Note 13 - Business Segment Information

3 Months Ended

Mar. 31, 2025

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 (“CODM”), who is the company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. 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 years 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, a multipurpose recreation center, a med spa and dermatology 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, 2025, one customer accounted for 10% of the consolidated net operating revenues and 16% of the waste management services segment’s net operating revenues to external customers. For the three months ended March 31, 2024, one customer accounted for 9% of the consolidated net operating revenues and 14% of the waste management services segment’s net operating revenues to external customers.

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 2024 Annual Report to Shareholders. Avalon measures segment profit for internal reporting purposes as income (loss) before income taxes.

Revenue and income (loss) before taxes for each segment are used by the CODM to assess the performance of each segment in the financial period. The CODM assesses revenue and income (loss) before taxes as the measure to make resource (including financial or capital resources) allocation decisions for each segment. The CODM considers expectations and variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. The accounting policies of the segments are consistent with those described for the consolidated financial statements in the basis of presentation (See Note 2). Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance.

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

	Three months ending March 31, 2025
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	9,677		$	6,391		$	-		$	16,068
Expenses
Cost of operations		(7,582	)		(6,109	)		-			(13,691	)
Selling, general and administrative		(1,174	)		(505	)		(879	)		(2,558	)
Depreciation and amortization		(48	)		(879	)		(43	)		(970	)
Interest expense, net		(7	)		(10	)		(493	)		(510	)
Income (loss) before taxes	$	866		$	(1,112	)	$	(1,415	)	$	(1,661	)

	Three months ending March 31, 2024
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	12,470		$	6,388		$	-		$	18,858
Expenses
Cost of operations		(9,897	)		(5,898	)		-			(15,795	)
Selling, general and administrative		(1,329	)		(361	)		(906	)		(2,596	)
Depreciation and amortization		(46	)		(871	)		(63	)		(980	)
Interest expense, net		16			(9	)		(515	)		(508	)
Other		7			-			-			7
Income (loss) before taxes	$	1,221		$	(751	)	$	(1,484	)	$	(1,014	)

	March 31,			December 31,
	2025			2024
Identifiable assets:
Waste management services	$	36,855		$	35,100
Golf and related operations		64,793			62,500
Corporate		61,776			64,247
Subtotal		163,424			161,847
Elimination of intersegment receivables		(75,793	)		(75,661	)
Total	$	87,631		$	86,186

In comparing total assets at March 31, 2025 with those at December 31, 2024, the increase in the total assets of the waste management services segment of approximately $1.8 million was primarily a result of an increase in accounts receivable and intersegment transactions, which are eliminated in consolidation. The increase in total assets of the golf and related operations segment of $2.3 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 $2.5 million was primarily due to a decrease in both operating cash and intersegment transactions, which are eliminated in consolidation.