The ONE Group Hospitality, Inc. Reports Second Quarter 2019 Results
Domestic Same Store Sales Increases 6.4% - Increases 2019 Revenue Targets
The ONE Group Hospitality, Inc. (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2019 and increased its 2019 revenue targets.
Highlights for the second quarter ended June 30, 2019 compared to the same period last year were as follows:
- Total GAAP revenues increased 16.2% to $23.6 million from $20.3 million;
- Domestic same store sales* for STK restaurants rose 6.4%;
- GAAP net loss attributable to The ONE Group was $(322,000) or $(0.01) net loss per share which includes $589,000 of costs associated with the closing of the Company’s new credit facility and registration of shares issuable under the Company’s 2019 Equity Incentive Plan, compared to GAAP net income of $181,000 million or $0.01 net income per share. Eliminating those costs, net income would have been $207,000, or $0.01 net income per share; and
- GAAP income from operations was $477,000 compared to $773,000;
- Adjusted EBITDA** was $2.1 million compared to $2.5 million in the prior year.
*Same store sales or comparable store sales represents total US food and beverage sales at owned and managed units opened for at least a full 18-month period. This measure includes total revenues from our owned and managed STK locations. Revenues from locations where we do not directly control the event sales force (The W Hotel, Westwood, CA and our locations in Europe) are excluded from this measure.
**We define Adjusted EBITDA as net income (loss) before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, non-cash rent expense, pre-opening expenses, non-recurring gains and losses, stock-based compensation, results from discontinued operations and certain transactional costs. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Adjusted EBITDA to Net Income (loss) in this release.
Emanuel “Manny” Hilario, President and CEO of The ONE Group stated, "We were pleased to have delivered strong +6.4% growth in same store sales during the second quarter 2019 despite a robust year-ago comparison of +7.5%. This achievement is a testament to our unique ability to deliver VIBE dining into the entire STK restaurant experience and grow our market share within the upscale dining segment. From a profitability standpoint, we had anticipated headwinds to Adjusted EBITDA during the second quarter of 2019 as we were lapping a strong 70% growth in Adjusted EBITDA in the prior year. Additionally we experienced normal operational inefficiencies at our new restaurants despite strong initial sales for Nashville, lower incremental flow through at STK Midtown due to nearby construction, which caused the closure of our patio in June, and higher food costs, specifically large shrimp, versus the prior year. Still, as our performance to date has largely met our internal projections, we remain confident that we can achieve our 2019 financial targets.”
Mr. Hilario continued, “On the top-line, we continue to drive sales through our elevated food program, national happy hour program, event business, and social-media driven marketing, but we are also managing profitability by controlling our restaurant level operating and corporate expenses and gaining efficiencies at newer restaurants as they mature. From a development standpoint, we have prioritized capital-light development and are on track to open two to four additional STK restaurants and one to two additional Food and Beverage venues this year. These projects should enable us to generate strong free cash flow over time.”
Second Quarter 2019 Financial Results
Total GAAP Revenues increased 16.2% to $23.6 million in the second quarter of 2019 from $20.3 million in the same period last year. The increase was primarily driven by growth in comparable store sales coupled with new store openings in San Diego and Nashville. Domestic comparable sales at STK restaurants increased 6.4% lapping the 7.5% increase from the prior year, which is indicative of the continued strong performance of the STK brand.
Total owned restaurant net revenues increased 21.2% to $18.8 million in the second quarter of 2019 compared to $15.5 million in the second quarter of 2018. The increase was due to the growth in comparable store sales coupled with the opening of STK San Diego in July 2018 and STK Nashville in March 2019.
Management, license and incentive fee revenues were essentially flat at $2.7 million in the second quarter of 2019 and 2018. There was an increase in revenue as a result of the launch of the licensed STK Dubai Downtown in July 2018, STK Mexico City in August 2018, and STK Doha in January 2019, offset by negative currency effects of a weaker British Pound and Euro related to our managed and license locations in the United Kingdom and Italy.
GAAP net loss attributable to The ONE Group Hospitality, Inc. in the second quarter of 2019 was $(322,000) or $(0.01) loss per share compared to GAAP net income of $181,000 or $0.01 net income per share in the second quarter of 2018.
Adjusted EBITDA** was $2.1 million in the second quarter of 2019 compared to $2.5 million in the second quarter of 2018.
Development Update
We opened two locations in the first quarter of 2019, both of which were on time and on budget. For the remainder of 2019, we expect to open two to four additional STK restaurants, as well as one to two new Food and Beverage venues.
Opened – 2019
| Location | Type | Opening Date |
| STK Doha | International Licensed | January 2019 |
| STK Nashville | Domestic Company-Owned | March 2019 |
Key Strategic Initiatives
We continue executing our four key strategic initiatives, which we believe are positioning The One Group for sustained long-term growth. (Comparisons below are to prior year periods.)
1. Driving Same Store Sales
- We continue to report robust same store sales growth
- Q1 2018: 7.3%
- Q2 2018: 7.5%
- Q3 2018: 6.9%
- Q4 2018: 15.0%
- FY 2018: 9.4%
- Q1 2019: 8.6%
- Q2 2019: 6.4%
2. Improving Restaurant Profitability
- We have taken steps to streamline operations and run our restaurants more efficiently, including menu simplification, better labor scheduling, and reservation management.
- Total owned restaurant expenses increased 340 basis points in the second quarter of 2019 to 90.0% of sales due to inefficiencies at our new restaurants and the loss of the patio at our Midtown STK in New York City. However, we expect operating margins at the new restaurants to improve as the restaurants mature and we are addressing sales opportunities at STK Midtown through new marketing strategies. We expect that our profitability will stabilize for the remainder of the year.
- On a trailing 12 months basis, total owned restaurant expenses decreased 110 basis points to 86.7% of sales.
3. Reducing G&A at the Corporate Level
- We have achieved G&A leverage in part due to a reduction in headcount and better hiring practices across all key positions. Additionally, we consolidated our New York office to occupying half the space we previously used and moved several employees to our lower-cost Denver, Colorado office.
- G&A declined 140 basis points to 11.5% of total revenue in the second quarter of 2019. On an adjusted basis, excluding stock-based compensation, G&A decreased 170 basis points to 9.5% of total revenue.
- On a trailing 12 months basis, excluding stock-based compensation, adjusted G&A decreased 250 basis points to 10.3% of total revenues.
- We expect to see continued leverage in adjusted G&A as a percent of total revenue, and expect this measure, excluding stock-based compensation, to be less than 10% of total revenues for 2019.
4. Focusing on Growth Through License and Management Deals
- We have a strong pipeline of capital light management and hospitality deals.
- We expect there will be an additional two to four STK restaurant openings as well as one to two new Food and Beverage venues in the second half of 2019.
2019 Targets
We are updating the following targets for 2019:
- Total GAAP revenues between $95 million and $97 million;
- Same store sales growth of about 4% to 6%
We are reiterating the following targets for 2019:
- Total food and beverage sales at all our owned and managed units of between $190 million and $200 million;
- Total food and beverage costs of approximately 25% to 26%;
- Adjusted EBITDA of $13 million, representing approximately 24% growth compared to our 2018 Adjusted EBITDA;
- Total G&A excluding stock-based compensations of approximately $8 million or less than 10% of GAAP revenues;
- Total capital expenditures, net of allowances received from landlords, of approximately $3 to $4 million; and,
- Four to six STK restaurant openings as well as one to two new Food and Beverage venues.
Long-Term Growth Targets
We are reiterating the following long-term growth targets:
- Three to five licensed restaurant units and one to two food and beverage hospitality venues annually;
- Same store sales growth of 2% to 3%;
- Consistent Adjusted EBITDA growth of at least 20%; and,
- Continued focus on our asset light model and disciplined G&A management, while benefitting from economies of scale and operating efficiencies.
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited, in thousands, except earnings per share and related share information) | ||||||||||||
| The following table sets forth certain statements of operations data for the periods indicated (in thousands): | ||||||||||||
|
|
| For the three months ended June 30, |
| For the six months ended June 30, | ||||||||
|
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Owned restaurant net revenues |
| $ | 18,809 |
| $ | 15,520 |
| $ | 36,629 |
| $ | 30,596 |
| Owned food, beverage and other net revenues |
|
| 2,134 |
|
| 2,083 |
|
| 4,407 |
|
| 4,088 |
| Total owned revenue |
|
| 20,943 |
|
| 17,603 |
|
| 41,036 |
|
| 34,684 |
| Management, license and incentive fee revenue |
|
| 2,656 |
|
| 2,708 |
|
| 5,339 |
|
| 5,144 |
| Total revenues |
|
| 23,599 |
|
| 20,311 |
|
| 46,375 |
|
| 39,828 |
| Cost and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Owned operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Owned restaurants: |
|
|
|
|
|
|
|
|
|
|
|
|
| Owned restaurant cost of sales |
|
| 5,068 |
|
| 4,037 |
|
| 9,637 |
|
| 8,071 |
| Owned restaurant operating expenses |
|
| 11,856 |
|
| 9,399 |
|
| 22,771 |
|
| 18,777 |
| Total owned restaurant expenses |
|
| 16,924 |
|
| 13,436 |
|
| 32,408 |
|
| 26,848 |
| Owned food, beverage and other expenses |
|
| 2,225 |
|
| 2,025 |
|
| 4,484 |
|
| 3,714 |
| Total owned operating expenses |
|
| 19,149 |
|
| 15,461 |
|
| 36,892 |
|
| 30,562 |
| General and administrative (including stock-based compensation of $456, $344, $637 and $668 for the three and six months ended June 30, 2019 and 2018 respectively) |
|
| 2,704 |
|
| 2,615 |
|
| 5,354 |
|
| 5,670 |
| Depreciation and amortization |
|
| 1,004 |
|
| 901 |
|
| 1,946 |
|
| 1,679 |
| Lease termination expense |
|
| 141 |
|
| 90 |
|
| 141 |
|
| 90 |
| Pre-opening expenses |
|
| 63 |
|
| 671 |
|
| 545 |
|
| 881 |
| Transaction costs |
|
| 152 |
|
| — |
|
| 152 |
|
| — |
| Equity in income of investee companies |
|
| — |
|
| (134) |
|
| — |
|
| (111) |
| Other income, net |
|
| (91) |
|
| (66) |
|
| (266) |
|
| (177) |
| Total costs and expenses |
|
| 23,122 |
|
| 19,538 |
|
| 44,764 |
|
| 38,594 |
| Operating income |
|
| 477 |
|
| 773 |
|
| 1,611 |
|
| 1,234 |
| Other expenses, net: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net of interest income |
|
| 218 |
|
| 290 |
|
| 487 |
|
| 608 |
| Loss on early debt extinguishment |
|
| 437 |
|
| — |
|
| 437 |
|
| — |
| Total other expenses, net |
|
| 655 |
|
| 290 |
|
| 924 |
|
| 608 |
| (Loss) income before provision for income taxes |
|
| (178) |
|
| 483 |
|
| 687 |
|
| 626 |
| (Benefit) provision for income taxes |
|
| (15) |
|
| 169 |
|
| 81 |
|
| 194 |
| Net (loss) income |
|
| (163) |
|
| 314 |
|
| 606 |
|
| 432 |
| Less: net income attributable to noncontrolling interest |
|
| 159 |
|
| 133 |
|
| 74 |
|
| 20 |
| Net (loss) income attributable to The ONE Group Hospitality, Inc. |
| $ | (322) |
| $ | 181 |
| $ | 532 |
| $ | 412 |
| Currency translation (loss) gain |
|
| (120) |
|
| 141 |
|
| (280) |
|
| 66 |
| Comprehensive (loss) income |
| $ | (442) |
| $ | 322 |
| $ | 252 |
| $ | 478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to The ONE Group Hospitality, Inc. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic net (loss) income per share |
| $ | (0.01) |
| $ | 0.01 |
| $ | 0.02 |
| $ | 0.02 |
| Diluted net (loss) income per share |
| $ | (0.01) |
| $ | 0.01 |
| $ | 0.02 |
| $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in computing basic earnings per share |
|
| 28,432,510 |
|
| 27,366,322 |
|
| 28,373,974 |
|
| 27,277,483 |
| Shares used in computing diluted earnings per share |
|
| 28,432,510 |
|
| 27,659,448 |
|
| 29,456,764 |
|
| 27,516,884 |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited, in thousands, except earnings per share and related share information) | ||||||||
| The following table sets forth certain statements of operations data as a percentage of total revenues for the periods indicated: | ||||||||
|
|
| For the three months ended June 30, |
| For the six months ended June 30, | ||||
|
|
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Revenues: |
|
|
|
|
|
|
|
|
| Owned restaurant net revenues |
| 79.7 % |
| 76.4 % |
| 79.0 % |
| 76.8 % |
| Owned food, beverage and other net revenues |
| 9.0 % |
| 10.3 % |
| 9.5 % |
| 10.3 % |
| Total owned revenue |
| 88.7 % |
| 86.7 % |
| 88.5 % |
| 87.1 % |
| Management, license and incentive fee revenue |
| 11.3 % |
| 13.3 % |
| 11.5 % |
| 12.9 % |
| Total revenues |
| 100.0 % |
| 100.0 % |
| 100.0 % |
| 100.0 % |
| Cost and expenses: |
|
|
|
|
|
|
|
|
| Owned operating expenses: |
|
|
|
|
|
|
|
|
| Owned restaurants: |
|
|
|
|
|
|
|
|
| Owned restaurant cost of sales (1) |
| 26.9 % |
| 26.0 % |
| 26.3 % |
| 26.4 % |
| Owned restaurant operating expenses (1) |
| 63.0 % |
| 60.6 % |
| 62.2 % |
| 61.4 % |
| Total owned restaurant expenses (1) |
| 90.0 % |
| 86.6 % |
| 88.5 % |
| 87.8 % |
| Owned food, beverage and other expenses (2) |
| 104.3 % |
| 97.2 % |
| 101.7 % |
| 90.9 % |
| Total owned operating expenses (3) |
| 91.4 % |
| 87.8 % |
| 89.9 % |
| 88.1 % |
| General and administrative (including stock-based compensation of 1.9%, 1.7%, 1.4% and 1.7% for the three and six months ended June 30, 2019 and 2018 respectively) |
| 11.5 % |
| 12.9 % |
| 11.5 % |
| 14.2 % |
| Depreciation and amortization |
| 4.3 % |
| 4.4 % |
| 4.2 % |
| 4.2 % |
| Lease termination expense and asset write-offs |
| 0.6 % |
| 0.4 % |
| 0.3 % |
| 0.2 % |
| Pre-opening expenses |
| 0.3 % |
| 3.3 % |
| 1.2 % |
| 2.2 % |
| Transaction costs |
| 0.6 % |
| —% |
| 0.3 % |
| —% |
| Equity in income of investee companies |
| —% |
| (0.7) % |
| —% |
| (0.3) % |
| Other income, net |
| (0.4) % |
| (0.3) % |
| (0.6) % |
| (0.4) % |
| Total costs and expenses |
| 98.0 % |
| 96.2 % |
| 96.5 % |
| 96.9 % |
| Operating income |
| 2.0 % |
| 3.8 % |
| 3.5 % |
| 3.1 % |
| Other expenses, net: |
|
|
|
|
|
|
|
|
| Interest expense, net of interest income |
| 0.9 % |
| 1.4 % |
| 1.1 % |
| 1.5 % |
| Loss on early debt extinguishment |
| 1.9 % |
| —% |
| 0.9 % |
| —% |
| Total other expenses, net |
| 2.8 % |
| 1.4 % |
| 2.0 % |
| 1.5 % |
| (Loss) income before provision for income taxes |
| (0.8) % |
| 2.4 % |
| 1.5 % |
| 1.6 % |
| (Benefit) provision for income taxes |
| (0.1) % |
| 0.8 % |
| 0.2 % |
| 0.5 % |
| Net (loss) income |
| (0.7) % |
| 1.5 % |
| 1.3 % |
| 1.1 % |
| Less: net income attributable to noncontrolling interest |
| 0.7 % |
| 0.7 % |
| 0.2 % |
| 0.1 % |
| Net (loss) income attributable to The ONE Group Hospitality, Inc. |
| (1.4) % |
| 0.9 % |
| 1.1 % |
| 1.0 % |
| ____________________ |
| 1. These expenses are being shown as a percentage of owned restaurant net revenues. |
| 2. These expenses are being shown as a percentage of owned food, beverage and other net revenues. |
| 3. These expenses are being shown as a percentage of total owned revenue. |
| CONSOLIDATED BALANCE SHEETS (in thousands, except share information) | ||||||
|
|
| (Unaudited), |
|
| ||
|
|
| June 30, |
| December 31, | ||
|
|
| 2019 |
| 2018 | ||
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ | 799 |
| $ | 1,592 |
| Accounts receivable |
|
| 6,567 |
|
| 7,029 |
| Inventory |
|
| 1,365 |
|
| 1,404 |
| Other current assets |
|
| 1,440 |
|
| 1,471 |
| Due from related parties, net |
|
| 343 |
|
| 45 |
| Total current assets |
|
| 10,514 |
|
| 11,541 |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
| 40,507 |
|
| 39,347 |
| Operating lease right-of-use assets |
|
| 39,367 |
|
| — |
| Investments |
|
| 2,684 |
|
| 2,684 |
| Deferred tax assets, net |
|
| 12 |
|
| 38 |
| Other assets |
|
| 338 |
|
| 349 |
| Security deposits |
|
| 2,038 |
|
| 2,020 |
| Total assets |
| $ | 95,460 |
| $ | 55,979 |
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
| $ | 6,109 |
| $ | 5,408 |
| Accrued expenses |
|
| 5,343 |
|
| 8,093 |
| Deferred license revenue |
|
| 191 |
|
| 171 |
| Deferred gift card revenue and other |
|
| 650 |
|
| 947 |
| Current portion of operating lease liabilities |
|
| 2,201 |
|
| — |
| Current portion of long-term debt |
|
| 1,065 |
|
| 3,201 |
| Total current liabilities |
|
| 15,559 |
|
| 17,820 |
|
|
|
|
|
|
|
|
| Deferred license revenue, long-term |
|
| 999 |
|
| 1,008 |
| Due to related parties, long-term |
|
| — |
|
| 1,197 |
| Operating lease liability, net of current portion |
|
| 54,639 |
|
| — |
| Deferred rent and tenant improvement allowances |
|
| — |
|
| 16,774 |
| Long-term debt, net of current portion |
|
| 11,238 |
|
| 7,118 |
| Total liabilities |
|
| 82,435 |
|
| 43,917 |
|
|
|
|
|
|
|
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 28,520,530 and 28,313,017 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively |
|
| 3 |
|
| 3 |
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively |
|
| — |
|
| — |
| Additional paid-in capital |
|
| 44,180 |
|
| 43,543 |
| Accumulated deficit |
|
| (28,190) |
|
| (28,722) |
| Accumulated other comprehensive loss |
|
| (2,590) |
|
| (2,310) |
| Total stockholders’ equity |
|
| 13,403 |
|
| 12,514 |
| Noncontrolling interests |
|
| (378) |
|
| (452) |
| Total equity |
|
| 13,025 |
|
| 12,062 |
| Total liabilities and equity |
| $ | 95,460 |
| $ | 55,979 |
|
| For the three months ended June 30, | For the six months ended June 30, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||
|
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
| Owned restaurant net revenue (1) | $ | 18,809 | $ | 15,520 | $ | 36,629 | $ | 30,596 | ||||
| Owned food, beverage and other revenues (1) |
| 2,134 |
| 2,083 |
| 4,407 |
| 4,088 | ||||
| Total owned revenue |
| 20,943 |
| 17,603 |
| 41,036 |
| 34,684 | ||||
| Management, license and incentive revenue |
| 2,656 |
| 2,708 |
| 5,339 |
| 5,144 | ||||
| GAAP Revenues | $ | 23,599 | $ | 20,311 | $ | 46,375 | $ | 39,828 | ||||
|
|
|
|
|
| ||||||||
| Food and beverage sales from management units | $ | 26,497 | $ | 25,366 | $ | 51,631 | $ | 48,819 | ||||
|
|
|
|
|
| ||||||||
| Total food and beverage sales at owned and managed units (1) | $ | 47,441 | $ | 42,969 | $ | 92,667 | $ | 83,503 | ||||
| __________________________ |
| (1) Components of Total Food & Beverage Sales at Owned and Managed Units |
The following table presents the elements of the quarterly Same Store Sales measure for Fiscal 2017, Fiscal 2018, Q1 2019 and Q2 2019
| 2017 | 2018 | 2019 | ||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||
| US Owned STK Restaurants | -1.8 % | 1.2 % | -0.9 % | 5.8 % | 8.7 % | 6.2 % | 7.7 % | 14.9 % | 10.4 % | 7.8 % | ||||||||||||
| US Managed STK Restaurants | 8.3 % | 2.5 % | 6.5 % | 6.6 % | 4.9 % | 10.1 % | 5.4 % | 15.6 % | 5.0 % | 3.6 % | ||||||||||||
| US Total STK Restaurants | 2.6 % | 1.7 % | 1.9 % | 6.0 % | 7.3 % | 7.5 % | 6.9 % | 15.0 % | 8.6 % | 6.4 % | ||||||||||||
|
|
| For the three months ended June 30, |
| For the six months ended June 30, | ||||||||
|
|
| 2019 |
| 2018 |
| 2019 |
| 2018 | ||||
| Net (loss) income attributable to The ONE Group Hospitality, Inc. |
| $ | (322) |
| $ | 181 |
| $ | 532 |
| $ | 412 |
| Net income attributable to noncontrolling interest |
|
| 159 |
|
| 133 |
|
| 74 |
|
| 20 |
| Net (loss) income |
|
| (163) |
|
| 314 |
|
| 606 |
|
| 432 |
| Interest expense, net of interest income |
|
| 218 |
|
| 290 |
|
| 487 |
|
| 608 |
| (Benefit) provision for income taxes |
|
| (15) |
|
| 169 |
|
| 81 |
|
| 194 |
| Depreciation and amortization |
|
| 1,004 |
|
| 901 |
|
| 1,946 |
|
| 1,679 |
| EBITDA |
|
| 1,044 |
|
| 1,674 |
|
| 3,120 |
|
| 2,913 |
| Non-cash rent expense (1) |
|
| (2) |
|
| (69) |
|
| (91) |
|
| (89) |
| Pre-opening expenses |
|
| 63 |
|
| 671 |
|
| 545 |
|
| 881 |
| Lease termination expense (2) |
|
| 141 |
|
| 90 |
|
| 141 |
|
| 90 |
| Loss on debt extinguishment |
|
| 437 |
|
| — |
|
| 437 |
|
| — |
| Transaction costs (3) |
|
| 152 |
|
| — |
|
| 152 |
|
| — |
| Stock-based compensation |
|
| 456 |
|
| 344 |
|
| 637 |
|
| 668 |
| Adjusted EBITDA |
|
| 2,291 |
|
| 2,710 |
|
| 4,941 |
|
| 4,463 |
| Adjusted EBITDA attributable to noncontrolling interest |
|
| 205 |
|
| 206 |
|
| 169 |
|
| 164 |
| Adjusted EBITDA attributable to The ONE Group Hospitality, Inc. |
| $ | 2,086 |
| $ | 2,504 |
| $ | 4,772 |
| $ | 4,299 |
| _____________________________ |
| (1) Non-cash rent expense is included in owned restaurant operating expenses and general and administrative expense on the statement of operations and comprehensive income. |
| (2) Lease termination expense are costs associated with closed, abandoned and disputed locations or leases. |
| (3) Transaction costs relate capital raising activities, most recently the Credit Agreement, and the preparation of the form S-8. |
The following tables presents a reconciliation of certain trailing-twelve months measures that have been presented in this release
| Trailing-twelve Months as of June 30, 2019 | ||||||||||||||||||
|
|
| Fiscal |
| Less: |
| Less: |
| Add: |
| Add: |
| Trailing- | ||||||
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurant net revenues | $ | 65,896 | $ | 15,076 | $ | 15,520 | $ | 17,820 | $ | 18,809 | $ | 71,929 | ||||||
| Owned food, beverage and other net revenues |
| 8,137 |
| 2,005 |
| 2,083 |
| 2,273 |
| 2,134 |
| 8,456 | ||||||
| Total owned revenue |
| 74,033 |
| 17,081 |
| 17,603 |
| 20,093 |
| 20,943 |
| 80,385 | ||||||
| Management, license and incentive fee revenue |
| 11,568 |
| 2,436 |
| 2,708 |
| 2,683 |
| 2,656 |
| 11,763 | ||||||
| Total revenues |
| 85,601 |
| 19,517 |
| 20,311 |
| 22,776 |
| 23,599 |
| 92,148 | ||||||
| Cost and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurants: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurant cost of sales |
| 17,220 |
| 4,034 |
| 4,037 |
| 4,569 |
| 5,068 |
| 18,786 | ||||||
| Owned restaurant operating expenses |
| 39,599 |
| 9,378 |
| 9,399 |
| 10,915 |
| 11,856 |
| 43,593 | ||||||
| Total owned restaurant expenses |
| 56,819 |
| 13,412 |
| 13,436 |
| 15,484 |
| 16,924 |
| 62,379 | ||||||
| Owned food, beverage and other expenses |
| 7,865 |
| 1,689 |
| 2,025 |
| 2,259 |
| 2,225 |
| 8,635 | ||||||
| Total owned operating expenses |
| 64,684 |
| 15,101 |
| 15,461 |
| 17,743 |
| 19,149 |
| 71,014 | ||||||
| General and administrative (including stock-based compensation) |
| 11,119 |
| 3,055 |
| 2,615 |
| 2,650 |
| 2,704 |
| 10,803 | ||||||
| Stock-based compensation |
| 1,313 |
| 324 |
| 344 |
| 181 |
| 456 |
| 1282 | ||||||
| Adjusted General & Administrative | $ | 9,806 | $ | 2,731 | $ | 2,271 | $ | 2,469 | $ | 2,248 | $ | 9,521 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Total owned restaurant expenses as a % of total owned restaurant net revenue |
| 86.2 % |
| 89.0 % |
| 86.6 % |
| 86.9 % |
| 90.0 % |
| 86.7% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Adjusted G&A as a % of total revenues |
| 11.5 % |
| 14.0 % |
| 11.2 % |
| 10.8 % |
| 9.5 % |
| 10.3 % | ||||||
| Trailing-twelve Months as of June 30, 2018 | ||||||||||||||||||
|
|
| Fiscal |
| Less: |
| Less: |
| Add: |
| Add: |
| Trailing | ||||||
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurant net revenues | $ | 58,654 | $ | 14,228 | $ | 14,683 | $ | 15,076 | $ | 15,520 | $ | 60,339 | ||||||
| Owned food, beverage and other net revenues |
| 10,227 |
| 3,885 |
| 2,431 |
| 2,005 |
| 2,083 |
| 7,999 | ||||||
| Total owned revenue |
| 68,881 |
| 18,113 |
| 17,114 |
| 17,081 |
| 17,603 |
| 68,338 | ||||||
| Management, license and incentive fee revenue |
| 10,779 |
| 2,314 |
| 2,785 |
| 2,436 |
| 2,708 |
| 10,824 | ||||||
| Total revenues |
| 79,660 |
| 20,427 |
| 19,899 |
| 19,517 |
| 20,311 |
| 79,162 | ||||||
| Cost and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurants: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Owned restaurant cost of sales |
| 15,544 |
| 3,876 |
| 3,838 |
| 4,034 |
| 4,037 |
| 15,901 | ||||||
| Owned restaurant operating expenses |
| 37,076 |
| 9,369 |
| 9,408 |
| 9,378 |
| 9,399 |
| 37,076 | ||||||
| Total owned restaurant expenses |
| 52,620 |
| 13,245 |
| 13,246 |
| 13,412 |
| 13,436 |
| 52,977 | ||||||
| Owned food, beverage and other expenses |
| 9,400 |
| 2,937 |
| 2,315 |
| 1,689 |
| 2,025 |
| 7,862 | ||||||
| Total owned operating expenses |
| 62,020 |
| 16,182 |
| 15,561 |
| 15,101 |
| 15,461 |
| 60,839 | ||||||
| General and administrative (including stock-based compensation) |
| 11,893 |
| 2,921 |
| 3,291 |
| 3,055 |
| 2,615 |
| 11,351 | ||||||
| Stock-based compensation |
| 1,052 |
| 153 |
| 324 |
| 324 |
| 344 |
| 1,243 | ||||||
| Adjusted General & Administrative | $ | 10,841 | $ | 2,768 | $ | 2,967 | $ | 2,731 | $ | 2,271 | $ | 10,108 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Total owned restaurant expenses as a % of total owned restaurant net revenue |
| 89.7% |
| 93.1% |
| 90.2% |
| 89.0% |
| 86.6% |
| 87.8% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Adjusted G&A as a % of total revenues |
| 13.6% |
| 13.6% |
| 14.9% |
| 14.0% |
| 11.2% |
| 12.8% | ||||||