Note 7 - Business Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting Disclosure [Text Block]

Note 7.  Business Segment Information

Avalon’s reportable segments include waste management services and golf and related operations. 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.”  On this basis, 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 waste disposal brokerage and management services to industrial, commercial, municipal and governmental customers and manages a captive landfill for an industrial customer.  The golf and related operations segment includes the operations of golf courses, clubhouses that provide recreational, dining and banquet facilities and a travel agency.  Revenue for the golf and related operations segment consists primarily of membership dues, green fees, cart rentals, merchandise, fitness and spa activities and food and beverage sales.  Revenue related to membership dues are recognized proportionately over twelve months.  The unrecognized or deferred revenues at March 31, 2013 and December 31, 2012 were $2.5 million and $2.2 million, respectively.  Avalon does not have significant operations located outside the United States and, accordingly, geographical segment information is not presented.

For the three months ended March 31, 2013, one customer accounted for approximately 19% of Avalon’s consolidated net operating revenues and 22% of the waste management services segment’s net operating revenues. At March 31, 2013, such customer accounted for approximately 22.5% of the consolidated accounts receivable balance. For the three months ended March 31, 2012, one customer accounted for approximately 9% of Avalon’s consolidated net operating revenues and 11% of the waste management services segment’s net operating revenues.

The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies.  Avalon measures segment profit for internal reporting purposes as income (loss) before taxes.  Business segment information including the reconciliation of segment income before taxes to income (loss) before taxes is as follows (in thousands):

	Three Months Ended March 31,
	2013			2012
Net operating revenues from:
Waste management services:
External customers revenues	$	12,563		$	8,938
Intersegment revenues		—			—
Total waste management services		12,563			8,938
Golf and related operations:
External customers revenues		2,106			2,000
Intersegment revenues		11			10
Total golf and related operations		2,117			2,010
Segment operating revenues		14,680			10,948
Intersegment eliminations		(11	)		(10	)
Total net operating revenues	$	14,669		$	10,938
Income (loss) before taxes:
Waste management services	$	889		$	723
Golf and related operations		(305	)		(353	)
Segment income before taxes		584			370
Corporate interest income		—			1
Corporate other income, net		9			9
General corporate expenses		(708	)		(756	)
Loss before taxes	$	(115	)	$	(376	)
Interest income:
Waste management services	$	—		$	—
Golf and related operations		—			—
Corporate		—			1
Total	$	—		$	1

	March 31, 2013			December 31, 2012
Identifiable assets:
Waste management services	$	12,607		$	10,341
Golf and related operations		30,500			30,140
Corporate		44,223			44,538
Subtotal		87,330			85,019
Elimination of intersegment receivables		(35,027	)		(34,864	)
Total	$	52,303		$	50,155

In comparing the identifiable assets at March 31, 2013 with those at December 31, 2012, the increase in identifiable assets of the waste management services segment of $2.3 million is primarily due to an increase in accounts receivable as a result of higher net operating revenues of the waste brokerage and management services business in the first quarter of 2013 compared with the fourth quarter of 2012. Net operating revenues of the waste brokerage and management services business were $12.0 million in the first quarter of 2013 compared with $9.1 million in the fourth quarter of 2012.