Financial Data and Key Metrics Changes - The company reported record-setting revenue of nearly $72 million in total GAAP revenue for Q3 2021, reflecting an 81.6% increase from $39.6 million in the same quarter last year [31] - Adjusted EBITDA reached over $10 million for the quarter, bringing year-to-date adjusted EBITDA to $29.4 million [9][45] - Net income attributable to The ONE Group was $11.7 million or $0.34 per share, compared to a net loss of $0.9 million in Q3 2020 [43] Business Line Data and Key Metrics Changes - U.S. average weekly sales for STK were $285,000, up from $184,000 in the same period in 2019, while Kona Grill saw average weekly sales of $99,000 compared to $78,000 in 2019 [9] - Consolidated comparable sales increased 44.7% compared to 2019, with STK up 63.8% and Kona Grill up 26.9% [10][33] - Restaurant operating profit increased to 17.1% for the quarter compared to 16.6% in the prior year [39] Market Data and Key Metrics Changes - The company experienced strong sales momentum across all dayparts, particularly on Sundays due to the brunch offering [12][16] - October saw consolidated comparable sales increase by 59.2%, with STK up 73.7% and Kona Grill up 42.9% compared to 2019 [11] Company Strategy and Development Direction - The company plans to open 13 new STK and F&B venues between 2021 and 2022, with 7 new venues already opened in 2021 [18][19] - The company is focusing on a robust development pipeline, including a target of 3 to 5 new Kona Grill locations per year starting in 2022 [23] - The company aims for a total addressable market of at least 200 STK restaurants globally and 200 Kona Grills domestically, with much of the growth being asset-light [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued sales growth for the remainder of the year and beyond, citing strong demand for events and restaurant buyouts [18][62] - The company has successfully managed labor shortages and inflationary pressures, maintaining over 100% staffing levels going into the busy fourth quarter [25][26] - Management highlighted the importance of employee retention and training to ensure high service levels during peak demand periods [28][66] Other Important Information - The company amended its credit facility, resulting in lower interest rates and extended maturity dates, saving $2.5 million in cash interest expense annually [46][47] - The company has entered into an agreement with REEF kitchens to open delivery-only venues, which could expand significantly in the future [22][111] Q&A Session Summary Question: Can you provide details on October's STK and Kona Grill comparable sales? - Average weekly sales for STK were $323,000 and for Kona Grill, about $100,000, with comparable sales for October at 59.2% over 2019 for STK and 43% for Kona Grill [54][56] Question: What factors contributed to the sales acceleration in October? - The acceleration was attributed to effective promotions and a strong push in takeout and delivery marketing, leading to increased restaurant visits [60][62] Question: How did labor costs impact restaurant-level margins in Q3? - The company increased its hourly employee base by over 300, which involved significant training costs, impacting margins but positioning for a busy Q4 [66][68] Question: What is the outlook for the events business in Q4 compared to 2019? - The company is seeing superior demand for premium events and expects a strong performance in the events business, potentially exceeding 2019 levels [80][82] Question: How does the company plan to allocate future free cash flow? - The company is considering options such as M&A, accelerating growth, dividends, and stock buybacks, with a focus on maximizing shareholder returns [96]

PART I – Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's Q3 2021 financial statements reflect significant revenue growth, positive net income, and a strengthened balance sheet [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2021, reflects stable assets, significantly reduced liabilities, and doubled equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 (Unaudited) | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $19,078 | $24,385 | | Total current assets | $33,095 | $34,376 | | **Total assets** | **$217,115** | **$215,569** | | Total current liabilities | $37,451 | $40,747 | | CARES Act Loans | $0 | $18,314 | | Long-term debt, net | $23,196 | $45,064 | | **Total liabilities** | **$163,277** | **$193,590** | | **Total equity** | **$53,838** | **$21,979** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2021 operations show an 81.6% revenue increase and a shift to positive net income, significantly influenced by loan forgiveness Key Performance Indicators (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $71,869 | $39,567 | $193,111 | $96,950 | | Operating Income (Loss) | $5,058 | $20 | $13,671 | ($9,614) | | Gain on CARES Act Loan forgiveness | $9,968 | $0 | $18,529 | $0 | | Net Income (Loss) Attributable to Company | $11,671 | ($875) | $25,577 | ($8,346) | | Diluted EPS | $0.34 | ($0.03) | $0.75 | ($0.29) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month cash flows reflect $23.0 million from operations, $8.1 million used in investing, and $20.2 million used in financing Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $23,030 | ($675) | | Net cash used in investing activities | ($8,112) | ($2,660) | | Net cash provided by financing activities | ($20,188) | $17,607 | | **Net (decrease) increase in cash** | **($5,307)** | **$14,221** | [Notes to Financial Statements](index=11&type=section&id=Notes%20to%20Financial%20Statements) Key disclosures cover business operations, COVID-19 impact, CARES Act loan forgiveness, and segment performance, including lease obligations - As of **September 30, 2021**, the company operated **60 venues**, including **23 STKs** and **24 Kona Grills**, with all restaurants open for in-person dining[18](index=18&type=chunk)[19](index=19&type=chunk) - CARES Act Loans totaling approximately **$18.3 million** were fully forgiven in Q3 2021, resulting in an **$18.5 million** gain recognized[47](index=47&type=chunk) - The Credit Agreement was amended in **August 2021**, extending maturity to **2026**, with a **$22.2 million** prepayment and more flexible terms[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) Segment Operating Income for Q3 2021 (in thousands) | Segment | Total Revenues | Operating Income (Loss) | | :--- | :--- | :--- | | STK | $40,018 | $9,996 | | Kona Grill | $31,177 | $2,258 | | ONE Hospitality | $578 | $369 | | Corporate | $96 | ($7,565) | | **Total** | **$71,869** | **$5,058** | [Management's Discussion and Analysis (MD&A)](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q3 2021 performance to robust sales, eased restrictions, and strategic growth, improving liquidity and capital structure [Business Overview and Growth Strategy](index=30&type=section&id=Business%20Overview%20and%20Growth%20Strategy) The company's growth strategy centers on expanding STK and Kona Grill, developing new F&B projects, and increasing same-store sales across its 60 venues - The company's growth model is driven by **four key strategies**: STK and Kona Grill expansion, new F&B projects, increased same-store sales, and acquisitions[96](index=96&type=chunk) - The company plans to open **thirteen new STK and F&B venues** in **2021-2022** and **three to five Kona Grill locations** in **2022**[93](index=93&type=chunk) Venue Count by Brand as of Sep 30, 2021 | Brand | Domestic | International | Total | | :--- | :--- | :--- | :--- | | STK | 14 | 9 | 23 | | Kona Grill | 24 | 0 | 24 | | ONE Hospitality | 3 | 10 | 13 | | **Total** | **41** | **19** | **60** | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q3 2021 revenues surged **81.6%** to **$71.9 million**, driven by strong same-store sales and improved operating margins - Q3 2021 same-store sales increased **78.9%** year-over-year and **44.7%** compared to Q3 2019, with STK up **63.8%** and Kona Grill up **26.9%**[98](index=98&type=chunk) Restaurant Operating Profit Margin by Brand | Brand | Q3 2021 Margin | Q3 2020 Margin | | :--- | :--- | :--- | | STK (Company owned) | 22.6% | 18.6% | | Kona Grill | 11.0% | 15.6% | Adjusted EBITDA Reconciliation (in thousands) | Metric | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net Income (Loss) | $12,101 | ($910) | | EBITDA | $16,998 | $2,675 | | **Adjusted EBITDA** | **$10,174** | **$5,175** | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with **$19.1 million** cash, full CARES Act loan forgiveness, and a favorable credit agreement amendment - As of **September 30, 2021**, the company held **$19.1 million** in cash and **$10.7 million** available on its revolving credit facility[135](index=135&type=chunk) - CARES Act PPP loans totaling approximately **$18.3 million** were fully forgiven in Q3 2021, resulting in an **$18.5 million** recognized gain[145](index=145&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk) - Capital expenditures totaled **$8.1 million** in the first nine months of **2021**, primarily for new STK and Kona Grill construction[136](index=136&type=chunk)[154](index=154&type=chunk) - The Credit Agreement was amended in **August 2021**, extending maturity to **2026** and prepaying **$22.2 million** of the term loan[141](index=141&type=chunk)[156](index=156&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is not required to provide this information as it qualifies as a "smaller reporting company" under SEC regulations - As a **"smaller reporting company,"** the company is exempt from providing quantitative and qualitative disclosures about market risk[158](index=158&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls during Q3 - The **CEO and CFO** concluded that the company's disclosure controls and procedures were effective as of the end of the period[159](index=159&type=chunk) - No material changes in internal control over financial reporting occurred during **Q3 2021**[160](index=160&type=chunk) PART II – Other Information [Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal claims, with management expecting no material adverse effect on financial results - The company is subject to ordinary course legal claims, with management not expecting a **material adverse effect** on financial statements[161](index=161&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No **material changes** have been made to the risk factors from the Form 10-K for the year ended **December 31, 2020**[162](index=162&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - **None**[163](index=163&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, employment agreements, and required certifications - Filed exhibits include **CEO and CFO certifications (31.1, 31.2, 32.1, 32.2)** and **Inline XBRL documents**[164](index=164&type=chunk)

Financial Performance - Total GAAP revenues increased by 324.6% to $70.8 million in Q2 2021, compared to $16.7 million in Q2 2020[2,7] - GAAP net income attributable to The ONE Group was $13.8 million, or $0.41 net income per share, compared to a GAAP net loss of $2.9 million, or $0.10 net loss per share in Q2 2020[2,11] - Adjusted EBITDA increased to $12.9 million in Q2 2021 from a loss of $0.8 million in Q2 2020[2,12] - Restaurant Operating Profit was $15.3 million, or 22.6% of Company-owned restaurant net revenues, in Q2 2021, compared to $0.3 million, or 1.9% in Q2 2020[10] - Adjusted Net Income attributable to The ONE Group Hospitality, Inc was $6.5 million, or $0.19 per share, compared to adjusted net loss of $2.4 million, or $0.08 net loss per share, in Q2 2020[12] Sales Growth - Domestic Same Store Sales increased 38.0% vs 2019 for Q2 and 59.5% vs 2019 for the month of July[1] - Consolidated comparable sales increased 38.0% for the quarter and 59.5% for the month of July compared to 2019[3] - Comparable sales for STK increased 54.3% for the quarter and 92.8% for the month of July compared to 2019[3] - Comparable sales for Kona Grill increased 23.0% for the quarter and 31.9% for the month of July compared to 2019[3] Expansion and Development - The company intends to open a total of 13 new STK and F&B venues in 2021 and 2022[5,19] - The company views itself as having a long-term addressable market of at least 200 STK restaurants globally and at least 200 Kona Grill restaurants domestically with an initial growth target of three to five Kona Grills per year[5]

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q2 2021 Earnings Conference Call August 10, 2021 4:30 PM ET Company Participants Tyler Loy - CFO Manny Hilario - President and CEO Conference Call Participants Nicole Miller - Piper Sandler Mark Smith - Lake Street Capital Markets Mitchell Sacks - Grand Slam Asset Management Operator Greetings, and welcome to The ONE Group Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] A brief quest ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37379 THE ONE GROUP HOSPITALITY, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- ...

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q1 2021 Earnings Conference Call May 11, 2021 4:30 PM ET Company Participants Tyler Loy – Chief Financial Officer Manny Hilario – Chief Executive Officer Conference Call Participants Joshua Long – Piper Sandler Mark Smith – Lake Street Capital Markets David Kanen – Kanen Wealth Management Operator Greetings and welcome to The ONE Group First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would n ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2021 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37379 THE ONE GROUP HOSPITALITY, INC. | (Exact name of registrant as specified in its charter) | | | --- | -- ...

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant computed by reference to the price at which the common equity was last sold, as of the last business day of the registrant's most recently completed second fiscal quarter, was $26,794,876. Number of shares of Common Stock outstanding as of February 28, 2021: 29,120,116 DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's proxy statement for its 2021 annual meeting of stockholders are in ...

The ONE Group Hospitality, Inc. (NASDAQ:STKS) Q4 2020 Earnings Conference Call March 16, 2021 4:30 PM ET Company Participants Manny Hilario - President and CEO Tyler Loy - CFO Conference Call Participants Ryan Meyers - Lake Street Capital Markets Nicole Miller - Piper Sandler Abhishek Malani - Black Diamond Capital Operator Greetings and welcome to The ONE Group Business Update Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentati ...

| --- | --- | --- | --- | |-------|-------|-------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | KONA | | | | | | PRILL | | | | | | | | | | | INVESTOR PRESENTATION | | | | | JANUARY 20210 Milileout | | | | | | | Cautionary Statements Forward-Looking Statements 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 "sa ...