Note 7 - Business Segment Information

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012 were $2.6 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 nine months ended September 30, 2013, one customer accounted for approximately 14.2% of Avalon’s consolidated net operating revenues and 18.9% of the waste management services segment’s net operating revenues. At September 30, 2013, such customer accounted for approximately 15% of the consolidated accounts receivable balance. For the nine months ended September 30, 2012, one customer accounted for 9% of Avalon’s consolidated net operating revenues and 12% of the waste management services segment’s 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. 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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net operating revenues from:
Waste management services:
External customers revenues	$	12,487		$	9,561		$	37,148		$	27,613
Intersegment revenues		—			—			—			1
Total waste management services		12,487			9,561			37,148			27,614
Golf and related operations:
External customers revenues		3,899			3,669			9,640			9,164
Intersegment revenues		13			26			51			64
Total golf and related operations		3,912			3,695			9,691			9,228
Segment operating revenues		16,399			13,256			46,839			36,842
Intersegment eliminations		(13	)		(26	)		(51	)		(65	)
Total net operating revenues	$	16,386		$	13,230		$	46,788		$	36,777
Income (loss) before taxes:
Waste management services	$	1,064		$	680		$	2,932		$	2,203
Golf and related operations		170			87			18			(175	)
Segment income before taxes		1,234			767			2,950			2,028
Corporate interest income		—			—			1			2
Corporate other income, net		8			8			26			25
General corporate expenses		(791	)		(675	)		(2,152	)		(2,038	)
Income (loss) before taxes	$	451		$	100		$	825		$	17
Interest income:
Waste management services	$	—		$	—		$	—		$	—
Golf and related operations		—			—			—			—
Corporate		—			—			1			2
Total	$	—		$	—		$	1		$	2

	September 30, 2013			December 31, 2012
Identifiable assets:
Waste management services	$	13,456		$	10,341
Golf and related operations		30,317			30,140
Corporate		44,779			44,538
Subtotal		88,552			85,019
Elimination of intersegment receivables		(35,573	)		(34,864	)
Total	$	52,979		$	50,155

In comparing the significant changes in identifiable assets at September 30, 2013 with those at December 31, 2012, the increase in identifiable assets of the waste management services segment of $3.1 million is primarily due to an increase in accounts receivable of the waste brokerage and management services business as a result of higher net operating revenues of the waste brokerage and management services business in the third quarter of 2013 compared with the fourth quarter of 2012. Net operating revenues of the waste brokerage and management services business were $11.9 million in the third quarter of 2013 compared with $9.1 million in the fourth quarter of 2012.