AVALON HOLDINGS CORP

Overall Performance

Net operating revenues increased to $83.8 million in 2024 compared with $80.9 million in 2023. Net operating revenues of the waste management services segment were approximately $45.9 million in 2024 compared to $44.6 million in 2023. The increase in net operating revenues of the waste management services segment was a result of an increase in both continuous and event work projects in 2024 compared to 2023. Net operating revenues of the golf and related operations segment were approximately $37.9 million in 2024 compared to $36.3 million in 2023. The increase in net operating revenues of the golf and related operations was a result of an increase in membership dues and higher selling prices related to both The Grand Resort and the country clubs during 2024 compared to 2023.

Total cost of operations related to the waste management services segment increased to $35.9 million in 2024 compared with $35.6 million in 2023. The increase in the cost of operations between years for the waste management services segment is primarily due to an increase in net operating revenues as these costs vary directly with the associated revenues.

Total cost of operations related to the golf and related operations segment increased to $30.6 million in 2024 compared to $31.1 million in 2023. The decrease in costs as a percentage of revenue between periods was primarily a result of cost cutting efforts implemented with a specific focus on increasing profit margins.

Depreciation and amortization expense was approximately $3.9 million in 2024 compared to $3.8 million in 2023. The increase is due to a higher depreciable asset base primarily related to The Grand Resort.

Consolidated selling, general and administrative expenses were approximately $10.2 million in both 2024 and 2023.

Net interest expense was approximately $2.0 million in 2024 compared to $2.1 million in 2023. During 2024, the slight decrease in net interest expense was primarily result of a higher interest rate earned in 2024 compared to 2023 on our restricted cash savings, resulting in additional interest income. The additional interest income was an offset to interest expense, thus reducing the net interest expense compared to the prior year. The weighted average debt outstanding during 2024 was approximately $33.2 million compared to $32.9 million in 2023. During the years ended December 31, 2024 and 2023, the weighted average interest rate on outstanding borrowings was 6.24% and 6.17%, respectively.

Net income attributable to Avalon Holdings Corporation common shareholders was $1.3 million, or $0.34 per share, in 2024 compared with a net loss attributable to Avalon Holdings Corporation common shareholders of $1.8 million, or $0.46 per share, in 2023.