The ONE Group Hospitality, Inc. (CCAC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $16.15 million, or $ 0.64 a share in the quarter, against a net profit of $1.65 million, or $0.07 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $1.96 million, or $0.08 a share compared with a net profit of $4.44 million, or $0.18 a share in the last year period. Revenue during the quarter grew 9.75 percent to $20.41 million from $18.60 million in the previous year period. Gross margin for the quarter contracted 51 basis points over the previous year period to 21.44 percent. Operating margin for the quarter stood at negative 5.12 percent as compared to a negative 18.21 percent for the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.60 million compared with $2.17 million in the prior year period. At the same time, adjusted EBITDA margin contracted 381 basis points in the quarter to 7.85 percent from 11.66 percent in the last year period.
Jonathan Segal, chief executive officer of The ONE Group noted, "2016 was a challenging year for both the restaurant industry and The ONE Group. In this increasingly challenging environment, we undertook a strategic review of our operations and made changes within our business to target success for 2017 and beyond. The internal review we conducted did not just focus on in store performance and costs but also covered GA, our deal pipeline and the general performance of all stores. As a result we have initiated changes in our restaurant portfolio, increased our marketing efforts, modified our deal pipeline, and right sized our GA."
Debt moves up
The ONE Group Hospitality, Inc. has witnessed an increase in total debt over the last one year. It stood at $17 million as on Dec. 31, 2016, up 24.91 percent or $3.39 million from $13.61 million on Dec. 31, 2015. Total debt was 32.14 percent of total assets as on Dec. 31, 2016, compared with 24.28 percent on Dec. 31, 2015. Debt to equity ratio was at 2.30 as on Dec. 31, 2016, up from 0.69 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
