Avalon Holdings Corp (AWX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Avalon Holdings Corp has a market cap of $9.3 million; its shares were traded at around $2.8999 with and P/S ratio of 0.2.
For the first nine months of 2010, net operating revenues increased to $32.2 million compared with $26.8 million for the first nine months of 2009. The increase is primarily the result of significantly higher net operating revenues of the waste management services segment. Costs of operations were $26.4 million for the first nine months of 2010 compared with $21.8 million for the first nine months of 2009. This increase is primarily due to the increased net operating revenues of the waste management services segment, which resulted in higher transportation and disposal costs, as these costs vary directly with the associated net operating revenues. Fixed costs relating to depreciation and amortization expense were $1.3 million for both the first nine months of 2010 and 2009. Consolidated selling, general and administrative expenses increased to $5.2 million for the first nine months of 2010 compared with $4.5 million for the first nine months of 2009 primarily due to an increase in the sales and management incentive bonuses of the waste management services segment, compensation costs relating to stock options granted in the first quarter of 2010 and some fairly significant non-recurring maintenance expenses at the corporate headquarters building. Avalon incurred a net loss of $.6 million, or $.16 per share, for the first nine months of 2010 compared with a net loss of $.7 million, or $.18 per share, for the first nine months of 2009. The results for the nine months ended September 30, 2009 were favorably impacted by the previously mentioned Board of Directors decision to eliminate the 2008 employer discretionary contribution of $.1 million to Avalons 401k plan.
Net operating revenues of the waste management services segment increased approximately 32% to $8.7 million in the third quarter of 2010 compared with $6.6 million in the third quarter of the prior year. For the third quarter of 2010, net operating revenues of the waste brokerage and management services business were $8.0 million compared with $6.0 million in the third quarter of 2009, while the net operating revenues of the captive landfill management operations were $.7 million in the third quarter of 2010 compared with $.6 million in the third quarter of 2009. The increase in the net operating revenues of the waste brokerage and management services business was primarily due to an increase of 63% in event or one-time projects and a 10% increase in continuous work. The increase in event work was due to an increase in the number of projects won in the third quarter of 2010 compared with the third quarter of 2009. Event work is defined as bid projects under contract that occurs on a one-time basis over a short period of time and can fluctuate significantly from quarter to quarter. The increase in net operating revenues of the captive landfill operations was primarily due to an increase in the sales of construction mats and an increase in the volume of waste disposed of at the landfill during the third quarter of 2010 compared to the prior year third quarter. The volume of waste disposed of at the captive landfill is entirely dependent upon the amount of waste generated by the owner of the landfill for whom Avalon manages the facility.
Due to the increase in net operating revenues, income before taxes for the waste management services segment increased to $.7 million in the third quarter of 2010 compared with $.6 million in the third quarter of the prior year. Income before taxes of the waste brokerage and management services business was $.6 million for the third quarter of 2010 compared with $.4 million for the third quarter of 2009. Overall gross profit of the waste brokerage and management services business declined to 18.3% in the third quarter of 2010 compared with 19.1% in the third quarter of the prior year. The decrease was primarily attributable to lower gross margins of the event work. Income before taxes of the captive landfill operations was $.1 million in the third quarter of 2010 compared with $.2 million in the third quarter of 2009. The decrease was primarily due to increased management incentive bonuses.
Net operating revenues of the waste management services segment increased approximately 27% to $24.7 million in the first nine months of 2010 compared with $19.4 million in the first nine months of the prior year. For the first nine months of 2010, net operating revenues of the waste brokerage and management services business were $22.7 million compared with $17.7 million for the first nine months of 2009, while the net operating revenues of the captive landfill management operations were $2.0 million in the first nine months of 2010 compared with $1.7 million for the same period in 2009. The increase in net operating revenues of the waste
Income before taxes for the waste management services segment increased to $1.9 million in the first nine months of 2010 compared with $1.6 million in the first nine months of the prior year. The increase is primarily due to the significant increase in net operating revenues of the waste brokerage and management services business. Income before taxes of the waste brokerage and management services business was $1.5 million for the first nine months of 2010 compared with $1.2 million for the first nine months of 2009. Overall gross profit of the waste brokerage and management services business declined to 18.8% for the first nine months of 2010 compared with 19.6% for the first nine months of the prior year. The decrease was primarily attributable to lower gross margins of the event work. Despite the increase in net operating revenues for the first nine months of 2010, income before taxes of the captive landfill operations was $.4 million in both the first nine months of 2010 and 2009 primarily because of increased management incentive bonuses in the current year.
Read the The complete Report
Avalon Holdings Corp has a market cap of $9.3 million; its shares were traded at around $2.8999 with and P/S ratio of 0.2.
Highlight of Business Operations:
Net operating revenues in the third quarter of 2010 increased to $11.8 million from $9.6 million in the prior years third quarter, which is primarily the result of a significant increase in the net operating revenues of the waste management services segment. Costs of operations increased to $9.6 million in the third quarter of 2010 compared with $7.8 million in the prior years third quarter. This increase is primarily due to the increased net operating revenues of the waste management services segment, which resulted in higher transportation and disposal costs, as these costs vary directly with the associated net operating revenues. Fixed costs relating to depreciation and amortization expense were $.4 million in both the third quarter of 2010 and 2009. Consolidated selling, general and administrative expenses increased to $1.8 million in the third quarter of 2010 compared with $1.5 million in the third quarter of 2009 primarily due to an increase in the sales and management incentive bonuses of the waste management services segment, compensation costs relating to stock options granted in the first quarter of 2010 and some fairly significant non-recurring maintenance expenses at the corporate headquarters building. Avalon incurred a net loss of $2,000 in the third quarter of 2010 compared with break even in the third quarter of 2009. Third quarter results for 2009 were favorably impacted by the Board of Directors decision to eliminate the 2008 employer discretionary contribution of $.1 million to Avalons 401k plan, which was scheduled to be made in the third quarter of 2009.For the first nine months of 2010, net operating revenues increased to $32.2 million compared with $26.8 million for the first nine months of 2009. The increase is primarily the result of significantly higher net operating revenues of the waste management services segment. Costs of operations were $26.4 million for the first nine months of 2010 compared with $21.8 million for the first nine months of 2009. This increase is primarily due to the increased net operating revenues of the waste management services segment, which resulted in higher transportation and disposal costs, as these costs vary directly with the associated net operating revenues. Fixed costs relating to depreciation and amortization expense were $1.3 million for both the first nine months of 2010 and 2009. Consolidated selling, general and administrative expenses increased to $5.2 million for the first nine months of 2010 compared with $4.5 million for the first nine months of 2009 primarily due to an increase in the sales and management incentive bonuses of the waste management services segment, compensation costs relating to stock options granted in the first quarter of 2010 and some fairly significant non-recurring maintenance expenses at the corporate headquarters building. Avalon incurred a net loss of $.6 million, or $.16 per share, for the first nine months of 2010 compared with a net loss of $.7 million, or $.18 per share, for the first nine months of 2009. The results for the nine months ended September 30, 2009 were favorably impacted by the previously mentioned Board of Directors decision to eliminate the 2008 employer discretionary contribution of $.1 million to Avalons 401k plan.
Net operating revenues of the waste management services segment increased approximately 32% to $8.7 million in the third quarter of 2010 compared with $6.6 million in the third quarter of the prior year. For the third quarter of 2010, net operating revenues of the waste brokerage and management services business were $8.0 million compared with $6.0 million in the third quarter of 2009, while the net operating revenues of the captive landfill management operations were $.7 million in the third quarter of 2010 compared with $.6 million in the third quarter of 2009. The increase in the net operating revenues of the waste brokerage and management services business was primarily due to an increase of 63% in event or one-time projects and a 10% increase in continuous work. The increase in event work was due to an increase in the number of projects won in the third quarter of 2010 compared with the third quarter of 2009. Event work is defined as bid projects under contract that occurs on a one-time basis over a short period of time and can fluctuate significantly from quarter to quarter. The increase in net operating revenues of the captive landfill operations was primarily due to an increase in the sales of construction mats and an increase in the volume of waste disposed of at the landfill during the third quarter of 2010 compared to the prior year third quarter. The volume of waste disposed of at the captive landfill is entirely dependent upon the amount of waste generated by the owner of the landfill for whom Avalon manages the facility.
Due to the increase in net operating revenues, income before taxes for the waste management services segment increased to $.7 million in the third quarter of 2010 compared with $.6 million in the third quarter of the prior year. Income before taxes of the waste brokerage and management services business was $.6 million for the third quarter of 2010 compared with $.4 million for the third quarter of 2009. Overall gross profit of the waste brokerage and management services business declined to 18.3% in the third quarter of 2010 compared with 19.1% in the third quarter of the prior year. The decrease was primarily attributable to lower gross margins of the event work. Income before taxes of the captive landfill operations was $.1 million in the third quarter of 2010 compared with $.2 million in the third quarter of 2009. The decrease was primarily due to increased management incentive bonuses.
Net operating revenues of the waste management services segment increased approximately 27% to $24.7 million in the first nine months of 2010 compared with $19.4 million in the first nine months of the prior year. For the first nine months of 2010, net operating revenues of the waste brokerage and management services business were $22.7 million compared with $17.7 million for the first nine months of 2009, while the net operating revenues of the captive landfill management operations were $2.0 million in the first nine months of 2010 compared with $1.7 million for the same period in 2009. The increase in net operating revenues of the waste
Income before taxes for the waste management services segment increased to $1.9 million in the first nine months of 2010 compared with $1.6 million in the first nine months of the prior year. The increase is primarily due to the significant increase in net operating revenues of the waste brokerage and management services business. Income before taxes of the waste brokerage and management services business was $1.5 million for the first nine months of 2010 compared with $1.2 million for the first nine months of 2009. Overall gross profit of the waste brokerage and management services business declined to 18.8% for the first nine months of 2010 compared with 19.6% for the first nine months of the prior year. The decrease was primarily attributable to lower gross margins of the event work. Despite the increase in net operating revenues for the first nine months of 2010, income before taxes of the captive landfill operations was $.4 million in both the first nine months of 2010 and 2009 primarily because of increased management incentive bonuses in the current year.
Read the The complete Report
