Note 13 - Business Segment Information

6 Months Ended

Jun. 30, 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 six months ended June 30, 2024, one customer accounted for 10% of the waste management services segment’s net operating revenues to external customers and 6% of the consolidated net operating revenues. For the six months ended June 30, 2023, two customers accounted for 25% of the waste management services segment’s net operating revenues to external customers and 14% 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						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net operating revenues from:
Waste management services:
External customer revenues	$	12,220		$	10,298		$	24,690		$	22,950
Golf and related operations:
External customer revenues		10,837			10,528			17,225			16,331
Intersegment revenues		22			17			26			50
Total golf and related operations		10,859			10,545			17,251			16,381
Segment operating revenues		23,079			20,843			41,941			39,331
Intersegment eliminations		(22	)		(17	)		(26	)		(50	)
Total net operating revenues	$	23,057		$	20,826		$	41,915		$	39,281

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Income (loss) before income taxes:
Waste management services	$	1,311		$	844		$	2,532		$	1,793
Golf and related operations		1,068			393			317			(902	)
Segment income before income taxes		2,379			1,237			2,849			891
Corporate interest expense, net		(529	)		(521	)		(1,028	)		(1,044	)
Corporate other income, net		-			11			-			11
General corporate expenses		(923	)		(908	)		(1,908	)		(1,807	)
Income (loss) before income taxes	$	927		$	(181	)	$	(87	)	$	(1,949	)

	June 30,			December 31,
	2024			2023
Identifiable assets:
Waste management services	$	37,716		$	35,839
Golf and related operations		64,389			63,670
Corporate		65,818			65,453
Subtotal		167,923			164,962
Elimination of intersegment receivables		(76,198	)		(76,997	)
Total	$	91,725		$	87,965

In comparing total assets at June 30, 2024 with those at December 31, 2023, the increase in the total assets of approximately $3.8 million was primarily a result of an increase in accounts receivable associated with the waste segment, intersegment transactions, which are eliminated in consolidation and capital expenditures associated with The Grand Resort and Avalon Dermatology, LLC.