Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases

Note 11 – Leases

The components of lease expense for the period were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

 

March 31, 

 

 

 

2020

 

 

2019

 

Lease cost

 

 

 

 

 

 

 

 

Operating lease cost

 

$

3,297

 

 

$

1,726

 

Variable lease cost

 

 

1,156

 

 

 

674

 

Short-term lease cost

 

 

128

 

 

 

108

 

Sublease income

 

 

(135)

 

 

 

(203)

 

Total lease cost

 

$

4,446

 

 

$

2,305

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term – operating leases

 

 

13 years

 

 

 

14 years

 

Weighted average discount rate – operating leases

 

 

8.49

%

 

 

8.25

%

 

The Company subleases one restaurant space and in 2019 subleased office space where it did not use the entire space for its operations. For the three months ended March 31, 2020 and 2019, sublease income was $0.1 million and $0.2 million, respectively, of which $0.1 million and $0.1 million, respectively, was from a  related party, Bagatelle NY. Refer to Note 8 for details on transactions with this related party.

The Company has entered into an operating lease for one future restaurant that has not yet commenced as of March 31, 2020. The aggregate future commitment related to this lease totals $4.8 million. The Company expects this lease to commence within the next twelve months and will have a lease term of 11 years.

Supplemental cash flow information related to leases for the period was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

March 31, 

 

March 31, 

 

 

2020

 

2019

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

3,161

 

$

1,718

Right-of-use assets obtained in exchange for operating lease obligations

 

$

288

 

$

281

 

As of March 31, 2020, maturities of the Company’s operating lease liabilities are as follows (in thousands):

 

 

 

 

 

2020, nine months remaining

 

$

9,775

2021

 

 

12,843

2022

 

 

12,801

2023

 

 

13,087

2024

 

 

12,486

Thereafter

 

 

115,862

Total lease payments

 

 

176,854

Less: imputed interest

 

 

(74,908)

Present value of operating lease liabilities

 

$

101,946

 

For the nine months remaining in 2020, the Company’s operating lease liabilities does not include future rent abatements that have been or will be negotiated with landlords.