EXHIBIT 99.1

The Joint Corp. Reports Second Quarter 2016 Financial Results; Names Peter D. Holt Chief Executive Officer

The Company Added 29 Total Clinics in First Six Months

SCOTTSDALE, Ariz., Aug. 11, 2016 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ:JYNT), a national operator, manager and franchisor of chiropractic clinics, today reported results for the quarter ended June 30, 2016.  Concurrently, the Company’s board of directors announced the appointment of Peter D. Holt as chief executive officer and as a member of the Company’s board of directors, effective immediately.  

Second Quarter 2016 Financial Highlights

“Strong revenue growth for the second quarter of 2016 was driven by the addition of 79 clinics over the last 12 months, including 38 company-owned or managed clinics,” said Peter D. Holt, chief executive officer of The Joint Corp. “I am pleased to report that during the second quarter we continued the expansion of our exciting concept, made progress toward profitability and strengthened our commitment to operational excellence. As we previously mentioned, we will not be adding any additional company-owned or operated clinics for the rest of the year.  This will allow our new classes of 2015 and 2016 greenfield clinics an opportunity to mature while we manage our capital and growth accordingly.” Holt added, “In addition, it’s an honor to be appointed CEO and to lead The Joint team into its next chapter of growth.”

“I am happy to announce that the board of directors has unanimously approved Peter’s appointment as CEO,” said Richard Kerley, lead director of The Joint Corp. Board of Directors. “This decision was based not only on his previous executive and industry experiences, but also on the leadership qualities he has displayed while in the role of chief operating officer and acting chief executive officer of The Joint Corp. We are very pleased that Peter has accepted this position and are confident that his in-depth knowledge of our industry as well as his proven franchising and operating capabilities in the retail industry are exactly what we need to lead the organization going forward.”

Second Quarter 2016 Financial Results

Revenue for the second quarter of 2016 increased 45% to $5.0 million from $3.4 million in the second quarter of the prior year due primarily to the addition and growth of 38 company-owned or managed clinics and the addition of 41 franchised clinics since June 30, 2015.

Cost of revenue in the second quarter of 2016 decreased 8.1% compared to the second quarter of 2015, due to a decrease in openings of franchised clinics and the termination of franchise licenses.

Selling and marketing expenses increased to $1.2 million in the second quarter of 2016, compared to $0.5 million in the same period last year, due to an increase in the number of company-owned or managed clinics and the timing of the Company’s national marketing fund expenditures.

General and administrative expenses increased to $5.6 million in the second quarter of 2016, compared to $3.7 million in the second quarter of 2015. This increase was driven by additional payroll and occupancy expenses associated with having more clinics open in the second quarter of 2016 compared to the same period the prior year.

Depreciation and amortization expenses increased for the second quarter of 2016, compared to the same period last year, due to the addition of property, equipment and intangible assets in acquisitions of franchises and regional developer rights, as well as growth in the number of greenfield clinics.

Operating loss in the second quarter of 2016 was ($3.2) million, compared to an operating loss of ($1.9) million in the second quarter of 2015. Net loss in the second quarter of 2016 was ($3.3) million, or ($0.26) per share, compared to a net loss of ($1.9) million or ($0.19) per share in the same period last year.

Adjusted EBITDA in the second quarter of 2016 was ($2.0) million, compared to ($1.3) million in the same quarter the prior year.

As of June 30, 2016, cash and cash equivalents were $6.1 million, compared to $16.8 million at December 31, 2015.

2016 Financial Guidance

For full year 2016, The Joint Corp. is reiterating guidance for total revenues, Adjusted EBITDA and net new clinic openings as set forth below:

1 Comp Sales refers to the amount of sales a clinic generates in the most recent accounting period, compared to sales in the comparable period of the prior year, and (i) includes sales only from clinics that have been open at least 13 full months and (ii) excludes any clinics that have closed.

Conference Call

The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, August 11, 2016, to discuss the second quarter 2016 results. The conference call will be accessible by dialing 765-507-2604 or 844-464-3931 (toll-free), and referencing 58534173. 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 August 18, 2016. The replay can be accessed by dialing (404) 537-3406 or (855) 859-2056. The passcode for the replay is 58534173.

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 expenses. The Company defines EBITDA as net income (loss) before net interest, taxes, depreciation and amortization expenses.

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 Annual Report on Form 10-K for the year ended December 31, 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)

At The Joint we are 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 340+ clinics nationwide and more than 3 million patient visits annually, we have become a key leader and innovator 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 Arkansas, California, Colorado, Florida, Illinois, Kansas, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, and Tennessee, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.


 THE JOINT CORP. AND SUBSIDIARY 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
         
   June 30, December 31,   
    2016   2015    
 ASSETS (unaudited)     
 Current assets:       
 Cash and cash equivalents $  6,118,763  $  16,792,850    
 Restricted cash    565,175     385,282    
 Accounts receivable, net    1,807,783     743,239    
 Income taxes receivable    38,814     70,981    
 Note receivable - current portion    46,500     60,908    
 Deferred franchise costs - current portion    578,800     605,850    
 Prepaid expenses and other current assets    359,695     366,033    
 Total current assets    9,515,530     19,025,143    
 Property and equipment, net    8,171,315     7,138,746    
 Note receivable, net of current portion and reserve    18,327     15,823    
 Deferred franchise costs, net of current portion    1,252,950     1,534,700    
 Intangible assets, net    2,727,232     2,542,269    
 Goodwill    2,945,263     2,466,937    
 Deposits and other assets    626,073     638,710    
 Total assets $  25,256,690  $  33,362,328    
         
 LIABILITIES AND STOCKHOLDERS' EQUITY        
 Current liabilities:       
 Accounts payable $  1,135,052  $  1,996,971    
 Accrued expenses    107,093     375,529    
 Co-op funds liability    104,363     201,078    
 Payroll liabilities    538,688     1,493,375    
 Notes payable - current portion    550,400     451,850    
 Deferred rent - current portion    277,041     334,560    
 Deferred revenue - current portion    2,599,896     2,579,423    
 Other current liabilities    68,614     54,596    
 Total current liabilities    5,381,147     7,487,382    
 Notes payable, net of current portion    -      130,000    
 Deferred rent, net of current portion    1,391,965     457,290    
 Deferred revenue, net of current portion    3,499,387     4,369,702    
 Other liabilities    269,456     238,648    
 Total liabilities    10,541,955     12,683,022    
 Commitments and contingencies       
 Stockholders' equity:       
 Series A preferred stock, $0.001 par value; 50,000        
 shares authorized, 0 issued and outstanding, as of June 30, 2016,       
 and December 31, 2015    -      -     
 Common stock, $0.001 par value; 20,000,000 shares        
 authorized, 13,262,016 shares issued and 12,728,016 shares outstanding      
 as of June 30, 2016 and 13,070,180 shares issued and 12,536,180       
 outstanding as of December 31, 2015    13,262     13,070    
 Additional paid-in capital    36,089,128     35,267,376    
 Treasury stock (534,000 shares as of June 30, 2016 and        
 December 31, 2015, at cost)    (791,638)    (791,638)   
 Accumulated deficit    (20,596,017)    (13,809,502)   
 Total stockholders' equity     14,714,735     20,679,306    
 Total liabilities and stockholders' equity  $  25,256,690  $  33,362,328    
         


THE JOINT CORP. AND SUBSIDIARY 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(unaudited) 
          
  Three Months EndedSix Months Ended 
  June 30, June 30, 
   2016   2015   2016   2015  
Revenues:         
Revenues and management fees from company clinics $  2,137,252  $  783,016  $  3,795,805  $  1,170,469  
Royalty fees    1,428,548     1,098,190     2,797,379     2,113,704  
Franchise fees    524,209     876,259     1,039,009     1,224,259  
Advertising fund revenue    356,580     339,462     622,301     624,978  
IT related income and software fees    229,400     197,214     450,534     401,189  
Regional developer fees    225,080     50,750     372,617     268,250  
Other revenues    72,972     81,855     161,432     131,796  
Total revenues    4,974,041     3,426,746     9,239,077     5,934,645  
Cost of revenues:         
Franchise cost of revenues    668,851     743,592     1,363,586     1,251,158  
IT cost of revenues    58,888     48,226     104,116     85,921  
Total cost of revenues    727,739     791,818     1,467,702     1,337,079  
Selling and marketing expenses    1,174,178     534,298     1,912,861     1,380,924  
Depreciation and amortization    637,115     278,502     1,212,659     401,098  
General and administrative expenses    5,625,996     3,668,187     11,322,502     6,576,826  
Total selling, general and administrative expenses    7,437,289     4,480,987     14,448,022     8,358,848  
Loss from operations    (3,190,987)    (1,846,059)    (6,676,647)    (3,761,282) 
          
Other income (expense), net    3,075     (9,811)    7,999     1,689  
          
Loss before income tax expense    (3,187,912)    (1,855,870)    (6,668,648)    (3,759,593) 
          
Income tax expense    (73,470)    -      (117,867)    -   
          
Net loss and comprehensive loss $  (3,261,382) $  (1,855,870) $  (6,786,515) $  (3,759,593) 
          
Loss per share:         
Basic and diluted loss per share $  (0.26) $  (0.19) $  (0.54) $  (0.39) 
          
Basic and diluted weighted average shares    12,672,974     9,768,230     12,620,438     9,734,115  
          
Non-GAAP Financial Data:         
Net loss $  (3,261,382) $  (1,855,870) $  (6,786,515) $  (3,759,593) 
Interest expense    4,225     -     8,676     -   
Depreciation and amortization    637,115     278,502     1,212,659     401,098  
Income tax expense    73,470     -      117,867     -   
EBITDA $  (2,546,572) $  (1,577,368) $  (5,447,313) $  (3,358,495) 
Stock based compensation    559,726     157,212     757,394     289,499  
Acquisition related expenses    18,958     136,544     49,818     279,253  
Adjusted EBITDA $  (1,967,889) $  (1,283,612) $  (4,640,100) $  (2,789,743) 
          

 The above table presents the reconciliation of net income (loss) to Adjusted EBITDA for the three and six month periods ended June 30, 2016 and 2015.

 

THE JOINT CORP. AND SUBSIDIARY 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(unaudited) 
      
  Six Months Ended 
  June 30,  
   2016   2015  
      
Net loss $  (6,786,515) $  (3,759,593) 
Adjustments to reconcile net loss to net cash  1,636,564   180,692  
Changes in operating assets and liabilities    (2,905,287)    1,035,333  
Net cash used in operating activities    (8,055,238)    (2,543,568) 
Net cash used in investing activities    (2,465,949)    (5,648,224) 
Net cash provided by financing activities    (152,900)    (25,000) 
Net decrease in cash $  (10,674,087) $  (8,216,792) 
      


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

Media Contact:
Inna Lazarev
Public Relations Manager
[email protected]