AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

March 31,

2025

2024

Net operating revenues:

Waste management services

$                        9,677

$                      12,470

Food, beverage and merchandise sales

2,024

2,011

Other golf and related operations

4,367

4,377

Total golf and related operations

6,391

6,388

Total net operating revenues

16,068

18,858

Costs and expenses:

Waste management services operating costs

7,582

9,897

Cost of food, beverage and merchandise

1,012

1,025

Golf and related operations operating costs

5,097

4,873

Depreciation and amortization expense

970

980

Selling, general and administrative expenses

2,558

2,596

Operating loss

(1,151)

(513)

Other income (expense):

Interest expense, net

(510)

(508)

Other income, net

-

7

Loss before income taxes

(1,661)

(1,014)

Provision for income taxes

25

40

Net loss

(1,686)

(1,054)

Less net loss attributable to non-controlling interest in subsidiaries

(187)

(75)

Net loss attributable to Avalon Holdings Corporation common shareholders

$                      (1,499)

$                         (979)

Loss per share attributable to Avalon Holdings Corporation common shareholders:

Basic and diluted net loss per share

$                        (0.38)

$                        (0.25)

Weighted average shares outstanding - basic and diluted

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

March 31,

December 31,

2025

2024

Assets

Current Assets:

Cash and cash equivalents

$              1,269

$              2,803

Accounts receivable, net

11,358

8,595

Unbilled membership dues receivable

733

582

Inventories

1,846

1,558

Prepaid expenses

1,107

1,003

Other current assets

15

15

Total current assets

16,328

14,556

Property and equipment, net

55,243

55,582

Property and equipment under finance leases, net

5,671

5,647

Operating lease right-of-use assets

1,391

1,383

Restricted cash

8,937

8,958

Noncurrent deferred tax asset

27

27

Other assets, net

34

33

Total assets

$             87,631

$             86,186

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                 584

$                 575

Current portion of obligations under finance leases

232

201

Current portion of obligations under operating leases

364

365

Accounts payable

8,419

7,116

Accrued payroll and other compensation

1,283

1,064

Accrued taxes

525

594

Deferred membership dues revenue

5,134

3,524

Other liabilities and accrued expenses

2,089

2,024

Total current liabilities

18,630

15,463

Long-term debt, net of current portion

28,496

28,646

Line of credit

3,200

3,200

Obligations under finance leases, net of current portion

812

707

Obligations under operating leases, net of current portion

1,027

1,018

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

36,535

38,034

Non-controlling interest in subsidiaries

(1,169)

(982)

Total shareholders' equity

35,366

37,052

Total liabilities and equity

$             87,631

$             86,186