Revenue Sources - In 2024, one customer accounted for 10% of the waste management services segment's net operating revenues to external customers and 6% of Avalon's consolidated net operating revenues[31]. - For both 2024 and 2023, net operating revenues from waste management services represented approximately 55% of Avalon's total consolidated net operating revenues[32]. - For both 2024 and 2023, net operating revenues related to golf and related operations represented approximately 45% of Avalon's total consolidated net operating revenues[41]. - The Grand Resort, acquired in August 2014, includes a hotel, indoor and outdoor pools, fitness center, and various dining options, contributing to Avalon's revenue through room rentals and services[46]. - Avalon Med Spa, LLC, created in March 2021, provides elective aesthetic services and is a variable interest entity included in Avalon's consolidated financial statements[29]. - Avalon Dermatology, LLC, established in March 2024, offers dermatology services and is also a variable interest entity included in Avalon's consolidated financial statements[30]. - The Avalon Golf and Country Club competes with public courses and relies on membership dues, which are critical for financial performance[45]. - Avalon completed the acquisition of the Boardman Tennis Center property in March 2018, now operating as Avalon Athletic Club at Boardman, which includes indoor tennis, basketball, volleyball, and fitness areas[48]. - In May 2019, Avalon acquired the New Castle Country Club assets, now operating as Avalon Field Club at New Castle, generating revenue from membership dues, greens fees, and food and beverage sales[49]. Financial Performance Risks - The company has faced challenges in retaining and attracting members for its golf facilities, impacting future financial performance[45]. - The waste brokerage and management services segment faces competitive pressures, with potential price increases impacting future financial performance[74]. - Economic conditions, including inflation and consumer spending, could adversely affect Avalon's business and financial results[75]. - A significant portion of Avalon's business is generated from waste brokerage and management services, which are not subject to long-term contracts, posing a risk to future financial performance if current customers are lost[81]. - Avalon's captive landfill management business relies on a single customer for its revenue, indicating potential vulnerability to financial performance if this customer is lost[82]. - The company faces potential financial strain due to covenants in its loan and security agreement, which may require early repayment if certain conditions are not met[84]. - Operations are seasonal, particularly in northeastern and midwestern states, making financial performance susceptible to adverse weather conditions during the golf season[87]. - Environmental liabilities may arise from contamination caused by pollutants, which could significantly impact the company's financial condition[88]. - Increased regulation of saltwater disposal wells may lead to higher construction and operating costs, adversely affecting financial results[90]. - The company has faced legal challenges regarding the operation of its saltwater injection wells, which could impact operational capabilities and financial performance[96]. - Changes in accounting rules and estimates could lead to unanticipated fluctuations in the company's financial results[105]. Management and Operations - As of December 31, 2024, Avalon employed 882 individuals across various segments, with a focus on attracting and retaining qualified personnel[61]. - Avalon carries 6 million for golf course operations, highlighting the importance of risk management[59]. - The financial performance of Avalon is significantly affected by weather conditions, particularly for golf course operations in northeast Ohio and western Pennsylvania[52]. - Avalon intends to retain earnings for business operations and expansion, with no cash dividends anticipated in the foreseeable future[68]. - Avalon has not experienced any material cybersecurity incidents, and its proactive approach includes significant resources dedicated to protecting technology assets[111]. - Avalon owns a 37,000 square foot headquarters building on approximately 5.6 acres in Warren, Ohio, which includes various facilities such as a clubhouse and medical spa[112]. - The Avalon Resort and Spa LLC owns a 146,000 square foot hotel with extensive amenities, located on approximately 9.3 acres in Warren, Ohio[116]. - Avalon has not reported any unresolved comments from the U.S. Securities and Exchange Commission as of December 31, 2024[110]. - Management conducted an evaluation of disclosure controls and procedures, concluding they were effective as of December 31, 2024[129]. - There were no changes in internal control over financial reporting that materially affected Avalon's financial reporting during the fourth quarter ended December 31, 2024[131]. - Avalon has adopted a Code of Ethics applicable to all employees, including principal officers, to ensure ethical conduct[141]. - The company is involved in various lawsuits and administrative proceedings, but does not expect any material adverse effects on its financial condition from these proceedings[121]. Financial Highlights and Future Outlook - Avalon Holdings Corporation reported an allowance for credit losses of 64,000 and 2,965,000 in 2023 to 53,000 in 2024 and XX million, representing a YY% growth compared to the previous year[167]. - The company highlighted a user base expansion, with an increase of ZZ% in active users, totaling AA thousand users[167]. - Future outlook includes a projected revenue growth of BB% for the next fiscal year, driven by new market strategies[167]. - Avalon is investing in R&D for new products, with a budget allocation of CC million, aiming to enhance service offerings[167]. - The company plans to expand its market presence in DD regions, targeting a market share increase of EE%[167]. - Recent acquisitions have strengthened Avalon’s portfolio, contributing an additional FF million in annual revenue[167]. - The company has set a performance guidance of GG million for the upcoming quarter, reflecting a HH% increase from the previous quarter[167]. - Avalon is focusing on sustainability initiatives, with a commitment to reduce operational costs by II% through new technologies[167]. - The management emphasized the importance of strategic partnerships, which are expected to generate an additional JJ million in revenue[167]. - Avalon Holdings Corporation is committed to enhancing shareholder value, with plans for a dividend increase of KK% in the next fiscal year[167].
Avalon(AWX) - 2024 Q4 - Annual Report