The One Group Hospitality, Inc. · NASDAQ:STKS
The One Group Hospitality — COMMITTED CAPITAL ACQUISITION — SPAC Merger (October 2013)
36 slides from The One Group Hospitality's SPAC merger presentation, Oct 16, 2013
Slide 1: Investor Presentation October 2013
INVESTOR PRESENTATION OCTOBER 2013
Slide 2: Cautionary Statements
Cautionary Statements 2 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 meanin
Slide 3: Today's Presenters
Today’s Presenters 3 Founder, Chief Executive Officer Chief Financial Officer Non - Executive Chairman
Slide 4: Introduction
INTRODUCTION
Slide 5: The ONE Group, LLC
The ONE Group, LLC 5 We are a global hospitality company that develops and operates upscale, high - energy restaurants and turn - key food & beverage services for hospitality venues including boutique hotels, casinos and other high - end locations
Slide 6: Our Operations
Our Operations 6 (1) Currently under renovation, expected to re - open in Q1 2014. (2) Currently under construction, expected to open in Q1 2014. Note: Hospitality services defined as providing bars, catering, minibars and/or room service. Note: Asterisk indicates that such unit is located in a Hosp
Slide 7: Our Company Key Points and International Footprint
$6.3 $21.5 $36.5 $32.5 $41.5 $81.0 $106.7 $0.0 $30.0 $60.0 $90.0 $120.0 $150.0 2006 2007 2008 2009 2010 2011 2012 2013E Pro Forma Our Company Key Points ¨ Founded in 2004 and headquartered in New York City ¨ Primary restaurant brand is STK ─ Upscale, high - energy steakhouse concept with 8 locations
Slide 8: Investment Highlights
Investment Highlights 8 Strong Performance and Industry - Leading Growth Metrics STK is a Category Leading Restaurant Brand with Global Reach International Platform for Future Growth Attractive Food & Beverage Offerings Tailored for Hospitality Venues Capital Efficient Model Drives Attractive Return
Slide 9: "Not Your Daddy's Steakhouse"
“NOT YOUR DADDY’S STEAKHOUSE”™
Slide 10: STK Overview: Differentiated Steakhouse with High-Energy and a Great Vibe
STK Overview: Differentiated Steakhouse with High - Energy and a G reat V ibe Key Points ¨ High - energy dining experience ¨ Higher female to male customer mix ¨ Blend of the modern steakhouse and chic lounge concepts ─ Lively bar and central lounge area ─ DJ/music creates a high - energy vibe throu
Slide 11: A Clear Market Leader
A Clear Market Leader STKs are ranked among the most popular dining and social destinations in each of the cities in which they operate 11 “Best Steakhouse on the Strip” – Las Vegas Review - Journal “Best Places to Party this Summer” “A saucy spin on the steakhouse formula” – Zagat “The Best New Res
Slide 12: Average Unit Volume (AUV)
Average Unit Volume (AUV) (Data as of FYE 2012) Sources: Company filings, investor presentations and equity research. Note: STK figures represent the average results from STK’s open for at least one year: STK – Downtown (including Rooftop), STK – LA, STK – Miami, STK – Las Vegas, STK – Midtown and S
Slide 13: Capital Efficient Model Drives Attractive Returns
Capital Efficient Model Drives Attractive Returns Cash - on - Cash Returns 52% 38% 34% 28% 28% 72% 52% 40% 26% 25% 0.0% 20.0% 40.0% 60.0% 80.0% Average Four - Wall Unit Economics Sources: Company filings, investor presentations and equity research. (1) Restaurant - Level EBITDA and Average Cash Inve
Slide 14: Hospitality Food & Beverage Services Business
HOSPITALITY FOOD & BEVERAGE SERVICES BUSINESS THEONEGROUP
Slide 15: A Leading Hospitality Company – The ONE Experience
15 A Leading Hospitality Company – The ONE Experience Note: Bagatelle, Gansevoort Park Rooftop, Marconi, Radio M, Asellina, Cucina Asellina and Heliot are jointly - owned and / or lice nsed brands.
Slide 16: Turn-Key F&B Solutions for Hospitality Clients
Turn - Key F&B Solutions for Hospitality Clients 16 Strong Hospitality System - Wide Revenue Hospitality Locations Open For a Full Year (1) 1 3 3 4 0 1 2 3 4 2010 2011 2012 2013E (1) Hospitality locations open for a full year include The Cosmopolitan Hotel, Gansevoort Park, ME London, The Hippodrome
Slide 17: Comprehensive F&B Solutions Drives Attractive Fee Structure
Comprehensive F&B Solutions Drives Attractive Fee Structure ¨ Manage turn - key food and beverage services and operate restaurant/lounge concepts for luxury hotels and casinos ¨ Generates high margin management and incentive fee income ─ Drives incremental profitability and cash flow ─ Target $500,0
Slide 18: Growth Strategy
GROWTH STRATEGY THEONEGROUP
Slide 19: Significant Whitespace for Domestic and International Expansion
Significant Whitespace for Domestic and International Expansion 19 Existing Locations Potential Expansion Locations Key Points Expansion of STK ¨ Proven international portability with STK London ¨ Opportunity fo r STKs in over 50 additional cities globally ¨ Expect to open two to three STKs per year
Slide 20: Potential Global Expansion Targets
Potential Global Expansion Targets 20 ¨ Near Term STK’s Middle & Far East, R.O.W. Austin Boston Buenos Aires Chicago Cincinnati Dallas Denver Houston Las Vegas Mexico City Miami Montreal New York Amsterdam Athens Barcelona Berlin Dublin Frankfurt Istanbul Lisbon London Madrid Milan Monte Carlo Mosco
Slide 21: 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 ¨ President, Chief Executive Officer and Chairman of Yogen Früz World - Wide ¨ Dir
Slide 22: Board Members with Deep Industry Experience
Board Members with Deep Industry Experience Name Name Previous Experience Michael Serruya ¨ Co - founder, past Chairman, President, Chief Executive Officer and Director of CoolBrands ¨ President, Chief Executive Officer and Chairman of Yogen Früz World - Wide ¨ Director of Jamba, Inc. (parent compan
Slide 23: Financial Performance
FINANCIAL PERFORMANCE THEONEGROUP
Slide 24: Targeted STK New Unit Economics
TOG (Assumes 100% Ownership) Total Per Square Foot (1) Revenue ~$9,000,000 ~$900 Rent ~$800,000 ~$80 % Margin 8.9% Restaurant - Level EBITDA ~$2,000,000 ~$200 % Margin 22.2% Gross Cash Investment ~$5,400,000 ~$540 Less: Tenant Allowance ~$1,600,000 ~$160 Net Cash Investment ~$3,800,000 ~$380 Cash -
Slide 25: Strong Financial Performance and Growth
$0.5 $1.6 $2.4 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2010 2011 2012 2013E $3.3 $4.9 $5.7 $0.0 $3.0 $6.0 $9.0 $12.0 $15.0 2010 2011 2012 2013E Strong Financial Performance and Growth ($Millions) GAAP Revenue System - Wide Revenue TOG Adjusted Net Income (2) TOG Adjusted EBITDA $41.5 $81.0 $106.7 $0.0 $45.0
Slide 26: 2014 Preliminary Operational Targets
2014 Preliminary Operational Targets 26 System - wide Revenue $140 – 150 million GAAP Revenue $60 – 70 million Adjusted EBITDA $13.5 – 15.5 million Tax Rate 32.5% Net Income $8.0 – 8.5 million EPS (Fully Diluted) $0.26 – 0.29 Key 2014 Drivers ¨ Full year run - rate benefit of TOG - UK ¨ STK Miami re
Slide 27: Delivering Value For Shareholders
Delivering Value For Shareholders Strong STK Growth Growth in Hospitality Food and Beverage Services Business Solid Margin Leverage 27 Attractive Earnings Growth Attractive Business Model ¨ 25% annual unit growth (open 2 - 3 units per year over the next three years) ¨ Roll - out venues in over 50 ne
Slide 28: Transaction Overview
Transaction Overview ¨ PIPE Offering Summary ─ Offering $10.0 million of common stock in Committed Capital Acquisition Corp. ¨ Upsized to $15.5 million based upon investor demand ─ $5.00 per share; implied equity value of $ 153.0 million (1) ; implied enterprise value of ~$131.5 million (1) ; cash o
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Slide 30: Appendix
APPENDIX
Slide 31: Pro Forma Ownership at Closing
Pro Forma Ownership at Closing Shareholder Value Shares Ownership TOG Members $63.2 12.6 41.3% CCAC Stockholders 28.8 5.8 18.8% Private Placement Stockholders 15.5 3.1 10.1% CCAC Founders 16.9 3.4 11.0% Total $124.3 24.9 81.2% CCAC Warrantholders 28.8 5.8 18.8% Total Fully Diluted $153.0 30.6 100.0%
Slide 32: Industry Leading Growth Metrics
Industry Leading Growth Metrics 2010 - 2012 System - Wide Revenue CAGR 2010 - 2012 TOG Adjusted EBITDA CAGR 43.6% 32.3% 25.9% 23.0% 21.7% 19.9% 19.2% 5.9% 0.0% 15.0% 30.0% 45.0% 60.0% 60.4% 34.9% 30.3% 22.0% 19.5% 17.5% 17.4% 6.3% 0.0% 25.0% 50.0% 75.0% 32 Sources: Company filings, investor presenta
Slide 33: Historical GAAP Income Statement
Historical GAAP Income Statement 33 ($ Millions ) FYE December 31, 2010A 2011A 2012A Revenues: Owned unit net revenues 38.5$ 43.7$ 56.4$ Management and incentive fee revenue 0.2 2.4 3.7 Total revenue 38.7$ 46.1$ 60.1$ Cost and expenses: Owned operating expenses: Food and beverage costs 8.9 10.5 14.3
Slide 34: Historical GAAP Balance Sheet
Historical GAAP Balance Sheet ($ Millions ) 34 FYE December 31, 2011A 2012A Assets: Cash and cash equivalents $1.7 $1.0 Accounts receivable, net 2.3 3.4 Inventory 1.2 1.4 Other current assets 0.1 0.3 Due from related parties 0.2 0.1 Total Current Assets $5.5 $6.2 Property, plant & equipment, net 19.
Slide 35: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ Millions ) 35 (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 close
Slide 36: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ Millions ) 36 (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
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