AWX Avalon Holdngs Corp

WARREN, Ohio, Aug. 11 /PRNewswire-FirstCall/ -- Avalon Holdings Corporation (AMEX:AWX) today announced financial results for the second quarter of 2006. Net operating revenues in the second quarter of 2006 increased to $9.2 million compared with $8.7 million in the prior year's second quarter. The Company recorded income from continuing operations of $.1 million, or $.03 per share for the second quarter of 2006 compared with a loss from continuing operations of $.1 million or a loss of $.02 per share for the second quarter of 2005. Including the results from discontinued operations, the Company recorded net income of $.5 million, or $.13 per share in the second quarter of 2006 compared with a net loss of $.1 million, or a loss of $.02 per share in the second quarter of the prior year. For the first six months of 2006, net operating revenues increased to $18.2 million compared with $16.2 million for the first six months of 2005. The Company recorded income from continuing operations of $.1 million, or $.03 per share for the first six months of 2006 compared with a loss from continuing operations of $33,000, or a loss of $.01 per share for the prior year period. Including the results from discontinued operations, the Company recorded net income of $.5 million, or $.13 per share for the first six months of 2006 compared with net income of $37,000, or $.01 per share for the first six months 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 Six Months Ended June 30, June 30, 2006 2005 2006 2005 Net operating revenues $9,230 $8,739 $18,154 $16,169 Costs and expenses: Costs of operations 7,798 7,345 15,338 13,583 Selling, general and administrative expenses 1,529 1,568 3,076 2,836 Operating loss from continuing operations (97) (174) (260) (250) Other income (expense): Interest expense (3) (4) (7) (7) Interest income 141 78 264 142 Other income, net 69 35 122 82 Income (loss) from continuing operations before income taxes 110 (65) 119 (33) Provision (benefit) for income taxes - - - - Income (loss) from continuing operations 110 (65) 119 (33) Discontinued operations: Income (loss) from discontinued operations before income taxes 371 (10) 364 70 Provision (benefit) for income taxes - - - - Income (loss) from discontinued operations 371 (10) 364 70 Net income (loss) $481 $(75) $483 $37 Net income (loss) per share from continuing operations $.03 $(.02) $.03 $ (.01) Net income (loss) per share from discontinued $.10 $ - $.10 $.02 operations Net income (loss) per share $.13 $(.02) $.13 $.01 Weighted average shares outstanding 3,803 3,803 3,803 3,803 AVALON HOLDINGS CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) June 30, December 31, 2006 2005 Assets: (Unaudited) Current Assets: Cash and cash equivalents $9,660 $7,759 Short-term investments 4,512 4,433 Accounts receivable, net 6,124 5,639 Prepaid expenses 253 220 Other current assets 297 255 Current assets - discontinued operations 5 29 Total current assets 20,851 18,335 Property and equipment, net 17,332 17,571 Leased property under capital leases net 5,718 5,740 Other assets, net 60 61 Noncurrent assets - discontinued operations - 1,881 Total assets $43,961 $43,588 Liabilities and Shareholders' Equity Current Liabilities: Current portion of obligations under capital leases $ 1 $ 1 Accounts payable 3,990 3,837 Accrued payroll and other compensation 521 469 Accrued income taxes 109 145 Other accrued taxes 102 239 Other liabilities and accrued expenses 1,871 1,623 Current liabilities - discontinued operations - 391 Total current liabilities 6,594 6,705 Obligations under capital leases 233 233 Other noncurrent liabilities 2 9 Total shareholders' equity 37,132 36,641 Total liabilities and shareholders' equity $43,961 $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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