EXHIBIT 99.1

The Joint Corp. Reports Results for the Fourth Quarter And Full Year 2015

Added 47 Company-Owned or Managed and 23 Franchised Clinics In 2015

SCOTTSDALE, Ariz., March 16, 2016 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ:JYNT), a national operator, manager and franchisor of chiropractic clinics, today reported results for the fourth quarter and full year ended December 31, 2015. 

Financial Highlights

“We are very pleased with our continued strong revenue growth and operational performance during the fourth quarter and the full year. We added a net of 23 franchised clinics and 47 company-owned or managed clinics during 2015, including 18 in the fourth quarter, exceeding the high end of the goal we stated for company-owned or managed clinics at this time last year,” said John B. Richards, chief executive officer of The Joint Corp. “We opened our first company-owned clinic in the Chicago area in October, expanding to 9 clinics in that area during the fourth quarter. In addition, we expanded in the Los Angeles/ Orange County California and Phoenix areas in 2015 consistent with our strategy to accelerate clustering of our clinics in each market to facilitate both operational and marketing efficiencies and growth. Our strategy in 2016 will be to grow our franchisee base and optimize the performance of these newly developed company clinics while selectively adding clinics in these clusters for additional operating and marketing leverage. Furthermore, proceeds from our public offering of common stock completed during the fourth quarter will enable us to continue to support our franchise partners and execute on our expansion plans."

Fourth Quarter 2015 Financial Results

Revenue for the fourth quarter of 2015 increased 83% to $3.8 million from $2.1 million in the fourth quarter of the prior year due primarily to the addition and growth of 47 company-owned or managed clinics and an increase in franchised clinics from 242 at December 31, 2014, to 265 at December 31, 2015.

Cost of revenue in the fourth quarter of 2015 increased 22% compared to the fourth quarter of 2014, due primarily to an increase in regional developer royalties driven by the continued growth in sales from franchised clinics.

Selling and marketing expense increased to $1.2 million in the fourth quarter of 2015, compared to $0.5 million in the same period last year, due to marketing expenses at the Company’s 47 owned or managed clinics that were developed or acquired during the year, and increased sales from franchised and company-owned or managed clinics driving additional funding to, and related expenditures from, the Company’s national marketing fund. 

General and administrative expense increased to $4.8 million in the fourth quarter of 2015, compared to $1.9 million in the fourth quarter of 2014, due to payroll and occupancy expenses at the Company’s 47 owned or managed clinics, and to increases in the number of employees to support the company’s growth initiatives and public company operations, along with higher stock-based compensation.

Depreciation and amortization expense increased for the fourth quarter of 2015, compared to the same period last year, due to the addition of property and equipment and intangible assets relating to acquisitions of franchises and regional developer rights, as well as the growth in the number of greenfield clinics.

Operating loss in the fourth quarter of 2015 was ($3.5) million, compared to an operating loss of ($0.9) million in the fourth quarter of 2014. Net loss in the fourth quarter of 2015 was ($3.4) million, or ($0.31) per share, compared to a net loss of ($2.6) million or ($0.35) per share in the same period last year.

Adjusted EBITDA in the fourth quarter of 2015 was ($2.8) million, compared to ($0.8) million in the same quarter the prior year.

Full Year 2015 Financial Results

Revenue in 2015 increased 94% to $13.8 million from $7.1 million in the prior year, due primarily to revenues from the 47 company-owned or managed clinics developed or acquired during the year, and a more than 40% increase in franchise royalties, due to franchisees’ continued sales growth.

Cost of revenue in 2015 increased 20% compared to 2014 due primarily to a $0.4 million increase in regional developer royalties from franchisees’ sales growth, and the recognition of commissions on franchise license terminations.

Selling and marketing expense increased to $3.7 million in 2015, compared to $1.1 million in the prior year, due to increased sales from franchised and company-owned or managed clinics, which resulted in additional funding to, and related expenditures from, the Company’s national marketing fund. Additionally, the increase in the number of company-owned or managed clinics has resulted in increased local marketing expenses designed to drive continued sales growth.

General and administrative expense increased to $15.4 million in 2015, compared to $5.1 million in 2014, due to an increase in payroll and occupancy costs at company-owned or managed clinics acquired or developed during the year, increases in the number of employees to support the Company’s growth initiatives and public company operations, acquisition-related professional fees and stock-based compensation.

Depreciation and amortization expense increased for the full year 2015, compared to the prior year, due to the addition of property and equipment and intangible assets relating to acquisitions of franchises and regional developer rights.

Operating loss in 2015 was ($9.3) million, compared to an operating loss of ($1.6) million in 2014. Net loss in 2015 was ($8.8) million, or ($0.88) per share, compared to a net loss of ($3.0) million or ($0.56) per share in 2014.

Adjusted EBITDA in 2015 was ($6.8) million, compared to ($1.4) million in the prior year.

As of December 30, 2015, cash and cash equivalents were $16.8 million, compared to $20.8 million at December 31, 2014. In the fourth quarter of 2015, The Company sold 2,613,636 shares of its common stock through an underwritten public offering, inclusive of the underwriters’ over-allotment, at a price of $5.50 per share, resulting in net proceeds to the Company of approximately $13.0 million.

2016 Financial Guidance

The Joint Corp. is providing guidance for full year 2016 as set forth below:

Conference Call

The Joint Corp. management will host a conference call at 5:00 p.m. ET on Wednesday, March 16, 2016, to discuss the fourth quarter and full year 2015 results. The conference call will be accessible by dialing 844-464-3931 (U.S.) or 765-507-2604 (international), and referencing 45914309. A live webcast of the conference call will also be available on the investor relations section of the company’s website at www.thejoint.com. An audio replay will be available two hours after the conclusion of the call through March 23, 2016. The replay can be accessed by dialing (855) 859-2056 or (404) 537-3406. The passcode for the replay is 45914309.

Non-GAAP Financial Information

This earnings release includes a presentation of EBITDA and Adjusted EBITDA, which are 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. Reconciliations of net loss to EBITDA and Adjusted EBITDA are presented within the tables below. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, and stock-based compensation expense. The company defines EBITDA as net income (loss) before net interest, taxes, depreciation and amortization expense.

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 frequently 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. 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 failure to develop or acquire corporate clinics as rapidly as we intend, our failure to profitably operate corporate clinics, and the factors described in “Risk Factors” in our Prospectus dated December 19, 2015 as filed with the SEC. 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. 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 is reinventing chiropractic by making quality care convenient and affordable for patients seeking pain relief and ongoing wellness. Our no-appointment policy and convenient hours and locations make care more accessible, and our affordable membership plans and packages eliminate the need for insurance. With 320+ clinics nationwide and nearly three million patient visits annually, The Joint is an emerging growth company and key leader in the chiropractic profession. For more information, visit www.thejoint.com, follow us on Twitter @thejointchiro and find us on Facebook, You Tube and LinkedIn.

Business Structure

The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In California, Colorado, Florida, Illinois, Minnesota, New Jersey, New York, North Carolina, Oregon and Tennessee, The Joint and its franchisees provide management services to affiliated professional chiropractic practices. 

 

1 Comp Sales include sales only from clinics that have been open at least 13 full months and exclude any clinics that have closed.

 

 THE JOINT CORP. AND SUBSIDIARY 
 CONSOLIDATED BALANCE SHEETS 
         
   December 31, December 31,   
    2015   2014    
 ASSETS       
 Current assets:       
 Cash and cash equivalents $16,792,850  $20,796,783    
 Restricted cash  385,282   224,576    
 Accounts receivable, net  743,239   704,905    
 Income taxes receivable  70,981   395,814    
 Note receivable - current portion  60,908   27,528    
 Deferred franchise costs - current portion  605,850   622,800    
 Prepaid expenses and other current assets  366,033   375,925    
 Total current assets  19,025,143   23,148,331    
 Property and equipment, net  7,138,746   1,134,452    
 Note receivable, net of current portion and reserve  15,823   31,741    
 Deferred franchise costs, net of current portion  1,534,700   2,574,450    
 Deferred tax asset  -   208,800    
 Intangible assets, net  2,542,269   153,000    
 Goodwill  2,466,937   636,104    
 Deposits and other assets  638,710   585,150    
 Total assets $33,362,328  $28,472,028    
         
 LIABILITIES AND STOCKHOLDERS' EQUITY        
 Current liabilities:       
 Accounts payable $1,996,971  $1,178,987    
 Accrued expenses  375,529   92,418    
 Co-op funds liability  201,078   186,604    
 Payroll liabilities  1,493,375   617,944    
 Notes payable - current portion  451,850   -    
 Deferred rent - current portion  334,560   93,398    
 Deferred revenue - current portion  2,579,423   1,957,500    
 Other current liabilities  54,596   50,735    
 Total current liabilities  7,487,382   4,177,586    
 Notes payable, net of current portion  130,000   -    
 Deferred rent, net of current portion  457,290   451,766    
 Deferred revenue, net of current portion  4,369,702   7,915,918    
 Other liabilities  238,648   299,405    
 Total liabilities  12,683,022   12,844,675    
 Commitments and contingencies       
 Stockholders' equity:       
 Series A preferred stock, $0.001 par value; 50,000       
 shares authorized, 0 issued and outstanding, as of December 31, 2015,       
 and  December 31, 2014  -   -    
 Common stock, $0.001 par value; 20,000,000 shares       
 authorized, 13,070,180 shares issued and 12,536,180 shares outstanding       
 as of December 31, 2015 and 10,196,510 shares issued and 9,662,510       
 outstanding as of December 31, 2014  13,070   10,197    
 Additional paid-in capital  35,267,376   21,420,975    
 Treasury stock (534,000 shares as of December 31, 2015 and       
 December 31, 2014, at cost)  (791,638)  (791,638)   
 Accumulated deficit  (13,809,502)  (5,012,181)   
 Total stockholders' equity  20,679,306   15,627,353    
 Total liabilities and stockholders' equity $33,362,328  $28,472,028    
         


THE JOINT CORP. AND SUBSIDIARY 
CONSOLIDATED STATEMENTS OF OPERATIONS 
            
            
   Three Months Ended Year Ended  
   December 31, December 31,  
    2015   2014   2015   2014   
   (unaudited) (audited)  
Revenues:           
Royalty fees  $1,250,925  $961,233  $4,515,203  $3,194,286   
Franchise fees   609,000   464,000   2,471,259   1,933,500   
Revenues and management fees from company clinics   1,282,407   -   3,651,273   -   
Advertising fund revenue   235,644   255,352   1,191,124   459,493   
IT related income and software fees   209,312   211,600   808,070   840,825   
Regional developer fees   67,202   101,500   866,802   478,500   
Other revenues   108,281   61,711   331,700   210,058   
Total revenues   3,762,771   2,055,396   13,835,431   7,116,662   
Cost of revenues:           
Franchise cost of revenues   694,123   575,813   2,642,451   2,081,382   
IT cost of revenues   43,229   30,877   177,462   264,440   
Total cost of revenues   737,352   606,690   2,819,913   2,345,822   
Selling and marketing expenses   1,240,806   461,412   3,691,782   1,117,163   
Depreciation and amortization   446,466   68,415   1,268,955   210,123   
General and administrative expenses   4,842,406   1,855,393   15,371,223   5,070,263   
Total selling, general and administrative expenses   6,529,678   2,385,220   20,331,960   6,397,549   
Loss from operations   (3,504,259)  (936,514)  (9,316,442)  (1,626,709)  
            
Other income (expense):           
Bargain purchase gain   (123,067)  -   261,147   -   
Other income (expense), net   4,319   (5,677)  22,119   (64,075)  
Total other income (expense)   (118,748)  (5,677)  283,266   (64,075)  
            
Loss before income tax (expense) benefit   (3,623,007)  (942,191)  (9,033,176)  (1,690,784)  
            
Income tax (expense) benefit   242,003   (1,625,010)  235,855   (1,340,436)  
            
Net loss and comprehensive loss  $(3,381,004) $(2,567,201) $(8,797,321) $(3,031,220)  
            
Loss per share:           
Basic and diluted loss per share  $(0.31) $(0.35) $(0.88) $(0.56)  
            
Weighted average shares   10,828,011   7,326,941   10,042,001   5,451,851   
            
Non-GAAP Financial Data:           
Net loss  $(3,381,004) $(2,567,201) $(8,797,321) $(3,031,220)  
Interest expense   5,091   -   14,887   -   
Depreciation and amortization expense   446,466   68,415   1,268,955   210,123   
Tax expense (benefit) penalties and interest   (242,003)  1,625,010   (235,855)  1,340,436   
EBITDA  $(3,171,450) $(873,776) $(7,749,334) $(1,480,661)  
Stock compensation   179,068   61,007   825,145   101,830   
Acquisition related expenses   31,072   -   393,069   -   
Bargain purchase gain   123,067   -   (261,147)  -   
Adjusted EBITDA  $(2,838,243) $(812,769) $(6,792,267) $(1,378,831)  
            


THE JOINT CORP. AND SUBSIDIARY 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
      
  Year Ended 
  December 31,  
   2015   2014  
      
Net loss $  (8,797,321) $  (3,031,220) 
Adjustments to reconcile net loss to net cash  805,682   2,182,962  
Changes in operating assets and liabilities    1,195,160     410,813  
Net cash used in operating activities    (6,796,479)    (437,445) 
Net cash used in investing activities    (10,013,083)    (2,060,126) 
Net cash provided by financing activities    12,805,629     19,777,604  
Net (decrease) increase in cash $  (4,003,933) $  17,280,033  
      


The above table presents the reconciliation of net income (loss) to Adjusted EBITDA for the full year periods ended December 31, 2015 and 2014.

Investor Contact: 
Peter Vozzo
[email protected]
443-213-0505

Media Contact: 
Marcia Rhodes
[email protected]
480-664-8412, ext. 15