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Avalon Holdings Corporation Announces Third Quarter Results

WARREN, Ohio, Nov. 11 /PRNewswire-FirstCall/ -- Avalon Holdings Corporation (NYSE AMEX: AWX) today announced financial results for the third quarter of 2009.

Net operating revenues in the third quarter of 2009 decreased to $9.6 million compared with $14.3 million in the prior year's third quarter. The Company broke even for the third quarter of 2009 compared with net income of $.5 million, or $.13 per share for the third quarter of 2008.

For the first nine months of 2009, net operating revenues decreased to $26.8 million compared with $36.3 million for the first nine months of 2008. The Company incurred a net loss of $.7 million, or $.18 per share for the first nine months of 2009 compared with net income of $.7 million, or $.18 per share for the prior year period.

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     Nine Months Ended
                                     September 30,         September 30,
                                  ------------------    ------------------
                                    2009       2008       2009       2008
                                    ----       ----       ----       ----

    Net operating revenues         $9,619    $14,255    $26,834    $36,329

    Costs and expenses:
       Costs of operations          7,757     11,589     21,833     29,579
       Depreciation and
        Amortization                  420        407      1,268      1,126
       Selling, general and
        administrative expenses     1,484      1,808      4,549      5,121
                                    -----      -----      -----      -----
    Operating (loss) income           (42)       451       (816)       503

    Other income (expense):
       Interest expense                (5)        (3)       (12)       (10)
       Interest income                 10          7         24         44
       Other income, net               41         43        155        169
                                       --         --        ---        ---
    Income (loss) before
     income taxes                       4        498       (649)       706
    Provision for income taxes          4         16         18         30
                                      ---         --         --         --
    Net income (loss)                  $0       $482      $(667)      $676
                                       ==       ====      =====       ====

    Net income (loss) per
     share                             $0       $.13      $(.18)      $.18
                                       ==       ====      =====       ====

    Weighted average shares
     outstanding                    3,803      3,803      3,803      3,803
                                    =====      =====      =====      =====

    AVALON HOLDINGS CORPORATION AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (in thousands)
                                               September 30,    December 31,
                                                   2009             2008
                                                   ----             ----
                                                (Unaudited)
    Assets:
    Current Assets:
       Cash and cash equivalents                    $5,546         $3,061
       Accounts receivable, net                      6,156          9,304
       Prepaid expenses                                248            309
       Other current assets                            625            636
                                                       ---            ---
          Total current assets                      12,575         13,310

    Property and equipment, net                     28,588         29,437
    Leased property under capital leases, net        5,605          5,882
    Noncurrent deferred tax asset                       25             25
    Other assets, net                                   58             59
                                                        --             --
          Total assets                             $46,851        $48,713


    Liabilities and Shareholders' Equity
    Current Liabilities:
       Current portion of obligations under
        capital leases                                  $1             $1
       Accounts payable                              3,973          4,831
       Accrued payroll and other compensation          586            711
       Accrued income taxes                              1             19
       Other accrued taxes                             219            281
       Other liabilities and accrued expenses        2,334          2,466
                                                     -----          -----
          Total current liabilities                  7,114          8,309

    Obligations under capital leases                   230            230

    Total shareholders' equity                      39,507         40,174
                                                    ------         ------
          Total liabilities and shareholders'
           equity                                  $46,851        $48,713

SOURCE Avalon Holdings Corporation