AVALON HOLDINGS CORPORATION ANNOUNCES THIRD QUARTER RESULTS

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

Nine Months Ended 

September 30,

September 30,

2025

2024

2025

2024

Net operating revenues:

Waste management services

$          12,918

$          11,461

$          32,338

$          36,151

Food, beverage and merchandise sales

4,553

4,615

10,337

10,622

Other golf and related operations

8,275

8,159

19,392

19,377

Total golf and related operations

12,828

12,774

29,729

29,999

Total net operating revenues

25,746

24,235

62,067

66,150

Costs and expenses:

Waste management services operating costs

10,259

8,949

25,330

28,372

Cost of food, beverage and merchandise

1,958

2,010

4,688

4,717

Golf and related operations operating costs

7,425

7,308

19,401

18,925

Depreciation and amortization expense

932

975

2,867

2,957

Selling, general and administrative expenses

2,826

2,719

7,835

7,970

Operating income 

2,346

2,274

1,946

3,209

Other income (expense):

Interest expense, net

(512)

(502)

(1,532)

(1,531)

Other income, net

-

-

-

7

Income before income taxes

1,834

1,772

414

1,685

Provision for income taxes

45

42

100

126

Net income 

1,789

1,730

314

1,559

Less net loss attributable to non-controlling interest in subsidiary

(113)

(110)

(363)

(256)

Net income attributable to Avalon Holdings Corporation common shareholders

$            1,902

$            1,840

$               677

$            1,815

Income per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income per share

$              0.49

$              0.47

$              0.17

$              0.47

Weighted average shares outstanding - basic 

3,899

3,899

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30,

December 31,

2025

2024

Assets

Current Assets:

Cash and cash equivalents

$              4,551

$              2,803

Accounts receivable, net

12,498

8,595

Unbilled membership dues receivable

814

582

Inventories

1,686

1,558

Prepaid expenses

606

1,003

Other current assets

15

15

Total current assets

20,170

14,556

Property and equipment, net

54,454

55,582

Property and equipment under finance leases, net

6,230

5,647

Operating lease right-of-use assets

1,078

1,383

Restricted cash

8,699

8,958

Noncurrent deferred tax asset

27

27

Other assets, net

28

33

Total assets

$             90,686

$             86,186

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                 604

$                 575

Current portion of obligations under finance leases

362

201

Current portion of obligations under operating leases

363

365

Accounts payable

9,605

7,116

Accrued payroll and other compensation

1,731

1,064

Accrued taxes

638

594

Deferred membership dues revenue

4,587

3,524

Other liabilities and accrued expenses

2,005

2,024

Total current liabilities

19,895

15,463

Long term debt, net of current portion

28,190

28,646

Line of credit

3,200

3,200

Obligations under finance leases, net of current portion

1,220

707

Obligations under operating leases, net of current portion

715

1,018

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

38,711

38,034

Non-controlling interest in subsidiary

(1,345)

(982)

Total shareholders' equity

37,366

37,052

Total liabilities and equity

$             90,686

$             86,186