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The Joint Corp. Reports Third Quarter 2024 Financial Results

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The Joint Corp reported Q3 2024 financial results with revenue growth of 2% to $30.2 million. The company experienced a net loss of $3.2 million, including $3.8 million in loss on disposition or impairment. System-wide sales increased 8% to $129.3 million with system-wide comp sales of 4%. The total clinic count reached 963, with 838 franchised and 125 company-owned locations. During Q3, 14 franchised clinics opened while 11 closed. The company adjusted its 2024 guidance due to consumer headwinds, expecting system-wide sales between $525-535 million and new franchised clinic openings between 55-60.

The Joint Corp ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una crescita dei ricavi del 2% a 30,2 milioni di dollari. L'azienda ha registrato una perdita netta di 3,2 milioni di dollari, comprendente 3,8 milioni di dollari in perdite da dismissioni o svalutazioni. Le vendite complessive del sistema sono aumentate dell'8%, raggiungendo i 129,3 milioni di dollari, con vendite comparabili del sistema cresciute del 4%. Il numero totale delle cliniche è salito a 963, con 838 franchised e 125 di proprietà dell'azienda. Durante il terzo trimestre, sono state aperte 14 cliniche franchised mentre 11 hanno chiuso. L'azienda ha rivisto le previsioni per il 2024 a causa di sfide per i consumatori, prevedendo vendite complessive del sistema tra 525 e 535 milioni di dollari e nuove aperture di cliniche franchised tra 55 e 60.

The Joint Corp reportó resultados financieros del tercer trimestre de 2024, con un crecimiento de ingresos del 2% a 30,2 millones de dólares. La compañía experimentó una pérdida neta de 3,2 millones de dólares, incluyendo 3,8 millones en pérdidas por disposición o deterioro. Las ventas en todo el sistema aumentaron un 8% a 129,3 millones de dólares, con ventas comparables del sistema del 4%. El total de clínicas alcanzó los 963, con 838 franquiciadas y 125 de propiedad de la empresa. Durante el tercer trimestre, se abrieron 14 clínicas franquiciadas mientras que 11 cerraron. La compañía ajustó su pronóstico para 2024 debido a vientos en contra del consumidor, esperando ventas en todo el sistema entre 525 y 535 millones de dólares y nuevas aperturas de clínicas franquiciadas entre 55 y 60.

The Joint Corp는 2024년 3분기 재무 결과를 발표하며 매출이 2% 증가한 3020만 달러를 기록했다고 전했습니다. 이 회사는 320만 달러의 순손실을 경험했으며, 여기에는 처분 또는 손상에 따른 손실 380만 달러가 포함됩니다. 시스템 전체 매출은 8% 증가하여 1억 2930만 달러에 도달했고, 시스템 전반의 동기 대비 매출은 4% 증가했습니다. 총 클리닉 수는 963개에 이르렀으며, 이 중 838개는 프랜차이즈, 125개는 회사 소유 클리닉입니다. 3분기 동안 14개의 프랜차이즈 클리닉이 새로 열렸으며, 11개는 폐쇄되었습니다. 소비자 역풍으로 인해 회사는 2024년 가이던스를 조정했으며, 시스템 전체 매출을 5억 2500만에서 5억 3500만 달러로, 새로운 프랜차이즈 클리닉 개설 수를 55개에서 60개로 예상하고 있습니다.

The Joint Corp a rapporté les résultats financiers du troisième trimestre 2024, avec une croissance des revenus de 2% à 30,2 millions de dollars. L'entreprise a enregistré une perte nette de 3,2 millions de dollars, incluant 3,8 millions de dollars de pertes liées à des cessions ou des amortissements. Les ventes globales du système ont augmenté de 8% pour atteindre 129,3 millions de dollars, avec des ventes comparables du système en hausse de 4%. Le nombre total de cliniques a atteint 963, dont 838 en franchise et 125 détenues par l'entreprise. Au cours du troisième trimestre, 14 cliniques franchisées ont ouvert, tandis que 11 ont fermé. L'entreprise a ajusté ses prévisions pour 2024 en raison des défis rencontrés par les consommateurs, s'attendant à des ventes globales du système entre 525 et 535 millions de dollars et à l'ouverture de nouvelles cliniques franchisées entre 55 et 60.

The Joint Corp berichtete über die Finanzergebnisse für das dritte Quartal 2024 mit einem Umsatzwachstum von 2% auf 30,2 Millionen Dollar. Das Unternehmen verzeichnete einen Nettverlust von 3,2 Millionen Dollar, einschließlich 3,8 Millionen Dollar Verlust durch Veräußerung oder Wertminderung. Der Umsatz im gesamten System stieg um 8% auf 129,3 Millionen Dollar, mit einem Vergleichsumsatz des Systems von 4%. Die Gesamtanzahl der Kliniken erreichte 963, davon 838 Franchise- und 125 unternehmenseigene Standorte. Im dritten Quartal eröffneten 14 Franchise-Kliniken, während 11 geschlossen wurden. Das Unternehmen hat seine Prognose für 2024 aufgrund von Herausforderungen für die Verbraucher angepasst und erwartet Systemumsätze zwischen 525 und 535 Millionen Dollar sowie neue Franchise-Klinikeröffnungen zwischen 55 und 60.

Positive
  • Revenue grew 2% to $30.2 million
  • System-wide sales increased 8% to $129.3 million
  • System-wide comp sales grew 4%
  • Total clinic count reached 963 locations
  • Unrestricted cash increased to $20.7 million from $18.2 million at year-end 2023
Negative
  • Net loss widened to $3.2 million from $716,000 in Q3 2023
  • Adjusted EBITDA decreased to $2.4 million from $2.9 million
  • Franchise license sales dropped to 7 from 12 in Q3 2023
  • 11 clinic closures during Q3 2024
  • Downward revision of 2024 guidance due to consumer headwinds

Insights

The Q3 2024 results reveal concerning trends for The Joint Corp. Despite $30.2 million in revenue (2% growth), the company reported a significant net loss of $3.2 million, largely due to a $3.8 million impairment charge from refranchising efforts. Key metrics show operational challenges: franchise license sales dropped from 12 to 7 year-over-year, while 11 clinic closures occurred in Q3. The reduced guidance for new clinic openings (55-60 from 60-75) and system-wide sales ($525-535 million from $530-545 million) suggests ongoing headwinds. The $20.7 million cash position provides some stability, but declining Adjusted EBITDA ($2.4 million vs $2.9 million) indicates deteriorating operational performance.

The Joint's market position shows both opportunities and challenges. With just 1% share of an $8.5 billion out-of-pocket chiropractic market, there's significant room for expansion. However, the 4% system-wide comp sales and reduced guidance reflect consumer spending pressures. The shift toward refranchising indicates a strategic pivot to an asset-light model, which could improve long-term profitability but creates near-term financial strain through impairment charges. The closure of underperforming locations, including military base units, suggests a necessary but painful portfolio optimization process.

SCOTTSDALE, Ariz., Nov. 07, 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 September 30, 2024.

Financial Highlights: Q3 2024 Compared to Q3 2023

  • Grew revenue 2% to $30.2 million.
  • Reported net loss of $3.2 million, including $3.8 million in loss on disposition or impairment, compared to net loss of $716,000, including loss on disposition or impairment of $905,000.
  • Reported Adjusted EBITDA of $2.4 million, compared to $2.9 million.
  • Increased system-wide sales1 8% to $129.3 million.
  • Reported system-wide comp sales2 of 4%.
  • Sold 7 franchise licenses in both Q3 2024 and Q2 2024, compared to 12 in Q3 2023, reflecting the impact of the refranchising process.
  • Increased the total clinic count to 963 – 838 clinics franchised and 125 clinics company-owned or managed – at September 30, 2024. During Q3 2024, The Joint
    • Opened 14 franchised clinics;
    • Refranchised one clinic; and
    • Closed 11 clinics: three franchised being relocated, three non-traditional corporate units on Airforce bases; as well as three franchised and two company-owned or managed that were underperforming.

“As the category leader with a premier national brand, attractive asset-light franchise model and approximately 1% share of the $8.5 billion being spent annually out-of-pocket on chiropractic care, The Joint’s long-term opportunities far exceed the near-term consumer headwinds,” said President and Chief Executive Officer of The Joint Corp. Sanjiv Razdan. “To lead The Joint’s next phase of growth, I will leverage my strategic business acumen, branding expertise and extensive experience leading successful multi-site consumer service companies and franchise businesses. The board and I are committed to our refranchising efforts; elevating patient care; ensuring strong clinic economics; strengthening our people, capability and culture; and fueling innovation to drive growth and improve profitability. With the power behind The Joint franchise concept, our strategies to improve clinic economics, increase patient count, and drive growth will increase profitability and create shareholder value. I am confident we will emerge a stronger company.”

Financial Results for Third Quarter Ended September 30, 2024 Compared to September 30, 2023
Revenue was $30.2 million in the third quarter of 2024, compared to $29.5 million in the third quarter of 2023. Cost of revenue was $2.8 million, compared to $2.6 million in the third quarter of 2023, reflecting the associated higher regional developer royalties and commissions.

Selling and marketing expenses were $4.8 million, compared to $4.3 million, reflecting the timing of advertising spend. Depreciation and amortization expenses decreased 47% for the third quarter of 2024, as compared to the prior year period, primarily due to the impact of corporate clinics that are being held for sale in connection with the refranchising efforts.

General and administrative expenses were $20.8 million, up from $20.2 million in the third quarter of 2023.

Loss on disposition or impairment was $3.8 million, related to the quarterly impairment analysis of clinics held for sale as part of the refranchising efforts, compared to $905,000 in the third quarter of 2023.

Income tax expense was $63,000, compared to income tax benefit of $188,000 in the third quarter of 2023. Net loss was $3.2 million, including $3.8 million loss on disposition or impairment, or $0.21 loss per share. This compares to net loss of $716,000, including the $905,000 loss on disposition or impairment, or $0.05 loss per share, in the third quarter of 2023.

Adjusted EBITDA was $2.4 million, compared to $2.9 million the third quarter of 2023.

Financial Results for Nine Months Ended September 30, 2024 Compared to September 30, 2023
Revenue was $90.2 million in the first nine months of 2024, compared to $87.1 million in the same period of 2023. Net loss was $5.8 million, including $5.6 million loss on disposition or impairment and $1.5 million in employee litigation in the second quarter of 2024, or $0.39 loss per share. This compares net income for the first nine months of 2023 of $1.3 million, including the $3.9 million in other income related to the net employee retention credit and $1.1 million of loss on disposition or impairment, or $0.09 earnings per diluted share.

Adjusted EBITDA was $8.1 million for the nine months ended September 30, 2024 compared to $8.2 million for the same period of 2023.

Balance Sheet Liquidity
Unrestricted cash was $20.7 million at September 30, 2024, compared to $18.2 million at December 31, 2023. Cash flow for the nine-month period ended September 30, 2024 includes $5.3 million from operations and the net proceeds of the sales of clinics offset by ongoing IT capex and the $2.0 million first quarter 2024 repayment of the line of credit to JP Morgan Chase. Through this facility, we have retained immediate access to $20 million through February 2027.

2024 Guidance
The company adjusted its guidance to account the potential impact of ongoing consumer headwinds.

  • System-wide sales are expected to be between $525 million and $535 million, adjusted from $530 million and $545 million and compared to $488.0 million in 2023.
  • System-wide comp sales for all clinics open 13 months or more are expected to be between 3% and 4% adjusted from in the mid-single digits in 2024 and compared to 4% in 2023.
  • New franchised clinic openings, excluding the impact of refranchised clinics, are expected to be between 55 and 60, adjusted from 60 and 75 and compared to 104 in 2023.

Conference Call
The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, November 7, 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 3620356.

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 belief that our long-term opportunities far exceed the near-term consumer headwinds; our commitment to our refranchising efforts, elevating patient care, ensuring strong clinic economics, strengthening our people, capability and culture, and fueling innovation to drive growth and improve profitability; our confidence that with the power behind The Joint franchise concept, our strategies to improve clinic economics, increase patient count and drive growth, we will emerge a stronger company; and our expectations for 2024 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, Alliance Advisors Investor Relations, 415-433-3777, thejointinvestor@allianceadvisors.com


– Financial Tables Follow –


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS

 September 30,
2024
 December 31,
2023
ASSETS(unaudited)  
Current assets:   
Cash and cash equivalents$20,737,769  $18,153,609 
Restricted cash 1,257,667   1,060,683 
Accounts receivable, net 4,295,663   3,718,924 
Deferred franchise and regional development costs, current portion 1,052,391   1,047,430 
Prepaid expenses and other current assets 2,492,653   2,439,837 
Assets held for sale 25,334,715   17,915,055 
Total current assets 55,170,858   44,335,538 
Property and equipment, net 6,084,785   11,044,317 
Operating lease right-of-use asset 7,727,105   12,413,221 
Deferred franchise and regional development costs, net of current portion 4,688,487   5,203,936 
Intangible assets, net    5,020,926 
Goodwill 4,237,945   7,352,879 
Deferred tax assets ($1.1 million and $1.1 million attributable to VIEs as of September 30, 2024 and December 31, 2023) 963,658   1,031,648 
Deposits and other assets 725,984   748,394 
Total assets$79,598,822  $87,150,859 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$1,526,384  $1,625,088 
Accounts payable due to related parties (Note 13) 375,000    
Accrued expenses 4,093,722   1,963,009 
Co-op funds liability 1,257,667   1,060,683 
Payroll liabilities ($0.7 million and $0.7 million attributable to VIEs as of September 30, 2024 and December 31, 2023) 6,107,071   3,485,744 
Operating lease liability, current portion 3,222,887   3,756,328 
Finance lease liability, current portion 26,312   25,491 
Deferred franchise fee revenue, current portion 2,535,825   2,516,554 
Deferred revenue from company clinics ($3.2 million and $1.6 million attributable to VIEs as of September 30, 2024 and December 31, 2023) 3,183,396   4,463,747 
Upfront regional developer Fees, current portion 291,707   362,326 
Other current liabilities 544,250   483,249 
Liabilities to be disposed of ($1.4 million and $3.6 million attributable to VIEs as of September 30, 2024 and December 31, 2023) 15,124,554   13,831,863 
Total current liabilities 38,288,775   33,574,082 
Operating lease liability, net of current portion 6,157,147   10,914,997 
Finance lease liability, net of current portion 18,172   38,016 
Debt under the Credit Agreement    2,000,000 
Deferred franchise fee revenue, net of current portion 12,680,360   13,597,325 
Upfront regional developer fees, net of current portion 743,578   1,019,316 
Other liabilities ($1.2 million and $1.2 million attributable to VIEs as of September 30, 2024 and December 31, 2023) 1,235,241   1,235,241 
Total liabilities 59,123,273   62,378,977 
Commitments and contingencies (Note 10)   
Stockholders' equity:   
Series A preferred stock, $0.001 par value; 50,000 shares authorized, 0 issued and outstanding, as of September 30, 2024 and December 31, 2023     
Common stock, $0.001 par value; 20,000,000 shares authorized, 14,991,462 shares issued and 14,958,447 shares outstanding as of September 30, 2024 and 14,783,757 shares issued and 14,751,633 outstanding as of December 31, 2023 14,991   14,783 
Additional paid-in capital 49,025,751   47,498,151 
Treasury stock 33,015 shares as of September 30, 2024 and 32,124 shares as of December 31, 2023, at cost (870,058)  (860,475)
Accumulated deficit (27,720,135)  (21,905,577)
Total The Joint Corp. stockholders' equity 20,450,549   24,746,882 
Non-controlling Interest 25,000   25,000 
Total equity 20,475,549   24,771,882 
Total liabilities and stockholders' equity$79,598,822  $87,150,859 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Revenues:       
Revenues from company-owned or managed clinics$17,544,658  $17,882,303  $52,730,898  $52,813,098 
Royalty fees 7,870,033   7,143,791   23,303,907   21,181,973 
Franchise fees 697,688   754,029   2,072,665   2,179,822 
Advertising fund revenue 2,247,663   2,050,106   6,654,974   6,043,563 
Software fees 1,431,321   1,301,577   4,233,133   3,746,394 
Other revenues 407,127   342,143   1,185,640   1,117,103 
Total revenues 30,198,490   29,473,949   90,181,217   87,081,953 
Cost of revenues:       
Franchise and regional development cost of revenues 2,450,400   2,228,689   7,250,351   6,605,964 
IT cost of revenues 372,867   375,411   1,115,663   1,068,332 
Total cost of revenues 2,823,267   2,604,100   8,366,014   7,674,296 
Selling and marketing expenses 4,762,395   4,301,017   14,050,343   13,169,079 
Depreciation and amortization 1,239,233   2,349,206   4,166,952   6,893,529 
General and administrative expenses 20,754,264   20,212,750   63,588,864   60,156,022 
Total selling, general and administrative expenses 26,755,892   26,862,973   81,806,159   80,218,630 
Net loss on disposition or impairment 3,805,218   904,923   5,602,641   1,114,738 
Loss from operations (3,185,887)  (898,047)  (5,593,597)  (1,925,711)
Other income (expense), net 83,333   (6,244)  198,873   3,708,399 
Income (loss) before income tax expense (3,102,554)  (904,291)  (5,394,724)  1,782,688 
Income tax (benefit) expense 62,585   (188,018)  419,834   493,286 
Net (loss) income$(3,165,139) $(716,273) $(5,814,558) $1,289,402 
Earnings (loss) per share:       
Basic (loss) earnings per share$(0.21) $(0.05) $(0.39) $0.09 
Diluted (loss) earnings per share$(0.21) $(0.05) $(0.39) $0.09 
Basic weighted average shares 14,959,132   14,790,663   14,903,726   14,666,222 
Diluted weighted average shares 15,192,379   15,015,953   15,138,148   14,931,474 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

 Nine Months Ended
September 30,
  2024   2023 
Cash flows from operating activities:   
Net income (loss)$(5,814,558) $1,289,402 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
Depreciation and amortization 4,166,952   6,893,529 
Net loss on disposition or impairment (non-cash portion) 5,602,641   1,114,738 
Net franchise fees recognized upon termination of franchise agreements (99,966)  (170,720)
Deferred income taxes 67,990   187,062 
Stock based compensation expense 1,475,710   1,209,296 
Changes in operating assets and liabilities, net of acquisitions:   
Accounts receivable 240,981   258,145 
Prepaid expenses and other current assets (53,888)  (504,203)
Deferred franchise costs 456,894   166,078 
Deposits and other assets 15,710   (15,377)
Assets and liabilities held for sale, net (2,147,354)   
Accounts payable 276,296   (1,244,767)
Accrued expenses 1,255,713   1,279,949 
Payroll liabilities 2,621,327   1,844,943 
Deferred revenue (1,504,305)  (551,226)
Upfront regional developer fees (346,357)  (496,730)
Other liabilities (928,850)  34,638 
Net cash provided by operating activities 5,284,936   11,294,757 
    
Cash flows from investing activities:   
Proceeds from sale of clinics 374,100    
Acquisition of CA clinics    (1,050,000)
Purchase of property and equipment (901,394)  (3,833,148)
Net cash used in investing activities (527,294)  (4,883,148)
    
Cash flows from financing activities:   
Payments of finance lease obligation (19,013)  (18,227)
Purchases of treasury stock under employee stock plans (9,583)  (3,832)
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 (1,976,498)  180,327 
    
Increase in cash, cash equivalents and restricted cash 2,781,144   6,591,936 
Cash, cash equivalents and restricted cash, beginning of period 19,214,292   10,550,417 
Cash, cash equivalents and restricted cash, end of period$21,995,436  $17,142,353 
    
Reconciliation of cash, cash equivalents and restricted cash:September 30,
2024
 September 30,
2023
Cash and cash equivalents$20,737,769  $16,050,137 
Restricted cash 1,257,667   1,092,216 
Cash, cash equivalents and restricted cash, end of period$21,995,436  $17,142,353 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
RECONCILIATION FROM GAAP TO NON-GAAP
(unaudited)

 Three Months Ended September 30, Nine Months Ended September 30,
  2024   2023   2024   2023 
Non-GAAP Financial Data:       
Net (loss) income$(3,165,139) $(716,273) $(5,814,558) $1,289,402 
Net interest expense (83,333)  6,244   (198,873)  70,905 
Depreciation and amortization expense 1,239,233   2,349,206   4,166,952   6,893,529 
Tax expense (benefit) 62,585   (188,018)  419,834   493,286 
EBITDA (1,946,654)  1,451,159   (1,426,645)  8,747,122 
Stock compensation expense 430,250   526,069   1,475,710   1,209,296 
Acquisition related expenses    15,222   478,710   873,214 
Loss on disposition or impairment 3,805,218   904,923   5,602,641   1,114,738 
Restructuring costs 153,182      454,457    
Litigation expenses (9,000)     1,481,000    
Other income related to the ERC          (3,779,304)
Adjusted EBITDA$2,432,996  $2,897,373  $8,065,873  $8,165,066 

 

____________________________
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.


FAQ

What was The Joint Corp's (JYNT) revenue in Q3 2024?

The Joint Corp reported revenue of $30.2 million in Q3 2024, representing a 2% increase from Q3 2023.

How many clinics did The Joint Corp (JYNT) have as of September 30, 2024?

The Joint Corp had a total of 963 clinics as of September 30, 2024, consisting of 838 franchised clinics and 125 company-owned or managed clinics.

What was The Joint Corp's (JYNT) system-wide sales growth in Q3 2024?

The Joint Corp's system-wide sales grew 8% to $129.3 million in Q3 2024.

What is The Joint Corp's (JYNT) updated guidance for 2024?

The Joint Corp expects system-wide sales between $525-535 million, system-wide comp sales between 3-4%, and 55-60 new franchised clinic openings for 2024.

The Joint Corp.

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