Avalon Holdings Corporation (Avalon) reported increased net operating revenues of $23.1 million in Q2 2024 compared to $20.8 million in Q2 2023, with waste management services segment revenues rising to $12.2 million from $10.3 million in the same period. The golf and related operations segment also saw an increase to $10.8 million from $10.5 million. Total costs for waste management services rose to $9.5 million in Q2 2024 from $8.2 million in Q2 2023, while costs for golf and related operations decreased to $8.4 million from $8.8 million. Depreciation and amortization expenses remained stable at $1.0 million, and selling, general, and administrative expenses increased slightly to $2.7 million from $2.5 million. Interest expenses were consistent at $0.5 million for both quarters. Net income attributable to Avalon common shareholders was $1.0 million, or $0.24 per share, in Q2 2024, a significant improvement from a net loss of...Show More

Avalon Holdings Corporation (Avalon) reported increased net operating revenues of $23.1 million in Q2 2024 compared to $20.8 million in Q2 2023, with waste management services segment revenues rising to $12.2 million from $10.3 million in the same period. The golf and related operations segment also saw an increase to $10.8 million from $10.5 million. Total costs for waste management services rose to $9.5 million in Q2 2024 from $8.2 million in Q2 2023, while costs for golf and related operations decreased to $8.4 million from $8.8 million. Depreciation and amortization expenses remained stable at $1.0 million, and selling, general, and administrative expenses increased slightly to $2.7 million from $2.5 million. Interest expenses were consistent at $0.5 million for both quarters. Net income attributable to Avalon common shareholders was $1.0 million, or $0.24 per share, in Q2 2024, a significant improvement from a net loss of $0.2 million, or $0.04 per share, in Q2 2023. For the first six months of 2024, net operating revenues were $41.9 million, up from $39.3 million in the same period of 2023. The waste management services segment contributed $24.7 million, up from $23.0 million, while the golf and related operations segment contributed $17.2 million, up from $16.3 million. Net loss attributable to Avalon common shareholders was minimal at $25,000, or $0.01 per share, for the first half of 2024, compared to a net loss of $1.8 million, or $0.47 per share, in the first half of 2023. Avalon's financial performance is subject to seasonal variations, with a significant portion of operations conducted in northeastern and midwestern states. The company's operations are also influenced by economic conditions, including inflation, which can impact consumer spending habits. Avalon's waste management services segment faces competition and regulatory challenges, while the golf and related operations segment relies heavily on membership renewals and is subject to the risks associated with liquor license retention. Avalon's loan and security agreement contains covenants that, if not met, could require early repayment of debt. The company's saltwater disposal wells are currently non-operational due to regulatory suspension, with ongoing legal proceedings to resolve the matter.