AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except for per share amounts)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2023

2022

2023

2022

Net operating revenues:

Waste management services

$          11,744

$          15,036

$          34,694

$          35,092

Food, beverage and merchandise sales

4,609

4,077

10,577

9,305

Other golf and related operations

7,550

6,600

17,627

15,147

Total golf and related operations

12,159

10,677

28,204

24,452

Total net operating revenues

23,903

25,713

62,898

59,544

Costs and expenses:

Waste management services operating costs

9,262

12,173

27,866

28,243

Cost of food, beverage and merchandise

1,984

1,721

4,818

3,994

Golf and related operations operating costs

7,519

6,511

19,342

16,297

Depreciation and amortization expense

963

882

2,858

2,553

Selling, general and administrative expenses

2,815

2,913

7,846

7,518

Operating income

1,360

1,513

168

939

Other income (expense):

Interest expense

(530)

(408)

(1,573)

(960)

Other income, net

37

22

323

205

Income (loss) before income taxes

867

1,127

(1,082)

184

Provision for income taxes

39

55

93

108

Net income (loss)

828

1,072

(1,175)

76

Less net loss attributable to non-controlling interest in subsidiary

(57)

(96)

(231)

(314)

Net income (loss) attributable to Avalon Holdings Corporation common shareholders

$               885

$            1,168

$             (944)

$               390

Income per share attributable to Avalon Holdings Corporation common shareholders:

Basic net income (loss) per share

$              0.23

$              0.30

$            (0.24)

$              0.10

Diluted net income (loss) per share

$              0.23

$              0.30

$            (0.24)

$              0.10

Weighted average shares outstanding - basic

3,899

3,899

3,899

3,899

Weighted average shares outstanding - diluted

3,899

3,919

3,899

3,922

AVALON HOLDINGS CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands)

September 30,

December 31,

2023

2022

Assets

Current Assets:

Cash and cash equivalents

$                  673

$               1,624

Accounts receivable, net

11,603

11,127

Unbilled membership dues receivable

813

599

Inventories

1,716

1,461

Prepaid expenses

948

1,172

Other current assets

14

105

Total current assets

15,767

16,088

Property and equipment, net

56,912

56,805

Property and equipment under finance leases, net

5,490

5,001

Operating lease right-of-use assets

1,375

1,386

Restricted cash

10,462

10,426

Noncurrent deferred tax asset

8

8

Other assets, net

34

36

Total assets

$             90,048

$             89,750

Liabilities and Equity

Current liabilities:

Current portion of long term debt

$                  529

$                  503

Current portion of obligations under finance leases

139

115

Current portion of obligations under operating leases

446

424

Accounts payable

10,753

10,995

Accrued payroll and other compensation

1,327

989

Accrued income taxes

130

103

Other accrued taxes

452

540

Deferred membership dues revenue

4,618

3,643

Other liabilities and accrued expenses

1,710

1,544

Total current liabilities

20,104

18,856

Long term debt, net of current portion

29,353

29,758

Line of credit

2,200

1,550

Obligations under finance leases, net of current portion

393

381

Obligations under operating leases, net of current portion

929

962

Asset retirement obligation

100

100

Equity:

Total Avalon Holdings Corporation Shareholders' Equity

37,547

38,490

Non-controlling interest in subsidiary

(578)

(347)

Total shareholders' equity

36,969

38,143

Total liabilities and equity

$             90,048

$             89,750