Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.20.1
Segment Reporting
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting

Note 18 – 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, Bagatelle, 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, depreciation and amortization, acquisition related gains and losses, pre-opening expenses, lease termination expenses, transaction costs, and other income and expenses. This segment also includes 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, 2019 and 2018 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, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

82,193

 

$

23,741

 

$

14,093

 

$

654

 

$

120,681

Equity in income of investee companies

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Operating income

 

 

11,624

 

 

2,612

 

 

7,840

 

 

(9,285)

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the year ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

71,203

 

$

 —

 

$

14,196

 

$

202

 

$

85,601

Equity in income of investee companies

 

 

 —

 

 

 —

 

 

182

 

 

 —

 

 

182

Operating income

 

 

10,450

 

 

 —

 

 

10,267

 

 

(14,904)

 

 

5,813

Capital asset additions

 

$

3,321

 

$

 —

 

$

31

 

$

750

 

$

4,102

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

47,363

 

$

 —

 

$

6,415

 

$

2,201

 

$

55,979