http://www.avalonholdings.com/
Not quite the bargain at 2.70 per share or a EV of 16,259,700 million that I first thought the other night. This is far from a slam dunk and could turn into a value trap by going dark with deregistration of shares.
The original attraction was primarily the real estate holdings as follows; The PPE of 35 million was significantly higher than the EV of 16.259 million coupled with their profitable waste management business made the idea an interesting investment at first glance.
Taken from the recent 10k
PROPERTIES
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TBG, Inc. leases and operates the Avalon Golf and Country Club at Squaw Creek in Vienna, Ohio, which includes an 18-hole golf course and practice facility on approximately 224 acres, an outdoor swimming pool, four tennis courts and a 67,000 square foot clubhouse that includes a pro shop, fitness center, restaurants and banquet facilities.
Avalon Country Club at Sharon, Inc. owns an 18-hole golf course on approximately 130 acres. The clubhouse is currently being renovated and additional banquet and recreational facilities are being constructed. When completed, the renovated clubhouse and recreational facility will be approximately 80,000 square feet and will include a pro shop, dining and banquet facilities, an outdoor swimming pool, a spa and fitness center.
The captive landfill management operations use approximately six pieces of equipment (such as bulldozers, excavators and backhoes) all of which are owned or leased by ALMI.
Generally, Avalon’s fixed assets are in good condition and are satisfactory for the purposes for which they are intended. >>
Avalon Holdings Corp AWX derives most of its revenue from the waste management industry. Over the last 4 quarters they reported revenues of 44.66 million.
Important financial data;
EV/Rev = .33
OI-Taxes/EV = 3.36%
CFFO/EV = 28.77%
FCF/EV = -58.37%
The negative FCF was significantly impacted by additional improvements made to their Golf properties over the past 12 months
EBITDA = $1,840,000
Per Share Data
Cash+AR-Ttl Liab = .82
Cash – Ttl Liab = -1.08
CFFO/NI = 2.32
52WkChng = - 58.87%
Cash%Price = 32.07%
No Shorts
Financial Health = C
Growth = C
Profitability = F
PPE/EV = 233.54%
Qtrly Rev Growth % = 1.60%
P/S of .33 is trading a slight discount compared to the prior 3 years.
EV/MC = 1.37
EBITDA/EV = 12.18%
3,803,000 shares outstanding
MC at a price of 2.90 = 11,028,700
Cash = $3,552,000
AR = $8,148,000
FA = $35,633,000
CL = $8,552,000
TL = $8,783,000
EV = 11,028.70 (MC) – 3,552 (Cash)+ 8,783(TL) = 16,259,700
For $16,259,700 EV you are getting $44,662,000 in annual historical revenue and PPE recorded at a historical cost of 35,600,000 million.
