Avalon Holdings Q2 Profit Down Slightly

Date: August 12, 2008

Source: Avalon Holdings Corporation

Avalon Holdings Corporation Announces Second Quarter Results

Avalon Holdings Corporation (Amex: AWX) today announced financial results for the second quarter of 2008.

Net operating revenues in the second quarter of 2008 increased to $11.7 million compared with $11.5 million for the second quarter of 2007. The Company recorded net income of $.3 million, or $.07 per share compared with $.4 million, or $.10 per share for the second quarter of the 2007. Net income for the second quarter of 2007 included $.1 million, or $.03 per share from discontinued operations.

For the first six months of 2008, net operating revenues decreased to $22.1 million compared with $22.8 million for the first six months of 2007. The Company recorded net income $.2 million, or $.05 per share for the first six months of 2008 compared with $.7 million or $.19 per share for the first six months of 2007. Net income for the first six months of 2007 included $.1 million, or $.03 per share from discontinued operations.

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 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,
                                       2008       2007      2008       2007

    Net operating revenues           $11,720    $11,534   $22,074    $22,844

    Costs and expenses:
      Costs of operations              9,864      9,695    18,709     19,167
      Selling, general and
       administrative expenses         1,652      1,677     3,313      3,368

    Operating income from
     continuing operations               204        162        52        309

    Other income (expense):
       Interest expense                   (3)        (4)       (7)        (9)

       Interest income                     8        133        37        285

       Other income (expense), net        59        (38)      126         20
    Income from continuing
     operations before income taxes      268        253       208        605

    Provision for income taxes            14          3        14          3

    Income from continuing
     operations                          254        250       194        602

    Discontinued operations:
      Income from discontinued
       operations, net of taxes            -        113         -        113

    Net income                          $254       $363      $194       $715

    Net income per share from
     continuing operations              $.07       $.07      $.05       $.16
    Net income per share from
    discontinued operations               $-       $.03        $-       $.03
    Net income per share                $.07       $.10      $.05       $.19

    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,
                                                 2008           2007
    Assets:                                    (Unaudited)
    Current Assets:
      Cash and cash equivalents                  $3,552        $5,086
      Accounts receivable, net                    8,148         7,704
      Prepaid expenses                              299           287
      Other current assets                          703           366
        Total current assets                     12,702        13,443

    Property and equipment, net                  29,894        28,568
    Leased property under capital leases net      5,739         5,759
    Noncurrent deferred tax asset                    19            19
    Other assets, net                                59            60
        Total assets                            $48,413       $47,849

    Liabilities and Shareholders' Equity
    Current Liabilities:
      Current portion of obligations under
       capital leases                                $1             $1
      Accounts payable                            4,751          5,013
      Accrued payroll and other compensation        708            594
      Accrued income taxes                           38             43
      Other accrued taxes                           148            260
      Other liabilities and accrued expenses      2,906          2,271
        Total current liabilities                 8,552          8,182

    Obligations under capital leases                231            231

        Total shareholders' equity               39,630         39,436

        Total liabilities and shareholders'
         equity                                 $48,413        $47,849

Sign up to receive our free Weekly News Bulletin