Date: March 15, 2012
Source: Avalon Holdings Corporation
Avalon Holdings Corporation today announced financial results for the fourth quarter of 2011.
Net operating revenues were $16.9 million in the fourth quarter of 2011 compared with $11.3 million in the fourth quarter of the prior year. The Company recorded net income of $.7 million or $.19 per share in the fourth quarter of 2011 compared with a net income of $.1 million or $.02 per share in the fourth quarter of 2010.
For the full year of 2011, net operating revenues increased to $54.0 million compared with $43.5 million for the prior year period. The Company recorded net income of $.8 million, or $.20 per share for the full year of 2011 compared with a net loss of $.5 million, or $.14 per share for the prior year period.
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.
| Consolidated Balance Sheets | ||||||||
| (in thousands, except for share data) | ||||||||
|
December
31,
|
||||||||
|
2011
|
2010
|
|||||||
|
Assets
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 7,324 | $ | 5,565 | ||||
|
Accounts
receivable, less allowance for doubtful accounts of $168 in 2011 and
2010
|
12,885 | 8,202 | ||||||
|
Prepaid
expenses
|
281 | 341 | ||||||
|
Refundable
income taxes
|
2 | 14 | ||||||
|
Other
current assets
|
717 | 600 | ||||||
|
Total
current assets
|
21,209 | 14,722 | ||||||
|
Property
and equipment,
|
26,079 | 27,265 | ||||||
|
Leased
property under capital leases, net
|
5,984 | 5,314 | ||||||
|
Noncurrent
deferred tax asset
|
8 | 8 | ||||||
|
Other
assets, net
|
87 | 28 | ||||||
|
Total
assets
|
$ | 53,367 | $ | 47,337 | ||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Current
portion of obligations under capital leases
|
$ | 1 | $ | 1 | ||||
|
Accounts
payable
|
9,643 | 5,173 | ||||||
|
Accrued
payroll and other compensation
|
755 | 383 | ||||||
|
Accrued
income taxes
|
20 | — | ||||||
|
Other
accrued taxes
|
260 | 269 | ||||||
|
Deferred
Revenues
|
2,105 | 1,988 | ||||||
|
Other
liabilities and accrued expenses
|
406 | 318 | ||||||
|
Total
current liabilities
|
13,190 | 8,132 | ||||||
|
Obligations
under capital leases
|
227 | 228 | ||||||
|
Contingencies
and commitments
|
— | — | ||||||
|
Shareholders’
Equity:
|
||||||||
|
Class
A Common Stock, $.01 par value, one vote per share; authorized 10,500,000
shares; issued and outstanding 3,191,038 shares at December 31, 2011
and December 31, 2010
|
32 | 32 | ||||||
|
Class
B Common Stock, $.01 par value, ten votes per share; authorized 1,000,000
shares; issued and outstanding 612,293 shares at December 31, 2011
and December 31, 2010
|
6 | 6 | ||||||
|
Paid-in
capital
|
58,413 | 58,216 | ||||||
|
Accumulated
deficit
|
(18,501 | ) | (19,277 | ) | ||||
|
Total
shareholders’ equity
|
39,950 | 38,977 | ||||||
|
Total
liabilities and shareholders’ equity
|
$ | 53,367 | $ | 47,337 | ||||
| Consolidated Statements of Operations | ||||||||
| (in thousands, except for per share amounts) | ||||||||
|
Year
Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
Net
operating revenues
|
$ | 53,986 | $ | 43,453 | ||||
|
Costs
and expenses:
|
||||||||
|
Costs
of operations
|
44,979 | 35,751 | ||||||
|
Depreciation
and amortization
|
1,663 | 1,684 | ||||||
|
Selling,
general and administration expenses
|
7,266 | 6,783 | ||||||
|
Operating
income (loss)
|
78 | (765 | ) | |||||
|
Other
income (expense):
|
||||||||
|
Interest
expense
|
(14 | ) | (14 | ) | ||||
|
Interest
income
|
5 | 24 | ||||||
|
Other
income, net
|
796 | 253 | ||||||
|
Income
(loss) before income taxes
|
865 | (502 | ) | |||||
|
Provision
for income taxes
|
89 | 41 | ||||||
|
Net
income (loss)
|
$ | 776 | $ | (543 | ) | |||
|
Net
income (loss) per share –basic
|
$ | .20 | $ | (.14 | ) | |||
|
Net
income (loss) per share –diluted
|
$ | .20 | $ | (.14 | ) | |||
|
Weighted
average shares outstanding - basic
|
3,803 | 3,803 | ||||||
|
Weighted
average shares outstanding - diluted
|
3,852 | 3,803 | ||||||
| Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
|
Year
Ended December 31,
|
||||||||
|
2011
|
2010
|
|||||||
|
Operating
activities:
|
||||||||
|
Net
income (loss)
|
$ | 776 | $ | (543 | ) | |||
|
Reconciliation
of net income (loss) to cash provided by (used in) operating activities:
|
||||||||
|
Depreciation
|
1,662 | 1,683 | ||||||
|
Amortization
|
1 | 1 | ||||||
|
Compensation
costs – stock options
|
197 | 120 | ||||||
|
Provision
for losses on accounts receivable
|
27 | 14 | ||||||
|
Gain
from disposal of property and equipment
|
(108 | ) | (24 | ) | ||||
|
Change
in operating assets and liabilities:
|
||||||||
|
Accounts
receivable
|
(4,710 | ) | (1,122 | ) | ||||
|
Prepaid
expenses
|
60 | (50 | ) | |||||
|
Refundable
income taxes
|
12 | 11 | ||||||
|
Other
current assets
|
(117 | ) | (32 | ) | ||||
|
Other
assets, net
|
(60 | ) | 29 | |||||
|
Accounts
payable
|
4,470 | 54 | ||||||
|
Accrued
payroll and other compensation
|
372 | (162 | ) | |||||
|
Accrued
income taxes
|
20 | — | ||||||
|
Other
accrued taxes
|
(9 | ) | (5 | ) | ||||
|
Deferred
revenues
|
117 | 45 | ||||||
|
Other
liabilities and accrued expenses
|
88 | 72 | ||||||
|
Net
cash provided by operating activities
|
2,798 | 91 | ||||||
|
Investing
activities:
|
||||||||
|
Capital
expenditures
|
(1,414 | ) | (411 | ) | ||||
|
Proceeds
from disposal of property and equipment
|
376 | 24 | ||||||
|
Net
cash used in investing activities
|
(1,038 | ) | (387 | ) | ||||
|
Financing
activities:
|
||||||||
|
Principal
payments on capital lease obligations
|
(1 | ) | (1 | ) | ||||
|
Net
cash used in financing activities
|
(1 | ) | (1 | ) | ||||
|
Increase
(decrease) in cash and cash equivalents
|
1,759 | (297 | ) | |||||
|
Cash
and cash equivalents at beginning of year
|
5,565 | 5,862 | ||||||
|
Cash
and cash equivalents at end of year
|
$ | 7,324 | $ | 5,565 | ||||
|
Supplemental
disclosures of cash flow information:
|
||||||||
|
Cash
paid during the year for interest expense
|
$ | 14 | $ | 14 | ||||
|
Cash
received during the year as interest income
|
$ | 5 | $ | 24 | ||||
| For supplemental cash flow information regarding income taxes, see Note 6. | ||||||||
| Consolidated Statements of Shareholders’ Equity | ||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||
|
For
The Two Years Ended December 31, 2011
|
||||||||||||||||||||||||||||
|
Shares
|
Common
Stock
|
Paid-in
|
Accumulated
|
|||||||||||||||||||||||||
|
Class
A
|
Class B |
Class
A
|
Class B |
Capital
|
Deficit | Total | ||||||||||||||||||||||
|
Balance
at January 1, 2010
|
3,191 | 612 | $ | 32 | $ | 6 | $ | 58,096 | $ | (18,734 | ) | $ | 39,400 | |||||||||||||||
|
Stock
options – Compensation costs
|
— | — | — | — | 120 | — | 120 | |||||||||||||||||||||
|
Net
loss
|
— | — | — | — | — | (543 | ) | (543 | ) | |||||||||||||||||||
|
Balance
at December 31, 2010
|
3,191 | 612 | $ | 32 | $ | 6 | $ | 58,216 | $ | (19,277 | ) | $ | 38,977 | |||||||||||||||
|
Stock
options – Compensation costs
|
— | — | — | — | 197 | — | 197 | |||||||||||||||||||||
|
Net
income
|
— | — | — | — | — | 776 | 776 | |||||||||||||||||||||
|
Balance
at December 31, 2011
|
3,191 | 612 | $ | 32 | $ | 6 | $ | 58,413 | $ | (18,501 | ) | $ | 39,950 | |||||||||||||||
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