
Financial Performance - Net operating revenues decreased to $16.1 million in Q1 2025 from $18.9 million in Q1 2024, with the waste management services segment contributing approximately $9.7 million compared to $12.5 million in the prior year[148]. - Net loss attributable to Avalon Holdings Corporation common shareholders was $1.5 million, or $0.38 per share, in Q1 2025, compared to a net loss of $1.0 million, or $0.25 per share, in Q1 2024[152][166]. - Net operating revenues of the waste management services segment decreased to $9.7 million in Q1 2025 from $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 $8.8 million in Q1 2025, down from $11.8 million in Q1 2024, representing a decrease of approximately 25.4%[155]. - Membership dues revenue decreased to approximately $1.8 million in Q1 2025 from $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 $6.4 million in both Q1 2025 and Q1 2024[159]. Operational Costs - Total cost of operations for the waste management services segment decreased to $7.6 million in Q1 2025 from $9.9 million in Q1 2024, reflecting a direct correlation with the decrease in revenues[149]. - Total cost of operations for the golf and related operations segment increased to $6.1 million in Q1 2025 from $5.9 million in Q1 2024[162]. - General corporate expenses decreased to $0.9 million in Q1 2025 from $1.0 million in Q1 2024[164]. - Interest expense remained approximately $0.5 million for both Q1 2025 and Q1 2024[165]. Working Capital and Financial Position - Working capital deficit increased to approximately $2.3 million at March 31, 2025, compared to $0.9 million at December 31, 2024, primarily due to increases in accounts payable and accrued liabilities[136]. - Accounts receivable rose to $11.4 million at March 31, 2025, up from $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 $5.1 million at March 31, 2025, compared to $3.5 million at December 31, 2024, attributed to the timing of annual membership renewals[140]. - As of March 31, 2025, approximately $3.2 million was outstanding under the Line of Credit Agreement, with an interest rate of 7.75%[201]. Capital Expenditures and Financing - Capital expenditures for Q1 2025 totaled $0.5 million, with expectations for total capital expenditures in 2025 ranging from $2.5 million to $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 $5.0 million, with approximately $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].