Note 13 - Business Segment Information

9 Months Ended

Sep. 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 nine months ended September 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 nine months ended September 30, 2023, one customer accounted for 15% of the waste management services segment’s net operating revenues to external customers and 7% 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						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Net operating revenues from:
Waste management services:
External customer revenues	$	11,461		$	11,744		$	36,151		$	34,694
Golf and related operations:
External customer revenues		12,774			12,185			29,999			28,484
Intersegment revenues		20			14			46			64
Total golf and related operations		12,794			12,199			30,045			28,548
Segment operating revenues		24,255			23,943			66,196			63,242
Intersegment eliminations		(20	)		(14	)		(46	)		(64	)
Total net operating revenues	$	24,235		$	23,929		$	66,150		$	63,178

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Income (loss) before income taxes:
Waste management services	$	1,240		$	1,180		$	3,772		$	2,973
Golf and related operations		1,973			1,214			2,290			312
Segment income before income taxes		3,213			2,394			6,062			3,285
Corporate interest expense, net		(502	)		(519	)		(1,531	)		(1,530	)
Corporate other income, net		-			-			7			-
General corporate expenses		(939	)		(1,008	)		(2,853	)		(2,837	)
Income (loss) before income taxes	$	1,772		$	867		$	1,685		$	(1,082	)

	September 30,			December 31,
	2024			2023
Identifiable assets:
Waste management services	$	36,422		$	35,839
Golf and related operations		63,240			63,670
Corporate		64,339			65,453
Subtotal		164,001			164,962
Elimination of intersegment receivables		(74,883	)		(76,997	)
Total	$	89,118		$	87,965

In comparing total assets at September 30, 2024 with those at December 31, 2023, the increase in the total assets of approximately $1.2 million was primarily result of an increase in cash and cash equivalents generated from improved business activity in the golf and related operations segment, partially offset by a decrease in net property and equipment associated with the golf and related operations segment.