The ONE Group Hospitality(STKS) - 2024 Q3 - Quarterly Results

Revenue Performance - Total GAAP revenues increased 152.3% to $194.0 million from $76.9 million[1] - Total revenues for the nine months ended September 30, 2024, reached $451,464, up from $242,833 in the prior year, indicating a growth of approximately 86%[6] - The company reported GAAP revenues of $193,975,000 for the three months ended September 30, 2024, compared to $76,884,000 for the same period in 2023[10] - Management, license, franchise, and incentive fee revenue for the three months ended September 30, 2024, was $3,388,000, compared to $3,184,000 for the same period in 2023[10] Profitability Metrics - Restaurant Operating Profit increased 175.6% to $25.1 million from $9.1 million[1] - Adjusted EBITDA for the three months ended September 30, 2024, was $14,803,000, compared to $3,023,000 for the same period in 2023, indicating a substantial improvement in financial performance[12] - Restaurant Operating Profit for the nine months ended September 30, 2024, was $68,181 million, up from $33,919 million in 2023, representing a significant increase[16] - STK restaurant operating profit for the three months ended September 30, 2024, was $6,547 million, with a profit margin of 14.6%[17] - Benihana restaurant operating profit for the three months ended September 30, 2024, was $17,708 million, with a profit margin of 17.0%[17] Costs and Expenses - Total costs and expenses for the three months ended September 30, 2024, were $196,995, compared to $78,839 in the same period last year, reflecting an increase of 150%[6] - General and administrative expenses for the three months ended September 30, 2024, were $12,785 million, compared to $7,280 million in 2023, showing an increase in operational costs[16] - General and administrative expenses as a percentage of total revenues decreased to 6.6% for the three months ended September 30, 2024, from 9.5% in the prior year[7] - Transaction and exit costs for the nine months ended September 30, 2024, totaled $9,199 million, indicating significant restructuring expenses[19] - Transition and integration expenses for the three months ended September 30, 2024, were $6,274 million, reflecting ongoing integration efforts[19] Financial Position - Cash and short-term credit card receivables at the end of the quarter totaled $36.2 million, with $34.1 million available under the revolving credit facility[2] - Total current assets increased to $63,472 as of September 30, 2024, from $46,680 at December 31, 2023, showing a growth of approximately 36%[8] - Total liabilities rose to $753,928 as of September 30, 2024, compared to $249,885 at December 31, 2023, indicating a significant increase of about 202%[8] - Cash and cash equivalents increased to $28,185 as of September 30, 2024, from $21,047 at December 31, 2023, representing a growth of approximately 34%[8] Guidance and Future Plans - 2024 total GAAP revenue guidance set at $660 to $680 million[3] - Consolidated Adjusted EBITDA guidance for 2024 is $71 to $76 million[4] - Company plans to open five to six Company-owned locations annually while focusing on asset-light development[1] - The integration of Benihana and RA Sushi is progressing well, with synergies expected to enhance margins[1] - Company closed four RA Sushi locations in October to optimize the restaurant portfolio[2] Losses and Adjustments - The net loss attributable to The ONE Group Hospitality, Inc. for the three months ended September 30, 2024, was $(8,890), compared to a net loss of $(3,098) for the same period in 2023[6] - The company reported an operating loss of $(3,020) for the three months ended September 30, 2024, compared to an operating income of $4,368 for the same period in 2023[6] - Adjusted net loss income available to common stockholders for the three months ended September 30, 2024, was $(9,383) million, compared to $(2,977) million in 2023[19] - Adjusted net income per share for the three months ended September 30, 2024, was $(0.30), compared to $(0.09) in 2023, indicating a decline in profitability per share[19] Sales Performance - Comparable sales decreased 8.8%[1] - Same Store Sales for US STK Owned Restaurants decreased by 11.4% in Q1 2024 compared to Q1 2023, while US STK Managed Restaurants saw a decrease of 8.6% in the same period[11] - Total food and beverage sales at owned and managed units reached $222,869,000 for the three months ended September 30, 2024, compared to $102,213,000 for the same period in 2023, representing a significant increase[10] - For the nine months ended September 30, 2024, total food and beverage sales at owned and managed units were $533,592,000, up from $321,421,000 for the same period in 2023[10]