The Joint Corp. Acquires 8 Previously Franchised Clinics and Opens 2 Greenfield Clinics, Increasing the Corporate Portfolio to 74 Clinics
SCOTTSDALE, Ariz., April 06, 2021 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported corporate clinic activity that increased the number of company-owned or managed clinics to 74 as of April 1, 2021.
In January 2021, The Joint Clinic opened one greenfield in the Los Angeles, CA market and on April 1, 2021 opened another greenfield in Yuma, AZ. Also, on April 1, 2021, the company acquired eight previously franchised clinics, all of which are expected to be immediately accretive to the bottom line. Two clinics are in the Phoenix/Scottsdale market and expand the company’s presence in its strong headquarters’ region. Six of the clinics are in North Carolina and resulted from a multi-unit franchisee selling its portfolio of clinics. The North Carolina transaction, made possible by the recent repurchase of regional developer rights for the territory, broadens the company’s foothold in the Southeast. All of these acquisitions were anticipated and included in the company’s guidance as of March 4, 2021, which stated management expects company-owned or managed clinics to increase between 20 and 30, compared to four in 2020, through a combination of both greenfields and franchised clinic purchases.
“We continue to execute our clinic expansion strategy augmenting clinic clusters and leveraging our marketing, operations, and brand recognition,” stated Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “These opportunistic acquisitions further expand our presence in our strong home market and significantly increase our position in the Southeast. As we move through the year, we expect to accelerate building corporate greenfield clinics strategically located within our clusters and new markets. While new greenfield clinics initially suppress the total company earnings, in the long run they are expected to be accretive. We will continue to prioritize growth through greenfield and franchise clinic openings, as we drive toward our goal of 1,000 clinics opened by the end of 2023.”
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, 2020, 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 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., margie.wojciechowski@thejoint.com
Investor Contact: Kirsten Chapman, LHA Investor Relations, 415-433-3777, thejoint@lhai.com
Released April 6, 2021