EXHIBIT 99.1

The Joint Corp. Reports Second Quarter 2022 Financial Results

- Grew Revenue 24%, System-wide Sales 21%, and System-wide Comp Sales 8% vs. Q2 2021 -
- Opened 34 Clinics, Bringing Total Clinics to 769 -
- Sold 24 Franchise Licenses, Bringing the Year-to-Date Total to 46 -

SCOTTSDALE, Ariz., Aug. 04, 2022 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended June 30, 2022.

Financial Highlights: Q2 2022 Compared to Q2 2021

“During the second quarter of 2022, we demonstrated marked improvement over the first quarter of 2022. Our clinic and revenue growth momentum continues, which is significant when compared to the record breaking second quarter of 2021 that included the exceptional rebound from the pandemic,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “To manage the tight labor market, we continue to strive to be the chiropractic employer of choice by further enhancing our culture, providing training and benefits, and increasing compensation. To further marketing, we are implementing tactics to enhance our digital marketing efforts and increase our new patients counts. And, to expand responsibly, we are closely monitoring our system to ensure we uphold our clinic performance standards while we accelerate our pace of clinic growth. Our performance continues to prove the resiliency and underlying strength of our business model, which gives us confidence in our ability to drive bottom-line improvement and increase long-term value for franchisees, employees and shareholders.”  

Operating Highlights

Financial Results: Second Quarter 2022 Compared to Second Quarter 2021

Revenue was $25.1 million in the second quarter of 2022, compared to $20.2 million in the second quarter of 2021. The increase reflects a greater number of franchised and corporate clinics and continued organic growth. Cost of revenue was $2.4 million, compared to $2.0 million in the second quarter of 2021, reflecting the increased number of franchised clinics, higher RD royalties and commissions, and the greater website hosting costs related to the new IT platform, which went live in July 2021.

Selling and marketing expenses were $3.8 million, up 23%, driven by the increase in the advertising expenses from the larger number of franchised and company-owned or managed clinics. Depreciation and amortization expenses increased for the second quarter of 2022, as compared to the prior year period, primarily due to the depreciation expenses associated with the new IT platform and continued greenfield development.

General and administrative expenses were $16.5 million, compared to $11.6 million in the second quarter of 2021, reflecting increases in costs to support clinic growth, in payroll to remain competitive in the tight labor market, and in IT expenses.

Operating income was $473,000, compared to $2.0 million in the second quarter of 2021. Income tax expense was $109,000, compared to a benefit of $666,000 in the second quarter of 2021. Net income was $345,000, or $0.02 per diluted share, compared to $2.7 million, or $0.18 per diluted share, in the second quarter of 2021.

Adjusted EBITDA was $2.6 million, compared to $3.8 million in the second quarter of 2021. 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: 2022 Compared to 2021

Revenue was $47.5 million in the first six months of 2022, compared to $37.8 million in the first six months of 2021. Net income was $139,000, or $0.01 per diluted share, compared to $5.0 million, or $0.34 per diluted share, in the first six months of 2021. Adjusted EBITDA was $4.4 million, compared to $7.2 million in the first six months of 2021.

Balance Sheet Liquidity

Unrestricted cash was $9.4 million at June 30,2022, compared to $19.5 million at December 31, 2021. During the first half of the year, investing activities of $11.4 million, consisting of the acquisition of RD territory rights, clinic acquisitions, and greenfield developments, which were partially offset by $1.5 million provided by operating activities, caused the majority of the decrease in unrestricted cash.

2022 Guidance

Management reaffirmed its 2022 guidance.

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, August 4, 2022, to discuss the second quarter 2022 financial results. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 1-877-270-2148 or 412-902-6510 and referencing code 3438487 approximately 15 minutes prior to the start time.

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 for one week. The replay can be accessed by dialing 877-344-7529 or 412-317-0088 and entering conference ID 3438487.

Commonly Discussed Performance Metrics
This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues 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 revenues 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.

Non-GAAP Financial Information
This release also includes a presentation of non-GAAP financial measures. 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 a 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), inflation, exacerbated by COVID-19 and the current war in Ukraine, 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, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage, short-selling strategies and negative opinions posted on the internet which could drive down the market price of our common stock and result in class action lawsuits, our failure to remediate the current or future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence, and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 14, 2022 and subsequently-filed current and quarterly reports. 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.

Management has disclosed in our Form 10-K that our management concluded that our internal controls over financial reporting were not effective as of December 31, 2021, and our auditors expressed an adverse opinion on the Company’s internal control over financial reporting as of December 31, 2021, due to a material weakness. The details of this material weakness were provided in our 10-K filing.  We have undertaken remediation measures to address the material weakness, which we expect will be completed prior to the end of fiscal year 2022.

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, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. 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 750 locations nationwide and nearly 11 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. Ranked number one on Forbes’ 2022 America's Best Small Companies list, number three on Fortune’s 100 Fastest-Growing Companies list and consistently named to Franchise Times “Top 400+ 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)

 June 30,
2022		 December 31,
2021
ASSETS(unaudited)  
Current assets:   
Cash and cash equivalents$9,370,611  $19,526,119 
Restricted cash 664,979   386,219 
Accounts receivable, net 3,560,486   3,700,810 
Deferred franchise and regional development costs, current portion 974,866   994,587 
Prepaid expenses and other current assets 2,548,924   2,281,765 
Assets held for sale 587,419   — 
Total current assets 17,707,285   26,889,500 
Property and equipment, net 16,055,493   14,388,946 
Operating lease right-of-use asset 19,793,363   18,425,914 
Deferred franchise and regional development costs, net of current portion 5,698,545   5,505,420 
Intangible assets, net 9,114,701   5,403,390 
Goodwill 8,050,578   5,085,203 
Deferred tax assets 9,116,248   9,188,634 
Deposits and other assets 699,581   567,202 
Total assets$86,235,794  $85,454,209 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$1,571,823  $1,705,568 
Accrued expenses 1,334,414   1,809,460 
Co-op funds liability 664,979   386,219 
Payroll liabilities ($0.5 million and $0.4 million attributable to VIE) 1,862,529   3,906,317 
Operating lease liability, current portion 4,928,765   4,613,843 
Finance lease liability, current portion 23,920   49,855 
Deferred franchise and regional developer fee revenue, current portion 2,981,534   3,191,892 
Deferred revenue from company clinics ($3.6 million and $3.5 million attributable to VIE) 5,829,652   5,235,745 
Other current liabilities 558,250   539,500 
Liabilities to be disposed of 482,944   — 
Total current liabilities 20,238,810   21,438,399 
Operating lease liability, net of current portion 17,962,952   16,872,093 
Finance lease liability, net of current portion 75,853   87,939 
Debt under the Credit Agreement 2,000,000   2,000,000 
Deferred franchise and regional developer fee revenue, net of current portion 15,447,554   15,458,921 
Other liabilities 27,230   27,230 
Total liabilities 55,752,399   55,884,582 
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, 2022 and December 31, 2021 —   — 
Common stock, $0.001 par value; 20,000,000 shares authorized, 14,526,417 shares issued and 14,494,700 shares outstanding as of June 30, 2022 and 14,451,355 shares issued and 14,419,712 outstanding as of December 31, 2021 14,526   14,450 
Additional paid-in capital 44,677,501   43,900,157 
Treasury stock 31,717 shares as of June 30, 2022 and 31,643 shares as of December 31, 2021, at cost (853,436)  (850,838)
Accumulated deficit (13,380,196)  (13,519,142)
Total The Joint Corp. stockholders' equity 30,458,395   29,544,627 
Non-controlling Interest 25,000   25,000 
Total equity 30,483,395   29,569,627 
Total liabilities and stockholders' equity$86,235,794  $85,454,209 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)

 Three Months Ended
June 30,		 Six Months Ended
June 30,
  2022   2021   2022   2021 
Revenues:       
Revenues from company-owned or managed clinics$14,492,972  $11,433,072  $27,099,971  $20,903,933 
Royalty fees 6,411,214   5,332,618   12,420,146   10,101,862 
Franchise fees 686,886   623,655   1,327,851   1,319,082 
Advertising fund revenue 1,825,757   1,518,908   3,536,474   2,893,650 
Software fees 1,099,981   786,037   2,056,979   1,546,574 
Regional developer fees 169,953   214,434   371,740   432,390 
Other revenues 370,555   310,074   682,695   569,271 
Total revenues 25,057,318   20,218,798   47,495,856   37,766,762 
Cost of revenues:       
Franchise and regional development cost of revenues 2,074,889   1,786,833   4,077,701   3,411,404 
IT cost of revenues 352,156   251,705   662,115   392,450 
Total cost of revenues 2,427,045   2,038,538   4,739,816   3,803,854 
Selling and marketing expenses 3,839,724   3,132,715   7,127,212   5,622,043 
Depreciation and amortization 1,700,476   1,443,018   3,329,653   2,612,884 
General and administrative expenses 16,528,022   11,614,444   31,906,644   21,701,047 
Total selling, general and administrative expenses 22,068,222   16,190,177   42,363,509   29,935,974 
Net loss (gain) on disposition or impairment 88,844   (44,260)  95,749   20,508 
Income from operations 473,207   2,034,343   296,782   4,006,426 
Other expense, net (19,286)  (16,373)  (35,434)  (37,909)
Income before income tax expense (benefit) 453,921   2,017,970   261,348   3,968,517 
Income tax expense (benefit) 109,179   (665,992)  122,403   (1,030,140)
Net income$344,742  $2,683,962  $138,945  $4,998,657 
Earnings per share:       
Basic earnings per share$0.02  $0.19  $0.01  $0.35 
Diluted earnings per share$0.02  $0.18  $0.01  $0.34 
Basic weighted average shares 14,475,825   14,290,697   14,454,738   14,234,929 
Diluted weighted average shares 14,842,816   14,927,451   14,887,238   14,901,863 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

 Six Months Ended
June 30,
  2022   2021 
Cash flows from operating activities:   
Net income$138,945  $4,998,657 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 3,329,653   2,612,884 
Net loss on disposition or impairment 95,749   109,519 
Net franchise fees recognized upon termination of franchise agreements (15,218)  (81,196)
Deferred income taxes 72,386   (1,380,631)
Stock based compensation expense 663,747   530,058 
Changes in operating assets and liabilities:   
Accounts receivable 140,324   (954,888)
Prepaid expenses and other current assets (267,159)  (24,423)
Deferred franchise costs (193,784)  (881,891)
Deposits and other assets (132,379)  (53,096)
Accounts payable (397,040)  (162,524)
Accrued expenses (823,079)  130,609 
Payroll liabilities (2,043,788)  1,848,378 
Deferred revenue 492,473   1,757,294 
Other liabilities 404,330   565,779 
Net cash provided by operating activities 1,465,160   9,014,529 
    
Cash flows from investing activities:   
Acquisition of AZ clinics (5,600,000)  (1,925,000)
Acquisition of NC clinics —   (2,325,000)
Purchase of property and equipment (3,164,961)  (3,238,959)
Reacquisition and termination of regional developer rights (2,650,000)  (1,388,700)
Net cash used in investing activities (11,414,961)  (8,877,659)
    
Cash flows from financing activities:   
Payments of finance lease obligation (38,022)  (38,593)
Purchases of treasury stock under employee stock plans (2,598)  (618,154)
Proceeds from exercise of stock options 113,673   1,262,563 
Repayment of debt under the Paycheck Protection Program —   (2,727,970)
Net cash provided by (used in) financing activities 73,053   (2,122,154)
    
Decrease in cash, cash equivalents and restricted cash (9,876,748)  (1,985,284)
Cash, cash equivalents and restricted cash, beginning of period 19,912,338   20,819,629 
Cash, cash equivalents and restricted cash, end of period$10,035,590  $18,834,345 
    
Reconciliation of cash, cash equivalents and restricted cash:June 30,
2022		 June 30,
2021
Cash and cash equivalents$9,370,611  $18,521,042 
Restricted cash 664,979   313,303 
 $10,035,590  $18,834,345 


THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
RECONCILIATION FOR GAAP TO NON-GAAP
(unaudited)

 Three Months Ended June 30, Six Months Ended June 30,
  2022  2021   2022  2021 
Non-GAAP Financial Data:       
Net income$344,742 $2,683,962  $138,945 $4,998,657 
Net interest expense 19,286  16,373   35,433  37,909 
Depreciation and amortization expense 1,700,476  1,443,018   3,329,653  2,612,884 
Tax expense (benefit) 109,179  (665,992)  122,403  (1,030,140)
EBITDA 2,173,683  3,477,361   3,626,434  6,619,310 
Stock compensation expense 340,191  283,564   663,747  530,058 
Acquisition related expenses 31,874  39,373   31,586  45,346 
Loss(gain) on disposition or impairment 88,844  (44,260)  95,749  20,508 
Adjusted EBITDA$2,634,592 $3,756,038  $4,417,516 $7,215,222 


1 System-wide sales include revenues at all clinics, whether operated or managed 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 revenues 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 revenues 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.