AVALON HOLDINGS CORPORATION ANNOUNCES 2023 FULL YEAR AND FOURTH QUARTER RESULTS

Rhea-AI Summary

Avalon Holdings (AWX) released its financial results for Q4 and FY 2023, showing a decrease in net operating revenues and a net loss compared to the previous year. The company provides waste management services and owns Avalon Resorts and Clubs Inc., including a hotel, golf courses, and recreation center.

Positive

• None.

Negative

• Decrease in net operating revenues for Q4 and FY 2023 compared to the previous year
• Net loss recorded for Q4 and FY 2023, with a decrease in net income compared to the previous year
• Basic net loss per share increased for Q4 and FY 2023 compared to the previous year

Financial Analyst

The reported financials by Avalon Holdings Corporation indicate a contraction in net operating revenues from $21.6 million in Q4 2022 to $17.6 million in Q4 2023, alongside a year-over-year decrease from $81.2 million to $80.5 million. This decline reflects a possible reduction in demand for their services or increased competition. The net loss of $0.8 million in Q4 2023, albeit improved from the $1.0 million loss in the corresponding period of the previous year, suggests cost management efforts may be underway, yet the company still faces challenges to achieving profitability.

From a stock market perspective, investors might react to these figures with caution. The shift from a net income of $0.6 million in 2022 to a net loss of $1.8 million for the full year of 2023 could lead to a negative sentiment, potentially impacting the stock's performance. However, the reduced loss per share in Q4 2023 compared to Q4 2022 might be seen as a positive signal of management's ability to control expenses in a difficult environment.

Market Research Analyst

Analyzing the sector-specific performance, waste management services, which is a core operation of Avalon Holdings, saw a significant drop in revenues, from nearly $14.7 million in Q4 2022 to about $9.9 million in Q4 2023. This is a substantial decrease and could be indicative of operational challenges or shifts in the industry landscape, such as increased regulatory pressures or shifts in industrial output affecting demand. On the other hand, the golf and related operations have shown an increase, which might suggest a diversification strategy that could stabilize revenue streams.

Understanding the market dynamics within the waste management and leisure sectors could provide further insights into the long-term viability of Avalon's business model. This information would be particularly relevant for investors considering the potential for growth in the environmental services industry and the leisure market, especially considering the current economic climate and consumer spending habits.

Environmental and Regulatory Affairs Analyst

Given Avalon's involvement in waste management and salt water injection well operations, environmental regulations and sustainability trends are likely to have a significant impact on its operations and financial performance. The observed revenue decline in their waste management segment could be partially attributed to stricter environmental regulations or shifts towards more sustainable practices that reduce waste generation. It is essential to monitor regulatory developments, as they can present both risks and opportunities for companies in this sector.

The long-term implications for stakeholders include the need to invest in cleaner technologies and practices, which may incur additional costs but could also open up new revenue streams. For instance, increased investment in recycling and waste-to-energy solutions could provide Avalon with a competitive edge. As investors become more environmentally conscious, companies that proactively adapt to regulatory changes and demonstrate a commitment to sustainability may also benefit from enhanced investor confidence and potentially higher valuations.

WARREN, Ohio, March 21, 2024 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Net operating revenues in the fourth quarter of 2023 were $17.6 million compared with $21.6 million in the fourth quarter of 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $0.8 million in the fourth quarter of 2023 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the fourth quarter of 2022. For the fourth quarter of 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.21 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.25 in the fourth quarter of 2022.

For the year ended December 31, 2023, net operating revenues were $80.5 million compared with $81.2 million for the year ended December 31, 2022. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million for the year ended December 31, 2023 compared with net income attributable to Avalon Holdings Corporation common shareholders of $0.6 million for the year ended December 31, 2022. For the year ended December 31, 2023, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.46 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.15 for year ended December 31, 2022.

Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets, captive landfill management services and salt water injection well operations.  Avalon Holdings Corporation also owns Avalon Resorts and Clubs Inc., which includes the operation of a hotel and its associated resort amenities, four golf courses and related country clubs and a multipurpose recreation center.

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for per share amounts)
	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
Net operating revenues:
Waste management services	$            9,917		$          14,671		$          44,611		$          49,763
Food, beverage and merchandise sales	2,914		2,832		13,491		12,137
Other golf and related operations	4,786		4,133		22,413		19,280
Total golf and related operations	7,700		6,965		35,904		31,417
Total net operating revenues	17,617		21,636		80,515		81,180
Costs and expenses:
Waste management services operating costs	7,776		12,137		35,642		40,380
Cost of food, beverage and merchandise	1,500		1,506		6,318		5,500
Golf and related operations operating costs	5,433		5,040		24,775		21,337
Depreciation and amortization expense	968		930		3,826		3,483
Selling, general and administrative expenses	2,381		2,615		10,227		10,133
Operating (loss) income	(441)		(592)		(273)		347
Other income (expense):
Interest expense	(525)		(504)		(2,098)		(1,464)
Other income, net	61		26		384		231
Loss before income taxes	(905)		(1,070)		(1,987)		(886)
Provision for income taxes	(36)		(14)		57		94
Net loss	(869)		(1,056)		(2,044)		(980)
Less net loss attributable to non-controlling interest in subsidiaries	(38)		(83)		(269)		(397)
Net loss attributable to Avalon Holdings Corporation common shareholders	$              (831)		$              (973)		$           (1,775)		$              (583)
Loss per share attributable to Avalon Holdings Corporation common shareholders:
Basic net loss per share	$             (0.21)		$             (0.25)		$             (0.46)		$             (0.15)
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)
	December 31,		December 31,
	2023		2022
Assets
Current Assets:
Cash and cash equivalents	$              1,187		$              1,624
Accounts receivable, net	9,499		11,127
Unbilled membership dues receivable	567		599
Inventories	1,662		1,461
Prepaid expenses	1,116		1,172
Other current assets	14		105
Total current assets	14,045		16,088
Property and equipment, net	56,630		56,805
Property and equipment under finance leases, net	5,711		5,001
Operating lease right-of-use assets	1,270		1,386
Restricted cash	10,265		10,426
Noncurrent deferred tax asset	8		8
Other assets, net	36		36
Total assets	$             87,965		$             89,750
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$                 538		$                 503
Current portion of obligations under finance leases	198		115
Current portion of obligations under operating leases	432		424
Accounts payable	9,657		10,995
Accrued payroll and other compensation	1,277		989
Other taxes	539		643
Deferred membership dues revenue	3,443		3,643
Other liabilities and accrued expenses	1,825		1,544
Total current liabilities	17,909		18,856
Long term debt, net of current portion	29,220		29,758
Line of credit	3,200		1,550
Obligations under finance leases, net of current portion	598		381
Obligations under operating leases, net of current portion	838		962
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,716		38,490
Non-controlling interest in subsidiaries	(616)		(347)
Total shareholders' equity	36,100		38,143
Total liabilities and equity	$             87,965		$             89,750

 

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SOURCE Avalon Holdings Corporation

FAQ

What are the net operating revenues for Avalon Holdings in Q4 2023?

$17.6 million

What was the net loss attributable to Avalon Holdings common shareholders in Q4 2023?

$0.8 million

What is the basic net loss per share for Avalon Holdings common shareholders in Q4 2023?

$0.21

What services does Avalon Holdings provide?

Waste management services, captive landfill management services, salt water injection well operations, and ownership of Avalon Resorts and Clubs Inc.