The One Group Hospitality, Inc. · NASDAQ:STKS
The One Group Hospitality — ONE Group Hospitality — Investor Presentation (June 2014)
36 slides from The One Group Hospitality's investor presentation, Jun 19, 2014
Slide 1: The ONE Group Investor Presentation June 2014
THES) EGROUP lifestyle hospitality INVESTOR PRESENTATION JUNE 2014
Slide 2: Cautionary Statements
Cautionary Statements Forward - Looking Statements In addition to historical information, this presentation contains statements relating to the Company’s future business and financial performance and future events or developments that may constitute “forward - looking statements” within the meaning
Slide 3: The ONE Group
The ONE Group We are a global hospitality company that develops and operates upscale, high - energy restaurants and turn - key food & beverage services for hospitality venues including hotels , casinos and other high end locations 3
Slide 4: Investment Highlights
The ONE Group Investment Highlights Strong Performance and Industry - Leading Growth Metrics Category Leading Restaurant Brand with Global Reach International Platform for Future Growth Attractive Food & Beverage Offerings Tailored for Hospitality Venues Capital Efficient Model Drives Positive Retur
Slide 5: ONExperience
ONExperience™
Slide 6: Our Company
Our Company Opened our first venue in 2004 Launched STK – Meatpacking in NYC, September 2006 Including STK – Miami, our company operates 8 STK’s Launched ONExperience™, our hospitality program, in 2010 Currently operating in 4 hospitality venues Growing global footprint Since 2006 food and beverage
Slide 7: General Information
Operating Cities Operational Landscape Corporate Landscape New York Restaurants 16 Offices Miami Hospitality 4 New York Los Angeles Roof - Pools & Bars 6 London Atlanta Casino Venues 2 Las Vegas Washington DC Management & Employees Chicago 1,500 Orlando London General Information 7
Slide 8: STK - Restaurants, F&B, Roofs, Hospitality
STK - Restaurants F & B Restaurants Roofs - Pools & Bars Hospitality STK – Atlanta Asellina – NY Radio – London The Perry – S. Beach, FL STK – Los Angeles Cucina Asellina - Atlanta The Rooftop – Miami Gansevoort – Park Ave, NY STK – Las Vegas Cucina Asellina - London Plunge – Midtown NY Hippodrome C
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Slide 10: STK Overview: A Steakhouse with High Energy and a Great Vibe
• STK is a reinvention of the traditional steakhouse • High - energy dining experience • Greater emphasis on social dining by redefining the visitor profile • Restaurants built around the bar, featuring DJ played music • Targeted demographics • High female to male customer mix STK Overview: A S teak
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Slide 12: STK Rebel Overview
STK Rebel Overview: • Rebel is a more accessible STK • Maintains the unique features, vibe and energy that have proven so successful for STK • Broader menu priced to appeal to a wider market • Smaller footprint and lower build - out cost • Initially targeting primary cities and then focusing on seco
Slide 13: STK Rebel
STK Rebel 13
Slide 14: STK Rebel
STK Rebel 14
Slide 15: Hospitality Food & Beverage Services Business
HOSPITALITY FOOD & BEVERAGE SERVICES BUSINESS
Slide 16: F&B Hospitality Overview
F & B Hospitality Overview: ME Hotel - London Gansevoort Park – NYC The Cosmopolitan – LV Hippodrome - London Unique opportunity to leverage restaurant and hospitality expertise Manage F&B for hotels, casinos and hospitality venues Utilize company - branded restaurants or tailored concepts Generate
Slide 17: Turn-Key F&B Solutions for Hospitality Clients
Turn - Key F & B Solutions for Hospitality Clients (1) Hospitality locations open for a full year include The Cosmopolitan Hotel, Gansevoort Park, ME London, The Hippodrome Casino and The Perry Hotel (temporarily closed in 2013). (2) Total food and beverage sales at managed units represents the reve
Slide 18: A Leading Hospitality Company – ONExperience
A Leading Hospitality Company – ONExperience™ Note: Bagatelle, Gansevoort Park Rooftop, Marconi, Radio M, Asellina , Cucina Asellina and Heliot are jointly - owned and / or licensed brands . 18
Slide 19: A Clear Market Leader
A Clear Market Leader 19 “ Best Steakhouse on the Strip” – Las Vegas Review - Journal “Best Places to Party this Summer” ” “A saucy spin on the steakhouse formula” – Zagat “Top 5 Steakhouse in NYC – STK New York “…You’re only young once, people, so STK while you still can” – Blue Tomato Reviews “The
Slide 20: Targeted Unit Economics
Targeted Unit Economics TARGETED STK Rebel Hospitality F&B Services Revenue $9.0 mil $5.0 mil -- EBITDA $2.0 mil $1.0 mil -- Average Cash Investment (1) $3.8 mil $2.5 mil <$500,000 ROI 53% 40% -- Management Fees -- -- 5.0% to 6.5% Incentive Fees -- -- >15% Management & Incentive Fee Revenues -- -- >
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Slide 22: Significant Global Opportunities
Significant Global Opportunities Existing Locations Potential Expansion Locations Corporate & Regional Offices Existing and Potential Expansion Countries 22
Slide 23: Expansion Goals
Expansion Goals Expect to open as many as two to three STKs per year over the next three years 2014 development STK Washington DC opened on April 25 STK Miami scheduled to reopen in 4Q14 2015 development STK Disney STK Chicago Multiple other development projects in negotiation Launch STK Rebel as a
Slide 24: Seasoned Management Team with Proven Track Record
Seasoned Management Team with Proven Track Record Name Position Previous Experience Michael Serruya Non - Executive Chairman Co - founder, past Chairman, President, Chief Executive Officer and Director of CoolBrands Former President, Chief Executive Officer and Chairman of Yogen Früz World - Wide Di
Slide 25: Financial Performance
Mitlataiclaba lt itis FINANCIAL PERFORMANCE %
Slide 26: Strong Revenue Performance
Strong Revenue Performance ($Millions) GAAP Revenue Total Food & Beverage Sales at Owned & Managed Units (2) $41.5 $81.0 $107.2 $0.0 $45.0 $90.0 $135.0 $180.0 2010 2011 2012 2013 $38.7 $46.1 $60.1 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 2010 2011 2012 2013 (1) STK SSS includes all STK restaurants that h
Slide 27: Adjusted EBITDA and Net Income
$0.5 $1.6 $6.1 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2010 2011 2012 2013 $3.3 $5.2 $6.7 $0.0 $3.0 $6.0 $9.0 $12.0 $15.0 2010 2011 2012 2013 Adjusted EBITDA and Net Income TOG Adjusted Net Income (1) TOG Adjusted EBITDA (1) (1) See Appendix for definition of Adjusted EBITDA and Adjusted Net Income and for r
Slide 28: Delivering Potential Value For Shareholders
Delivering Potential Value For Shareholders Strong STK Growth / Launch Rebel Growth in Hospitality Food and Beverage Services Business Solid Margin Leverage Attractive Earnings Growth Attractive Business Model Strong Top Line Growth 28
Slide 29: Appendix
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Slide 31: Historical GAAP Income Statement
Historical GAAP Income Statement ($ Millions ) FYE December 31, 2011A 2012A 2013A Revenues: Owned unit net revenues $ 43.7 $ 56.4 $ 38.6 Management and incentive fee revenue 2.4 3.7 7.3 Total revenue $ 46.1 $ 60.1 $ 46.0 Cost and expenses: Owned operating expenses: Food and beverage costs 10.5 14.3
Slide 32: Historical GAAP Balance Sheet
Historical GAAP Balance Sheet ($ Millions ) FYE December 31, 2011A 2012A 2013A Assets: Cash and cash equivalents $ 1.7 $ 1.0 $ 11.7 Accounts receivable, net 2.3 3.4 2.9 Inventory 1.2 1.4 1.0 Other current assets 0.1 0.3 0.8 Due from related parties 0.2 0.1 0.2 Total Current Assets $ 5.5 $ 6.2 $ 16.7
Slide 33: Reconciliations of Non-GAAP Measures – Cautionary Statements
Reconciliations of Non - GAAP Measures – Cautionary Statements ADJUSTED EBITDA : We define adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, n on - cash impairment loss, deferred rent, pre - opening expenses, non - recurring gains and l
Slide 34: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ Millions ) (1) Deferred rent is included in occupancy expense on the statement of income. (2) Non - recurring gain is included in other income on the statement of income. (3) For the purposes of calculating Adjusted EBITDA, only those units that were either closed,
Slide 35: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ Millions ) (1) Non - recurring gain is included in other income on the statement of income. (2) For the purposes of calculating Adjusted Net Income (Loss), only those units that were either closed, or a determination was mad e by us to close those units as of De
Slide 36: Total Food and Beverage Sales at Owned and Managed Units Reconciliation
Total Food and Beverage Sales at Owned and Managed Units Reconciliation ($ Millions ) FYE December 31, 2011A 2012A 2013A Owned Unit Net Revenue (a) $43.7 $56.4 $38.7 Management and Incentive Fee Revenue 2.4 3.7 7.3 GAAP Revenue 46.1 60.1 46.0 Food & Beverage Sales at Managed Units (a) 37.3 49.8 84.4
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