)	$ 274		$ 77		$ (119)		$ (263)
Net income (loss) per share- basic	$ .07		$ .02		$ (.03)		$ (.07)
Net income (loss) per share- diluted	$ .07		$ .02		$ (.03)		$ (.07)
Weighted average shares outstanding - basic	3,803		3,803		3,803		3,803
Weighted average shares outstanding - diluted	4,108		3,869		3,803		3,803

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands)
	June 30,		December 31,
	2012		2011
Assets:	(Unaudited)
Current Assets:
Cash and cash equivalents	$ 6,961		$ 7,324
Accounts receivable, net	9,712		12,885
Prepaid expenses	293		281
Refundable income taxes	2		2
Other current assets	910		717
Total current assets	17,878		21,209
Property and equipment, net	25,630		26,079
Leased property under capital leases, net	6,700		5,984
Noncurrent deferred tax asset	8		8
Other assets, net	108		87
Total assets.	$ 50,324		$ 53,367
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of obligations under capital leases	$ 1		$ 1
Accounts payable	5,927		9,643
Accrued payroll and other compensation	615		755
Accrued income taxes	7		20
Other accrued taxes	168		260
Deferred revenues	2,862		2,105
Other liabilities and accrued expenses	506		406
Total current liabilities	10,086		13,190
Obligations under capital leases	227		227
Total shareholders' equity	40,011		39,950
Total liabilities and shareholders' equity	$ 50,324		$ 53,367

SOURCE Avalon Holdings Corporation