Note 15 - Business Segment Information

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 15.  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. In 2025, one customer accounted for 10% of consolidated operating revenues and 18% of the waste management services segment’s net operating revenues to external. In 2024, no one customer accounted for more than 10% 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 (See Note 2). 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 summary of significant accounting policies (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 income taxes is as follows (in thousands):

	Year Ended December 31, 2025
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	46,010		$	37,535		$	-		$	83,545
Expenses
Cost of operations		(36,195	)		(31,018	)		-			(67,213	)
Selling, general and administrative		(5,026	)		(2,156	)		(3,322	)		(10,504	)
Depreciation and amortization		(193	)		(3,430	)		(180	)		(3,803	)
Interest expense, net		(25	)		(75	)		(1,942	)		(2,042	)
Income (loss) before taxes	$	4,571		$	856		$	(5,444	)	$	(17	)

	Year Ended December 31, 2024
	Waste Management Services			Golf and Related Operations			Corporate			Total
Income (loss) before income taxes:
Revenue	$	45,922		$	37,873		$	-		$	83,795
Expenses
Cost of operations		(35,940	)		(30,626	)		-			(66,566	)
Selling, general and administrative		(4,954	)		(2,148	)		(3,146	)		(10,248	)
Depreciation and amortization		(196	)		(3,523	)		(187	)		(3,906	)
Interest expense, net		(27	)		(29	)		(1,984	)		(2,040	)
Other		7			-			-			7
Income (loss) before taxes	$	4,812		$	1,547		$	(5,317	)	$	1,042

	Year Ended December 31,
	2025		2024
Capital expenditures:
Waste management services	$	145	$	291
Golf and related operations		1,307		2,118
Corporate		309		52
Total capital expenditures	$	1,761	$	2,461

	Year Ended December 31,
	2025			2024
Total assets:
Waste management services	$	37,617		$	35,100
Golf and related operations		61,342			62,500
Corporate		63,043			64,247
Subtotal		162,002			161,847
Elimination of intersegment receivables		(74,621	)		(75,661	)
Total assets	$	87,381		$	86,186

In comparing total assets at December 31, 2025 with those at December 31, 2024, the increase in the total assets of the waste management services segment of approximately $2.5 million was primarily a result of an increase in intersegment accounts receivable along with an increase in cash and cash equivalents. The decrease in total assets of the golf and related operations segment of $1.2 million was attributed to a decrease in net property and equipment as a result of current year depreciation. The decrease in corporate total assets of approximately $1.2 million was primarily due to a decrease in intersegment transactions, which are eliminated in consolidation, along with a decrease in restricted cash as these monies were utilized to fund costs associated with the remodeling of The Grand Resort.