Based in Warren, Ohio, Avalon Holdings Corp. provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets via its subsidiaries. The company also owns the Avalon Golf and Country Club, which operates golf courses and related facilities, although the majority of revenues are generated from waste management services.
Avalon Holdings’ acquisition growth strategy is primarily focused on privately held companies and the waste operations of municipal and other local governmental authorities. The company believes their ability to acquire privately held companies is enhanced by increasing competition in the waste industry, increasing capital requirements as a result of changes in waste regulatory requirements, and limited number of exit strategies.
As of last report Avalon Holdings had $47.1 million in total assets, $5.6 million of which consists of cash and equivalents, and $7.9 million in total liabilities. Currently trading at $2.78 with market cap of $10.57 million, the stock trades at nearly 1/4 the company’s book value. Insiders hold 27.02% of the outstanding shares while institutions hold 24.40%.
Last month the company announced its financial results for the three and nine month periods ended September 30, 2010. For the first nine months of 2010, net operating revenues increased to $32.2 million compared with $26.8 million for the first nine months of 2009. Commenting on the results, Steven M. Berry, President and Chief Executive Officer, stated that the company continues to make progress and remains committed to identifying opportunities for the creation of future shareholder value.