The One Group Hospitality, Inc. · NASDAQ:STKS
The One Group Hospitality — ONE Group Hospitality — Investor Presentation (May 2015)
36 slides from The One Group Hospitality's investor presentation, May 19, 2015
Slide 1: The ONE Group Investor Presentation May 2015
Exhibit 99.1 THEONEGROUP lifestyle hospitality INVESTOR PRESENTATION MAY 2015
Slide 2: Forward-Looking 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 of the “safe harbor” p
Slide 3: The ONE Group: global hospitality company
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 The ONE Group
Slide 4: 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 Returns Premier and Differentiated High -
Slide 5: The ONE Group 2014 Highlights - Financial
5 The ONE Group 2014 Highlights - Financial 2014 Results ; Same Store Sales » Increased 5.0% ; Total Food & Beverage Sales at Owned and Managed Units » Increased 4.7% to $132.2mm » Excluding discontinued operations increased over 9 % ; Food and Beverage Costs » Down to 25.7% versus 26.4% in 2013 ; I
Slide 6: The ONE Group 2014 Highlights - Development
6 The ONE Group 2014 Highlights - Development ; 2014 Openings – opened in Washington D.C. in April 2014 ; 4 New STKs ; 2 New STK Rebels ; 2 Hospitality Management Agreements Lease Deals Management Deals Chicago – River North Milan – ME Hotel Orlando – Disney Springs Los Angeles – W Hotel Westwood (W
Slide 7: The ONE Group 2014 Highlights - Infrastructure
The ONE Group 2014 Highlights - Infrastructure 7 New Team Members To Support Growth Plans & SEC Requirements Growth (12) Public Company (4) - Chief Operating Officer - Director of SEC Financial Reporting - VP Restaurant Operations - General Counsel - Directors of Operations (4) - Support Staff (2) -
Slide 8: Our Company
Our Company ; The ONE Group was formed in 2004 ; STK : ; Launched STK – Meatpacking in NYC in September 2006 ; 11 STKs currently open and/or under construction ; F&B Hospitality Program: ; Launched our hospitality program in 2010 ; Currently contracted in 7 hospitality venues, 6 of which are operati
Slide 9: Venues Opened by end of 2014
21 Venues Opened by end of 2014 9 STK - Restaurants F &B Restaurants Roofs - Pools & Bars Hospitality - F&B Services STK – Atlanta Asellina – NY Radio – London Gansevoort – Park Ave, NY STK – Los Angeles Cucina Asellina - Atlanta Plunge – Midtown NY Hippodrome Casino – UK STK – Las Vegas Cucina Asel
Slide 10: 32 Venues Expected to be Opened by end of 2015
STK - Restaurants F &B Restaurants Roofs - Pools & Bars Hospitality - F&B Services STK – Atlanta Asellina – NY Radio – London Gansevoort – Park Ave, NY STK – Los Angeles Cucina Asellina - Atlanta Plunge – Midtown NY Hippodrome Casino – UK STK – Las Vegas Cucina Asellina - London STK Rooftop – NY ME
Slide 11: Restaurants
RESTAURANTS
Slide 12: Principal Restaurant Brand – One Brand, Two Price Points
Principal Restaurant Brand – One Brand, Two Price Points • 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 • High female to male cu
Slide 13: Hospitality Food & Beverage Services Business
HOSPITALITY FOOD & BEVERAGE SERVICES BUSINESS
Slide 14: 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 ▪ Target high margin fee income
Slide 15: A Leading Hospitality Company – ONE Hospitality
A Leading Hospitality Company – ONE Hospitality Note: Bagatelle, Gansevoort Park Rooftop, Marconi, Radio M, Asellina , Cucina Asellina and Heliot are jointly owned and/or licensed brands. jointly - owned and / or licensed brands . 15
Slide 16: Hospitality Services locations and sales
(1) Hospitality locations open for a full year include The Cosmopolitan Hotel, Gansevoort Park, ME London and The Hippodrome Casino. Does not include The Perry Hotel (temporarily closed in 2013). (2) Total Food & Beverage Sales at Managed Units refers to a non - GAAP measure of revenue, which repres
Slide 17: Growth Opportunities
ME Hotel - London Gansevoort Park – NYC The Cosmopolitan – LV Hippodrome - London ▪ STK : ▪ Opportunity to open up to 50 STK restaurants globally ▪ Targeting 2 - 3 STK restaurants per year, short - term ▪ STK Rebel : ▪ Opportunity to open at least 100 STK Rebel restaurants globally ▪ Targeting 1 - 2
Slide 18: Centralized Global Marketing
Centralized Global Marketing
Slide 19: A Clear Market Leader
“ “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 Best New Restaurant in N
Slide 20: Management team
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 ; Director of Jamba, Inc. (parent company of Jam
Slide 21: Financial Performance
FINANCIAL PERFORMANCE
Slide 22: Strong Revenue Performance
($Millions) GAAP Revenue Total Food & Beverage Sales at Owned & Managed Units (1) (1) See Appendix for a reconciliation of Total Food & Beverage Sales at Owned and Managed Units. (2) STK same store sales refers to Total Food & Beverage Sales at owned and managed STK units that have been open 18 mont
Slide 23: Adjusted EBITDA and Adjusted 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 reconciliation to GAAP Net Income (Loss). Adjusted EBITDA and Adjusted Net Income ($Millions) $3.3 $5.2 $6.7 $7.8 $7.8 $0 $5 $10 $15 $20 2010 2011 2012 2013 2014 $0.
Slide 24: Significant Growth: Projected Timetable
Significant Growth: Projected Timetable 24
Slide 25: Significant Growth: Company-Owned Restaurants
Significant Growth: Company - Owned Restaurants Targeting 2 - 3 New Company - Owned Leases Per Year 2013 2014 2015 25% Unit Growth 25 80% Unit Growth NY - MPD NY - Midtown Atlanta LA Miami Chicago Orlando * STK Westwood will include a lobby lounge, pool - side restaurant and hotel food and beverage
Slide 26: Significant Growth: Hospitality
Significant Growth: Hospitality Targeting 1 - 2 New Hospitality Management Agreements Per Year 2014 2015 26 Miami Rooftop Restaurant & Bar 50% Growth Las Vegas London New York London Las Vegas London New York Rooftop Pool & Bar London Milan Rooftop Pool & Bar (projected)
Slide 27: Targeted Unit Economics
TARGETED STK Rebel F&B Hospitality Owned Units Owned Units Managed Units Revenue $9.0 mil $5.0 mil -- EBITDA $2.0 mil $1.0 mil -- Average Cash Investment (2) $3.8 mil $2.5 mil <$500,000 ROI 53% 40% -- Management Fees -- -- 5.0% to 6.5% Incentive Fees -- -- >15% Management & Incentive Fee Revenues --
Slide 28: Delivering Potential Value For Shareholders
Strong STK Growth / Launch Rebel Growth in Hospitality Food and Beverage Services Business Significant Earnings Growth Attractive Business Model Strong Top Line Growth 28 Delivering Potential Value For Shareholders
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Slide 30: Appendix
APPENDIX »
Slide 31: Historical GAAP Income Statement
($ Millions ) Historical GAAP Income Statement FYE December 31, 2011A 2012A 2013A 2014A Revenues: Owned unit net revenues 43.7$ 56.4$ 36.6$ 40.5$ Management and incentive fee revenue 2.4 3.7 7.3 8.8 Total revenue 46.1$ 60.1$ 43.9$ 49.3$ Cost and expenses: Owned operating expenses: Food and beverage
Slide 32: Historical GAAP Balance Sheet
($ Millions ) Historical GAAP Balance Sheet FYE December 31, 2011A 2012A 2013A 2014A Assets: Cash and cash equivalents 1.7$ 1.0$ 11.7$ 7.9$ Accounts receivable, net 2.3 3.4 2.9 4.4 Inventory 1.2 1.4 1.0 1.1 Other current assets 0.1 0.3 0.8 1.9 Due from related parties 0.2 0.1 0.2 1.2 Total Current A
Slide 33: Adjusted EBITDA definition
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 losses and losses from discontinued operations. Adjusted EBITDA
Slide 34: 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, or a determination was made by
Slide 35: 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 December 31st of the respective year
Slide 36: Total F&B Sales at Owned and Managed Units Reconciliation
Total F&B Sales at Owned and Managed Units Reconciliation ($ Millions ) FYE December 31,2011A 2012A 2013A 2014A Owned Unit Net Revenue (a) $43.7 $56.4 $36.6 $40.5 Management and Incentive Fee Revenue 2.4 3.7 7.3 8.8 GAAP Revenue 46.1 60.1 43.9 49.3 Food & Beverage Sales at Managed Units (a) 37.3 49.
ONE Group Hospitality — Investor Presentation (May 2015) on 6ix