Exhibit 99.1

The Joint Corp. Reports Second Quarter 2018 Financial Results

- Increases Annual System-Wide Gross Sales 29%, Compared to Second Quarter 2017 -
- Grows Revenue 26%, Compared to Second Quarter 2017 -
- Reports Net Loss of $43,000, Compared to Net Loss of $1.0 Million in Second Quarter 2017 -
- Posts Fourth Consecutive Quarter of Positive Adjusted EBITDA -

SCOTTSDALE, Ariz., Aug. 09, 2018 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported financial results for the three months ended June 30, 2018.    

Second Quarter Highlights: 2018 Compared to 2017

Peter D. Holt, president and chief executive officer of The Joint Corp, said, “Our strong second quarter results reflect the combination of our disciplined clinic expansion strategy, enhanced operational and marketing efforts and continued focus on expense management. With 413 clinics in operation and plans to add 25 or more by the end of 2018, The Joint’s unique concept is gaining traction and resonating with more patients as a convenient, affordable, and drug-free alternative to pain management and improved health and wellness.

“The strength of this concept and our focus on improving franchisee profitability with effective marketing and best-practice operational support continue to shorten the average break-even point for new clinics. We believe franchisee profitability and franchise expansion in partnership with strong regional developers, along with corporate owned and managed clinic growth in select markets, will continue to create shareholder value.”

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.

Second Quarter Financial Results: 2018 Compared to 2017

Revenue grew 26% to $7.6 million, compared to $6.0 million in the second quarter of 2017, due primarily to increased sales at company owned or managed clinics and a greater number of franchised clinics.

Cost of revenue was $1.1 million, up 37%, compared to the second quarter of 2017, reflecting higher commissions and royalties paid to regional developers for an increased number of franchised locations opened.

Gross profit was $6.5 million, increasing 24% from $5.2 million in the second quarter of 2017.

Selling and marketing expenses were $1.3 million, or 17.1% of revenue, up 22% from $1.1 million, or 17.6% of revenue, in the second quarter of 2017, reflecting higher marketing expenses related to company-owned or managed clinics. General and administrative expenses were $4.7 million, or 61.6% of revenue, flat as compared to $4.7 million, but improving from 77.8% of revenue in the second quarter of 2017. During the second quarter, the company recorded a non-cash bargain purchase gain of $75,000 related to the April acquisition of a franchised clinic.

Net loss was $43,000, or $0.00 per share, compared to a net loss of $1.0 million, or $0.08 per share, in the second quarter of 2017.

Adjusted EBITDA income was $697,000, an improvement of $1.1 million, compared to Adjusted EBITDA loss of $(360,000) in the same quarter last year.  The company defines Adjusted EBITDA, a non-GAAP measure, as EBITDA before acquisition-related expenses, bargain purchase gain, loss on disposition or impairment, and stock-based compensation expenses. The company defines EBITDA as net income (loss) before net interest, tax expense, depreciation, and amortization expenses.

Balance Sheet Liquidity

Cash and cash equivalents were $4.6 million at June 30, 2018, compared to $4.2 million at December 31, 2017, increasing primarily from cash flow from operations. Pursuant to the terms of the Company’s credit agreement, during the first quarter of 2017, the Company borrowed a required $1.0 million on its line of credit, which remains unused as part of cash and cash equivalents on the balance sheet as of June 30, 2018.

2018 Financial Guidance

Management reaffirmed its full year 2018 financial guidance and franchise opening expectations as set forth below:

Conference Call

The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, August 9, 2018, to discuss the second quarter 2018 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931 and referencing conference code 2167969. A live webcast of the conference call will also be available on the investor relations section of the company’s website at https://ir.thejoint.com/events. An audio replay will be available two hours after the conclusion of the call through August 16, 2018. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 2167969.

Non-GAAP Financial Information

This earnings release includes a presentation of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. These 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 net loss to EBITDA and Adjusted EBITDA is presented in the table below. The Company defines Adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, loss on disposition or impairment, and stock-based compensation expenses. The Company defines EBITDA as net income (loss) before net interest, tax expense, 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 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 United States Securities and Exchange Commission (“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 as filed with the SEC for the year ended December 31, 2017. 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)

Based in Scottsdale, Arizona, The Joint is an emerging growth company that is reinventing chiropractic by making quality care convenient and affordable for patients seeking pain relief and ongoing wellness. Its no-appointment policy and convenient hours and locations make care more accessible, and affordable membership plans and packages eliminate the need for insurance. With over 400 clinics nationwide and nearly 5 million patient visits annually, The Joint is a key leader in the chiropractic profession. For more information, visit www.thejoint.com or follow the brand on Twitter, Facebook, YouTube 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, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee and Washington, The Joint and its franchisees provide management services to affiliated professional chiropractic practices.

Media Contact: Molly Hottle, The Joint Corp., [email protected]
Investor Contact: Kirsten Chapman, LHA Investor Relations, 415-433-3777, [email protected]

-- Financial Tables Follow --

  
 THE JOINT CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED BALANCE SHEETS
        
    June 30, December 31, 
     2018   2017  
 ASSETS  (unaudited)   
 Current assets:      
 Cash and cash equivalents  $  4,583,025  $  4,216,221  
 Restricted cash     124,899     103,819  
 Accounts receivable, net     1,166,722     1,138,380  
 Notes receivable - current portion     180,706     171,928  
 Deferred franchise costs - current portion     539,517     498,433  
 Prepaid expenses and other current assets     632,791     542,342  
   Total current assets     7,227,660     6,671,123  
 Property and equipment, net     3,658,823     3,800,466  
 Notes receivable, net of current portion     259,255     351,857  
 Deferred franchise costs, net of current portion     2,483,977     2,312,837  
 Intangible assets, net     1,645,268     1,760,042  
 Goodwill     2,916,426     2,916,426  
 Deposits and other assets     596,251     623,308  
   Total assets  $  18,787,660  $  18,436,059  
        
 LIABILITIES AND STOCKHOLDERS' EQUITY       
 Current liabilities:      
 Accounts payable  $  723,359  $  1,068,669  
 Accrued expenses     120,941     86,959  
 Co-op funds liability     107,134     89,681  
 Payroll liabilities     971,968     867,430  
 Notes payable - current portion     100,000     100,000  
 Deferred rent - current portion     164,018     152,198  
 Deferred franchise revenue - current portion     2,039,598     1,994,182  
 Deferred revenue from company clinics     937,526     867,804  
 Other current liabilities     403,160     152,534  
   Total current liabilities     5,567,704     5,379,457  
 Notes payable, net of current portion     1,000,000     1,000,000  
 Deferred rent, net of current portion     731,651     802,492  
 Deferred franchise revenue, net of current portion     9,657,869     9,552,746  
 Deferred tax liability     60,552     136,434  
 Other liabilities     424,616     411,497  
   Total liabilities     17,442,392     17,282,626  
 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, 2018,      
   and  December 31, 2017     -      -   
 Common stock, $0.001 par value; 20,000,000 shares      
   authorized, 13,738,078 shares issued and 13,723,994 shares outstanding      
   as of June 30, 2018 and 13,600,338 shares issued and 13,586,254      
   outstanding as of December 31, 2017     13,738     13,600  
 Additional paid-in capital     37,851,248     37,229,869  
 Treasury stock 14,084 shares as of June 30, 2018 and      
   December 31, 2017, at cost     (86,045)    (86,045) 
 Accumulated deficit     (36,433,673)    (36,003,991) 
   Total stockholders' equity     1,345,268     1,153,433  
   Total liabilities and stockholders' equity  $  18,787,660  $  18,436,059  
  


 
THE JOINT CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
         
  Three Months Ended Six Months Ended
  June 30, June 30,
   2018   2017   2018   2017 
Revenues:        
Revenues and management fees from company clinics $  3,420,685  $  2,679,937  $  6,677,309  $  5,176,271 
Royalty fees    2,421,185     1,854,087     4,695,173     3,560,160 
Franchise fees    449,144     363,834     797,481     659,374 
Advertising fund revenue    687,752     621,578     1,346,782     1,220,014 
Software fees    315,910     282,525     623,385     549,538 
Regional developer fees    137,412     98,741     272,423     162,887 
Other revenues    124,744     99,348     242,194     178,953 
  Total revenues    7,556,832     6,000,050     14,654,747     11,507,197 
Cost of revenues:        
Franchise cost of revenues    977,782     700,986     1,850,550     1,335,841 
IT cost of revenues    73,802     65,452     173,366     124,313 
  Total cost of revenues    1,051,584     766,438     2,023,916     1,460,154 
Selling and marketing expenses    1,293,663     1,058,224     2,395,967     2,016,930 
Depreciation and amortization    404,975     503,226     792,392     1,081,212 
General and administrative expenses    4,656,308     4,667,688     9,731,234     9,231,765 
  Total selling, general and administrative expenses    6,354,946     6,229,138     12,919,593     12,329,907 
Loss on disposition or impairment     250,704     -      250,704     417,971 
Loss from operations    (100,402)    (995,526)    (539,466)    (2,700,835)
         
Other income (expense):        
Bargain purchase gain    75,264     -      75,264     -  
Other expense, net    (11,689)    (24,031)    (22,884)    (43,496)
  Total other income (expense)    63,575     (24,031)    52,380     (43,496)
         
Loss before income tax expense    (36,827)    (1,019,557)    (487,086)    (2,744,331)
         
Income tax (expense) benefit    (5,951)    (2,583)    57,404     (43,192)
         
Net loss and comprehensive loss $  (42,778) $  (1,022,140) $  (429,682) $  (2,787,523)
         
Loss per share:        
Basic and diluted loss per share $  (0.00) $  (0.08) $  (0.03) $  (0.21)
         
Basic and diluted weighted average shares    13,622,710     13,127,255     13,605,370     13,085,159 
         
Non-GAAP Financial Data:        
Net loss $  (42,778) $  (1,022,140) $  (429,682) $  (2,787,523)
Net Interest    11,103     24,031     21,909     47,851 
Depreciation and amoritzation expense    404,975     503,226     792,392     1,081,212 
Tax expense (benefit) penalties and interest    5,951     2,583     (57,404)    43,192 
  EBITDA $  379,251  $  (492,299) $  327,215  $  (1,615,268)
Stock compensation expense    138,987     132,056     346,628     227,121 
Acquisition related expenses    3,250     492     3,250     13,142 
Loss on disposition or impairment    250,704     -      250,704     417,971 
Bargain Purchase Gain    (75,264)    -      (75,264)    -  
  Adjusted EBITDA $  696,928  $  (359,751) $  852,533  $  (957,034)
 


 
THE JOINT CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
  Six Months Ended
  June 30,
   2018   2017 
Net loss $  (429,682) $  (2,787,523)
Adjustments to reconcile net loss to net cash  1,167,103   1,781,636 
Changes in operating assets and liabilities    (124,211)    217,253 
Net cash provided by (used in) operating activities    613,210     (788,634)
Net cash used in investing activities    (366,933)    (80,428)
Net cash provided by financing activities    141,607     851,995 
Net increase (decrease) in cash and restricted cash $  387,884  $  (17,067)