| Segment Reporting |
Note 17 – Segment Reporting
In the fourth quarter of 2019, in conjunction with the Kona Grill acquisition, the Company implemented certain organizational changes, including the reorganization of our internal reporting structure to better facilitate our strategy for growth and operational efficiency. As a result of these organizational changes, the Company has identified its reportable operating segments as follows:
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·
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STK. The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license and incentive fee revenue generated from the STK brand and operations of STK restaurant locations.
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·
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Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations.
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·
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ONE Hospitality. The ONE Hospitality segment is comprised of the management, license and incentive fee revenue and results of operations generated from the Company’s other brands and venue concepts, which include ANGEL, Heliot, Hideout, Marconi, and Radio. Additionally, this segment includes the results of operations generated from F&B hospitality management agreements with hotels, casinos and other high-end locations.
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·
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Corporate. The Corporate segment consists of the following: general and administrative costs, stock-based compensation, acquisition related gains and losses, lease termination expenses, transaction costs, COVID-19 related expenses and other income and expenses. This segment also includes STK Meat Market, an e-commerce platform that offers signature steak cuts nationwide, the Company’s major off-site events group, which supports all brands and venue concepts, and revenue generated from gift card programs.
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The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, manages the business and allocates resources via a combination of restaurant sales reports and operating segment profit information, defined as revenues less operating expenses, related to the Company’s four operating segments.
Certain financial information relating to the years ended December 31, 2020 and 2019 for each segment is provided below (in thousands). Prior year amounts have been revised to conform to the current year segment presentation.
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STK
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Kona Grill
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ONE Hospitality
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Corporate
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Total
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For the year ended December 31, 2020
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Total revenues
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$
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60,932
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$
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78,591
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$
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1,197
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$
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1,223
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$
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141,943
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Operating income (loss)(1)
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6,523
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3,356
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(517)
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(23,056)
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(13,694)
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Capital asset additions
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$
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2,734
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$
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1,952
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$
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206
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$
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895
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$
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5,787
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As of December 31, 2020
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Total assets
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$
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81,431
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$
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96,262
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$
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5,484
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$
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32,392
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$
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215,569
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STK
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Kona Grill
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ONE Hospitality
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Corporate
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Total
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For the year ended December 31, 2019
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Total revenues
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$
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89,857
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$
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23,741
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$
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5,964
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$
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1,119
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$
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120,681
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Operating income (loss)(2)
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15,242
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1,511
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1,726
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(5,688)
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12,791
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Capital asset additions
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$
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3,330
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$
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195
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$
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40
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$
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792
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$
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4,357
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As of December 31, 2019
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Total assets
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$
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82,691
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$
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93,829
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$
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8,252
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$
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21,813
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$
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206,585
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(1)
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Operating loss for the Corporate segment for the year ended December 31, 2020 includes $5.5 million in COVID-19 related expenses.
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(2)
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Operating loss for the Corporate segment for the year ended December 31, 2019 includes $11.0 million bargain purchase gain from the Kona Grill acquisition.
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