Avalon Holdings Corporation Announces Fourth Quarter Results

WARREN, Ohio, March 20  /PRNewswire-FirstCall/ -- Avalon Holdings Corporation (NYSE Amex: AWX) today announced financial results for the fourth quarter of 2008.

Net operating revenues were $12.6 million in the fourth quarter of 2008 compared with $10.4 million in the fourth quarter of the prior year. The Company recorded net income of $62,000 or $.02 per share in the fourth quarter of 2008 compared with net income of $196,000 or $.05 per share in the fourth quarter of 2007.

For the full year of 2008, net operating revenues were $49 million compared with $45.4 million for the prior year period.  The Company recorded net income of $.7 million, or $.19 per share for the full year of 2008 compared with net income of $1.5 million, or $.38 per share for the prior year period. Net income for the full year 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. Avalon Holdings Corporation also owns the Avalon Golf and Country Club, which operates golf courses and related facilities.

                           AVALON HOLDINGS CORPORATION
                Condensed Consolidated Statements of Operations
                 (in thousands, except for per share amounts)


                     Three Months Ended             Twelve Months Ended
                         December 31,                   December 31,

                      2008           2007            2008           2007

  Net operating
   revenues        $12,649        $10,449         $48,978        $45,432

  Costs and expenses:
    Costs of
     operations     10,789          8,913          41,494         38,238
    Selling, general
     and
     administrative
     expenses        1,837          1,437           6,958          6,348

  Operating income
   from continuing
   operations           23             99             526            846

  Interest expense      (4)            (4)            (14)           (16)
  Interest income        5             56              49            435
  Other income, net     44             55             213            120

  Income from
   continuing
   operations before
   income taxes         68            206             774          1,385
  Income tax
   provision             6             10              36             40

  Income from
   continuing
   operations           62            196             738          1,345

  Income from
   discontinued
   operations
   (net of tax)          --              --               --            113
  Net income        $   62        $   196         $   738        $ 1,458

  Income per
   share from
   continuing
   operations       $  .02        $   .05         $   .19        $   .35
  Income per
   share from
   discontinued
   operations       $    --        $     --         $     --        $   .03
  Net income
   per share        $  .02        $   .05         $   .19        $   .38
  Weighted average
   shares
   outstanding       3,803          3,803           3,803          3,803



                    AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
                       Condensed Consolidated Balance Sheets
                                  (in thousands)

                                               December 31,
                                       2008                   2007
  Assets
  Current Assets:
     Cash and cash equivalents       $3,061                 $5,086
     Accounts receivable, net         9,304                  7,704
     Prepaid expenses                   309                    287
     Other current assets               636                    366
        Total current assets         13,310                 13,443

  Property and equipment, net        29,437                 28,568
  Leased property under capital
   leases, net                        5,882                  5,759
  Other assets, net                      59                     60
  Noncurrent deferred tax asset          25                     19
        Total assets                $48,713                $47,849
  Liabilities and Shareholders'
   Equity
  Current Liabilities:
     Current portion of obligations
      under capital leases               $1                     $1
     Accounts payable                 4,831                  5,013
     Accrued payroll and other
      compensation                      711                    594
     Accrued income taxes                19                     43
     Other accrued taxes                281                    260
     Other liabilities and accrued
      expenses                        2,466                  2,271
        Total current liabilities     8,309                  8,182

  Obligations under capital leases      230                    231


        Total shareholders' equity   40,174                 39,436

        Total liabilities and
         shareholders' equity       $48,713                $47,849


DATASOURCE: Avalon Holdings Corporation



CONTACT:  Mr. Timothy C. Coxson, Chief Financial Officer of Avalon

Holdings Corporation, [phone]

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