Date: November 11, 2010
Source: Avalon Holdings Corp.
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 September 30, |
Nine
Months Ended 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 |
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