Note 7 - Business Segment Information

3 Months Ended

Mar. 31, 2014

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 and manages a captive landfill for an industrial customer. The waste management services segment will also include the operations of the salt water disposal wells, which began accepting brine water for disposal in April 2014. 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, 2014 and December 31, 2013 were $2.6 million and $2.3 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, 2014, no customer accounted for 10% of Avalon’s consolidated net operating revenue. At March 31, 2014, one customer accounted for approximately 16.3% of the consolidated accounts receivable balance. 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.

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,
	2014			2013
Net operating revenues from:
Waste management services:
External customers revenues	$	7,830		$	12,563
Intersegment revenues		—			—
Total waste management services		7,830			12,563
Golf and related operations:
External customers revenues		2,153			2,106
Intersegment revenues		19			11
Total golf and related operations		2,172			2,117
Segment operating revenues		10,002			14,680
Intersegment eliminations		(19	)		(11	)
Total net operating revenues	$	9,983		$	14,669
Income (loss) before taxes:
Waste management services	$	508		$	889
Golf and related operations		(498	)		(305	)
Segment income before taxes		10			584
Corporate other income, net		8			9
General corporate expenses		(710	)		(708	)
Loss before income taxes	$	(692	)	$	(115	)

	March 31,			December 31,
	2014			2013
Identifiable assets:
Waste management services	$	16,805		$	16,252
Golf and related operations		30,183			29,821
Corporate		41,393			43,997
Subtotal		88,381			90,070
Elimination of intersegment receivables		(34,805	)		(34,491	)
Total	$	53,576		$	55,579

In comparing the identifiable assets at March 31, 2014 with those at December 31, 2013, the $2.6 million decrease in the corporate identifiable assets is primarily due to a decrease in cash and cash equivalents as a result of monies expended for the construction of the two salt water injection wells and related facilities. The $.6 million increase in identifiable assets of the waste management services segment is primarily due to an increase in property and equipment as a result of the construction of the two salt water injection wells and related facilities, partially offset by a decrease in accounts receivable as a result of significantly lower net operating revenues of the waste brokerage and management services business in the first quarter of 2014 compared with the fourth quarter of 2013. Net operating revenues of the waste brokerage and management services business were $7.3 million in the first quarter of 2014 compared with $9.5 million in the fourth quarter of 2013.