Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

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

Note 15 – 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 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, 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 three months ended March 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 three months ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

17,383

 

$

20,657

 

$

2,679

 

$

 —

 

$

40,719

Operating income (loss)

 

 

1,543

 

 

820

 

 

1,820

 

 

(8,534)

 

 

(4,351)

Capital asset additions

 

$

335

 

$

410

 

$

 8

 

$

38

 

$

791

As of March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

79,512

 

$

88,199

 

$

6,116

 

$

22,354

 

$

196,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STK

    

Kona Grill

    

ONE Hospitality

    

Corporate

    

Total

For the three months ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

19,245

 

$

 —

 

$

3,060

 

$

471

 

$

22,776

Operating income (loss)

 

 

2,668

 

 

 —

 

 

2,250

 

 

(3,784)

 

 

1,134

Capital asset additions

 

$

1,726

 

$

 —

 

$

36

 

$

298

 

$

2,060

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

82,691

 

$

93,829

 

$

8,252

 

$

21,813

 

$

206,585