Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.20.4
Segment Reporting
12 Months Ended
Dec. 31, 2020
Segment Reporting  
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:

·

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.

·

Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations.

·

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.

·

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.

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the year ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

60,932

 

$

78,591

 

$

1,197

 

$

1,223

 

$

141,943

Operating income (loss)(1)

 

 

6,523

 

 

3,356

 

 

(517)

 

 

(23,056)

 

 

(13,694)

Capital asset additions

 

$

2,734

 

$

1,952

 

$

206

 

$

895

 

$

5,787

As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

81,431

 

$

96,262

 

$

5,484

 

$

32,392

 

$

215,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the year ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

89,857

 

$

23,741

 

$

5,964

 

$

1,119

 

$

120,681

Operating income (loss)(2)

 

 

15,242

 

 

1,511

 

 

1,726

 

 

(5,688)

 

 

12,791

Capital asset additions

 

$

3,330

 

$

195

 

$

40

 

$

792

 

$

4,357

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

82,691

 

$

93,829

 

$

8,252

 

$

21,813

 

$

206,585

 


(1)

Operating loss for the Corporate segment for the year ended December 31, 2020 includes $5.5 million in COVID-19 related expenses.

(2)

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.