EXHIBIT 99.1

The Joint Corp. Reports Second Quarter 2020 Financial Results

- Grows Revenue 13%, Compared to Q2 2019 - 
- Increases Total Clinic Count to 539, Opening 13 Clinics in Q2 2020 - 
- Sells 11 Franchise Licenses in Q2 2020 -

SCOTTSDALE, Ariz., Aug. 06, 2020 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the quarter and six months ended June 30, 2020.

Second Quarter Financial Highlights: 2020 Compared to 2019

Operating Achievements Highlights

“Our solid financial performance in the second quarter of 2020 was driven by strong clinic operations, clinic openings and franchise license sales, demonstrating the resiliency of our business model especially in light of the COVID-19 pandemic,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “We provide convenient, affordable chiropractic care, which our patients validate as an essential healthcare service. The need for pain relief - particularly in a natural, holistic way - continues to grow. Our strategy to expand the market through retail clinics continues to build our brand, increase the awareness of chiropractic care and attract new patients. A recent marketing initiative successfully reengaged frozen memberships. A second promotion welcomed new patients, at no charge for their initial visit, resulting in converting those patients to packages and memberships at record levels.”

“Our franchise growth shows the strength of our value proposition. In 2020 through the end of July, we sold 49 franchise licenses and opened 37 clinics, which is both remarkable during this pandemic and indicative of the positive outlook of our business. We remain confident in our ability to adapt, to serve and to grow in this unique environment. We continue to march toward our target of opening 1,000 clinics by the end of 2023. To achieve our goal, we will focus on opening more greenfield clinics to complement franchised clinic growth. Our resilient hybrid business model remains a foundation for long-term growth and shareholder value.”

Financial Results for the Three Months Ended June 30: 2020 Compared to 2019

Revenue was $12.6 million in the second quarter of 2020, compared to $11.2 million in the second quarter of 2019, reflecting a greater number of clinics, which was partially offset by the impact of the pandemic.

Cost of revenue was $1.4 million, compared to $1.3 million in the second quarter of 2019. The increase was in line with the total increase in franchise sales and reflective of higher regional developer royalties and commissions.

Selling and marketing expenses were $1.8 million for both periods, reflecting the timing of advertising spending. General and administrative expenses were $8.5 million, compared to $7.2 million in the second quarter of 2019, primarily due to an increase in payroll and related expenses to support revenue growth and increased clinic count. The company continued to operate its corporate clinics and headquarters without any furloughs or lay-offs while working to increase sanitary measures to ensure patient and employee safety.

Net income was $116,000, or $0.01 per diluted share, compared to $462,000, or $0.03 per diluted share, in the second quarter of 2019.

Adjusted EBITDA was $1.1 million for both periods. 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.

Financial Results for the Six Months Ended June 30: 2020 Compared to 2019

Revenue was $26.2 million in the first six months of 2020, increasing 20% compared to $21.8 million in the same period of 2019. This increase reflects a greater number of clinics and increased gross sales at both franchised and company-owned or managed clinics during the first quarter, which was partially offset by the negative impact of the pandemic during the second quarter.

Net income was $931,000, or $0.06 per diluted share, compared to $1.4 million, or $0.10 per diluted share, in the first six months of 2019.

Adjusted EBITDA was $2.8 million, compared to $2.6 million in the first six months of 2019.

Balance Sheet Liquidity
Unrestricted cash was $14.6 million at June 30, 2020, compared to $8.5 million at December 31, 2019, reflecting $2.7 million borrowed under the CARES Act U.S. Small Business Administration Payroll Protection Program, $2.0 million drawn on a revolving line of credit and $3.0 million in cash flow from operations. The increased liquidity enhances the company’s ability to maintain payroll and manage disruptions caused by the COVID-19 pandemic.

2020 Guidance for Financial Results and Clinic Openings Withdrawn
As announced on March 20, 2020, given the uncertainties of the potential impact from the COVID-19 pandemic, the company withdrew its 2020 financial and clinic opening guidance. The company is not providing an update at this time.

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, August 6, 2020, to discuss the second quarter 2020 results. To gain immediate access to the call, bypass the operator and avoid the queue, you may preregister by clicking here. Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN. Those who prefer to call-in directly, may do so approximately 20 minutes prior to the start time by dialing 706-643-5902 or 888-869-1189 and using reference code 3190497. The accompanying slide presentation will be in the IR section of the website under Presentations and in Events. 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 August 13, 2020. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 3190497.

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, the continuing impact of the COVID-19 outbreak on the economy and our operations (including temporary clinic closures, shortened business hours and reduced patient demand), 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 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, 2019, as updated or revised for any material changes described in any subsequently-filed Quarterly Reports on Form 10-Q or other SEC 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 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
      
  June 30, December 31, 
   2020   2019  
 ASSETS(unaudited)   
 Current assets:    
 Cash and cash equivalents$14,573,266  $8,455,989  
 Restricted cash 235,039   185,888  
 Accounts receivable, net 2,009,480   2,645,085  
 Notes receivable, net - current portion 48,283   128,724  
 Deferred franchise costs - current portion 791,818   765,508  
 Prepaid expenses and other current assets 1,158,267   1,122,478  
   Total current assets 18,816,153   13,303,672  
 Property and equipment, net 8,003,837   6,581,588  
 Operating lease right-of-use asset 12,181,547   12,486,672  
 Deferred franchise costs, net of current portion 3,549,512   3,627,225  
 Intangible assets, net 2,512,057   3,219,791  
 Goodwill 4,150,461   4,150,461  
 Deposits and other assets 394,500   336,258  
  $49,608,067  $43,705,667  
      
 LIABILITIES AND STOCKHOLDERS' EQUITY     
 Current liabilities:    
 Accounts payable$1,456,234  $1,525,838  
 Accrued expenses 629,067   216,814  
 Co-op funds liability 235,039   185,889  
 Payroll liabilities 2,059,602   2,844,107  
 Operating lease liability - current portion 2,700,024   2,313,109  
 Finance lease liability - current portion 68,273   24,253  
 Deferred franchise and regional developer fee revenue - current portion 2,818,607   2,740,954  
 Deferred revenue from company clinics 3,092,574   3,196,664  
 Debt under the Paycheck Protection Program - current portion 1,211,977   -  
 Other current liabilities 565,643   518,686  
   Total current liabilities 14,837,040   13,566,314  
 Operating lease liability - net of current portion 11,484,267   11,901,040  
 Finance lease liability - net of current portion 168,290   34,398  
 Debt under the Credit Agreement and Paycheck Protection Program, net of current portion 3,515,993    
 Deferred franchise and regional developer fee revenue, net of current portion 11,986,489   12,366,322  
 Deferred tax liability 87,107   89,863  
 Other liabilities 27,230   27,230  
   Total liabilities 42,106,416   37,985,167  
 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, 2020 and December 31, 2019 -   -  
 Common stock, $0.001 par value; 20,000,000 shares authorized, 14,042,854 shares issued and 14,026,841 shares outstanding as of June 30, 2020 and 13,898,694 shares issued and 13,882,932 outstanding as of December 31, 2019 14,043   13,899  
 Additional paid-in capital 40,309,186   39,454,937  
 Treasury stock 16,013 shares as of June 30, 2020 and 15,762 shares as of December 31, 2019, at cost (114,815)  (111,041) 
 Accumulated deficit (32,706,863)  (33,637,395) 
   Total The Joint Corp. stockholders' equity 7,501,551   5,720,400  
 Non-controlling Interest 100   100  
 Total equity 7,501,651   5,720,500  
   Total liabilities and stockholders' equity$49,608,067  $43,705,667  
      



THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(unaudited) 
         
 Three Months Ended Six Months Ended 
 June 30,  June 30,  
  2020   2019   2020   2019  
Revenues:        
Revenues from company-owned or managed clinics$6,856,807  $5,777,288  $14,151,102  $11,416,365  
Royalty fees 3,268,653   3,263,530   6,986,883   6,290,346  
Franchise fees 523,964   447,266   1,036,716   864,339  
Advertising fund revenue 930,795   927,800   1,988,413   1,819,367  
Software fees 631,198   377,125   1,276,922   742,361  
Regional developer fees 213,424   200,524   421,066   384,381  
Other revenues 164,952   176,446   373,177   332,197  
  Total revenues 12,589,793   11,169,979   26,234,279   21,849,356  
Cost of revenues:        
Franchise cost of revenues 1,275,191   1,198,378   2,692,682   2,315,431  
IT cost of revenues 92,450   100,771   161,115   189,659  
  Total cost of revenues 1,367,641   1,299,149   2,853,797   2,505,090  
Selling and marketing expenses 1,783,666   1,769,368   3,838,954   3,275,356  
Depreciation and amortization 693,400   404,466   1,347,649   770,143  
General and administrative expenses 8,541,108   7,227,662   17,235,358   13,780,566  
  Total selling, general and administrative expenses 11,018,174   9,401,496   22,421,961   17,826,065  
Net (gain) loss on disposition or impairment (54,606)  (18,266)  (53,413)  86,927  
Income from operations 258,584   487,600   1,011,934   1,431,274  
         
Other income (expense):        
Bargain purchase gain -   -   -   19,298  
Other expense, net (25,243)  (15,126)  (29,581)  (26,771) 
  Total other expense (25,243)  (15,126)  (29,581)  (7,473) 
         
Income before income tax expense 233,341   472,474   982,353   1,423,801  
         
Income tax expense 117,756   10,214   51,821   8,896  
         
Net income and comprehensive income$115,585  $462,260  $930,532  $1,414,905  
         
Less: income attributable to the non-controlling interest$-  $-  $-  $-  
         
Net income attributable to The Joint Corp. stockholders$115,585  $462,260  $930,532  $1,414,905  
         
Earnings per share:        
Basic earnings per share$0.01  $0.03  $0.07  $0.10  
Diluted earnings per share$0.01  $0.03  $0.06  $0.10  
         
Basic weighted average shares 13,980,984   13,797,497   13,935,829   13,774,474  
Diluted weighted average shares 14,491,639   14,477,007   14,487,083   14,390,319  
         



THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
     
     
  Six Months Ended
  June 30,
   2020   2019 
Net income $930,532  $1,414,905 
Adjustments to reconcile net income to net cash   
  provided by operating activities  1,762,247   1,183,708 
Changes in operating assets and liabilities  343,616   238,167 
Net cash provided by operating activities  3,036,395   2,836,780 
Net cash used in investing activities  (1,905,926)  (2,206,240)
Net cash provided by financing activities  5,035,959   128,940 
Net increase in cash $6,166,428  $759,480 
     



THE JOINT CORP. AND SUBSIDIARY AND AFFILATES
RECONCILIATION FOR GAAP TO NON-GAAP
         
 Three Months Ended Six Months Ended 
 June 30, June 30, 
Non-GAAP Financial Data: 2020   2019   2020   2019  
Net income$115,585  $462,260  $930,532  $1,414,905  
Net interest 25,243   15,126   29,580   26,771  
Depreciation and amortization expense 693,400   404,466   1,347,649   770,143  
Tax expense 117,756   10,214   51,821   8,896  
EBITDA$951,984  $892,066  $2,359,582  $2,220,715  
Stock compensation expense 216,080   178,953   466,473   350,724  
Acquisition related expenses   3,200     3,200  
Bargain purchase gain -   -   -   (19,298) 
Net (gain) loss on disposition or impairment (54,606)  (18,266)  (53,413)  86,927  
Adjusted EBITDA$1,113,458  $1,055,953  $2,772,642  $2,642,268  
         


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.