AVALON HOLDINGS CORPORATION ANNOUNCES SECOND QUARTER RESULTS

Rhea-AI Summary

Avalon Holdings Corporation (NYSE Amex: AWX) reported its Q2 2025 financial results, showing a decline in performance. Net operating revenues decreased to $20.3 million from $23.1 million in Q2 2024. Net income attributable to shareholders fell to $0.3 million ($0.07 per share) compared to $1.0 million ($0.24 per share) in Q2 2024.

For the first half of 2025, the company recorded net operating revenues of $36.3 million, down from $41.9 million in H1 2024, with a net loss of $1.2 million ($0.31 per share) compared to a loss of $25,000 ($0.01 per share) in the same period last year. The company operates in waste management services and owns resort facilities including a hotel, four golf courses, and related amenities.

Positive

• Maintained positive quarterly net income of $0.3 million in Q2 2025
• Strong cash position with $3.7 million in cash and cash equivalents, up from $2.8 million at year-end 2024
• Stable golf and related operations revenue with minimal decline

Negative

• Q2 2025 revenue declined 12.2% year-over-year to $20.3 million
• Net income dropped 71.3% from Q2 2024
• Waste management services revenue decreased 20.3% year-over-year
• H1 2025 showed significant losses of $1.2 million compared to minimal losses in H1 2024

Insights

Financial Analyst

AWX reports significant revenue and profitability declines in Q2 2025, with waste management segment showing concerning weakness.

Avalon Holdings' Q2 2025 results reveal concerning financial deterioration across key metrics. Net operating revenues declined by 12.2% to $20.3 million compared to $23.1 million in Q2 2024. More concerning is the sharp 71.3% drop in net income attributable to shareholders, falling to $0.3 million from $1.0 million year-over-year. This translated to a basic EPS of $0.07, down from $0.24.

The company's performance deterioration is even more pronounced when examining the six-month results, with the company swinging to a $1.2 million net loss compared to a small $25,000 loss in the same period last year. This represents a nearly 50-fold increase in losses.

Segment analysis reveals that waste management services is the primary weakness, with revenues falling 20.3% to $9.7 million from $12.2 million in Q2 2024. The golf and related operations segment showed more resilience with a modest 3.0% decline to $10.5 million.

Despite revenue challenges, management has shown some effectiveness in cost control. Waste management operating costs decreased by 21.4%, closely matching the revenue decline in that segment. However, golf operations costs increased slightly despite lower revenues, suggesting margin compression in that business unit.

The balance sheet shows some mixed signals. Cash position improved to $3.7 million from $2.8 million at year-end 2024, but total debt remains high at approximately $32.1 million. The company also maintains $9.0 million in restricted cash, likely for regulatory compliance in its waste management operations.

The substantial 48.7% decline in operating income for the quarter and the swing to an operating loss for the six-month period indicate fundamental business challenges that go beyond seasonal fluctuations. This suggests Avalon is facing structural issues, particularly in its waste management segment, which has historically been a significant revenue contributor.

WARREN, Ohio, Aug. 8, 2025 /PRNewswire/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the second quarter of 2025.

Net operating revenues in the second quarter of 2025 were $20.3 million compared with $23.1 million in the second quarter of 2024. The Company recorded net income attributable to Avalon Holdings Corporation common shareholders of $0.3 million in the second quarter of 2025 compared with net income attributable to Avalon Holdings Corporation common shareholders of $1.0 million in the second quarter of 2024. For the second quarter of 2025, basic net income per share attributable to Avalon Holdings Corporation common shareholders was $0.07 compared with basic net income per share attributable to Avalon Holdings Corporation common shareholders of $0.24 in the second quarter of 2024.

For the first six months of 2025, net operating revenues were $36.3 million compared with $41.9 million for the first six months of 2024. The Company recorded a net loss attributable to Avalon Holdings Corporation common shareholders of approximately $1.2 million in the first six months of 2025 compared with net loss attributable to Avalon Holdings Corporation common shareholders of $25,000 in the first six months of 2024. For the first six months of 2025, basic net loss per share attributable to Avalon Holdings Corporation common shareholders was $0.31 compared with basic net loss per share attributable to Avalon Holdings Corporation common shareholders of $0.01 in the first six months 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				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Net operating revenues:
Waste management services	$            9,742		$          12,220		$          19,419		$          24,690
Food, beverage and merchandise sales	3,760		3,996		5,784		6,007
Other golf and related operations	6,750		6,841		11,117		11,218
Total golf and related operations	10,510		10,837		16,901		17,225
Total net operating revenues	20,252		23,057		36,320		41,915
Costs and expenses:
Waste management services operating costs	7,489		9,527		15,071		19,424
Cost of food, beverage and merchandise	1,717		1,682		2,730		2,707
Golf and related operations operating costs	6,878		6,744		11,975		11,617
Depreciation and amortization expense	965		1,002		1,935		1,982
Selling, general and administrative expenses	2,453		2,654		5,010		5,251
Operating income (loss)	750		1,448		(401)		934
Other income (expense):
Interest expense	(510)		(521)		(1,020)		(1,028)
Other income, net	-		-		-		7
Income (loss) before income taxes	240		927		(1,421)		(87)
Provision for income taxes	29		44		54		84
Net income (loss)	211		883		(1,475)		(171)
Less net loss attributable to non-controlling interest in subsidiary	(63)		(71)		(250)		(146)
Net income (loss) attributable to Avalon Holdings Corporation common shareholders	$               274		$               954		$           (1,225)		$               (25)
Income (loss) per share attributable to Avalon Holdings Corporation common shareholders:
Basic and diluted net income (loss) per share	$              0.07		$              0.24		$            (0.31)		$            (0.01)
Weighted average shares outstanding - basic and diluted	3,899		3,899		3,899		3,899

 

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
	June 30,		December 31,
	2025		2024
Assets
Current Assets:
Cash and cash equivalents	$               3,714		$               2,803
Accounts receivable, net	9,907		8,595
Unbilled membership dues receivable	1,037		582
Inventories	1,807		1,558
Prepaid expenses	775		1,003
Other current assets	15		15
Total current assets	17,255		14,556
Property and equipment, net	54,583		55,582
Property and equipment under finance leases, net	5,924		5,647
Operating lease right-of-use assets	1,269		1,383
Restricted cash	8,971		8,958
Noncurrent deferred tax asset	27		27
Other assets, net	26		33
Total assets	$             88,055		$             86,186
Liabilities and Equity
Current liabilities:
Current portion of long term debt	$                  594		$                  575
Current portion of obligations under finance leases	278		201
Current portion of obligations under operating leases	364		365
Accounts payable	7,652		7,116
Accrued payroll and other compensation	1,528		1,064
Accrued taxes	451		594
Deferred membership dues revenue	5,734		3,524
Other liabilities and accrued expenses	2,306		2,024
Total current liabilities	18,907		15,463
Long term debt, net of current portion	28,344		28,646
Line of credit	3,200		3,200
Obligations under finance leases, net of current portion	1,022		707
Obligations under operating leases, net of current portion	905		1,018
Asset retirement obligation	100		100
Equity:
Total Avalon Holdings Corporation Shareholders' Equity	36,809		38,034
Non-controlling interest in subsidiary	(1,232)		(982)
Total shareholders' equity	35,577		37,052
Total liabilities and equity	$             88,055		$             86,186

 

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SOURCE Avalon Holdings Corporation

FAQ

What were Avalon Holdings (AWX) Q2 2025 earnings results?

Avalon Holdings reported Q2 2025 net operating revenues of $20.3 million and net income of $0.3 million ($0.07 per share), down from $23.1 million in revenues and $1.0 million in net income ($0.24 per share) in Q2 2024.

How did AWX's waste management services perform in Q2 2025?

AWX's waste management services revenue declined to $9.7 million in Q2 2025 from $12.2 million in Q2 2024, representing a 20.3% decrease year-over-year.

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

As of June 30, 2025, Avalon Holdings had $3.7 million in cash and cash equivalents, an increase from $2.8 million at December 31, 2024.

How did AWX's golf and related operations perform in Q2 2025?

AWX's golf and related operations generated $10.5 million in revenue during Q2 2025, showing relatively stable performance compared to $10.8 million in Q2 2024.

What was AWX's performance for the first half of 2025?

For H1 2025, AWX reported net operating revenues of $36.3 million and a net loss of $1.2 million ($0.31 per share), compared to revenues of $41.9 million and a net loss of $25,000 ($0.01 per share) in H1 2024.