EXHIBIT 99.1

The Joint Corp. Reports Fourth Quarter and Full Year 2019 Financial Results

- Grows Annual System-Wide Sales 33% and Comp Sales 25%, Compared to 2018 -
- Increases Annual Net Income to $3.3 Million, Compared to $147,000 in 2018 -
- More than Doubles Adjusted EBITDA to $6.2 Million, Compared to $2.9 Million in 2018-
- Increases Franchise Licenses Sales to 126, Compared to 99 in 2018-
- Targets 1,000 Clinics by End of 2023 -

SCOTTSDALE, Ariz., March 05, 2020 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter Financial Highlights: 2018 Compared to 2019

Annual Financial Highlights: 2018 Compared to 2019

2019 Operating Achievements

_______________________________

1 System-wide sales include sales 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. 
2 Comp sales include the sales 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.

“In 2019, we accelerated our business momentum and continued to deliver strong, sustainable growth and profitability,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “We leveraged our regional developers to drive franchise sales and clinic openings as well as expanded our corporate clinic portfolio within clustered locations. We also continued to implement productivity initiatives to improve clinic profitability. As a result, we met or exceeded our plan, achieved positive Adjusted EBITDA for the second full consecutive year since being public, and built our strongest foundation for growth to date.” 

“In addition to macro factors driving adoption of chiropractic care, The Joint is revolutionizing access making it more available to people than ever before. To capture a greater share of the market opportunity, we will continue to execute our successful growth model as well as test new markets and non-traditional locations. While focused on our national and local ad campaigns that include more sophisticated digital programs, we remain committed to consumer education about the power and importance of chiropractic. Based on our success, we fully expect to reach our target to open our 1,000th clinic by the end of 2023.”

Fourth Quarter Financial Results: 2019 Compared to 2018
Revenue was $13.9 million in the fourth quarter of 2019, compared to $10.0 million in the fourth quarter of 2018, with the increase due primarily to a greater number of and increased gross sales at franchised and company-owned or managed clinics.

Cost of revenue was $1.6 million, up 36% compared to the fourth quarter of 2018, reflecting the success of the RD program resulting in an increased number of franchised licenses sold and clinics opened, resulting in increased commissions and royalties.

Selling and marketing expenses were $1.8 million, or 13% of revenue, compared to $1.2 million, or 12% of revenue, in the fourth quarter of 2018, reflecting increased marketing expenses related to an increase in the number of company-owned or managed clinics. General and administrative expenses were $8.5 million, or 61% of revenue, compared to $6.6 million, or 66% of revenue, in the fourth quarter of 2018, reflecting improved leverage of the operating model.

Net income was $1.3 million, or $0.09 per diluted share, compared to a net income of $437,000, or $0.03 per diluted share, in the fourth quarter of 2018.

Adjusted EBITDA was $2.1 million, an improvement of $1.0 million, compared to Adjusted EBITDA of $1.1 million in the same quarter last year. The company defines Adjusted EBITDA, a non-GAAP measure, as EBITDA before acquisition-related expenses, bargain purchase gain, net (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 $8.5 million at December 31, 2019, compared to $8.7 million at December 31, 2018, reflecting increased cash flow from operations, which was more than offset by continued investment in corporate clinic expansion and the development of the new IT platform. In February, the company executed a $7.5 million senior secured credit facility with J.P. Morgan Chase Bank, including a $5.5 million development line of credit (LOC) and a $2.0 million revolving LOC, which has an uncommitted accordion feature for an additional $2.5 million.

Full Year Financial Results: 2019 Compared to 2018
Revenues were $48.5 million in 2019, compared to $36.7 million in 2018. Net income improved $3.2 million to $3.3 million in 2019, or to $0.23 per diluted share, compared to net income of $147,000, or $0.01 per diluted share in 2018. Adjusted EBITDA was $6.2 million, improving $3.3 million compared to Adjusted EBITDA of $2.9 million last year. 

2020 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 5, 2020, to discuss the fourth quarter and year-end 2019 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931 and referencing conference code 8090866. A live webcast of the conference call will also be available on the IR 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 12, 2020.  The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 8090866.

Non-GAAP Financial Information
This release includes a presentation of non-GAAP financial measures. System-wide sales include sales 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. Comp sales include the sales 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.

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 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, net (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 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, uncertainties associated with the coronavirus (including its possible effects on patient demand), and the other factors described in “Risk Factors” in our Annual Report on Form 10-K as filed with the SEC for the year ended December 31, 2018, as updated for any material changes described in any subsequently-filed Quarterly Reports on Form 10-Q, and in our Annual Report on Form 10-K for the year ended December 31, 2019 expected to be filed with the SEC on or around March 6, 2020, as they may be revised or updated in our subsequent filings.  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 Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, 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 more than 500 locations nationwide and over 7 million patient visits annually, The Joint is a key leader in the chiropractic industry. Named on Franchise Times “Top 200+ Franchises” and Entrepreneur’s “Franchise 500®” lists, 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, 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 AND AFFILIATES
CONSOLIDATED BALANCE SHEETS
    
 December 31, December 31,
  2019   2018 
ASSETS  (as adjusted)
Current assets:       
Cash and cash equivalents$8,455,989  $8,716,874 
Restricted cash 185,888   138,078 
Accounts receivable, net 2,645,085   806,350 
Income taxes receivable -   268 
Notes receivable, net - current portion 128,724   149,349 
Deferred franchise costs - current portion 765,508   611,047 
Prepaid expenses and other current assets 1,122,478   882,022 
Total current assets 13,303,672   11,303,988 
Property and equipment, net 6,581,588   3,658,007 
Operating lease right-of-use asset 12,486,672   - 
Notes receivable, net of current portion -   128,723 
Deferred franchise costs, net of current portion 3,627,225   2,878,163 
Intangible assets, net 3,219,791   1,634,060 
Goodwill 4,150,461   3,225,145 
Deposits and other assets 336,258   599,627 
Total assets$43,705,667  $23,427,713 
        
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:       
Accounts payable$1,525,838  $1,253,274 
Accrued expenses 216,814   266,322 
Co-op funds liability 185,889   104,057 
Payroll liabilities 2,844,107   2,035,658 
Notes payable - current portion -   1,100,000 
Deferred rent - current portion -   136,550 
Operating lease liability - current portion 2,313,109   - 
Finance lease liability - current portion 24,253   - 
Deferred franchise and regional developer fee revenue - current portion 2,740,954   2,370,241 
Deferred revenue from company clinics 3,196,664   2,529,497 
Other current liabilities 518,686   477,528 
Total current liabilities 13,566,314   10,273,127 
Deferred rent, net of current portion -   721,730 
Operating lease liability - net of current portion 11,901,040   - 
Finance lease liability - net of current portion 34,398   - 
Deferred franchise and regional developer fee revenue, net of current portion 12,366,322   11,239,221 
Deferred tax liability 89,863   76,672 
Other liabilities 27,230   389,362 
Total liabilities 37,985,167   22,700,112 
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, 2019 and December 31, 2018 -   - 
Common stock, $0.001 par value; 20,000,000 shares       
authorized, 13,898,694 shares issued and 13,882,932 shares outstanding       
as of December 31, 2019 and 13,757,200 shares issued and 13,742,530       
outstanding as of December 31, 2018 13,899   13,757 
Additional paid-in capital 39,454,937   38,189,251 
Treasury stock 15,762 shares as of December 31, 2019 and 14,670 shares as of December 31, 2018, at cost (111,041)  (90,856)
Accumulated deficit (33,637,395)  (37,384,651)
Total The Joint Corp. stockholders' equity 5,720,400   727,501 
Non-controlling Interest 100   100 
Total equity 5,720,500   727,601 
Total liabilities and stockholders' equity$43,705,667  $23,427,713 
    

 

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
     
  Three Months Ended Year Ended
  December 31,  December 31,
   2019   2018   2019   2018 
      (as adjusted)      (as adjusted) 
Revenues:                
Revenues from company-owned or managed clinics $7,561,644  $5,217,122  $25,807,584  $19,545,276 
Royalty fees  3,819,554   2,857,196   13,557,170   10,141,036 
Franchise fees  385,868   433,042   1,791,545   1,688,039 
Advertising fund revenue  1,086,479   778,475   3,884,055   2,862,244 
Software fees  609,068   342,500   1,865,779   1,290,135 
Regional developer fees  209,234   178,295   803,849   599,370 
Other revenues  203,322   161,591   740,918   535,560 
Total revenues  13,875,169   9,968,221   48,450,900   36,661,660 
Cost of revenues:                
Franchise cost of revenues  1,525,381   1,100,818   5,159,778   3,956,530 
IT cost of revenues  108,578   100,808   406,139   353,719 
Total cost of revenues  1,633,959   1,201,626   5,565,917   4,310,249 
Selling and marketing expenses  1,845,124   1,228,993   6,913,709   4,819,555 
Depreciation and amortization  590,742   374,579   1,899,257   1,556,240 
General and administrative expenses  8,464,787   6,625,020   30,543,030   25,238,121 
Total selling, general and administrative expenses  10,900,653   8,228,592   39,355,996   31,613,916 
Net (gain) loss on disposition or impairment  (2,423)  -   114,352   594,934 
Income from operations  1,342,980   538,003   3,414,635   142,561 
                 
Other income (expense):                
Bargain purchase gain  -   (17,258)  19,298   13,198 
Other (expense), net  (18,046)  (14,209)  (61,515)  (46,791)
Total other (expense)  (18,046)  (31,467)  (42,217)  (33,593)
                 
Income before income tax expense (benefit)  1,324,934   506,536   3,372,418   108,968 
                 
Income tax expense (benefit)  33,110   69,847   48,706   (37,728)
                 
Net income and comprehensive income $1,291,824  $436,689  $3,323,712  $146,696 
                 
Less: income attributable to the non-controlling interest $-  $-  $-  $- 
                 
Net income attributable to The Joint Corp. stockholders $1,291,824  $436,689  $3,323,712  $146,696 
                 
Earnings per share:                
Basic earnings per share $0.09  $0.03  $0.24  $0.01 
Diluted earnings per share $0.09  $0.03  $0.23  $0.01 
                 
Basic weighted average shares  13,880,146   13,735,898   13,819,149   13,669,107 
Diluted weighted average shares  14,538,338   14,096,890   14,467,567   14,031,717 
                 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 
         
         
  Year Ended
  December 31,
   2019   2018 
      (as adjusted)
Net income $3,323,712  $146,696 
Adjustments to reconcile net income to net cash        
provided by operating activities  2,602,799   2,461,436 
Changes in operating assets and liabilities  1,595,438   2,844,136 
Net cash provided by operating activities  7,521,949   5,452,268 
Net cash used in investing activities  (7,138,062)  (1,243,654)
Net cash (used in) provided by financing activities  (596,962)  326,298 
Net (decrease) increase in cash $(213,075) $4,534,912 
         


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
RECONCILIATION FOR GAAP TO NON-GAAP
 
  Three Months Ended Year Ended
  December 31, December 31,
Non-GAAP Financial Data:  2019   2018  2019   2018 
    (as adjusted)  (as adjusted)
Net income $1,291,824  $436,689 $3,323,712  $146,696 
Net interest  18,046   14,209  61,515   46,791 
Depreciation and amortization expense  590,742   374,579  1,899,257   1,556,240 
Tax expense (benefit)  33,110   69,847  48,706   (37,728)
EBITDA $1,933,722  $895,324 $5,333,190  $1,711,999 
Stock compensation expense  183,906   159,025  720,651   628,430 
Acquisition related expenses  11,145   -  47,386   3,950 
Bargain purchase gain  -   17,258  (19,298)  (13,198)
Net (gain) loss on disposition or impairment  (2,423)  -  114,352   594,934 
Adjusted EBITDA $2,126,350  $1,071,607 $6,196,281  $2,926,115