| Segment Reporting |
Note 13 – Segment Reporting
The Company has identified its reportable operating segments as follows:
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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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Kona Grill. The Kona Grill segment includes the results of operations of Kona Grill restaurant locations.
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ONE Hospitality. The ONE Hospitality segment is composed 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, Bao Yum Heliot, Hideout, Marconi, Radio, and Rivershore. 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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Corporate. The Corporate segment consists of the following: general and administrative costs, stock-based compensation, depreciation and amortization, 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 three and nine months ended September 30, 2021 and 2020 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 |
For the three months ended September 30, 2021 |
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Total revenues |
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$ |
40,018 |
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$ |
31,177 |
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$ |
578 |
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$ |
96 |
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$ |
71,869 |
Operating income (loss) |
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$ |
9,996 |
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$ |
2,258 |
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$ |
369 |
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$ |
(7,565) |
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$ |
5,058 |
Capital asset additions |
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$ |
1,890 |
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$ |
665 |
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$ |
29 |
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$ |
155 |
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$ |
2,739 |
For the nine months ended September 30, 2021 |
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Total revenues |
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$ |
102,495 |
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$ |
89,001 |
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$ |
991 |
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$ |
624 |
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$ |
193,111 |
Operating income (loss) |
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$ |
26,403 |
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$ |
9,124 |
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$ |
185 |
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$ |
(22,041) |
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$ |
13,671 |
Capital asset additions |
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$ |
5,115 |
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$ |
1,570 |
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$ |
102 |
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$ |
1,325 |
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$ |
8,112 |
As of September 30, 2021 |
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Total assets |
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$ |
90,973 |
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$ |
89,253 |
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$ |
6,362 |
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$ |
30,527 |
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$ |
217,115 |
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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 |
For the three months ended September 30, 2020 |
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Total revenues |
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$ |
16,475 |
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$ |
22,794 |
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$ |
169 |
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$ |
129 |
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$ |
39,567 |
Operating income (loss) |
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$ |
2,639 |
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$ |
2,215 |
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$ |
65 |
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$ |
(4,899) |
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$ |
20 |
Capital asset additions |
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$ |
528 |
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$ |
398 |
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$ |
7 |
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$ |
46 |
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$ |
979 |
For the nine months ended September 30, 2020 |
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Total revenues |
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$ |
39,740 |
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$ |
55,831 |
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$ |
1,105 |
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$ |
274 |
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$ |
96,950 |
Operating income (loss) |
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$ |
3,404 |
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$ |
1,816 |
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$ |
136 |
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$ |
(14,970) |
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$ |
(9,614) |
Capital asset additions |
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$ |
1,056 |
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$ |
1,141 |
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$ |
184 |
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$ |
279 |
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$ |
2,660 |
As of December 31, 2020 |
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Total assets |
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$ |
81,431 |
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$ |
96,262 |
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$ |
5,484 |
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$ |
32,392 |
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$ |
215,569 |
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