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

2026

2025

Net operating revenues:

Waste management services

$                      11,508

$                        9,677

Food, beverage and merchandise sales

2,013

2,024

Other golf and related operations

4,137

4,367

Total golf and related operations

6,150

6,391

Total net operating revenues

17,658

16,068

Costs and expenses:

Waste management services operating costs

8,882

7,582

Cost of food, beverage and merchandise

993

1,012

Golf and related operations operating costs

4,905

5,097

Depreciation and amortization expense

929

970

Selling, general and administrative expenses

2,685

2,558

Operating loss

(736)

(1,151)

Other income (expense):

Interest expense, net

(504)

(510)

Loss before income taxes

(1,240)

(1,661)

Provision for income taxes

41

25

Net loss

(1,281)

(1,686)

Less net loss attributable to non-controlling interest in subsidiaries

(46)

(187)

Net loss attributable to Avalon Holdings Corporation common shareholders

$                      (1,235)

$                      (1,499)

Loss per share attributable to Avalon Holdings Corporation common shareholders:

Basic net loss per share

$                        (0.32)

$                        (0.38)

Weighted average shares outstanding - basic 

3,899

3,899

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

March 31,

December 31,

2026

2025

Assets

Current Assets:

Cash and cash equivalents

$              2,378

$              4,114

Accounts receivable, net

11,843

9,819

Unbilled membership dues receivable

707

541

Inventories

1,774

1,555

Prepaid expenses

989

919

Other current assets

15

15

Total current assets

17,706

16,963

Property and equipment, net

53,541

53,982

Property and equipment under finance leases, net

6,352

6,267

Operating lease right-of-use assets

1,390

1,379

Restricted cash

8,501

8,730

Noncurrent deferred tax asset

32

32

Other assets, net

27

28

Total assets

$             87,549

$             87,381

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                 624

$                 614

Current portion of obligations under finance leases

384

384

Current portion of obligations under operating leases

367

362

Accounts payable

7,736

7,984

Accrued payroll and other compensation

1,496

1,244

Accrued taxes

644

660

Deferred membership dues revenue

5,126

3,529

Other liabilities and accrued expenses

2,074

2,054

Total current liabilities

18,451

16,831

Long-term debt, net of current portion

27,872

28,032

Line of credit

3,200

3,200

Obligations under finance leases, net of current portion

1,231

1,248

Obligations under operating leases, net of current portion

1,023

1,017

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

37,120

38,355

Non-controlling interest in subsidiaries

(1,448)

(1,402)

Total shareholders' equity

35,672

36,953

Total liabilities and equity

$             87,549

$             87,381