AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

WARREN, Ohio, May 10, 2023 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2023.

Net operating revenues in the first quarter of 2023 were $18.4 million compared with $14.3 million in the first quarter of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.7 million in the first quarter of 2023 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.3 million in the first quarter of 2022. For the first quarter of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.43 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.32 in the first quarter of 2022.

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
	March 31,
	2023	2022

Net operating revenues:
Waste management services	$ 12,652	$ 9,339

Food, beverage and merchandise sales	1,974	1,665
Other golf and related operations	3,749	3,305
Total golf and related operations	5,723	4,970

Total net operating revenues	18,375	14,309

Costs and expenses:
Waste management services operating costs	10,380	7,578
Cost of food, beverage and merchandise	1,023	748
Golf and related operations operating costs	4,836	4,055
Depreciation and amortization expense	940	829
Selling, general and administrative expenses	2,530	2,265
Operating loss	(1,334)	(1,166)

Other income (expense):
Interest expense	(515)	(278)
Other income, net	81	64
Loss before income taxes	(1,768)	(1,380)

Provision for income taxes	31	20
Net loss	(1,799)	(1,400)

Less net loss attributable to non-controlling interest in subsidiaries	(122)	(138)
Net loss attributable to Avalon Holdings Corporation common shareholders	$ (1,677)	$ (1,262)

Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic net loss per share	$ (0.43)	$ (0.32)
Diluted net loss per share	$ (0.43)	$ (0.32)

Weighted average shares outstanding - basic	3,899	3,899
Weighted average shares outstanding - diluted	3,899	3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)


	March 31,	December 31,
	2023	2022
Assets
Current Assets:
Cash and cash equivalents	$ 1,270	$ 1,624
Accounts receivable, net	13,427	11,127
Unbilled membership dues receivable	747	599
Inventories	1,731	1,461
Prepaid expenses	1,456	1,172
Other current assets	39	105
Total current assets	18,670	16,088

Property and equipment, net	57,038	56,805
Property and equipment under finance leases, net	5,156	5,001
Operating lease right-of-use assets	1,406	1,386
Restricted cash	10,438	10,426
Noncurrent deferred tax asset	8	8
Other assets, net	35	36
Total assets	$ 92,751	$ 89,750

Liabilities and Equity
Current liabilities:
Current portion of long term debt	$ 511	$ 503
Current portion of obligations under finance leases	139	115
Current portion of obligations under operating leases	432	424
Accounts payable	13,202	10,995
Accrued payroll and other compensation	1,381	989
Accrued income taxes	96	103
Other accrued taxes	406	540
Deferred membership dues revenue	4,900	3,643
Other liabilities and accrued expenses	1,934	1,544
Total current liabilities	23,001	18,856

Long term debt, net of current portion	29,622	29,758
Line of credit	2,200	1,550
Obligations under finance leases, net of current portion	509	381
Obligations under operating leases, net of current portion	974	962
Asset retirement obligation	100	100

Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,814	38,490
Non-controlling interest in subsidiaries	(469)	(347)
Total shareholders' equity	36,345	38,143
Total liabilities and equity	$ 92,751	$ 89,750