v3.25.2
Note 13 - Business Segment Information
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 13. Business Segment Information

 

In determining the segment information, Avalon considered its operating and management structure and the types of information subject to regular review by its chief operating decision maker (“CODM”), who is the company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. Using the criteria of FASB ASC 280 Segment Reporting, Avalon’s reportable segments include waste management services and golf and related operations. Avalon accounts for intersegment net operating revenues as if the transactions were to third parties. The segment disclosures are presented on this basis for all years presented.

 

Avalon’s primary business segment, the waste management services segment, provides hazardous and nonhazardous brokerage and management services to industrial, commercial, municipal and governmental customers, captive landfill management for an industrial customer and salt water injection well operations.

 

Avalon’s golf and related operations segment consists of four golf courses and associated clubhouses which provide dining and banquet facilities, a hotel which provides lodging and resort related amenities including dining, banquet and conference facilities, a multipurpose recreation center, a med spa and dermatology center. Revenue for the golf and related operations segment consists primarily of membership dues, greens fees, cart rentals, room rentals, merchandise sales, tennis and fitness activities, salon and spa services and food and beverage sales

 

Avalon does not have operations located outside the United States and, accordingly, geographical segment information is not presented. For the three and six months ending June 30, 2025 and 2024, no one customer accounted for more than 10% of the consolidated net operating revenues to external customers.

 

The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies included in Avalon’s 2024 Annual Report to Shareholders. Avalon measures segment profit for internal reporting purposes as income (loss) before income taxes.

 

Revenue and income (loss) before taxes for each segment are used by the CODM to assess the performance of each segment in the financial period. The CODM assesses revenue and income (loss) before taxes as the measure to make resource (including financial or capital resources) allocation decisions for each segment. The CODM considers expectations and variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. The accounting policies of the segments are consistent with those described for the consolidated financial statements in the basis of presentation (See Note 2). Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance.

 

Business segment information including the reconciliation of segment income (loss) to consolidated income (loss) before taxes is as follows (in thousands):

 

   

Three months ending June 30, 2025

  
   

Waste

Management

Services

    

Golf and

Related

Operations

    

Corporate

    

Total

  
                                 

Income (loss) before income taxes:

                               

Revenue

   $ 9,742     $ 10,510     $ -     $ 20,252  
                                 

Expenses

                                

Cost of operations

     (7,489 )     (8,595 )     -       (16,084 )

Selling, general and administrative

     (1,176 )     (470 )     (807 )     (2,453 )

Depreciation and amortization

     (48 )     (874 )     (43 )     (965 )

Interest expense, net

     (7 )     (10 )     (493 )     (510 )

Income (loss) before taxes

   $ 1,022     $ 561     $ (1,343 )   $ 240  

 

 

   

Three months ending June 30, 2024

  
   

Waste

Management

Services

    

Golf and

Related

Operations

    

Corporate

    

Total

  
                                 

Income (loss) before income taxes:

                               

Revenue

   $ 12,220     $ 10,837     $ -     $ 23,057  
                                 

Expenses

                                

Cost of operations

     (9,527 )     (8,426 )     -       (17,953 )

Selling, general and administrative

     (1,305 )     (529 )     (820 )     (2,654 )

Depreciation and amortization

     (49 )     (907 )     (46 )     (1,002 )

Interest expense, net

     (28 )     (8 )     (485 )     (521 )

Income (loss) before taxes

   $ 1,311     $ 967     $ (1,351 )   $ 927  

 

   

Six months ending June 30, 2025

  
   

Waste

Management

Services

    

Golf and

Related

Operations

    

Corporate

    

Total

  
                                 

Income (loss) before income taxes:

                               

Revenue

   $ 19,419     $ 16,901     $ -     $ 36,320  
                                 

Expenses

                                

Cost of operations

     (15,071 )     (14,705 )     -       (29,776 )

Selling, general and administrative

     (2,426 )     (1,127 )     (1,457 )     (5,010 )

Depreciation and amortization

     (96 )     (1,752 )     (87 )     (1,935 )

Interest expense, net

     (13 )     (28 )     (979 )     (1,020 )

Income (loss) before taxes

   $ 1,813     $ (711 )   $ (2,523 )   $ (1,421 )

 

 

   

Six months ending June 30, 2024

  
   

Waste

Management

Services

    

Golf and

Related

Operations

    

Corporate

    

Total

  
                                 

Income (loss) before income taxes:

                               

Revenue

   $ 24,690     $ 17,225     $ -     $ 41,915  
                                 

Expenses

                                

Cost of operations

     (19,424 )     (14,324 )     -       (33,748 )

Selling, general and administrative

     (2,710 )     (1,110 )     (1,431 )     (5,251 )

Depreciation and amortization

     (95 )     (1,787 )     (100 )     (1,982 )

Interest expense, net

     (12 )     (17 )     (999 )     (1,028 )

Other

     7       -       -       7  

Income (loss) before taxes

   $ 2,456     $ (13 )   $ (2,530 )   $ (87 )

 

 

   

June 30,

    

December 31,

  
   

2025

    

2024

  

Identifiable assets:

                

Waste management services

   $ 36,567     $ 35,100  

Golf and related operations

     63,637       62,500  

Corporate

     62,962       64,247  

Subtotal

     163,166       161,847  

Elimination of intersegment receivables

     (75,111 )     (75,661 )

Total

   $ 88,055     $ 86,186  

 

In comparing total assets at June 30, 2025 with those at December 31, 2024, the increase in the total assets of the waste management services segment of approximately $1.5 million was primarily a result intersegment transactions, which are eliminated in consolidation. The increase in total assets of the golf and related operations segment of $1.1 million was primarily due to an increase in accounts receivable, inventory and capital expenditures associated with The Grand Resort, partially offset by current year depreciation on property and equipment. The increase in corporate total assets of approximately $1.3 million was primarily due to an increase in both operating cash and intersegment transactions, which are eliminated in consolidation.