Financial Performance - Net operating revenues decreased to 18.9 million in Q1 2024, with the waste management services segment contributing approximately 12.5 million in the prior year[148]. - Net loss attributable to Avalon Holdings Corporation common shareholders was 0.38 per share, in Q1 2025, compared to a net loss of 0.25 per share, in Q1 2024[152][166]. - Net operating revenues of the waste management services segment decreased to 12.5 million in Q1 2024, a decline of approximately 22.4%[154]. - Net operating revenues from waste disposal brokerage and management services were approximately 11.8 million in Q1 2024, representing a decrease of approximately 25.4%[155]. - Membership dues revenue decreased to approximately 2.0 million in Q1 2024, a decline of 10%[161]. - Net operating revenues of the golf and related operations segment remained stable at approximately 7.6 million in Q1 2025 from 6.1 million in Q1 2025 from 0.9 million in Q1 2025 from 0.5 million for both Q1 2025 and Q1 2024[165]. Working Capital and Financial Position - Working capital deficit increased to approximately 0.9 million at December 31, 2024, primarily due to increases in accounts payable and accrued liabilities[136]. - Accounts receivable rose to 8.6 million at December 31, 2024, driven by increased billings and timing of receipts[136]. - Deferred revenue related to membership dues increased to approximately 3.5 million at December 31, 2024, attributed to the timing of annual membership renewals[140]. - As of March 31, 2025, approximately 0.5 million, with expectations for total capital expenditures in 2025 ranging from 3.5 million, primarily for renovations at The Grand Resort[134][135]. - The 2022 Term Loan Agreement has a fixed interest rate of 6.00% until the seventh anniversary, after which it may be adjusted but will not exceed 8.50%[126]. - The New Term Loan Agreement bears interest at a fixed rate of 6.00% until the seventh anniversary date, after which it will reset to a fixed rate based on the three-year treasury rate plus 3.40%[200]. - The Line of Credit Agreement allows for borrowings up to 3.2 million outstanding as of March 31, 2025[129][130]. Membership and Market Conditions - The number of members at Avalon Golf and Country Club increased to 4,692 at March 31, 2025, from 4,661 at December 31, 2024[140]. - The company faces challenges in retaining and attracting members for the Avalon Golf and Country Club, which could adversely affect future financial performance[195]. - Inflation and economic conditions impact consumer disposable income and spending habits, potentially affecting Avalon's business performance[198]. - Avalon's golf course operations and The Grand Resort are significantly dependent on weather conditions, affecting financial performance during the golf season[197]. Legal and Regulatory Matters - Avalon received Chief's Orders on May 24, 2021, vacating the September 3, 2014 suspension orders for AWMS 2 and setting conditions for its restart, including a limit on seismicity within three miles of the well[194]. - The Ohio 10th District Court of Appeals reinstated the previous Ohio Oil and Gas Commission decision regarding AWMS 2 on July 31, 2018[188]. - The Supreme Court of Ohio ruled in favor of Avalon on September 23, 2020, reversing a prior decision and remanding the case for trial[193]. - The company has appealed various decisions regarding the suspension of AWMS 2, indicating ongoing legal challenges related to its operations[186]. Business Risks - The captive landfill management business is dependent upon a single customer, which poses a risk to future financial performance if the customer is lost[178]. - Avalon plans to continue exploring acquisition opportunities in the golf and related operations segment, particularly in economically distressed private country clubs in northeast Ohio[146]. - The company does not have significant exposure to changing interest rates and does not engage in interest rate risk management transactions[199].
Avalon(AWX) - 2025 Q1 - Quarterly Report