EXHIBIT 99.1

The Joint Corp. Reports Fourth Quarter and Full Year 2020 Financial Results

- Grows Revenue 23% Quarterly and 21% Annually, Compared to 2019 -
- Reports Record Annual Operating Income of $5.5 Million, Up 61% Compared to 2019 -
- Posts Record Adjusted EBITDA of $9.1 Million, Up 47% Compared to 2019 -
- Increases Total Clinic Count to 579, Opening 21 Clinics in Q4 2020, Compared to 25 in Q4 2019 -
- Sells Record 56 Franchise Licenses in Q4 2020, Up from 23 in Q4 2019 -

SCOTTSDALE, Ariz., March 04, 2021 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the quarter and full year ended December 31, 2020.

Financial Highlights: Q4 2020 Compared to Q4 2019

Financial Highlights: 2020 Compared to 2019

2020 Operating Highlights

“Our operating and financial results for 2020 reflect both the resiliency of our business model throughout the pandemic and the commitment of our clinic staff to care for our patients,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “In adapting to the pandemic, the primary change to our operational practices was to increase sanitization and cleanliness procedures. However, our core concept has remained steadfast. Once again, we increased our productivity, resulting in improved clinic performance and greater company profitability. As a result, our Adjusted EBITDA, positive for the third consecutive year, exceeded our plan and further strengthened our foundation, closing 2020 with a record bottom line.”

“We enter 2021 with reignited growth momentum. We will prioritize franchised clinic and greenfield clinic openings as we accelerate growth and drive toward our goal of 1,000 clinics opened by the end of 2023,” concluded Holt.

Financial Results for the Three Months Ended December 31: 2020 Compared to 2019

Revenue was $17.0 million in the fourth quarter of 2020, compared to $13.9 million in the prior year, reflecting a greater number of clinics and continued organic growth. Cost of revenue was $1.9 million, compared to $1.6 million in the fourth quarter of 2019. The increase was in line with the total increase in franchise royalty revenues and reflects higher regional developer royalties and commissions.

Selling and marketing expenses were $2.1 million, increasing 15%, reflecting the timing of advertising spending. General and administrative expenses were $9.5 million, compared to $8.5 million in 2019, primarily due to an increase in payroll and related expenses to support revenue growth and a greater number of clinics.

Operating income was $2.8 million, compared to $1.3 million in 2019. Tax benefit was $7.9 million, driven by the reversal of the tax valuation allowance of $8.9 million, compared with the tax expense of $33 thousand in 2019. Net income, including the benefit from the reversal of the tax valuation allowance, was $10.6 million, or $0.72 per diluted share, compared to $1.3 million, or $0.09 per diluted share, in the fourth quarter of 2019.

Adjusted EBITDA was also a record for the company at $3.7 million, compared to $2.1 million in the prior 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 before net interest, tax expense, depreciation, and amortization expenses.

Financial Results for the Full Year Ended December 31: 2020 Compared to 2019

Revenue was $58.7 million in 2020, increasing 21% compared to $48.5 million in 2019, reflecting a greater number of clinics and increased gross sales at existing franchised and company-owned or managed clinics.

Operating income was $5.5 million, compared to $3.4 million in 2019. Net income, including the aforementioned $8.9 million benefit from the reversal of the tax valuation allowance, was $13.2 million, or $0.90 per diluted share, compared to $3.3 million, or $0.23 per diluted share, in 2019.

Adjusted EBITDA was $9.1 million, compared to $6.2 million in 2019.

Balance Sheet Liquidity

Unrestricted cash was $20.6 million at December 31, 2020, compared to $8.5 million at December 31, 2019. The increase primarily reflects $11.2 million in cash flow from operating activities, $2.7 million borrowed under the CARES Act U.S. Small Business Administration Payroll Protection Program (PPP), and $2.0 million drawn on a revolving line of credit, which was partially offset by $4.6 million used in investing activities in 2020. Subsequent to quarter end, the company repaid the PPP loan of $2.7 million, which will be reflected in the March 31, 2021 balance sheet.

2021 Guidance for Financial Results and Clinic Openings

Management provided full year 2021 guidance and expects the following:

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, March 4, 2021, to discuss the fourth quarter and year-end 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 8161418. 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 March 11, 2021. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 8161418.

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 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, and in our Annual Report on Form 10-K for the year ended December 31, 2020 expected to be filed with the SEC on or around March 5, 2021. 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 nearly 600 locations nationwide and over eight 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, 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,
  2020   2019 
ASSETS   
Current assets:   
Cash and cash equivalents$20,554,258  $8,455,989 
Restricted cash 265,371   185,888 
Accounts receivable, net 1,850,499   2,645,085 
Notes receivable, net -   128,724 
Deferred franchise and regional development costs, current portion 897,551   765,508 
Prepaid expenses and other current assets 1,566,025   1,122,478 
Total current assets 25,133,704   13,303,672 
Property and equipment, net 8,747,369   6,581,588 
Operating lease right-of-use asset 11,581,435   12,486,672 
Deferred franchise and regional development costs, net of current portion 4,340,756   3,627,225 
Intangible assets, net 2,865,006   3,219,791 
Goodwill 4,625,604   4,150,461 
Deferred tax assets 8,007,633   - 
Deposits and other assets 431,336   336,258 
Total assets$65,732,843  $43,705,667 
    
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:   
Accounts payable$1,561,648  $1,525,838 
Accrued expenses 770,221   216,814 
Co-op funds liability 248,468   185,889 
Payroll liabilities 2,776,036   2,844,107 
Operating lease liability, current portion 2,918,140   2,313,109 
Finance lease liability, current portion 70,507   24,253 
Deferred franchise and regional development fee revenue, current portion 3,000,369   2,740,954 
Deferred revenue from company clinics 3,905,200   3,196,664 
Debt under the Paycheck Protection Program 2,727,970   - 
Other current liabilities 707,085   518,686 
Total current liabilities 18,685,644   13,566,314 
Operating lease liability, net of current portion 10,632,672   11,901,040 
Finance lease liability, net of current portion 132,469   34,398 
Debt under the Credit Agreement 2,000,000   - 
Deferred franchise and regional development fee revenue, net of current portion 13,503,745   12,366,322 
Deferred tax liability -   89,863 
Other liabilities 27,230   27,230 
Total liabilities 44,981,760   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 December 31, 2020 and 2019 -   - 
Common stock, $0.001 par value; 20,000,000 shares authorized, 14,174,237 shares issued and 14,157,070 shares outstanding as of December 31, 2020 and 13,898,694 shares issued and 13,882,932 outstanding as of December 31, 2019 14,174   13,899 
Additional paid-in capital 41,350,001   39,454,937 
Treasury stock 17,167 shares as of December 31, 2020 and 15,762 shares as of December 31, 2019, at cost (143,111)  (111,041)
Accumulated deficit (20,470,081)  (33,637,395)
Total The Joint Corp. stockholders' equity 20,750,983   5,720,400 
Non-controlling Interest 100   100 
Total equity 20,751,083   5,720,500 
Total liabilities and stockholders' equity$65,732,843  $43,705,667 
    

 

 
THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED INCOME STATEMENTS
 
        
 Three Months Ended Year Ended
 December 31, December 31,
  2020   2019   2020   2019 
Revenues:       
Revenues from company-owned or managed clinics$9,216,342  $7,561,644  $31,771,288  $25,807,584 
Royalty fees 4,728,476   3,819,554   15,886,051   13,557,170 
Franchise fees 544,954   385,868   2,100,800   1,791,545 
Advertising fund revenue 1,330,333   1,086,479   4,506,413   3,884,055 
Software fees 729,552   609,068   2,694,520   1,865,779 
Regional developer fees 232,830   209,234   876,804   803,849 
Other revenues 255,657   203,322   847,100   740,918 
Total revenues 17,038,144   13,875,169   58,682,976   48,450,900 
Cost of revenues:       
Franchise and regional developer cost of revenues 1,808,814   1,525,381   6,090,203   5,159,778 
IT cost of revenues 132,612   108,578   417,265   406,139 
Total cost of revenues 1,941,426   1,633,959   6,507,468   5,565,917 
Selling and marketing expenses 2,119,864   1,845,124   7,804,420   6,913,709 
Depreciation and amortization 672,525   590,742   2,734,462   1,899,257 
General and administrative expenses 9,527,397   8,464,787   36,195,817   30,543,030 
Total selling, general and administrative expenses 12,319,786   10,900,653   46,734,699   39,355,996 
Net loss (gain) on disposition or impairment 2,092   (2,423)  (51,321)  114,352 
Income from operations 2,774,840   1,342,980   5,492,130   3,414,635 
        
Other (expense) income:       
Bargain purchase gain -   -   -   19,298 
Other expense, net (24,230)  (18,046)  (79,478)  (61,515)
Total other expense (24,230)  (18,046)  (79,478)  (42,217)
        
Income before income tax (benefit) expense 2,750,610   1,324,934   5,412,652   3,372,418 
        
Income tax (benefit) expense (7,882,213)  33,110   (7,754,662)  48,706 
        
Net income and comprehensive income$10,632,823  $1,291,824  $13,167,314  $3,323,712 
        
Less: income attributable to the non-controlling interest$-  $-  $-  $- 
        
Net income attributable to The Joint Corp. stockholders$10,632,823  $1,291,824  $13,167,314  $3,323,712 
        
Earnings per share:       
Basic earnings per share$0.75  $0.09  $0.94  $0.24 
Diluted earnings per share$0.72  $0.09  $0.90  $0.23 
        
Basic weighted average shares 14,108,164   13,880,146   14,003,708   13,819,149 
Diluted weighted average shares 14,716,658   14,538,338   14,582,877   14,467,567 
        

 

 
THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Year Ended
  December 31,
   2020   2019 
Net income $13,167,314  $3,323,712 
Adjustments to reconcile net income to net cash provided by operating activities (4,532,946)  2,602,799 
Changes in operating assets and liabilities  2,548,874   1,595,438 
Net cash provided by operating activities  11,183,242   7,521,949 
Net cash used in investing activities  (4,601,009)  (7,138,062)
Net cash provided by (used in) financing activities 5,595,519   (596,962)
Net increase (decrease) in cash $12,177,752  $(213,075)
     


 
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: 2020   2019   2020   2019 
Net income$10,632,823  $1,291,824  $13,167,314  $3,323,712 
Net interest 24,230   18,046   79,478   61,515 
Depreciation and amortization expense 672,525   590,742   2,734,462   1,899,257 
Income tax (benefit) expense (7,882,213)  33,110   (7,754,662)  48,706 
EBITDA$3,447,365  $1,933,722  $8,226,592  $5,333,190 
Stock compensation expense 207,269   183,906   885,975   720,651 
Acquisition related expenses 41,716   11,145   41,716   47,386 
Bargain purchase gain -   -   -   (19,298)
Net loss (gain) on disposition or impairment 2,092   (2,423)  (51,321)  114,352 
Adjusted EBITDA$3,698,442  $2,126,350  $9,102,962  $6,196,281 
        

___________________
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.