Press Releases

The Joint Corp. Reports 2015 Second Quarter Financial Results

Adds 25 Company-Owned or Managed Clinics Year to Date Through July 31, Including First Greenfield Clinic in July

SCOTTSDALE, Ariz., Aug. 13, 2015 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ:JYNT), a national healthcare operator and franchisor of chiropractic clinics, today reported financial results for the quarter ended June 30, 2015.

Second Quarter 2015 Results Highlights

  • Revenues increased 98% in the second quarter to $3.4 million, as compared to the same quarter last year
  • System wide Comp Sales1 for the second quarter increased by 35%
  • 262 total clinics in operation as of June 30, 2015, an increase of nine clinics from March 31, 2015, and an increase of 47 clinics from June 30, 2014
  • Company-owned or managed clinics increased to 23 through June 30, 2015 
  • Opened first greenfield clinic in Tucson, Ariz. in July, and signed leases to build greenfield clinics in Chicago, Los Angeles and Orange County, Calif.
  • Appointment of James Edwards, D.C. as Chief Chiropractic & Compliance Officer re-affirms the Company's commitment to strong standards for safety and effectiveness across its system. Dr. Edwards is former chairman of the Board of Governors of the American Chiropractic Association and past president of the Kansas State Board of Chiropractic

"We are very pleased with the progress we made during the quarter. We added 11 company-owned or managed clinics in the second quarter, bringing the total number of clinics opened at June 30, 2015, to 262, which helped generate strong year over year revenue growth in the quarter," remarked John B. Richards, chief executive officer of The Joint Corp. "We opened our first greenfield clinic in July and are executing well against our strategy of becoming the leader in the national market for core chiropractic adjustment services through the development of conveniently located, private pay, cash/credit cards-only, clinics that truly provide affordable and convenient care."   

Mr. Richards continued, "Our recent acquisition of a managed unit in upstate New York, together with the acquisition of the regional developer license for New York State sets the stage for further expansion in the northeast, including the country's number one metropolitan statistical area (MSA), New York. Consistent with our expansion and penetration strategy, I am delighted to announce at this time that the company will be entering the country's third largest MSA, Chicago. We have executed leases in this critical market and expect to open a number of managed clinics in the Chicago area during 2015."

Second Quarter 2015 Financial Results

Revenues for the second quarter of 2015 increased 98% to $3.4 million from $1.7 million in the second quarter of the prior year due to organic growth as well as the acquisition of 23 company-owned or managed clinics through June 30, 2015 and an increase in the number of franchised clinics from 215 at June 30, 2014, to 239 at June 30, 2015. Revenue growth was partially offset by a reduction in initial franchise fees as the result of fewer franchised clinics opening during the second quarter of 2015 compared to the same quarter the previous year.

Total cost of revenues in the second quarter of 2015 increased 43% due primarily to increased regional developer commissions on franchise license terminations in the quarter. Total cost of revenues as a percentage of sales decreased to 23% in the second quarter of 2015 from 32% in the second quarter last year due to the addition of revenue in 2015 from company-owned or managed clinics, along with lower regional developer commissions from fewer clinics opened during the period.

Selling and marketing expenses increased to $0.8 million in the second quarter of 2015 compared to $253,612 in the second quarter last year due to increased advertising fund expense as the Company continues to roll out its national marketing campaign.

General and administrative expenses increased to $3.4 million in the second quarter of 2015, compared to $1.1 million in the second quarter of 2014, due to an increase in the number of employees to support the company's growth initiatives, an increase in professional fees for both acquisition related expenses and public company operations, and to a lesser extent, an increase in occupancy costs primarily due to the acquisition of franchises.

Depreciation and amortization expenses increased for the first quarter of 2015, compared to the same period last year due to the addition of fixed assets and intangible assets relating to acquisitions of franchises and regional developer rights.

Operating loss in the second quarter of 2015 was $(1.8) million, compared to an operating loss of $(0.2) million in the second quarter of 2014. Net loss in the second quarter of 2015 was $(1.9) million, or $(0.19) per share, compared to a net loss of $(133,749) or $(0.03) per share, in the same quarter last year.

Adjusted EBITDA in the second quarter of 2015 was ($1.3) million, compared to ($0.2) million in the same quarter the prior year.

As of June 30, 2015, cash and cash equivalents were $12.6 million, compared to $20.8 million at December 31, 2014.

2015 Financial Guidance

The Joint Corp. is re-affirming full year 2015 guidance as indicated below:

  • Total revenues in the range of $13 million to $14 million
  • Adjusted EBITDA loss in the range of $(7.1) million to $(7.5) million.
  • Net new clinic openings in the range of 65 to 75, including 38 to 42 company-owned or managed clinics and 45 to 55 franchised clinics.     

Conference Call

The Joint Corp. management will host a conference call at 11:00 a.m. ET on Friday, August 14, 2015 to discuss results for the 2015 second quarter. The conference call will be accessible by dialing 844-464-3931 (U.S.) or 765-507-2604 (international), and referencing 89641035. A live webcast of the conference call will also be available on the investor relations section of the company's website at

An audio replay will be available two hours after the conclusion of the call through August 21, 2015. The replay can be accessed by dialing (855) 859-2056 or (404) 537-3406. The passcode for the replay is 89641035.

Non-GAAP Financial Information

This earnings release includes a presentation of EBITDA and Adjusted EBITDA, which are 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. Reconciliations of net loss to EBITDA and Adjusted EBITDA are presented within the tables below. The company defines adjusted EBITDA as EBITDA before acquisition-related expenses, as well as stock-based compensation expense. The company defines EBITDA as net income (loss) before net interest, taxes, depreciation and amortization expense.

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 frequently 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.

1Comp Sales include only the sales from clinics that have been open at least 13 full months and exclude any clinics that have closed.

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 corporate clinics as rapidly as we intend, our failure to profitably operate corporate clinics, and the factors described in "Risk Factors" in The Joint Corps.' Registration Statement on Form S-1. 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.

Based in Scottsdale, Ariz., The Joint Chiropractic is reinventing chiropractic care by making quality alternative healthcare affordable for patients seeking pain relief and ongoing wellness. Our membership plans and packages eliminate the need for insurance, and our no-appointment policy, convenient hours and locations make care more accessible. The Joint performs more than two million spinal adjustments a year across 260+ clinics nationwide. For more information, visit, follow us on Twitter @thejointchiro and find us on Facebook, YouTube and LinkedIn.

  June 30, December 31,
  2015 2014
ASSETS (unaudited)  
Current assets:    
Cash and cash equivalents  $ 12,579,991  $ 20,796,783
Restricted cash  281,968  224,576
Accounts receivable, net  458,914  704,905
Income taxes receivable  292,730  395,814
Note receivable - current portion  17,768  27,528
Deferred franchise costs - current portion  597,970  622,800
Deferred tax asset - current portion  208,800  208,800
Prepaid expenses and other current assets  97,195  375,925
Total current assets  14,535,336  23,357,131
Property and equipment, net  2,691,042  1,134,452
Note receivable, net of current portion and reserve  27,942  31,741
Deferred franchise costs, net of current portion  1,894,930  2,574,450
Intangible assets, net  2,021,136  153,000
Goodwill  2,747,668  636,104
Deposits and other assets  118,073  585,150
Total assets  $ 24,036,127  $ 28,472,028
Current liabilities:    
Accounts payable and accrued expenses  $ 1,452,076  $ 1,271,405
Co-op funds liability  281,857  186,604
Payroll liabilities  874,825  617,944
Notes payable - current portion  479,400  -- 
Deferred rent - current portion  98,053  93,398
Deferred revenue - current portion  2,080,787  1,957,500
Other current liabilities  48,691  50,735
Total current liabilities  5,315,689  4,177,586
Notes payable, net of current portion  140,000  -- 
Deferred rent, net of current portion  410,755  451,766
Deferred revenue, net of current portion  5,734,709  7,915,918
Other liabilities  277,715  299,405
 Total liabilities  11,878,868  12,844,675
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, 2015, and December 31, 2014  --   -- 
Common stock, $0.001 par value; 20,000,000 shares authorized, 10,333,534 shares issued and 9,799,534 shares outstanding as of June 30, 2015 and 10,196,502 shares issued and 9,662,502 outstanding as of December 31, 2014  10,333  10,197
Additional paid-in capital  21,710,338  21,420,975
Treasury stock (534,000 shares as of June 30, 2015 and December 31, 2014, at cost)  (791,638)  (791,638)
Accumulated deficit  (8,771,774)  (5,012,181)
Total stockholders' equity  12,157,259  15,627,353
Total liabilities and stockholders' equity  $ 24,036,127  $ 28,472,028
  Three Months Ended Six Months Ended
  June 30, June 30,
  2015 2014 2015 2014
Royalty fees  $ 1,098,190  $ 753,265  $ 2,113,704  $ 1,361,591
Franchise fees  876,259  570,500  1,224,259  1,034,500
Revenues and management fees from company clinics  783,016  --   1,170,469  -- 
Advertising fund revenue  339,462  29,376  624,978  116,110
IT related income and software fees  197,214  211,200  401,189  410,825
Regional developer fees  50,750  116,000  268,250  224,750
Other revenues  81,855  51,494  131,796  96,895
Total revenues  3,426,746  1,731,835  5,934,645  3,244,671
Cost of revenues:        
Franchise cost of revenues  743,592  490,298  1,251,158  949,074
IT cost of revenues  48,226  63,915  85,921  135,663
Total cost of revenues  791,818  554,213  1,337,079  1,084,737
Selling and marketing expenses  790,001  253,612  1,757,024  399,778
Depreciation and amortization  278,502  48,819  401,098  88,885
General and administrative expenses  3,412,484  1,084,346  6,200,726  2,050,640
Total selling, general and administrative expenses  4,480,987  1,386,777  8,358,848  2,539,303
Loss from operations  (1,846,059)  (209,155)  (3,761,282)  (379,369)
Other income (expense), net  (9,811)  (3,800)  1,689  (3,800)
Loss before income tax benefit  (1,855,870)  (212,955)  (3,759,593)  (383,169)
Income tax benefit  --   79,206  --   121,523
Net loss and comprehensive loss $ (1,855,870)  $ (133,749) $(3,759,593)  $ (261,646)
Loss per share:        
Basic and diluted loss per share  $ (0.19)  $ (0.03)  $ (0.39)  $ (0.05)
Weighted average shares  9,768,230  4,819,902  9,734,115  4,815,754
Non-GAAP Financial Data:        
Net loss  (1,855,870)  (133,749)  (3,759,593)  (261,646)
Interest expense  3,289  --   3,817  -- 
Depreciation and amortization expense  278,502  48,819  401,098  88,885
Tax expense (benefit) penalties and interest  --   (79,206)  --   (121,523)
EBITDA  $ (1,574,079)  $ (164,136) $(3,354,678)  $ (294,284)
Stock compensation  157,212  12,322  289,499  27,922
Acquisition related expenses  136,544  --   279,253  -- 
Adjusted EBITDA  $ (1,280,323)  $ (151,814) $(2,785,926)  $ (266,362)
  Six Months Ended
  June 30,
  2015 2014
   (unaudited)  (unaudited)
Net loss  $ (3,759,593)  $ (261,646)
Adjustments to reconcile net loss to net cash 180,692 20,219
Changes in operating assets and liabilities  1,035,333  515,245
Net cash (used in) provided by operating activities  (2,543,568)  273,818
Net cash used in investing activities  (5,648,224)  (529,902)
Net cash used in financing activities  (25,000)  -- 
Net decrease in cash  $ (8,216,792)  $ (256,084)
CONTACT: Investor Contact:
         Peter Vozzo
         [email protected]

         Media Contact:
         Marcia Rhodes
         [email protected]
         480-664-8412, ext. 15

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Source: The Joint Corp.