| Segments of Business |
12.
SEGMENTS OF BUSINESS
The Company is in the business of operating
restaurants and its operations are organized by geographic region and by brand within each region. Further each restaurant location
produces monthly financial statements at the individual store level. The Company’s chief operating decision maker reviews
revenues and profitability at the individual restaurant location level, as well as for Full-Service Hooters, Better Burger Fast
Casual and Just Fresh Fast Casual level, and corporate as a group.
The following are revenues and operating income
(loss) from continuing operations by segment for the three and nine months ended September 30, 2019 and 2018. The Company does
not aggregate or review non-current assets at the segment level.
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
2,886,269 |
|
|
$ |
3,392,300 |
|
|
$ |
9,576,854 |
|
|
$ |
10,436,597 |
|
| Better Burgers Fast Casual |
|
|
5,823,650 |
|
|
|
5,692,004 |
|
|
|
18,010,835 |
|
|
|
16,854,025 |
|
| Just Fresh Fast Casual |
|
|
943,521 |
|
|
|
989,097 |
|
|
|
2,924,294 |
|
|
|
3,128,220 |
|
| Corporate and Other |
|
|
- |
|
|
|
24,999 |
|
|
|
50,000 |
|
|
|
74,997 |
|
| |
|
$ |
9,653,440 |
|
|
$ |
10,098,400 |
|
|
$ |
30,561,983 |
|
|
$ |
30,493,839 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
(1,270,738 |
) |
|
|
87,444 |
|
|
|
(1,860,995 |
) |
|
$ |
(1,174,320 |
) |
| Better Burgers Fast Casual |
|
|
(1,082,494 |
) |
|
|
(133,466 |
) |
|
|
(3,056,296 |
) |
|
|
(253,997 |
) |
| Just Fresh Fast Casual |
|
|
(706,332 |
) |
|
|
(21,280 |
) |
|
|
(768,918 |
) |
|
|
(64,057 |
) |
| Corporate and Other |
|
|
(1,173,878 |
) |
|
|
(604,014 |
) |
|
|
(3,239,817 |
) |
|
|
(1,980,129 |
) |
| |
|
$ |
(4,233,442 |
) |
|
$ |
(671,316 |
) |
|
$ |
(8,926,026 |
) |
|
$ |
(3,472,503 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
76,189 |
|
|
|
95,509 |
|
|
$ |
259,624 |
|
|
$ |
303,682 |
|
| Better Burgers Fast Casual |
|
|
408,941 |
|
|
|
382,802 |
|
|
|
1,229,656 |
|
|
|
1,154,885 |
|
| Just Fresh Fast Casual |
|
|
45,148 |
|
|
|
44,525 |
|
|
|
135,442 |
|
|
|
133,575 |
|
| Corporate and Other |
|
|
987 |
|
|
|
844 |
|
|
|
2,960 |
|
|
|
2,531 |
|
| |
|
$ |
531,265 |
|
|
$ |
523,680 |
|
|
$ |
1,627,682 |
|
|
$ |
1,594,673 |
|
The following are revenues and operating income
(loss) from continuing operations by geographic region for the three and nine months ended September 30, 2019 and 2018:
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
7,635,120 |
|
|
$ |
8,038,545 |
|
|
$ |
24,441,959 |
|
|
$ |
23,984,963 |
|
| South Africa |
|
|
1,383,906 |
|
|
|
1,352,340 |
|
|
|
4,123,148 |
|
|
|
4,321,668 |
|
| Europe |
|
|
634,414 |
|
|
|
707,515 |
|
|
|
1,996,876 |
|
|
|
2,187,208 |
|
| |
|
$ |
9,653,440 |
|
|
$ |
10,098,400 |
|
|
$ |
30,561,983 |
|
|
$ |
30,493,839 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
|
$ |
(4,380,394 |
) |
|
$ |
(711,846 |
) |
|
$ |
(9,080,259 |
) |
|
$ |
(2,179,967 |
) |
| South Africa |
|
|
110,956 |
|
|
|
29,485 |
|
|
|
77,682 |
|
|
|
50,680 |
|
| Europe |
|
|
35,996 |
|
|
|
11,045 |
|
|
|
76,551 |
|
|
|
(1,343,216 |
) |
| |
|
$ |
(4,233,442 |
) |
|
$ |
(671,316 |
) |
|
$ |
(8,926,026 |
) |
|
$ |
(3,472,503 |
) |
The following are non-current assets by geographic
region as of September 30, 2019 and December 31, 2018:
| |
|
September 30, 2019 (1) |
|
|
December 31, 2018 |
|
| United States |
|
$ |
35,825,711 |
|
|
$ |
24,795,368 |
|
| South Africa* |
|
|
- |
|
|
|
909,514 |
|
| Europe |
|
|
2,561,043 |
|
|
|
2,413,222 |
|
| |
|
$ |
38,386,754 |
|
|
$ |
28,118,104 |
|
*Amounts are included in assets held for sale
at September 30, 2019.
| (1) |
Non-current assets increased due to the adoption of ASC 842 effective January 1, 2019. |
|
13.
SEGMENTS OF BUSINESS
The Company is in the business of operating
restaurants and its operations are organized by geographic region and by brand within each region. Further each restaurant location
produces monthly financial statements at the individual store level. The Company’s chief operating decision maker reviews
revenues and profitability at the individual restaurant location level, as well as for Full-Service Hooters, Better Burger Fast
Casual and Just Fresh Fast Casual level, and corporate as a group.
The following are revenues and operating income
(loss) from continuing operations by segment as of and for the years ended December 31, 2018 and 2017. The Company does not aggregate
or review non-current assets at the segment level.
| |
|
Year Ended |
|
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Revenue: |
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
13,841,917 |
|
|
$ |
13,508,220 |
|
| Better Burgers Fast Casual |
|
|
22,617,522 |
|
|
|
22,764,571 |
|
| Just Fresh Fast Casual |
|
|
4,054,270 |
|
|
|
5,060,072 |
|
| Corporate and Other |
|
|
100,000 |
|
|
|
100,000 |
|
| |
|
$ |
40,613,709 |
|
|
$ |
41,432,863 |
|
| |
|
|
|
|
|
|
|
|
| Operating Income (Loss): |
|
|
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
(1,280,336 |
) |
|
$ |
(1,188,598 |
) |
| Better Burgers Fast Casual |
|
|
(1,216,513 |
) |
|
|
(537,971 |
) |
| Just Fresh Fast Casual |
|
|
(124,863 |
) |
|
|
(256,319 |
) |
| Corporate and Other |
|
|
(2,733,389 |
) |
|
|
(3,252,489 |
) |
| |
|
$ |
(5,355,101 |
) |
|
$ |
(5,235,377 |
) |
| |
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
|
|
|
|
|
|
|
| Hooters Full Service |
|
$ |
399,914 |
|
|
$ |
496,996 |
|
| Better Burgers Fast Casual |
|
|
1,582,197 |
|
|
|
1,459,527 |
|
| Just Fresh Fast Casual |
|
|
178,100 |
|
|
|
322,904 |
|
| Corporate and Other |
|
|
3,374 |
|
|
|
3,374 |
|
| |
|
$ |
2,163,585 |
|
|
$ |
2,282,801 |
|
The following are revenues and operating income
(loss) from continuing operations and non-current assets by geographic region as of and for the years ended December 31, 2018 and
2017:
| |
|
Year Ended |
|
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Revenue: |
|
|
|
|
|
|
| United States |
|
$ |
31,930,427 |
|
|
$ |
32,804,708 |
|
| South Africa |
|
|
5,825,967 |
|
|
|
5,777,306 |
|
| Europe |
|
|
2,857,315 |
|
|
|
2,850,849 |
|
| |
|
$ |
40,613,709 |
|
|
$ |
41,432,863 |
|
| |
|
|
|
|
|
|
|
|
| Operating Income (Loss): |
|
|
|
|
|
|
|
|
| United States |
|
$ |
(5,666,969 |
) |
|
$ |
(4,554,429 |
) |
| South Africa |
|
|
139,088 |
|
|
|
(798,914 |
) |
| Europe |
|
|
172,780 |
|
|
|
117,966 |
|
| |
|
$ |
(5,355,101 |
) |
|
$ |
(5,235,377 |
) |
| Non-current Assets: |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| United States |
|
$ |
24,795,368 |
|
|
$ |
24,630,101 |
|
| South Africa |
|
|
909,514 |
|
|
|
1,203,610 |
|
| Europe |
|
|
2,413,222 |
|
|
|
2,549,747 |
|
| |
|
$ |
28,118,104 |
|
|
$ |
28,383,458 |
|
|