AVALON HOLDINGS CORPORATION ANNOUNCES FIRST QUARTER RESULTS

Rhea-AI Summary

Avalon Holdings Corporation (NYSE Amex:AWX) reported disappointing first quarter 2025 results. Net operating revenues declined to $16.1 million from $18.9 million in Q1 2024. The company's net loss widened to $1.5 million ($0.38 per share) compared to a net loss of $1.0 million ($0.25 per share) in the same period last year.

The decline was primarily driven by the waste management services segment, which saw revenues drop to $9.7 million from $12.5 million year-over-year. The golf and related operations segment remained relatively stable at $6.4 million. Operating costs in waste management decreased to $7.6 million from $9.9 million, while golf operations costs increased slightly to $5.1 million from $4.9 million.

Positive

• Operating costs in waste management services decreased by 23.4% to $7.6 million
• Golf and related operations revenue remained stable at $6.4 million
• Food, beverage and merchandise sales slightly increased to $2.02 million from $2.01 million

Negative

• Net operating revenues declined 14.8% to $16.1 million from $18.9 million
• Net loss widened to $1.5 million from $1.0 million year-over-year
• Waste management services revenue dropped 22.4% to $9.7 million
• Loss per share increased to $0.38 from $0.25 in Q1 2024
• Operating loss more than doubled to $1.15 million from $513,000

Insights

Financial Analyst

Avalon's Q1 shows concerning 15% revenue drop, widening losses, and rapidly depleting cash position, primarily driven by waste management segment weakness.

Avalon Holdings Corporation's Q1 2025 results reveal significant financial deterioration across key metrics. The company's total revenue dropped 14.8% year-over-year to $16.1 million, primarily driven by a substantial 22.4% decline in its waste management services segment, which fell from $12.47 million to $9.68 million.

The company's losses have deepened considerably, with the net loss attributable to shareholders widening by 53% to $1.5 million compared to $979,000 in Q1 2024. On a per-share basis, losses increased from $0.25 to $0.38. Operating losses more than doubled from $513,000 to $1.15 million.

While the golf and related operations segment remained stable at $6.39 million, its operating costs increased by 4.6% to $5.1 million, further pressuring margins.

The balance sheet shows alarming trends. Cash and cash equivalents plummeted 54.7% in just three months, dropping from $2.8 million at year-end 2024 to $1.27 million. Simultaneously, accounts receivable increased 32.1% to $11.36 million, potentially indicating collection challenges. Current liabilities rose 20.5% to $18.63 million, while long-term debt remained relatively stable.

This combination of substantial revenue decline in the company's largest segment, significantly widening losses, rapidly diminishing cash reserves, and growing short-term obligations presents clear evidence of serious financial challenges for Avalon Holdings in early 2025.

WARREN, Ohio, May 7, 2025 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex:AWX) today announced financial results for the first quarter of 2025.

Net operating revenues in the first quarter of 2025 were $16.1 million compared with $18.9 million in the first quarter of 2024.  The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of $1.5 million in the first quarter of 2025 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the first quarter of 2024. For the first quarter of 2025, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.38 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.25 in the first quarter of 2024.

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
	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

 

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SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings (AWX) Q1 2025 earnings results?

Avalon Holdings reported a net loss of $1.5 million ($0.38 per share) on revenues of $16.1 million in Q1 2025, compared to a net loss of $1.0 million ($0.25 per share) on revenues of $18.9 million in Q1 2024.

How did AWX's waste management segment perform in Q1 2025?

The waste management services segment saw revenues decline 22.4% to $9.7 million from $12.5 million in Q1 2024, while operating costs decreased to $7.6 million from $9.9 million.

What was AWX's golf and related operations revenue in Q1 2025?

Golf and related operations revenue remained stable at $6.4 million in Q1 2025, compared to $6.4 million in Q1 2024.

How much cash does Avalon Holdings (AWX) have as of March 31, 2025?

As of March 31, 2025, Avalon Holdings had cash and cash equivalents of $1.27 million, down from $2.80 million at December 31, 2024.

What is Avalon Holdings' (AWX) current debt position?

As of March 31, 2025, AWX had total debt of $29.1 million (excluding leases), consisting of $29.1 million in long-term debt and a $3.2 million line of credit.