AWX Avalon Holdngs Corp

WARREN, Ohio, May 12 /PRNewswire-FirstCall/ -- Avalon Holdings Corporation (AMEX:AWX) today announced financial results for the first quarter of 2006. Net operating revenues in the first quarter of 2006 increased to $8.9 million compared with $7.4 million in the prior year's first quarter. The Company basically broke even during the first quarter of 2006, recording income from continuing operations of $9,000 compared with income from continuing operations of $32,000 or $.01 per share for the first quarter of 2005. Avalon Holdings Corporation provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates two golf courses and related facilities. AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except for per share amounts) Three Months Ended March 31, 2006 2005 Net operating revenues $8,924 $7,430 Costs and expenses: Costs of operations 7,540 6,238 Selling, general and administrative expenses 1,547 1,268 Operating loss from continuing operations (163) (76) Other income (expense): Interest expense (4) (3) Interest income 123 64 Other income, net 53 47 Income from continuing operations before income taxes 9 32 Provision (benefit) for income taxes - - Income from continuing operations 9 32 Discontinued operations: Income (loss) from discontinued operations before income taxes (7) 80 Provision (benefit) for income taxes - - Income (loss) from discontinued operations (7) 80 Net income $2 $112 Net income per share from continuing operations $- $.01 Net income (loss) per share from discontinued operations $- $.02 Net income per share $- $.03 Weighted average shares outstanding 3,803 3,803 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) March 31, December 31, 2006 2005 Assets: (Unaudited) Current Assets: Cash and cash equivalents $7,509 $7,759 Short-term investments 4,469 4,433 Accounts receivable, net 6,359 5,639 Prepaid expenses 218 220 Other current asset 326 255 Current assets - discontinued operations 28 29 Total current assets 18,909 18,335 Property and equipment, net 17,456 17,571 Leased property under capital leases, net 5,722 5,740 Other assets, net 60 61 Noncurrent assets - discontinued operations 1,881 1,881 Total assets $44,028 $43,588 Liabilities and Shareholders' Equity Current Liabilities: Current portion of obligations under capital leases $1 $1 Accounts payable 4,270 3,837 Accrued payroll and other compensation 410 469 Accrued income taxes 117 145 Other accrued taxes 161 239 Other liabilities and accrued expense 1,794 1,623 Current liabilities - discontinued operations 391 391 Total current liabilities 7,144 6,705 Obligations under capital leases 233 233 Other noncurrent liabilities 5 9 Total shareholders' equity 36,646 36,641 Total liabilities and shareholders' equity $44,028 $43,588 DATASOURCE: Avalon Holdings Corporation CONTACT: Mr. Timothy C. Coxson, Chief Financial Officer of Avalon Holdings Corporation, +1-330-856-8800

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