Note 7 - Business Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

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, manages a captive landfill for an industrial customer and sells construction mats. 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, and food and beverage sales. Revenue related to membership dues are recognized proportionately over twelve months. The unrecognized or deferred revenues relating to membership dues at June 30, 2013 and December 31, 2012 were $3.1 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 six months ended June 30, 2013, one customer accounted for approximately 17.4% of Avalon’s consolidated net operating revenues and 21.4% of the waste management services segment’s net operating revenues. At June 30, 2013, such customer accounted for approximately 18.5% of the consolidated accounts receivable balance. For the six months ended June 30, 2012, no customer accounted for 10% of Avalon’s consolidated 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 June 30,							Six Months Ended June 30,
	2012			2013			2013				2012
Net operating revenues from:
Waste management services:
External customers revenues	$	12,098		$	9,114		$	24,661		$	18,052
Intersegment revenues		—			1			—			1
Total waste management services		12,098			9,115			24,661			18,053
Golf and related operations:
External customers revenues		3,635			3,495			5,741			5,495
Intersegment revenues		27			28			38			38
Total golf and related operations		3,662			3,523			5,779			5,533
Segment operating revenues		15,760			12,638			30,440			23,586
Intersegment eliminations		(27	)		(29	)		(38	)		(39	)
Total net operating revenues	$	15,733		$	12,609		$	30,402		$	23,547
Income (loss) before taxes:
Waste management services	$	979		$	800		$	1,868		$	1,523
Golf and related operations		153			91			(152	)		(262	)
Segment income before taxes		1,132			891			1,716			1,261
Corporate interest income		1			1			1			2
Corporate other income, net		9			8			18			17
General corporate expenses		(653	)		(607	)		(1,361	)		(1,363	)
Income (loss) before taxes	$	489		$	293		$	374		$	(83	)
Interest income:
Waste management services	$	—		$	—		$	—		$	—
Golf and related operations		—			—			—			—
Corporate		1			1			1			2
Total	$	1		$	1		$	1		$	2

	June 30, 2013			December 31, 2012
Identifiable assets:
Waste management services	$	12,040		$	10,341
Golf and related operations		30,883			30,140
Corporate		45,053			44,538
Subtotal		87,976			85,019
Elimination of intersegment receivables		(35,312	)		(34,864	)
Total	$	52,664		$	50,155

In comparing the identifiable assets at June 30, 2013 with those at December 31, 2012, the increase in identifiable assets of the waste management services segment of $1.7 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 second quarter of 2013 compared with the fourth quarter of 2012. Net operating revenues of the waste brokerage and management services business were $11.5 million in the second quarter of 2013 compared with $9.1 million in the fourth quarter of 2012. The increase in identifiable assets of the golf and related operations segment of $.7 million is primarily due to an increase in accounts receivable at June 30, 2013 compared with December 31, 2012 as a result of increased net operating revenues in the second quarter of 2013 compared to the fourth quarter of 2012. Net operating revenues of the golf and related operations segment were $3.7 million in the second quarter of 2013 compared with $2.5 million in the fourth quarter of 2012.