Note 13 - Business Segment Information

9 Months Ended

Sep. 30, 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 and nine months ending September 30, 2025 and 2024, no one customer accounted for more than 10% of the consolidated 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 September 30, 2025
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	12,918		$	12,828		$	-		$	25,746
Expenses
Cost of operations		(10,259	)		(9,383	)		-			(19,642	)
Selling, general and administrative		(1,294	)		(652	)		(880	)		(2,826	)
Depreciation and amortization		(49	)		(840	)		(43	)		(932	)
Interest expense, net		(6	)		(23	)		(483	)		(512	)
Income (loss) before taxes	$	1,310		$	1,930		$	(1,406	)	$	1,834

	Three months ending September 30, 2024
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	11,461		$	12,774		$	-		$	24,235
Expenses
Cost of operations		(8,949	)		(9,318	)		-			(18,267	)
Selling, general and administrative		(1,213	)		(648	)		(858	)		(2,719	)
Depreciation and amortization		(52	)		(879	)		(44	)		(975	)
Interest expense, net		(7	)		(7	)		(488	)		(502	)
Income (loss) before taxes	$	1,240		$	1,922		$	(1,390	)	$	1,772

	Nine months ending September 30, 2025
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	32,338		$	29,729		$	-		$	62,067
Expenses
Cost of operations		(25,330	)		(24,089	)		-			(49,419	)
Selling, general and administrative		(3,644	)		(1,624	)		(2,567	)		(7,835	)
Depreciation and amortization		(145	)		(2,592	)		(130	)		(2,867	)
Interest expense, net		(19	)		(51	)		(1,462	)		(1,532	)
Income (loss) before taxes	$	3,200		$	1,373		$	(4,159	)	$	414

	Nine months ending September 30, 2024
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	36,151		$	29,999		$	-		$	66,150
Expenses
Cost of operations		(28,372	)		(23,642	)		-			(52,014	)
Selling, general and administrative		(3,848	)		(1,604	)		(2,518	)		(7,970	)
Depreciation and amortization		(147	)		(2,667	)		(143	)		(2,957	)
Interest expense, net		(19	)		(24	)		(1,488	)		(1,531	)
Other		7			-			-			7
Income (loss) before taxes	$	3,772		$	2,062		$	(4,149	)	$	1,685

	September 30,			December 31,
	2025			2024
Identifiable assets:
Waste management services	$	39,706		$	35,100
Golf and related operations		62,469			62,500
Corporate		62,790			64,247
Subtotal		164,965			161,847
Elimination of intersegment receivables		(74,279	)		(75,661	)
Total	$	90,686		$	86,186

In comparing total assets at September 30, 2025 with those at December 31, 2024, the increase in the total assets of approximately $4.5 million is attributed to an increase in cash and cash equivalents coupled with an increase in accounts receivable generated from improved business activity in both the waste management services and golf and related operations segments, partially offset by a decrease in net property and equipment associated with the golf and related operations segment.