Increased Revenue by 152% to $194 Million
Supported by Effective Cost Management Implemented $19 Million in
Annual Savings to be Realized Over Next Year, Total of $20 Million
Over Next Two Years Focused on Next Phase of Company-Owned Growth
and Asset Light Development Prioritizing Free Cash Flow Generation,
Balance Sheet Flexibility, and Maximizing Shareholder Returns
The ONE Group Hospitality, Inc. (“The ONE Group” or the
“Company”) (Nasdaq: STKS) today reported its financial results for
the third quarter ended September 30, 2024.
Highlights for the third quarter 2024 compared to the same
quarter in 2023 are as follows (the prior year quarter excludes
any contribution from the acquisition of Benihana Inc. which closed
in May 2024):
- Total GAAP revenues increased 152.3% to $194.0 million
from $76.9 million;
- Comparable sales* decreased 8.8%;
- Operating loss was $3.0 million vs. $2.0 million and
includes $7.1 million in transition, transaction and integration
expenses associated with the acquisition of Benihana and RA
Sushi;
- Restaurant Operating Profit** increased 175.6% to $25.1
million from $9.1 million; and
- Restaurant Operating Profit Margin** increased 90 basis
points to 13.2% from 12.3%
“With the addition of Benihana and RA Sushi, we increased our
revenue $117 million to a record $194 million as we continue to
grow a scalable platform with exciting VIBE and entertainment
centric dining brands. During the quarter, I was encouraged by our
team’s ability to manage costs effectively. Operating profit growth
exceeded revenue growth as we improved year-over-year margins at
Benihana through supply chain synergies, benefitted from their
higher margin contribution, and exhibited tight cost management
within our preexisting business. Within the last sixty days we
opened three Company-owned locations, all of which are off to
terrific starts,” said Emanuel “Manny” Hilario, President and Chief
Executive Officer.
“We are pleased with our progress in integrating Benihana and RA
Sushi and have already implemented $19 million in annual savings
between eliminating duplicate administrative costs and leveraging
operational and supply chain synergies that will be realized over
the next year. Over the next two years, we expect additional
efficiencies, bringing our total savings to at least $20 million,”
Hilario added.
“We are laser focused on our balance sheet, finishing the
quarter with strong liquidity of over $70 million. Looking ahead,
we are beginning the next phase of growth and plan to open five to
six Company-owned locations annually while focusing on the asset
light development of managed and licensed STKs and Kona Grills and
franchised Benihanas. We are prioritizing free cash flow
generation, balance sheet flexibility and maximizing shareholder
returns,” Hilario concluded.
*Comparable sales represent total U.S. food and beverage sales
at owned and managed units, a non-GAAP financial measure, opened
for at least a full 24-months. This measure includes total revenue
from our owned and managed locations. The Company monitors sales
growth at its established restaurant base in addition to growth
that results from restaurant acquisitions and new restaurant
openings. Refer to the reconciliation of GAAP revenue to total food
and beverage sales at owned and managed units in this press
release.
**We define Restaurant Operating Profit as owned restaurant net
revenue minus owned restaurant cost of sales and owned restaurant
operating expenses. Restaurant Operating Profit 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 Operating income to
Restaurant Operating Profit in this press release.
Restaurant Development
So far this year, we have opened five new Company-owned
restaurants consisting of two STKs, one Kona Grill, one RA Sushi
and one Salt Water Social.
As of the date of this report, the following restaurants have
opened this year:
Owned STK restaurant in Washington DC
March 2024
Owned RA Sushi restaurant in Plantation,
Florida
July 2024
Owned Kona Grill restaurant in Tigard,
Oregon
September 2024
Owned STK restaurant in Aventura,
Florida
October 2024
Owned Salt Water Social restaurant in
Denver, Colorado
November 2024
For the remainder of the fourth quarter of 2024, we expect to
open a managed STK in Niagara Falls.
There are currently two Company-owned STK restaurants and one
Company-owned Benihana restaurant under construction that are
expected to open in 2025. They are located in the following
cities:
- Owned STK restaurant in Topanga, California
- Owned STK restaurant in Westwood, California (relocation of the
existing STK)
- Owned Benihana restaurant in San Mateo, California
As part of the integration process between Kona Grill and RA
Sushi, we are realizing synergies by optimizing the restaurant
portfolio and closed four RA Sushi locations in October, three of
which were in markets with existing Kona Grills. We expect to
retain a significant portion of the delivery and takeout business
these restaurants generated through our nearby Kona Grill
locations, supporting improved margins in our grill segment.
Liquidity and Share Repurchase Program
We ended the quarter with $36.2 million in cash and short-term
credit card receivables and $34.1 million available under its
revolving credit facility. Under the current conditions, our credit
facility does not have any financial covenants.
In March 2024, our Board of Directors authorized a $5 million
share repurchase program. During the third quarter of 2024, we
spent $2.3 million for the repurchase of 0.6 million shares.
2024 Targets
We are updating our 2024 targets, which are inclusive of the
acquisition of Benihana.
Financial Results and Other Select
Data
US$s in millions
2024 Guidance
1/1/2024-12/31/2024
2024 Run Rate
Total GAAP revenues
$660 to $680
$844 to $864
Consolidated comparable sales for the
fourth quarter
-4% to -8%
Managed, license and franchise fee
revenues
$15 to $16
Total owned operating expenses as a
percentage of owned restaurant net revenue
83.0% to 83.6%
Consolidated total G&A, excluding
stock-based compensation
Approx. $39
Consolidated Adjusted EBITDA*
$71 to $76
$111 to $116
Consolidated Adjusted EBITDA* without
pre-opening expenses
$80 to $85
$120 to $125
Consolidated restaurant pre-opening
expenses
$8 to $9
Consolidated effective income tax rate
Approx. 30%
Consolidated total capital expenditures,
net of allowances received by landlords
$50 to $60
Consolidated number of new system-wide
venues
Six
Detail of 2024 Run Rate Revenue
US$s in millions
2024 Run Rate
Total GAAP revenues guidance
$660 to $680
Benihana and RA Sushi revenue (January 1,
2024 – April 30, 2024)
$170
New venue openings (208 store operating
weeks)(1)
$21
Closed RA Sushi locations
($7)
Run rate revenue
$844 to $864
Detail of 2024 Run Rate Adjusted
EBITDA
US$s in millions
2024 Run Rate
Total Adjusted EBITDA guidance
$71 to $76
Benihana and RA Sushi pro forma Adjusted
EBITDA (January 1, 2024 – April 30, 2024)
$22
New venue openings (208 store operating
weeks)(1)
$5
Closed RA Sushi locations
$1
Captured synergies to be realized in the
next 12 months
$12
Run rate Adjusted EBITDA**
$111 to 116
Pre-opening expenses
$9
Run rate Adjusted EBITDA** without
pre-opening expenses
$120 to $125
_______________________
(1)
Includes one managed location opening in
the fourth quarter of 2024
*We have not reconciled guidance for Consolidated Adjusted
EBITDA to the corresponding GAAP financial measure because we do
not provide guidance for the various reconciling items. We are
unable to provide guidance for these reconciling items because we
cannot determine their probable significance, as certain items are
outside of our control and cannot be reasonably predicted since
these items could vary significantly from period to period.
Accordingly, reconciliations to the corresponding GAAP financial
measure are not available without unreasonable effort.
**We define Adjusted EBITDA as net income before interest
expense, provision for income taxes, depreciation and amortization,
non-cash impairment loss, non-cash rent expense, non-recurring
gains and losses, stock-based compensation, transaction and exit
costs and transition and integration expenses. Starting in Q3 2024,
pre-opening expenses will no longer be deducted from Adjusted
EBITDA. 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 Net Income to Adjusted EBITDA in this press
release.
Conference Call and Webcast
Emanuel “Manny” Hilario, President and Chief Executive Officer,
and Tyler Loy, Chief Financial Officer, will host a conference call
and webcast today at 4:30 PM Eastern Time.
The conference call can be accessed live over the phone by
dialing 412-542-4186. A replay will be available after the call and
can be accessed by dialing 412-317-6671; the passcode is 10192106.
The replay will be available until Thursday, November 21, 2024.
The webcast can be accessed from the Investor Relations tab of
The ONE Group’s website at www.togrp.com under “News / Events.”
About The ONE Group
The ONE Group Hospitality, Inc. (Nasdaq: STKS) is an
international restaurant company that develops and operates upscale
and polished casual, high-energy restaurants and lounges and
provides hospitality management services for hotels, casinos and
other high-end venues both in the U.S. and internationally. The ONE
Group’s focus is to be the global leader in Vibe Dining, and its
primary restaurant brands and operations are:
- STK, a modern twist on the American steakhouse concept with
restaurants in major metropolitan cities in the U.S., Europe and
the Middle East, featuring premium steaks, seafood and specialty
cocktails in an energetic upscale atmosphere.
- Benihana, an interactive dining destination with highly skilled
chefs preparing food right in front of guests and served in an
energetic atmosphere alongside fresh sushi and innovative
cocktails. The Company franchises Benihanas in the U.S., Caribbean,
Central America, and South America.
- Kona Grill, a polished casual, bar-centric grill concept with
restaurants in the U.S., featuring American favorites,
award-winning sushi, and specialty cocktails in an upscale casual
atmosphere.
- RA Sushi, a Japanese cuisine concept that offers a fun-filled,
bar-forward, upbeat, and vibrant dining atmosphere with restaurants
in the U.S. anchored by creative sushi, inventive drinks, and
outstanding service.
- ONE Hospitality, The ONE Group’s food and beverage hospitality
services business develops, manages and operates premier
restaurants and turnkey food and beverage services within high-end
hotels and casinos currently operating venues in the U.S. and
Europe.
Additional information about The ONE Group can be found at
www.togrp.com.
Non-GAAP Definition Changes
We have evolved our definition of non-GAAP financial measures
starting in Q3 2024. We use certain non-GAAP measures in analyzing
operating performance and believe that the presentation of these
measures provides investors and analysts with information that is
beneficial to gaining an understanding of the Company's financial
results. Non-GAAP disclosures should not be viewed as a substitute
for financial results determined in accordance with GAAP.
We exclude items management does not consider in the evaluation
of its ongoing core operating performance from adjusted net income,
adjusted net income per share, and Adjusted EBITDA.
Starting in Q3 2024, we will no longer deduct pre-opening
expenses from Adjusted EBITDA.
Reconciliations of these non-GAAP measures are included under
“Reconciliation of Non-GAAP Measures” in this press release.
Cautionary Statement on Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995, including with
respect to the impact of the Benihana acquisition, restaurant
openings and 2024 financial targets. Forward-looking statements may
be identified by the use of words such as “target,” “intend,”
“anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,”
and “project” and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. A number of factors could cause actual results
or outcomes to differ materially from those indicated by such
forward-looking statements, including but not limited to: (1) our
ability to integrate the new or acquired restaurants into our
operations without disruptions to operations; (2) our ability to
capture anticipated synergies; (3) our ability to open new
restaurants and food and beverage locations in current and
additional markets, grow and manage growth profitably, maintain
relationships with suppliers and obtain adequate supply of products
and retain employees; (4)factors beyond our control that affect the
number and timing of new restaurant openings, including weather
conditions and factors under the control of landlords, contractors
and regulatory and/or licensing authorities; (5) our ability to
successfully improve performance and cost, realize the benefits of
our marketing efforts and achieve improved results as we focus on
developing new management and license deals; (6) changes in
applicable laws or regulations; (7) the possibility that The ONE
Group may be adversely affected by other economic, business, and/or
competitive factors; and (8) other risks and uncertainties
indicated from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K filed
for the year ended December 31, 2023 and Quarterly Reports on Form
10-Q.
Investors are referred to the most recent reports filed with the
Securities and Exchange Commission by The ONE Group Hospitality,
Inc. Investors are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made,
and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
THE ONE GROUP HOSPITALITY,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except earnings
per share and related share information)
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Revenues:
Owned restaurant net revenue
$
190,587
$
73,700
$
441,116
$
232,202
Management, license, franchise and
incentive fee revenue
3,388
3,184
10,348
10,631
Total revenues
193,975
76,884
451,464
242,833
Cost and expenses:
Owned operating expenses:
Owned restaurant cost of sales
39,880
18,230
94,471
56,300
Owned restaurant operating expenses
125,634
46,372
278,464
141,983
Total owned operating expenses
165,514
64,602
372,935
198,283
General and administrative (including
stock-based compensation of $1,580, $1,244, $4,433 and $3,798 for
the three and nine months ended September 30, 2024 and 2023,
respectively)
12,785
7,280
30,941
22,803
Depreciation and amortization
9,416
3,732
22,701
10,894
Transaction and exit costs
850
—
9,199
—
Transition and integration expenses
6,274
—
10,068
—
Pre-opening expenses
2,110
3,097
7,528
6,005
Other expenses
46
128
78
480
Total costs and expenses
196,995
78,839
453,450
238,465
Operating (loss) income
(3,020
)
(1,955
)
(1,986
)
4,368
Other expenses, net:
Interest expense, net of interest
income
10,679
1,673
20,622
5,102
Loss on early debt extinguishment
—
—
4,149
—
Total other expenses, net
10,679
1,673
24,771
5,102
Loss before provision for income taxes
(13,699
)
(3,628
)
(26,757
)
(734
)
Benefit for income taxes
(4,644
)
(375
)
(8,180
)
(227
)
Net loss
(9,055
)
(3,253
)
(18,577
)
(507
)
Less: net loss attributable to
noncontrolling interest
(165
)
(155
)
(689
)
(583
)
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
$
(8,890
)
$
(3,098
)
$
(17,888
)
$
76
Series A Preferred Stock paid-in-kind
dividend and accretion
(7,125
)
—
(11,663
)
—
Net (loss) income available to common
stockholders
$
(16,015
)
$
(3,098
)
$
(29,551
)
$
76
Net (loss) income per common share:
Basic
$
(0.52
)
$
(0.10
)
$
(0.95
)
$
—
Diluted
$
(0.52
)
$
(0.10
)
$
(0.95
)
$
—
Weighted average common shares
outstanding:
Basic
31,008,275
31,515,011
31,256,946
31,657,761
Diluted
31,008,275
31,515,011
31,256,946
32,537,572
The following table sets forth certain statements of operations
data as a percentage of total revenues for the periods indicated.
Certain percentage amounts may not sum to total due to
rounding.
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Revenues:
Owned restaurant net revenue
98.3
%
95.9
%
97.7
%
95.6
%
Management, license, franchise and
incentive fee revenue
1.7
%
4.1
%
2.3
%
4.4
%
Total revenues
100.0
%
100.0
%
100.0
%
100.0
%
Cost and expenses:
Owned operating expenses:
Owned restaurant cost of sales (1)
20.9
%
24.7
%
21.4
%
24.2
%
Owned restaurant operating expenses
(1)
65.9
%
62.9
%
63.1
%
61.1
%
Total owned operating expenses (1)
86.8
%
87.7
%
84.5
%
85.4
%
General and administrative (including
stock-based compensation of 0.8%, 1.6%, 1.0%, and 1.6%, for the
three and nine months ended September 30, 2024 and 2023,
respectively)
6.6
%
9.5
%
6.9
%
9.4
%
Depreciation and amortization
4.9
%
4.9
%
5.0
%
4.5
%
Transaction and exit costs
0.4
%
—
%
2.0
%
—
%
Transition and integration expenses
3.2
%
—
%
2.2
%
—
%
Pre-opening expenses
1.1
%
4.0
%
1.7
%
2.5
%
Other expenses
—
%
0.2
%
—
%
0.2
%
Total costs and expenses
101.6
%
102.5
%
100.4
%
98.2
%
Operating (loss) income
(1.6
)%
(2.5
)%
(0.4
)%
1.8
%
Other expenses, net:
Interest expense, net of interest
income
5.5
%
2.2
%
4.6
%
2.1
%
Loss on early debt extinguishment
—
%
—
%
0.9
%
—
%
Total other expenses, net
5.5
%
2.2
%
5.5
%
2.1
%
Loss before provision for income taxes
(7.1
)%
(4.7
)%
(5.9
)%
(0.3
)%
Benefit for income taxes
(2.4
)%
(0.5
)%
(1.8
)%
(0.1
)%
Net loss
(4.7
)%
(4.2
)%
(4.1
)%
(0.2
)%
Less: net loss attributable to
noncontrolling interest
(0.1
)%
(0.2
)%
(0.2
)%
(0.2
)%
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
(4.6
)%
(4.0
)%
(4.0
)%
—
%
_______________________
(1)
These expenses are being shown as a
percentage of owned restaurant net revenue.
THE ONE GROUP HOSPITALITY,
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
information)
September 30,
December 31,
2024
2023
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
28,185
$
21,047
Credit card receivable
8,013
7,234
Restricted cash and cash equivalents
499
—
Accounts receivable
9,211
10,030
Inventory
9,047
6,184
Other current assets
8,141
1,809
Due from related parties
376
376
Total current assets
63,472
46,680
Operating lease right-of-use assets
267,610
95,075
Property and equipment, net
270,444
139,908
Goodwill
155,331
—
Intangibles, net
133,076
15,306
Deferred tax assets, net
53,124
14,757
Other assets
8,779
4,636
Security deposits
1,635
883
Total assets
$
953,471
$
317,245
LIABILITIES, SERIES A PREFERRED STOCK
AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
31,110
$
19,089
Accrued expenses
67,014
28,333
Current portion of operating lease
liabilities
15,757
6,897
Deferred gift card revenue and other
4,032
2,077
Current portion of long-term debt
4,812
1,500
Other current liabilities
295
266
Total current liabilities
123,020
58,162
Long-term debt, net of current portion,
unamortized discount and debt issuance costs
329,489
70,410
Operating lease liabilities, net of
current portion
296,163
120,481
Other long-term liabilities
5,256
832
Total liabilities
753,928
249,885
Commitments and contingencies (Note
17)
Series A preferred stock, $0.0001 par
value, 160,000 shares authorized; 160,000 issued and outstanding at
September 30, 2024 and 0 issued and outstanding at December 31,
2023
150,606
—
Stockholders’ equity:
Common stock, $0.0001 par value,
75,000,000 shares authorized; 33,822,191 issued and 30,802,537
outstanding at September 30, 2024 and 33,560,428 issued and
31,283,975 outstanding at December 31, 2023
3
3
Preferred stock, other than Series A
preferred stock, $0.0001 par value, 9,840,000 shares authorized; no
shares issued and outstanding at September 30, 2024 and December
31, 2023, respectively
—
—
Treasury stock, at cost, 3,019,654 shares
at September 30, 2024 and 2,276,453 shares at December 31, 2023
(18,202
)
(15,051
)
Additional paid-in capital
72,554
58,270
Retained earnings
—
28,884
Accumulated other comprehensive loss
(2,913
)
(2,930
)
Total stockholders’ equity
51,442
69,176
Noncontrolling interests
(2,505
)
(1,816
)
Total stockholder's equity
48,937
67,360
Total liabilities, Series A preferred
stock and stockholders' equity
$
953,471
$
317,245
Reconciliation of Non-GAAP Measures
We prepare our financial statements in accordance with generally
accepted accounting principles (GAAP). In this press release, we
also make references to the following non-GAAP financial measures:
total food and beverage sales at owned and managed units, Adjusted
EBITDA, Restaurant Operating Profit and Adjusted Net Income
(Loss).
Total food and beverage sales at owned and managed units. Total
food and beverage sales at owned and managed units represents our
total revenue from our owned operations as well as the revenue
reported to us with respect to sales at our managed locations,
where we earn management and incentive fees at these locations. We
believe that this measure represents a useful internal measure of
performance as it identifies total sales associated with our brands
and hospitality services that we provide. Accordingly, we include
this non-GAAP measure so that investors can review financial data
that management uses in evaluating performance, and we believe that
it will assist the investment community in assessing performance of
restaurants and other services we operate, whether or not the
operation is owned by us. However, because this measure is not
determined in accordance with GAAP, it is susceptible to varying
calculations and not all companies calculate these measures in the
same manner. As a result, this measure as presented may not be
directly comparable to a similarly titled measure presented by
other companies. This non-GAAP measure is presented as supplemental
information and not as an alternative to any GAAP measurements. The
following table includes a reconciliation of our GAAP revenue to
total food and beverage sales at our owned and managed units (in
thousands):
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Owned restaurant net revenue (1)
$
190,587
$
73,700
$
441,116
$
232,202
Management, license, franchise and
incentive fee revenue
3,388
3,184
10,348
10,631
GAAP revenues
$
193,975
$
76,884
$
451,464
$
242,833
Food and beverage sales from managed units
(1)
32,282
28,513
92,476
89,219
Total food and beverage sales at owned and
managed units
$
222,869
$
102,213
$
533,592
$
321,421
_______________________
(1)
Components of total food and beverage
sales at owned and managed units.
The following table presents the elements of the quarterly and
annual Same Store Sales measure for 2023 and 2024:
2023 vs. 2022
2024 vs. 2023
Q1
Q2
Q3
Q4
YTD
Q1
Q2
Q3
US STK Owned Restaurants
1.0
%
(10.1
)%
(7.8
)%
(6.5
)%
(6.0
)%
(6.0
)%
(11.9
)%
(11.4
)%
US STK Managed Restaurants
15.4
%
2.5
%
0.7
%
0.7
%
4.9
%
(8.6
)%
(7.4
)%
(10.3
)%
US STK Total Restaurants
5.3
%
(6.8
)%
(5.5
)%
(4.6
)%
(3.0
)%
(6.8
)%
(10.6
)%
(11.1
)%
Benihana Owned Restaurants
(1.0
)%
(4.2
)%
Grill Concept Owned Restaurants
(4.3
%)
(1.5
)%
1.1
%
(3.9
)%
(2.2
)%
(9.7
)%
(13.0
)%
(17.0
)%
Combined Same Store Sales
1.6
%
(4.7
)%
(3.0
)%
(4.3
)%
(2.7
)%
(7.9
)%
(7.0
)%
(8.8
)%
Adjusted EBITDA. We define Adjusted EBITDA as net income before
interest expense, provision for income taxes, depreciation and
amortization, non-cash impairment loss, non-cash rent expense,
non-recurring gains and losses, stock-based compensation, certain
transactional and exit costs and transition and integration
expenses. Not all the aforementioned items defining Adjusted EBITDA
occur in each reporting period but have been included in our
definitions of terms based on our historical activity. 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.
The following table presents a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods indicated (in
thousands):
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
$
(8,890
)
$
(3,098
)
$
(17,888
)
$
76
Net loss attributable to noncontrolling
interest
(165
)
(155
)
(689
)
(583
)
Net loss
(9,055
)
(3,253
)
(18,577
)
(507
)
Interest expense, net
10,679
1,673
20,622
5,102
Benefit for income taxes
(4,644
)
(375
)
(8,180
)
(227
)
Depreciation and amortization
9,416
3,732
22,701
10,894
EBITDA
6,396
1,777
16,566
15,262
Stock-based compensation
1,580
1,244
4,433
3,798
Transaction and exit costs
850
—
9,199
—
Transition and integration expenses
6,274
—
10,068
—
Non-cash rent expense (1)
(343
)
(126
)
(1,034
)
(279
)
Loss on early debt extinguishment
—
—
4,149
—
Other expenses
46
128
78
480
Adjusted EBITDA
14,803
3,023
43,459
19,261
Adjusted EBITDA attributable to
noncontrolling interest
(54
)
(72
)
(387
)
(326
)
Adjusted EBITDA attributable to The ONE
Group Hospitality, Inc.
$
14,857
$
3,096
$
43,846
$
19,588
_______________________
(1)
Non-cash rent expense is included in owned
restaurant operating expenses and general and administrative
expense on the consolidated statements of operations and
comprehensive income.
The following table presents a reconciliation of net income to
EBITDA and Adjusted EBITDA for the periods indicated (in
thousands):
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Net (loss) income attributable to The ONE
Group Hospitality, Inc.
$
2,606
$
568
$
(3,098
)
$
4,643
$
(2,069
)
$
(6,929
)
Net loss attributable to noncontrolling
interest
(276
)
(152
)
(155
)
(109
)
(361
)
(163
)
Net loss
2,330
416
(3,253
)
4,534
(2,430
)
(7,092
)
Interest expense, net
1,787
1,642
1,673
1,927
2,078
7,865
Benefit for income taxes
161
(13
)
(375
)
(1,533
)
(268
)
(3,268
)
Depreciation and amortization
3,656
3,506
3,732
4,770
5,260
8,025
EBITDA
7,934
5,551
1,777
9,698
4,640
5,530
Stock-based compensation
1,320
1,234
1,244
1,234
1,358
1,495
Transaction and exit costs
—
—
—
207
1,523
6,826
Transition and integration expenses
—
—
—
—
—
3,794
Non-cash rent expense (1)
(31
)
(123
)
(126
)
(61
)
(248
)
(429
)
Loss on early debt extinguishment
—
—
—
—
—
4,149
Other expenses
157
195
128
543
32
0
Adjusted EBITDA
9,380
6,857
3,023
11,621
7,305
21,365
Adjusted EBITDA attributable to
noncontrolling interest
(189
)
(65
)
(72
)
(13
)
(262
)
(71
)
Adjusted EBITDA attributable to The ONE
Group Hospitality, Inc.
$
9,569
$
6,922
$
3,096
$
11,634
$
7,567
$
21,436
_______________________
(1)
Non-cash rent expense is included in owned
restaurant operating expenses and general and administrative
expense on the consolidated statements of operations and
comprehensive income.
The following table presents a reconciliation of pro forma
combined net income after management’s adjustments to EBITDA and
Adjusted EBITDA for the periods indicated (in thousands):
Year ended December 31,
2023(1)
Pro forma combined net income after
management's adjustments
$
21,928
Net loss attributable to noncontrolling
interest
(692
)
Net income
21,236
Interest expense, net of interest
income
37,800
Provision for income taxes
683
Depreciation and amortization
31,872
EBITDA
91,591
Stock-based compensation
5,065
Transaction costs
1,955
Impairment charges
8,946
Non-cash rent
214
Other expenses
2,908
Adjusted EBITDA
110,679
Adjusted EBITDA attributable to
noncontrolling interest
(339
)
Adjusted EBITDA attributable to The ONE
Group Hospitality, Inc.
$
111,018
_______________________
(1)
From the Company’s 8-K/A filed on July 17,
2024, revised for the Company’s definition of Adjusted EBITDA.
Restaurant Operating Profit. We define Restaurant Operating
Profit as owned restaurant net revenue minus owned restaurant cost
of sales and owned restaurant operating expenses.
We believe Restaurant Operating Profit is an important component
of financial results because: (i) it is a widely used metric within
the restaurant industry to evaluate restaurant-level productivity,
efficiency, and performance, and (ii) we use Restaurant Operating
Profit as a key metric to evaluate our restaurant financial
performance compared to our competitors. We use these metrics to
facilitate a comparison of our operating performance on a
consistent basis from period to period, to analyze the factors and
trends affecting our business and to evaluate the performance of
our restaurants.
The following table presents a reconciliation of Operating
income to Restaurant Operating Profit for the periods indicated (in
thousands):
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Operating income as reported
$
(3,020
)
$
(1,955
)
$
(1,986
)
$
4,368
Management, license and incentive fee
revenue
(3,388
)
(3,184
)
(10,348
)
(10,631
)
General and administrative
12,785
7,280
30,941
22,803
Depreciation and amortization
9,416
3,732
22,701
10,894
Transaction and exit costs
850
—
9,199
—
Transition and integration expenses
6,274
—
10,068
—
Pre-opening expenses
2,110
3,097
7,528
6,005
Other expenses
46
128
78
480
Restaurant Operating Profit
$
25,073
$
9,098
$
68,181
$
33,919
Restaurant Operating Profit as a
percentage of owned restaurant net revenue
13.2
%
12.3
%
15.5
%
14.6
%
Restaurant Operating Profit by component is as follows (in
thousands):
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
STK restaurant operating profit (Company
owned)
$
6,547
$
6,796
$
26,769
$
25,050
STK restaurant operating profit (Company
owned) as a percentage of STK revenue (Company owned)
14.6
%
16.6
%
18.4
%
18.8
%
Benihana restaurant operating profit
(Company owned)
$
17,708
$
—
$
34,442
$
—
Benihana restaurant operating profit
(Company owned) as a percentage of Benihana revenue (Company owned)
(1)
17.0
%
—
18.9
%
—
Grill Concepts restaurant operating
profit
$
1,602
$
2,254
$
8,271
$
8,149
Grill Concepts restaurant operating profit
as a percentage of Grill Concepts revenue
4.4
%
10.7
%
8.3
%
9.4
%
Non-core restaurant operating profit
$
(783
)
$
39
$
(1,291
)
$
39
Non-core restaurant operating profit as a
percentage of Non-core revenue
(15.0
)%
0.3
%
(9.8
)%
0.3
%
_______________________
(1)
When adjusted for non-cash rent of $0.2
million and ($0.2) million for the nine months ended September 30,
2024 and September 30, 2023, respectively, the Benihana restaurant
operating profit as a percentage of Benihana revenue increased 20
basis points from 17.0% for the pro forma three months ended
September 30, 2023 to 17.2% for the three months ended September
30, 2024.
Adjusted Net Income. We define Adjusted Net Income as net income
before transaction and exit costs, transition and integration
expenses, lease termination expenses, one-time stock-based
compensation, non-recurring costs and the income tax effect of any
adjustments.
We believe that Adjusted Net Income is an appropriate measure of
operating performance, as it provides a clear picture of our
operating results by eliminating certain one-time expenses that are
not reflective of the underlying business performance. Adjusted Net
Income is included in this press release because it is a key metric
used by management, and we believe that it provides useful
information facilitating performance comparisons from period to
period. Adjusted Net Income has limitations as an analytical tool
and our calculation thereof may not be comparable to that reported
by other companies; accordingly, you should not consider it in
isolation or as a substitute for analysis of our results as
reported under GAAP.
For the three months ended
September 30,
For the nine months ended
September 30,
2024
2023
2024
2023
Net (loss) income available to common
stockholders as reported
$
(16,015
)
$
(3,098
)
$
(29,551
)
$
76
Adjustments:
Transaction and exit costs
850
—
9,199
—
Transition and integration expenses
6,274
—
10,068
—
Loss on early debt extinguishment
—
—
4,149
—
Other expenses
46
128
78
480
Adjusted net income before income
taxes
(8,845
)
(2,971
)
(76,057
)
555
Income tax effect on adjustments(1)
(538
)
(6
)
(1,762
)
(24
)
Adjusted net (loss) income available to
common stockholders as reported
$
(9,383
)
$
(2,977
)
$
(7,819
)
$
531
Adjusted net income per share: Basic
$
(0.30
)
$
(0.09
)
$
(0.25
)
$
0.02
Adjusted net income per share: Diluted
$
(0.30
)
$
(0.09
)
$
(0.25
)
$
0.02
Shares used in computing basic income per
share
31,008,275
31,515,011
31,256,946
31,657,761
Shares used in computing diluted income
per share
31,008,275
31,515,011
31,256,946
32,537,572
_______________________
(1)
Reflects the tax expense associated with
the adjustments for the three and nine months ended September 30,
2024, and September 30, 2023. The Company uses its estimated
normalized annual tax rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107820696/en/
Investors: ICR Michelle Michalski or Raphael Gross (646)
277-1224 Michelle.Michalski@icrinc.com
Media: ICR Seth Grugle (646) 277-1272 seth.grugle@icrinc.com
ONE Group Hospitality (NASDAQ:STKS)
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부터 11월(11) 2024 으로 12월(12) 2024
ONE Group Hospitality (NASDAQ:STKS)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
