Note 8 - Business Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 8. 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. During the second quarter of 2014, Avalon began operating the salt water injection wells for the disposal of brine water. These operations are included in the waste management services segment. 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, 2014 and December 31, 2013 were $3.1 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 six months ended June 30, 2014, one customer accounted for approximately 8.5% of Avalon’s consolidated net operating revenues and 11.3% of the waste management services segment’s net operating revenues. 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.

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,
	2014			2013			2014			2013
Net operating revenues from:
Waste management services:
External customers revenues	$	9,346		$	12,098		$	17,176		$	24,661
Intersegment revenues		—			—			—			—
Total waste management services		9,346			12,098			17,176			24,661
Golf and related operations:
External customers revenues		3,670			3,635			5,823			5,741
Intersegment revenues		14			27			33			38
Total golf and related operations		3,684			3,662			5,856			5,779
Segment operating revenues		13,030			15,760			23,032			30,440
Intersegment eliminations		(14	)		(27	)		(33	)		(38	)
Total net operating revenues	$	13,016		$	15,733		$	22,999		$	30,402
Income (loss) before taxes:
Waste management services	$	682		$	979		$	1,190		$	1,868
Golf and related operations		(155	)		153			(653	)		(152	)
Segment income before taxes		527			1,132			537			1,716
Corporate interest income		—			1			—			1
Corporate other income, net		9			9			17			18
General corporate expenses		(652	)		(653	)		(1,362	)		(1,361	)
Income (loss) before taxes	$	(116	)	$	489		$	(808	)	$	374
Interest income:
Waste management services	$	—		$	—		$	—		$	—
Golf and related operations		—			—			—			—
Corporate		—			1			—			1
Total	$	—		$	1		$	—		$	1

	June 30, 2014			December 31, 2013
Identifiable assets:
Waste management services	$	18,224		$	16,252
Golf and related operations		30,846			29,821
Corporate		41,625			43,997
Subtotal		90,695			90,070
Elimination of intersegment receivables		(35,943	)		(34,491	)
Total	$	54,752		$	55,579

In comparing the identifiable assets at June 30, 2014 with those at December 31, 2013, the increase in identifiable assets of the waste management services segment of $2.0 million is primarily due to capital expenditures of $3.0 million for the salt water injection wells and the related facilities, partially offset by a decrease in accounts receivable as a result of lower net operating revenues of the waste brokerage and management services business in the second quarter of 2014 compared with the fourth quarter of 2013. Net operating revenues of the waste brokerage and management services business were $8.5 million in the second quarter of 2014 compared with $9.5 million in the fourth quarter of 2013. The increase in identifiable assets of the golf and related operations segment of $1 million is primarily due to an increase in accounts receivable at June 30, 2014 compared with December 31, 2013 as a result of increased net operating revenues in the second quarter of 2014 compared to the fourth quarter of 2013 and capital expenditures subsequent to December 31, 2013. Net operating revenues of the golf and related operations segment were $3.7 million in the second quarter of 2014 compared with $2.6 million in the fourth quarter of 2013. The decrease in identifiable assets of corporate is primarily related to a decrease in cash and cash equivalents resulting from the capital expenditures for the other two segments.