The Joint Corp. Reports Second Quarter 2024 Financial Results
The Joint Corp. (NASDAQ: JYNT) reported Q2 2024 financial results with a 3% revenue growth to $30.3 million compared to Q2 2023. The company experienced a net loss of $3.6 million due to litigation expenses, loss on disposition or impairment, and costs from an in-person franchise conference. Adjusted EBITDA decreased to $2.1 million from $3.2 million in Q2 2023. System-wide sales grew 8% to $129.6 million, and system-wide comp sales increased 2%.
Key metrics:
- Total clinic count rose to 960.
- Seven franchise licenses sold, down from 21 in Q2 2023.
For the first half of 2024, revenue was $60 million, up from $57.6 million in H1 2023. Net loss reached $2.6 million, compared to a net income of $2 million in H1 2023. The company reiterated its full-year guidance with system-wide sales expected between $530-$545 million and new franchised clinic openings between 60-75.
The Joint Corp. (NASDAQ: JYNT) ha reso noti i risultati finanziari del secondo trimestre del 2024, riportando una crescita dei ricavi del 3% a 30,3 milioni di dollari rispetto al secondo trimestre del 2023. L'azienda ha registrato una perdita netta di 3,6 milioni di dollari a causa di spese legali, perdite da dismissioni o svalutazioni, e costi associati a una conferenza franchising dal vivo. L'EBITDA rettificato è sceso a 2,1 milioni di dollari rispetto ai 3,2 milioni di dollari del Q2 2023. Le vendite a sistema sono aumentate dell'8% raggiungendo 129,6 milioni di dollari, e le vendite comparabili a sistema sono cresciute del 2%.
Metrica chiave:
- Il numero totale delle cliniche è salito a 960.
- Sette licenze di franchising vendute, in calo rispetto alle 21 del secondo trimestre del 2023.
Per il primo semestre del 2024, i ricavi ammontano a 60 milioni di dollari, rispetto ai 57,6 milioni di dollari del primo semestre del 2023. La perdita netta ha raggiunto 2,6 milioni di dollari, rispetto a un utile netto di 2 milioni di dollari nel primo semestre del 2023. L'azienda ha ribadito la sua guida per l'intero anno, prevedendo vendite globali tra i 530 e i 545 milioni di dollari e aperture di nuove cliniche in franchising tra le 60 e le 75.
The Joint Corp. (NASDAQ: JYNT) reportó los resultados financieros del segundo trimestre de 2024, con un incremento del 3% en los ingresos alcanzando 30.3 millones de dólares en comparación con el segundo trimestre de 2023. La empresa experimentó una pérdida neta de 3.6 millones de dólares debido a gastos legales, pérdida por disposición o deterioro, y costos provenientes de una conferencia de franquicias en persona. El EBITDA ajustado disminuyó a 2.1 millones de dólares desde los 3.2 millones de dólares en el segundo trimestre de 2023. Las ventas a nivel de sistema crecieron un 8% alcanzando los 129.6 millones de dólares, y las ventas comparables a nivel de sistema aumentaron un 2%.
Métricas clave:
- El número total de clínicas aumentó a 960.
- Se vendieron siete licencias de franquicia, una caída respecto a las 21 del segundo trimestre de 2023.
Para la primera mitad de 2024, los ingresos fueron de 60 millones de dólares, en comparación con los 57.6 millones de dólares en la primera mitad de 2023. La pérdida neta alcanzó los 2.6 millones de dólares, en comparación con un ingreso neto de 2 millones de dólares en la primera mitad de 2023. La empresa reiteró su pronóstico anual con ventas a nivel de sistema esperadas entre 530 y 545 millones de dólares y aperturas de nuevas clínicas franquiciadas entre 60 y 75.
The Joint Corp. (NASDAQ: JYNT)는 2024년 2분기 재무 결과를 발표하며 매출 3% 증가로 3030만 달러에 달했다고 보고했습니다. 이 회사는 소송 비용, 처분 손실 또는 감액, 현장 프랜차이즈 회의 수수료 등으로 인해 360만 달러의 순손실을 경험했습니다. 조정된 EBITDA는 2023년 2분기의 320만 달러에서 210만 달러로 감소했습니다. 시스템 전체 매출이 8% 증가하여 1억 2960만 달러에 이르렀으며, 시스템 전체 비교 매출은 2% 증가했습니다.
주요 지표:
- 총 클리닉 수는 960개로 증가했습니다.
- 프랜차이즈 면허 7개가 판매되었으며, 이는 2023년 2분기 21개에서 감소한 수치입니다.
2024년 상반기 동안 매출은 6천만 달러로, 2023년 상반기 5760만 달러에서 증가했습니다. 순손실은 260만 달러에 이르렀으며, 이는 2023년 상반기 200만 달러의 순이익과 비교됩니다. 이 회사는 연간 가이던스를 재확인하며, 시스템 전체 매출이 5억 30억에서 5억 45억 달러 사이일 것으로 예상하고 있으며, 새로운 프랜차이즈 클리닉 개설이 60개에서 75개 사이가 될 것으로 보고 있습니다.
The Joint Corp. (NASDAQ: JYNT) a annoncé les résultats financiers du deuxième trimestre 2024, avec une croissance des revenus de 3%, atteignant 30,3 millions de dollars par rapport au deuxième trimestre 2023. L'entreprise a enregistré une perte nette de 3,6 millions de dollars en raison de frais juridiques, de pertes liées à des cessions ou des amortissements, et de coûts liés à une conférence en personne sur les franchises. L'EBITDA ajusté a diminué à 2,1 millions de dollars contre 3,2 millions de dollars au deuxième trimestre 2023. Les ventes à l'échelle du système ont augmenté de 8% pour atteindre 129,6 millions de dollars, et les ventes comparables à l'échelle du système ont augmenté de 2%.
Métriques clés :
- Le nombre total de cliniques a augmenté pour atteindre 960.
- Sept licences de franchise ont été vendues, en baisse par rapport à 21 au deuxième trimestre 2023.
Pour la première moitié de 2024, les revenus s'élevaient à 60 millions de dollars, contre 57,6 millions de dollars au premier semestre 2023. La perte nette a atteint 2,6 millions de dollars, par rapport à un bénéfice net de 2 millions de dollars au premier semestre 2023. L'entreprise a réaffirmé sa prévision pour l'année complète, avec des ventes globales attendues entre 530 et 545 millions de dollars et l'ouverture de 60 à 75 nouvelles cliniques sous franchise.
The Joint Corp. (NASDAQ: JYNT) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und einen Umsatzanstieg von 3% auf 30,3 Millionen US-Dollar im Vergleich zum 2. Quartal 2023 verzeichnet. Das Unternehmen erlitt einen Nettoverlust von 3,6 Millionen US-Dollar, bedingt durch Rechtskosten, Verluste aus Veräußerungen oder Wertminderungen sowie Kosten für eine persönliche Franchise-Konferenz. Das angepasste EBITDA sank auf 2,1 Millionen US-Dollar, verglichen mit 3,2 Millionen US-Dollar im 2. Quartal 2023. Der Gesamtumsatz des Systems stieg um 8% auf 129,6 Millionen US-Dollar, während die vergleichbaren Systemumsätze um 2% zulegten.
Wichtige Kennzahlen:
- Die Gesamtanzahl der Kliniken stieg auf 960.
- Sieben Franchise-Lizenzen wurden verkauft, ein Rückgang von 21 im 2. Quartal 2023.
Für das erste Halbjahr 2024 betrugen die Einnahmen 60 Millionen US-Dollar, im Vergleich zu 57,6 Millionen US-Dollar im 1. Halbjahr 2023. Der Nettoverlust belief sich auf 2,6 Millionen US-Dollar, verglichen mit einem Nettogewinn von 2 Millionen US-Dollar im 1. Halbjahr 2023. Das Unternehmen bestätigte seine Prognose für das gesamte Jahr, mit einem erwarteten Gesamtumsatz zwischen 530 und 545 Millionen US-Dollar sowie 60 bis 75 neuen Franchise-Kliniköffnungen.
- None.
- Net loss of $3.6 million in Q2 2024, compared to $320,000 in Q2 2023.
- Adjusted EBITDA decreased from $3.2 million to $2.1 million.
- Selling and marketing expenses rose to $5.4 million from $4.7 million.
- Loss on disposition or impairment increased to $1.4 million from $144,000.
- General and administrative expenses increased to $22.6 million from $19.9 million.
- Franchise licenses sold decreased from 21 to 7.
Insights
The Joint Corp.'s Q2 2024 results present a mixed financial picture. While revenue grew
$1.5 million in litigation costs$1.4 million in loss on disposition or impairment- Expenses from an in-person national franchise conference
Adjusted EBITDA decreased to
The Joint Corp.'s Q2 2024 results reveal strategic shifts in their business model. The company's focus on refranchising corporate clinics is evident, with 2 clinics refranchised in Q2 and over 10 more in the letter of intent process. This strategy aims to improve unit economics but has led to a significant decrease in franchise license sales (7 vs. 21 in Q2 2023).
The company's market penetration remains strong, with 930,000 new patients in 2023,
However, the
The Joint Corp.'s Q2 2024 results highlight significant legal challenges that are impacting the company's financial performance. The
The company's refranchising efforts, while strategically sound, also carry legal implications. The
- Grew Q2 2024 Revenue
- Increased Clinic Count to 960 at June 30, 2024 -
SCOTTSDALE, Ariz., Aug. 08, 2024 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended
June 30, 2024.
Financial Highlights: Q2 2024 Compared to Q2 2023
- Grew revenue
3% to$30.3 million . - Reported net loss of
$3.6 million , including$1.5 million in litigation expense,$1.4 million in loss on disposition or impairment and the cost associated with an in-person national franchise conference, compared to net loss of$320,000 , including loss on disposition or impairment of$144,000. - Reported Adjusted EBITDA of
$2.1 million , compared to$3.2 million . - Increased system-wide sales1
8% to$129.6 million . - Reported system-wide comp sales2 of
2% . - Sold 7 franchise licenses, compared to 21, reflecting the impact of the refranchising process.
- Increased the total clinic count to 960 – 829 clinics franchised and 131 clinics company-owned or managed clinics – at June 30, 2024. During Q2 2024, The Joint
- opened nine franchised clinics;
- refranchised two clinics; and
- closed three clinics: one franchised and two company-owned or managed.
“In 2024, our highest priorities are refranchising corporate clinics and improving unit economics. In the second quarter of 2024, we delivered topline growth and positive Adjusted EBITDA, even with the ongoing economic concerns,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “Based on early negotiations with existing franchisees, we refranchised two clinics in the second quarter and have over ten more in the letter of intent process, including five in the Kansas City market. Having recently finalized our Confidential Information Memorandum package with Capstone Partners, a full-service middle market investment bank with specialization in refranchising, we are prepared to aggressively market clusters of clinics. To increase clinic profitability, we are embracing new innovation in operations, IT and marketing that leverage the size of our network on national and local levels. Our educational efforts attracted over 930,000 new patients to The Joint in 2023, of which
Financial Results for Second Quarter Ended June 30, 2024 Compared to June 30, 2023
Revenue was
Selling and marketing expenses were
General and administrative expenses were
Loss on disposition or impairment was
Income tax expense was
Adjusted EBITDA was
Financial Results for Six Months Ended June 30, 2024 Compared to June 30, 2023
Revenue was
Adjusted EBITDA was
_______________
1 System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base.
2 System-wide comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.
Balance Sheet Liquidity
Unrestricted cash was
2024 Guidance
The company reiterated all elements of its guidance.
- System-wide sales are expected to be between
$530 and$545 million , compared to$488.0 million in 2023. - System-wide comp sales for all clinics open 13 months or more are expected to be in the mid-single digits in 2024.
- New franchised clinic openings, excluding the impact of refranchised clinics, are expected to be between 60 and 75, compared to 104 in 2023.
Conference Call
The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday,
August 8, 2024, after the market close. Stockholders and interested participants may listen to a live broadcast of the conference call by dialing 1-(833) 630-0823 or (412) 317-1831 and ask to be joined into the ‘The Joint’ call approximately 15 minutes prior to the start time.
The live webcast of the call with accompanying slide presentation can be accessed in the IR events section https://ir.thejoint.com/events and available for approximately one year. An audio archive can be accessed for one week by dialing (877) 344-7529 or (412) 317-0088 and entering conference ID 9073185.
Commonly Discussed Performance Metrics
This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. System-wide comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.
Non-GAAP Financial Information
This release also includes a presentation of non-GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Reconciliation of historical net income/(loss) to EBITDA and Adjusted EBITDA is presented in the table below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs, litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business) and other income related to employee retention credits.
EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the company’s financial statements filed with the SEC.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Words such as, "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. Specific forward looking statements made in this press release include, among others, our 2024 highest priorities of refranchising corporate clinics and improving unit economics; our plans to aggressively market clusters of clinics; our plans to increase clinic profitability, by embracing new innovation in operations, IT and marketing that leverage the size of our network on national and local levels; our belief that in 2024, we continue to positively influence the market, and as more and more people discover chiropractic care, our reach is boundless; our anticipation of the success of the fourth quarter of 2024 promotions; and our expectations for system-wide sales, system-wide comp sales for all clinics open 13 months or more; and new franchised clinic openings, excluding the impact of refranchised clinics. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation, which has increased our costs and which could otherwise negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 8, 2024 and subsequently filed current and quarterly reports. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
About The Joint Corp. (NASDAQ: JYNT)
The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation's largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance for millions of patients seeking pain relief and ongoing wellness. With over 900 locations nationwide and more than 13 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. Consistently named to Franchise Times "Top 500+ Franchises" and Entrepreneur's "Franchise 500" lists and recognized by FRANdata with the TopFUND award, as well as Franchise Business Review's "Top Franchise for 2023," "Most Profitable Franchises" and "Top Franchises for Veterans" ranking, The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com.
Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.
Media Contact: Margie Wojciechowski, The Joint Corp., margie.wojciechowski@thejoint.com
Investor Contact: Kirsten Chapman, LHA Investor Relations, 415-433-3777, thejoint@lhai.com
– Financial Tables Follow –
| THE JOINT CORP. CONSOLIDATED BALANCE SHEETS | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| ASSETS | (unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 17,457,625 | $ | 18,153,609 | |||
| Restricted cash | 1,190,096 | 1,060,683 | |||||
| Accounts receivable, net | 3,575,784 | 3,718,924 | |||||
| Deferred franchise and regional development costs, current portion | 1,041,492 | 1,047,430 | |||||
| Prepaid expenses and other current assets | 3,436,072 | 2,439,837 | |||||
| Assets held for sale | 16,686,248 | 17,915,055 | |||||
| Total current assets | 43,387,317 | 44,335,538 | |||||
| Property and equipment, net | 8,928,658 | 11,044,317 | |||||
| Operating lease right-of-use asset | 11,859,692 | 12,413,221 | |||||
| Deferred franchise and regional development costs, net of current portion | 4,798,535 | 5,203,936 | |||||
| Intangible assets, net | 4,145,162 | 5,020,926 | |||||
| Goodwill | 7,677,695 | 7,352,879 | |||||
| Deferred tax assets ( | 907,019 | 1,031,648 | |||||
| Deposits and other assets | 736,498 | 748,394 | |||||
| Total assets | $ | 82,440,576 | $ | 87,150,859 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,639,841 | $ | 1,625,088 | |||
| Accrued expenses | 3,161,257 | 1,963,009 | |||||
| Co-op funds liability | 1,190,096 | 1,060,683 | |||||
| Payroll liabilities ( | 4,272,155 | 3,485,744 | |||||
| Operating lease liability, current portion | 3,811,835 | 3,756,328 | |||||
| Finance lease liability, current portion | 26,038 | 25,491 | |||||
| Deferred franchise fee revenue, current portion | 2,521,156 | 2,516,554 | |||||
| Deferred revenue from company clinics ( | 4,420,601 | 4,463,747 | |||||
| Upfront regional developer Fees, current portion | 298,306 | 362,326 | |||||
| Other current liabilities | 532,251 | 483,249 | |||||
| Liabilities to be disposed of ( | 12,140,570 | 13,831,863 | |||||
| Total current liabilities | 34,014,106 | 33,574,082 | |||||
| Operating lease liability, net of current portion | 10,205,222 | 10,914,997 | |||||
| Finance lease liability, net of current portion | 24,858 | 38,016 | |||||
| Debt under the Credit Agreement | — | 2,000,000 | |||||
| Deferred franchise fee revenue, net of current portion | 12,935,888 | 13,597,325 | |||||
| Upfront regional developer fees, net of current portion | 814,823 | 1,019,316 | |||||
| Other liabilities ( | 1,235,241 | 1,235,241 | |||||
| Total liabilities | 59,230,138 | 62,378,977 | |||||
| THE JOINT CORP. CONSOLIDATED BALANCE SHEETS (CONT) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (CONT’) | (unaudited) | ||||||
| Commitments and contingencies (Note 10) | |||||||
| Stockholders' equity: | |||||||
| Series A preferred stock, | — | — | |||||
| Common stock, | 14,996 | 14,783 | |||||
| Additional paid-in capital | 48,595,496 | 47,498,151 | |||||
| Treasury stock 33,015 shares as of June 30, 2024 and 32,124 shares as of December 31, 2023, at cost | (870,058 | ) | (860,475 | ) | |||
| Accumulated deficit | (24,554,996 | ) | (21,905,577 | ) | |||
| Total The Joint Corp. stockholders' equity | 23,185,438 | 24,746,882 | |||||
| Non-controlling Interest | 25,000 | 25,000 | |||||
| Total equity | 23,210,438 | 24,771,882 | |||||
| Total liabilities and stockholders' equity | $ | 82,440,576 | $ | 87,150,859 | |||
| THE JOINT CORP. CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Revenues from company-owned or managed clinics | $ | 17,648,736 | $ | 17,802,838 | $ | 35,186,240 | $ | 34,930,795 | |||||||
| Royalty fees | 7,846,328 | 7,172,159 | 15,433,874 | 14,038,182 | |||||||||||
| Franchise fees | 719,103 | 671,368 | 1,374,977 | 1,425,794 | |||||||||||
| Advertising fund revenue | 2,240,838 | 2,041,050 | 4,407,311 | 3,993,455 | |||||||||||
| Software fees | 1,415,036 | 1,234,812 | 2,801,812 | 2,444,817 | |||||||||||
| Other revenues | 390,520 | 384,957 | 778,513 | 774,962 | |||||||||||
| Total revenues | 30,260,561 | 29,307,184 | 59,982,727 | 57,608,005 | |||||||||||
| Cost of revenues: | |||||||||||||||
| Franchise and regional development cost of revenues | 2,458,186 | 2,236,442 | 4,799,951 | 4,377,277 | |||||||||||
| IT cost of revenues | 368,486 | 359,070 | 742,797 | 692,920 | |||||||||||
| Total cost of revenues | 2,826,672 | 2,595,512 | 5,542,748 | 5,070,197 | |||||||||||
| Selling and marketing expenses | 5,401,834 | 4,707,818 | 9,287,948 | 8,868,062 | |||||||||||
| Depreciation and amortization | 1,523,813 | 2,329,267 | 2,927,718 | 4,544,322 | |||||||||||
| General and administrative expenses | 22,570,908 | 19,904,796 | 42,834,600 | 39,943,272 | |||||||||||
| Total selling, general and administrative expenses | 29,496,555 | 26,941,881 | 55,050,266 | 53,355,656 | |||||||||||
| Net loss on disposition or impairment | 1,435,320 | 144,345 | 1,797,423 | 209,815 | |||||||||||
| Loss from operations | (3,497,986 | ) | (374,554 | ) | (2,407,710 | ) | (1,027,663 | ) | |||||||
| Other income (expense), net | 79,910 | (106,520 | ) | 115,540 | 3,714,642 | ||||||||||
| Income (loss) before income tax expense | (3,418,076 | ) | (481,074 | ) | (2,292,170 | ) | 2,686,979 | ||||||||
| Income tax (benefit) expense | 178,322 | (160,585 | ) | 357,249 | 681,304 | ||||||||||
| Net (loss) income | $ | (3,596,398 | ) | $ | (320,489 | ) | $ | (2,649,419 | ) | $ | 2,005,675 | ||||
| Earnings (loss) per share: | |||||||||||||||
| Basic (loss) earnings per share | $ | (0.24 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | 0.14 | ||||
| Diluted (loss) earnings per share | $ | (0.24 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | 0.13 | ||||
| Basic weighted average shares | 14,950,082 | 14,684,035 | 14,875,718 | 14,625,435 | |||||||||||
| Diluted weighted average shares | 15,206,238 | 14,952,363 | 15,110,736 | 14,907,593 | |||||||||||
| THE JOINT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | (2,649,419 | ) | $ | 2,005,675 | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 2,927,718 | 4,544,322 | |||||
| Net loss on disposition or impairment (non-cash portion) | 1,797,422 | 209,815 | |||||
| Net franchise fees recognized upon termination of franchise agreements | (73,526 | ) | (20,050 | ) | |||
| Deferred income taxes | 124,629 | 477,154 | |||||
| Stock based compensation expense | 1,045,460 | 683,227 | |||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | 85,861 | 376,444 | |||||
| Prepaid expenses and other current assets | (997,307 | ) | (1,208,605 | ) | |||
| Deferred franchise costs | 385,256 | 51,268 | |||||
| Deposits and other assets | 5,196 | (12,557 | ) | ||||
| Assets and liabilities held for sale, net | (1,674,226 | ) | — | ||||
| Accounts payable | 14,284 | (1,440,375 | ) | ||||
| Accrued expenses | 1,198,248 | 1,104,369 | |||||
| Payroll liabilities | 786,411 | 815,290 | |||||
| Deferred revenue | (631,272 | ) | 245,363 | ||||
| Upfront regional developer fees | (268,513 | ) | (397,457 | ) | |||
| Other liabilities | (239,348 | ) | 59,259 | ||||
| Net cash provided by operating activities | 1,836,874 | 7,493,142 | |||||
| Cash flows from investing activities: | |||||||
| Proceeds from sale of clinics | 224,100 | — | |||||
| Acquisition of CA clinics | — | (1,050,000 | ) | ||||
| Purchase of property and equipment | (657,450 | ) | (2,729,875 | ) | |||
| Net cash used in investing activities | (433,350 | ) | (3,779,875 | ) | |||
| Cash flows from financing activities: | |||||||
| Payments of finance lease obligation | (12,610 | ) | (12,087 | ) | |||
| Purchases of treasury stock under employee stock plans | (9,583 | ) | (2,637 | ) | |||
| Proceeds from exercise of stock options | 52,098 | 202,386 | |||||
| Repayment of debt under the Credit Agreement | (2,000,000 | ) | — | ||||
| Net cash provided by (used in) financing activities | (1,970,095 | ) | 187,662 | ||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (566,571 | ) | 3,900,929 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 19,214,292 | 10,550,417 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 18,647,721 | $ | 14,451,346 | |||
| Reconciliation of cash, cash equivalents and restricted cash: | June 30, 2024 | June 30, 2023 | |||||
| Cash and cash equivalents | $ | 17,457,625 | $ | 13,602,515 | |||
| Restricted cash | 1,190,096 | 848,831 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 18,647,721 | $ | 14,451,346 | |||
| THE JOINT CORP. RECONCILIATION FOR GAAP TO NON-GAAP (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Non-GAAP Financial Data: | |||||||||||||||
| Net (loss) income | $ | (3,596,398 | ) | $ | (320,489 | ) | $ | (2,649,419 | ) | $ | 2,005,675 | ||||
| Net interest expense | (79,910 | ) | 14,937 | (115,540 | ) | 64,661 | |||||||||
| Depreciation and amortization expense | 1,523,813 | 2,329,267 | 2,927,718 | 4,544,322 | |||||||||||
| Tax expense (benefit) | 178,322 | (160,585 | ) | 357,249 | 681,304 | ||||||||||
| EBITDA | (1,974,173 | ) | 1,863,130 | 520,008 | 7,295,962 | ||||||||||
| Stock compensation expense | 552,065 | 417,017 | 1,045,460 | 683,227 | |||||||||||
| Acquisition related expenses | 478,710 | 716,299 | 478,710 | 857,992 | |||||||||||
| Loss on disposition or impairment | 1,435,320 | 144,345 | 1,797,423 | 209,815 | |||||||||||
| Restructuring costs | 144,240 | — | 301,276 | — | |||||||||||
| Litigation expenses | 1,490,000 | — | 1,490,000 | — | |||||||||||
| Other income related to the ERC | — | 91,583 | — | (3,779,304 | ) | ||||||||||
| Adjusted EBITDA | $ | 2,126,162 | $ | 3,232,374 | $ | 5,632,877 | $ | 5,267,692 | |||||||
FAQ
What were The Joint Corp.'s Q2 2024 financial results?
How did JYNT's system-wide sales perform in Q2 2024?
What was JYNT's Adjusted EBITDA in Q2 2024?
What is the guidance for The Joint Corp.'s system-wide sales in 2024?
How many franchise licenses did The Joint Corp. sell in Q2 2024?
