EXHIBIT 99.1

The Joint Corp. Reports Fourth Quarter and Full Year 2018 Financial Results

- Increases Annual System-Wide Gross Sales 30%, Compared to 2017 -
- Achieves Positive Annual Net Income for the First Time of $253,000 -
- Sells 99 Franchise Licenses in 2018, Up from 37 in 2017 -

SCOTTSDALE, Ariz., March 07, 2019 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter Highlights: 2018 Compared to 2017

2018 Financial Highlights

Recent Operating Achievements

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.

“Building upon the foundation we laid out over the past two years, we will continue to accelerate franchise sales, further leverage our regional developer (RD) strategy, and step up the expansion of our corporate clinic portfolio within clustered locations -- including opening greenfield clinics -- thereby increasing our momentum going into the next year and beyond,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “In the fourth quarter of 2018, we opened 22 franchised clinics, which is the most in any quarter in our history since going public. In 2018, the power of our RD program almost tripled franchise license sales, which approached 100. Strong clinic performance enhanced by innovative marketing increased our annual gross system-wide sales to $165.1 million, up 30%, and system-wide comp sales up 25%, compared to 2017.  Additionally, improved operational excellence continued to reduce clinic estimated time-to-breakeven to an average of nine months in 2017 and an average of six months in 2018, down considerably from the historical average of 18 to 24 months.

“Our market opportunity is expanding due to rising adoption of chiropractic care and the increasing need for drug-free solutions to the opioid, obesity and pain epidemics. Our concierge model that provides greater accessibility, simplicity and affordability is resonating with the market. In fact, our most recent survey indicates 26% of The Joint’s patients are new to chiropractic care, increasing from 13% in 2013. In 2018, we saw 434,000 new patients, an increase of 25% over 2017.  We expect to accelerate this growth momentum in 2019,” concluded Holt.

Fourth Quarter Financial Results: 2018 Compared to 2017
Revenue was $9.1 million in the fourth quarter of 2018, compared to $6.9 million in the fourth quarter of 2017, due primarily to a greater number of franchised clinics and increased gross sales at franchised and company-owned or managed clinics reflecting improved marketing and increased adoption of chiropractic care.

Cost of revenue was $1.2 million, up 30% compared to the fourth quarter of 2017, reflecting the success of the RD program resulting in an increased number of franchised locations opened and higher commissions and royalties.

Selling and marketing expenses were $1.2 million, or 14% of revenue, compared to $1.3 million, or 19% of revenue, in the fourth quarter of 2017, reflecting increased leverage of marketing expenses related to an increase in the number of company-owned or managed clinics. General and administrative expenses were $5.3 million, or 59% of revenue, compared to $4.4 million, or 64% of revenue, in the fourth quarter of 2017.

Net income was $835,000, or $0.06 per diluted share, compared to a net loss of $(213,000), or $(0.02) per share, in the fourth quarter of 2017.

Adjusted EBITDA was $1.5 million, an improvement of $1.1 million compared to Adjusted EBITDA of $404,000 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
Unrestricted cash was $8.7 million at December 31, 2018, compared to $4.2 million at December 31, 2017, increasing primarily from cash flow from operations due to increased net income, greater franchise license sales and additional RD territory sales. 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 on the balance sheet as of December 31, 2018.

Full Year Financial Results: 2018 Compared to 2017
Revenues were $31.8 million in 2018, compared to $24.9 million in 2017.

Net income improved $3.6 million to $253,000 in 2018, or to $0.02 per diluted share, compared to a net loss of $(3.4) million in 2017, or $(0.26) per share in 2017. Adjusted EBITDA was $3.0 million, improving $3.3 million compared to Adjusted EBITDA loss of $(275,000) last year.  

2019 Guidance for Financial Results and Clinic Openings:
Management expects the following:

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, March 7, 2019, to discuss the fourth quarter and full year 2018 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931 and referencing conference code 7186318. 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 March 14, 2019. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 7186318.

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 income (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 company-owned or managed clinics as rapidly as we intend, our failure to profitably operate company-owned or managed 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 care 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 450 clinics nationwide and over 6 million patient visits annually, The Joint is a key leader in the chiropractic profession. For more information, visit http://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, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.

Media Contact: Margie Wojciechowski, 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
 CONSOLIDATED BALANCE SHEETS
         
    December 31, December 31,  
     2018   2017   
 ASSETS    (as adjusted)  
 Current assets:       
 Cash  $8,716,874  $4,216,221   
 Restricted cash   138,078   103,819   
 Accounts receivable, net   1,213,707   1,138,380   
 Income taxes receivable   268   -   
 Notes receivable - current portion   149,349   171,928   
 Deferred franchise costs - current portion   611,047   498,433   
 Prepaid expenses and other current assets   882,022   542,342   
 Total current assets   11,711,345   6,671,123   
 Property and equipment, net   3,658,008   3,800,466   
 Notes receivable, net of current portion   128,723   351,857   
 Deferred franchise costs, net of current portion   2,878,163   2,312,837   
 Intangible assets, net   1,634,060   1,760,042   
 Goodwill   2,916,426   2,916,426   
 Deposits and other assets   599,627   623,308   
 Total assets  $23,526,352  $18,436,059   
         
 LIABILITIES AND STOCKHOLDERS' EQUITY        
 Current liabilities:       
 Accounts payable  $1,253,274  $1,068,669   
 Accrued expenses   266,322   86,959   
 Co-op funds liability   104,057   89,681   
 Payroll liabilities   2,035,658   867,430   
 Notes payable - current portion   1,100,000   100,000   
 Deferred rent - current portion   136,550   152,198   
 Deferred franchise revenue - current portion   2,370,241   1,994,182   
 Deferred revenue from company clinics   994,493   867,804   
 Other current liabilities   477,528   152,534   
 Total current liabilities   8,738,123   5,379,457   
 Notes payable, net of current portion   -   1,000,000   
 Deferred rent, net of current portion   721,730   802,492   
 Deferred franchise revenue, net of current portion   11,239,221   9,552,746   
 Deferred tax liability   76,672   136,434   
 Other liabilities   389,362   411,497   
 Total liabilities   21,165,108   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 December 31, 2018 and 2017   -   -   
 Common stock, $0.001 par value; 20,000,000 shares       
 authorized, 13,757,200 shares issued and 13,742,530 shares outstanding       
 as of December 31, 2018 and 13,600,338 shares issued and 13,586,254       
 outstanding as of December 31, 2017   13,757   13,600   
 Additional paid-in capital   38,189,251   37,229,869   
 Treasury stock 14,670 shares as of December 31, 2018 and 14,084 shares as of December 31, 2017, at cost       
 of December 31, 2017, at cost   (90,856)  (86,045)  
 Accumulated deficit   (35,750,908)  (36,003,991)  
 Total stockholders' equity   2,361,244   1,153,433   
 Total liabilities and stockholders' equity  $23,526,352  $18,436,059   
         


THE JOINT CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
 
         
  Three Months Ended Year Ended
  December 31, December 31,
   2018   2017   2018   2017 
    (as adjusted)   (as adjusted)
Revenues:        
Revenues and management fees from company clinics $4,320,852  $3,018,994  $14,672,865  $11,125,115 
Royalty fees  2,857,197   2,204,447   10,141,036   7,722,856 
Franchise fees  433,042   340,633   1,688,039   1,381,784 
Advertising fund revenue  778,475   758,541   2,862,244   2,753,776 
Software fees  342,500   297,575   1,290,135   1,137,363 
Regional developer fees  184,295   136,943   599,370   399,045 
Other revenues  155,590   116,640   535,560   398,929 
Total revenues  9,071,951   6,873,773   31,789,249   24,918,868 
Cost of revenues:        
Franchise cost of revenues  1,100,818   837,447   3,956,530   2,908,841 
IT cost of revenues  100,808   87,494   353,719   315,397 
Total cost of revenues  1,201,626   924,941   4,310,249   3,224,238 
Selling and marketing expenses  1,228,993   1,284,392   4,819,555   4,473,881 
Depreciation and amortization  374,579   467,310   1,556,240   2,017,323 
General and administrative expenses  5,330,870   4,422,841   20,304,131   18,117,532 
Total selling, general and administrative expenses  6,934,442   6,174,543   26,679,926   24,608,736 
Loss on disposition or impairment  -   -   593,960   417,971 
Income (loss) from operations  935,883   (225,711)  205,114   (3,332,077)
         
Other income (expense):        
Bargain purchase gain  (17,258)  -   58,006   - 
Other income (expense), net  (14,209)  (30,866)  (47,765)  (64,455)
Total other income (expense)  (31,467)  (30,866)  10,241   (64,455)
         
Income (loss) before income tax expense  904,416   (256,577)  215,355   (3,396,532)
         
Income tax benefit (expense)  (69,847)  43,397   37,728   (35,880)
         
Net income (loss) and comprehensive income (loss) $834,569  $(213,180) $253,083  $(3,432,412)
         
Earnings (loss) per share:        
Basic earnings (loss) per share $0.06  $(0.02) $0.02  $(0.26)
Diluted earnings (loss) per share $0.06  $(0.02) $0.02  $(0.26)
         
Basic weighted average shares  13,735,898   13,542,912   13,669,107   13,245,119 
Diluted weighted average shares  14,096,890   13,542,912   14,031,717   13,245,119 
         
Non-GAAP Financial Data:        
Net income (loss) $834,569  $(213,180) $253,083  $(3,432,412)
Net interest  14,209   11,036   46,791   78,980 
Depreciation and amortization expense  374,579   467,310   1,556,240   2,017,323 
Tax (benefit) expense  69,847   (43,397)  (37,728)  35,880 
EBITDA $1,293,204  $221,769  $1,818,386  $(1,300,229)
Stock compensation expense  159,025   181,858   628,430   594,371 
Acquisition related expenses  -   -   3,950   13,142 
Loss on disposition or impairment  -   -   593,960   417,971 
Bargain purchase gain  17,258   -   (58,006)  - 
Adjusted EBITDA $1,469,487  $403,627  $2,986,720  $(274,745)
         


THE JOINT CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
     
  Year Ended
  December 31,
   2018   2017 
    (as adjusted)
Net income (loss) $253,083  $(3,432,412)
Adjustments to reconcile net income (loss) to net cash  2,416,628   3,051,152 
Changes in operating assets and liabilities  2,782,557   307,129 
Net cash provided by (used in) operating activities  5,452,268   (74,131)
Net cash used in investing activities  (1,243,654)  (372,853)
Net cash provided by financing activities  326,298   1,422,766 
Net increase in cash $4,534,912  $975,782