The One Group Hospitality, Inc. · NASDAQ:STKS
The One Group Hospitality — COMMITTED CAPITAL ACQUISITION — Investor Presentation (May 2014)
38 slides from The One Group Hospitality's investor presentation, May 22, 2014
Slide 1: The ONE Group Investor Presentation May 2014
TH ONE - ROU INVESTOR PRESENTATION MAY 2014 ») lifestyle experience
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: The ONE Group, LLC
The ONE Group, LLC 3 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 4: Investment Highlights
Investment Highlights 4 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 Positive Returns
Slide 5: Our Company and International Footprint
Our Company Founded in 2004 Launched STK – Meatpacking in NYC, September 2006 Including STK – Miami, company operates 8 STK’s Unique Hospitality Food & Beverage Services Business Growing global footprint Approximately 1,500 employees Entered public market through a reverse merger in 20
Slide 6: Operating Cities
Operating Cities Operational Landscape Corporate Landscape New York Restaurants 15 Offices Miami Hospitality 4 New York Los Angeles Roof - Pools & Bars 6 London Atlanta Casino Venues 2 Las Vegas Washington DC Management & Employees Orlando 1500 London General Information 6
Slide 7: STK, Restaurants, F&B, Roofs, Pools & Bars, 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 9: STK Overview: A Steakhouse with High Energy and a Great Vibe
STK Overview: A S teakhouse with High E nergy 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 creates a high energy vibe throughout the restaurant
Slide 10: STK Experience
STK Experience 10
Slide 11: bylK
bylK
Slide 12: Rebel by STK Overview
Rebel by STK Overview: 12 • Rebel’s menu priced to appeal to a broader market • Maintains the unique features, the vibe and energy that have proven so successful for STK • Rebel will initially target some primary cities • Main focus on markets where a smaller footprint and a more casual restaurant i
Slide 13: Rebel by STK Images
13 Rebel by STK Images:
Slide 14: Rebel by STK Images
14 Rebel by STK Images:
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 – New York The Cosmopolitan – LV Hippodrome - London 16 Manage turn - key food and beverage services and operate several restaurant/hospitality concepts for luxury hotels and casinos Generates high margin management and incentive fee
Slide 17: Turn-Key F&B Solutions for Hospitality Clients
17 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 r
Slide 18: A Leading Hospitality Company – The ONE Experience
18 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 licensed brands .
Slide 19: ONExperience
19 ONExperience ™
Slide 20: A Clear Market Leader
20 A Clear Market Leader 20 “ 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 “T
Slide 21: Targeted Unit Economics
21 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 <$500,000 ROI 53% 40% -- Management Fees -- -- 5.0% to 6.5% Incentive Fees -- -- >15% Management & Incentive Fee Revenues -- -
Slide 22: ‘ONE
2 ‘ONE
Slide 23: Significant Global Opportunities
Significant Global Opportunities 23 Existing Locations Potential Expansion Locations Corporate & Regional Offices Existing and Potential Expansion Countries
Slide 24: Expansion Goals
Expansion Goals 24 Expect to open as many as two to three STKs per year over the next three years Launch Rebel by STK as a secondary growth vehicle Plan to launch at least one hospitality contract every 12 - 18 months 2014 development STK Washington opened on April 25 STK Miami scheduled
Slide 25: Seasoned Management Team with Proven Track Record
Seasoned Management Team with Proven Track Record Name Position Previous Experience Michael Serruya Non - Executive Chairman Co - founder, past Chairman, President, Chief Executive Officer and Director of CoolBrands Former President, Chief Executive Officer and Chairman of Yogen Früz World - Wid
Slide 26: Board Members with Deep Industry Experience
Board Members with Deep Industry Experience Name Name Previous Experience Michael Serruya Co - founder, past Chairman, President, Chief Executive Officer and Director of CoolBrands Former President, Chief Executive Officer and Chairman of Yogen Früz World - Wide Director of Jamba, Inc. (parent
Slide 27: Financial Performance
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Slide 28: Strong Revenue Performance
Strong Revenue Performance ($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 28 $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 tha
Slide 29: 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 $15.0 2010 2011 2012 2013 Adjusted EBITDA and Net Income TOG Adjusted Net Income (1) TOG Adjusted EBITDA (1) 29 (1) See Appendix for definition of Adjusted EBITDA and Adjusted Net Income and fo
Slide 30: Delivering Potential Value For Shareholders
Delivering Potential Value For Shareholders Strong STK Growth / Launch Rebel Growth in Hospitality Food and Beverage Services Business Solid Margin Leverage 30 Attractive Earnings Growth Attractive Business Model Strong Top Line Growth
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Slide 33: Historical GAAP Income Statement
Historical GAAP Income Statement 33 ($ 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
Slide 34: Historical GAAP Balance Sheet
Historical GAAP Balance Sheet ($ Millions ) 34 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 $ 1
Slide 35: Reconciliations of Non-GAAP Measures – Cautionary Statements
Reconciliations of Non - GAAP Measures – Cautionary Statements 35 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 an
Slide 36: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ Millions ) 36 (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 37: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ Millions ) 37 (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
Slide 38: Total Food and Beverage Sales at Owned and Managed Units Reconciliation
Total Food and Beverage Sales at Owned and Managed Units Reconciliation ($ Millions ) 38 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 8
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