Note 13 - Business Segment Information

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 13. Business Segment Information

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.” Using the criteria of FASB ASC 280 Segment Reporting, 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 periods presented.

Avalon’s primary business segment, the waste management services segment, provides hazardous and nonhazardous brokerage and management services to industrial, commercial, municipal and governmental customers, captive landfill management for an industrial customer and salt water injection well operations.

Avalon’s golf and related operations segment consists of four golf courses and associated clubhouses which provide dining and banquet facilities, a hotel which provides lodging and resort related amenities including dining, banquet and conference facilities and a multipurpose recreation center. Revenue for the golf and related operations segment consists primarily of membership dues, greens fees, cart rentals, room rentals, merchandise sales, tennis and fitness activities, salon and spa services and food and beverage sales.

Avalon does not have operations located outside the United States and, accordingly, geographical segment information is not presented. For the three months ended March 31, 2024, one customer accounted for 14% of the waste management services segment’s net operating revenues to external customers and 10% of the consolidated net operating revenues. For the three months ended March 31, 2023, two customers accounted for 32% of the waste management services segment’s net operating revenues to external customers and 22% of the 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 included in Avalon’s 2023 Annual Report to Shareholders. Avalon measures segment profit for internal reporting purposes as income (loss) before income taxes.

Business segment information including the reconciliation of segment income (loss) to consolidated income (loss) before taxes is as follows (in thousands):

	Three Months Ended
	March 31,
	2024			2023
Net operating revenues from:
Waste management services:
External customer revenues	$	12,470		$	12,652
Intersegment revenues		-			-
Total waste management services		12,470			12,652
Golf and related operations:
External customer revenues		6,388			5,793
Intersegment revenues		4			9
Total golf and related operations		6,392			5,802
Segment operating revenues		18,862			18,454
Intersegment eliminations		(4	)		(9	)
Total net operating revenues	$	18,858		$	18,445
Income (loss) before income taxes:
Waste management services	$	1,221		$	949
Golf and related operations		(751	)		(1,292	)
Segment income (loss) before income taxes		470			(343	)
Corporate interest expense, net		(515	)		(496	)
General corporate expenses		(969	)		(929	)
Loss before income taxes	$	(1,014	)	$	(1,768	)

	March 31,			December 31,
	2024			2023
Identifiable assets:
Waste management services	$	37,988		$	35,839
Golf and related operations		65,763			63,670
Corporate		64,310			65,453
Subtotal		168,061			164,962
Elimination of intersegment receivables		(77,458	)		(76,997	)
Total	$	90,603		$	87,965

In comparing total assets at March 31, 2024 with those at December 31, 2023, the increase in the total assets of the waste management services segment of approximately $2.1 million was primarily a result of an increase accounts receivable and intersegment transactions, which are eliminated in consolidation. The increase in total assets of the golf and related operations segment of $2.1 million was primarily due to an increase in accounts receivable, inventory and capital expenditures associated with The Grand Resort, partially offset by current year depreciation on property and equipment. The decrease in corporate total assets of approximately $1.1 million was primarily due to a decrease in both operating cash and intersegment transactions, which are eliminated in consolidation.