Avalon Holdings Reports First Quarter Loss

Date: May 12, 2008

Source: Avalon Holdings Corporation

Avalon Holdings Corporation Announces First Quarter Results

Avalon Holdings Corporation (Amex: AWX) today announced financial results for the first quarter of 2008.

Net operating revenues in the first quarter of 2008 decreased to $10.4 million compared with $11.3 million in the first quarter of 2007. The Company recorded a net loss of $60,000 in the first quarter of 2008 or a loss of $.02 per share compared with net income of $352,000 or $.09 per share for the first quarter of 2007.

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
                                                             March 31,
                                                       2008           2007
    Net operating revenues                           $10,354        $11,310

    Costs and expenses:
      Costs of operations                              8,845          9,472
      Selling, general and administrative expenses     1,661          1,691
    Operating (loss) income                             (152)           147

    Other income (expense):
      Interest expense                                    (4)            (5)
      Interest income                                     29            152
      Other income, net                                   67             58
    (Loss) income before taxes                           (60)           352

    Provision (benefit) for income taxes                   -              -

    Net (loss) income                                   $(60)          $352

    Net (loss) income per share                        $(.02)          $.09

    Weighted average shares outstanding                3,803          3,803



                 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
                    Condensed Consolidated Balance Sheets
                                (in thousands)
                                                   March 31,      December 31,
                                                     2008             2007
    Assets:                                      (Unaudited)
    Current Assets:
      Cash and cash equivalents                       $3,953         $5,086
      Accounts receivable, net                         7,201          7,704
      Prepaid expenses                                   309            287
      Other current assets                               597            366
        Total current assets                          12,060         13,443

    Property and equipment, net                       29,588         28,568
    Leased property under capital leases, net          5,702          5,759
    Noncurrent deferred tax asset                         19             19
    Other assets, net                                     60             60
        Total assets                                 $47,429        $47,849

    Liabilities and Shareholders' Equity
    Current Liabilities:
      Current portion of obligations under capital
       leases                                             $1             $1
      Accounts payable                                 4,308          5,013
      Accrued payroll and other compensation             498            594
      Accrued income taxes                                27             43
      Other accrued taxes                                182            260
      Other liabilities and accrued expenses           2,806          2,271
        Total current liabilities                      7,822          8,182

    Obligations under capital leases                     231            231

    Total shareholders' equity                        39,376         39,436
      Total liabilities and shareholders' equity     $47,429        $47,849

For more information, visit: www.awmsi.com.

Sign up to receive our free Weekly News Bulletin