Company Overview - The Joint Corp. (JYNT) shares increased by 10% to $12.43 in the last trading session, following a higher-than-average trading volume, contrasting with a 2% loss over the previous four weeks [1] - The company has a strong retail and consumer-driven approach, emphasizing convenience and affordability through extended hours and a no-appointment model [2] - The Joint has demonstrated a proven track record of clinic growth, a market-leading position, and a scalable franchising system with extensive geographic reach [2] Financial Performance - In the fourth quarter of 2024, The Joint reported earnings from continuing operations of 6 cents per share, matching the Zacks Consensus Estimate, a significant improvement from a loss of 68 cents per share in the same period last year [3] - The company opened 57 new clinics, refranchised three, and closed 18 clinics (including three relocations) in 2024 [3] - Patient volumes increased to 14.7 million visits in 2024, up from 13.6 million in 2023 [3] - The Joint anticipates system-wide sales for 2025 to be between $550 million and $570 million, an increase from $530.3 million in 2024 [3] Earnings Expectations - The upcoming quarterly report is expected to show a loss of $0.02 per share, representing a year-over-year change of -133.3%, with revenues projected at $12.76 million, down 57.1% from the previous year [4] - The consensus EPS estimate for the quarter has been revised 175% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [5] Industry Context - The Joint is part of the Zacks Medical - HMOs industry, where Centene (CNC) also operates, closing the last trading session at $59.23, down 0.7% [5] - Centene's consensus EPS estimate for its upcoming report has increased by 3.1% over the past month to $2.20, representing a year-over-year change of -2.7% [6]

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Financial Performance - In 2024, the company delivered over 14.7 million patient visits, generating system-wide sales of over $530.3 million, an increase from 13.6 million visits and $488 million in 2023[23]. - From January 2012 to December 31, 2024, the company increased annual system-wide sales from $22.3 million to $530.3 million, while the number of clinics grew from 33 to 967[47]. - The company reported a 4% increase in annual comparable sales for clinics open for at least 13 months in 2024, while clinics open for over 48 months experienced a decline of 2%[117]. - The company experienced net losses in both 2023 and 2024, following profitability from 2018 through 2022, indicating challenges in achieving sustainable profitability[144]. - The company anticipates continued challenges from labor costs and inflation, which have negatively impacted general and administrative expenses in 2023 and 2024[213]. Clinic Operations and Expansion - As of December 31, 2024, the company operated 967 clinics, up from 8 clinics in March 2010, with an additional 92 franchise licenses sold and 53 letters of intent for future clinics[24]. - The company operates 967 franchised or company-owned clinics across 41 states and the District of Columbia as of December 31, 2024[107]. - The company has granted franchises for an additional 92 clinics and executed letters of intent for 53 future clinic licenses, supporting ongoing expansion efforts[62]. - The company plans to continue its refranchising strategy, having received significant interest from multi-unit operators and private equity firms for its clinics[207]. - The company initiated a refranchising plan for the majority of its company-owned or managed clinics, retaining a small portion of high-performing clinics, with significant interest from private equity firms[219]. Patient Engagement and Market Position - The company attracted an average of 992 new patients per clinic in 2024, compared to the chiropractic industry average of 468 new patients[41]. - A patient survey indicated that 36% of new patients had never tried chiropractic care before visiting the company, up from 16% in 2013, highlighting the company's role in expanding the chiropractic market[30]. - The clinics saw an average of 301 patient visits per week, significantly higher than the industry average of 113 visits[42]. - The company saw 957,000 new patients in 2024, with approximately 36% being first-time chiropractic visitors, indicating an expansion of the chiropractic market[216]. Competitive Landscape - The chiropractic industry is highly fragmented, with the top 50 practices accounting for only 4% of total industry revenue[94]. - The company faces competition from four largest multi-unit operators, including Airrosti and HealthSource Chiropractic, which utilize insurance-based models[94]. - Six competitors are attempting to replicate the company's cash-only, low-cost, appointment-free model, with the largest operating 34 clinics as of December 31, 2024[95]. - The company believes its first mover advantage and proprietary operations systems will continue to drive growth despite increasing competition[95]. Regulatory and Compliance Issues - The company is subject to various federal and state regulations, including the Fair Labor Standards Act and the Americans with Disabilities Act, which may impact operational costs[83][93]. - The company has had to address inquiries from state boards regarding its business model, particularly in North Carolina and Oregon, but believes it is in substantial compliance with applicable laws[79]. - The evolving definition of "joint employer" under federal regulations could increase the company's liability for employment law violations by franchisees[150]. - The company recognizes the increasing regulatory focus on privacy and data security, which may require additional investment in compliance programs[67]. Management and Strategy - The management team includes experienced leaders, such as the CEO Sanjiv Razdan, who has a strong background in operational leadership across various industries[51]. - The company aims to improve operational margins and expand revenue streams by introducing complementary branded products like nutraceuticals and dietary supplements[63]. - The company utilizes a regional developer model to accelerate clinic openings and franchise sales, sharing part of the initial franchise fee and ongoing royalties with regional developers[61]. - Effective October 14, 2024, Sanjiv Razdan was appointed as the new President and CEO, succeeding Peter D. Holt[218]. Financial Risks and Liabilities - The company is subject to long-term non-cancelable leases for clinics, which could result in financial obligations even if certain clinics are not profitable[126]. - The company has identified material weaknesses in internal controls over financial reporting, which were remediated by the end of 2023[137]. - The company may incur substantial costs and face civil liability if it fails to maintain the integrity of its data or comply with privacy laws[171]. - The company has access to draw $20.0 million under its Credit Agreement as of December 31, 2024, which may impact cash flow and operational flexibility[134]. Brand and Intellectual Property - The company's brand recognition is crucial for its business, and any negative events or rumors could adversely affect brand value and demand for services[161]. - The company’s intellectual property rights, including trademarks, are essential for competitive advantage, but may face litigation risks that could divert resources[162]. Employee and Labor Issues - The nationwide labor shortage has negatively impacted the company's ability to recruit qualified chiropractors, leading to reduced net revenues and increased operating expenses[113]. - The company has enhanced its recruitment strategies, including competitive compensation packages and partnerships with chiropractic colleges to attract talent[99]. - The company’s compensation practices are merit-based, focusing on roles and performance, with a commitment to gender and demographic equality[102].

Q4 2024 Financial Results As of December 31, 2024, reported March 13, 2025 NASDAQ: JYNT | © 2025 The Joint Corp. All Rights Reserved. Safe Harbor Statements Certain statements contained in this presentation are "forward-looking statements." We have tried to identify these forward-looking statements by using words such as "may," "might," " will," "expect," "anticipate,'' "'believe," "could," " intend," "plan," "estimate," "should," "if," "project," and similar expressions. All statements other than statement ...

The Joint Corp. (NASDAQ:JYNT) Q4 2024 Earnings Conference Call March 13, 2025 5:00 PM ET Company Participants Kirsten Chapman - IR, Alliance Advisors Sanjiv Razdan - President & CEO Jake Singleton - CFO Conference Call Participants Jeff Van Sinderen - B. Riley Securities Jeremy Hamblin - Craig-Hallum Capital Group George Kelly - ROTH Capital Partners Anthony Vendetti - Maxim Group Operator Good afternoon, and welcome to The Joint Corp. Fourth Quarter and Year End 2024 Financial Results Conference Call. All ...

分组1 - The Joint Corp. reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, but down from $0.07 per share a year ago [1] - The company's revenues for the quarter ended December 2024 were $14.45 million, missing the Zacks Consensus Estimate by 50.09%, and significantly lower than the $30.61 million reported a year ago [2] - The stock has lost about 1% since the beginning of the year, while the S&P 500 has declined by 4.8% [3] 分组2 - The earnings outlook for The Joint is mixed, with current consensus EPS estimates at $0.02 on $27.1 million in revenues for the coming quarter and $0.53 on $95.61 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Medical - HMOs is in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - System wide sales increased to $530.3 million, up 9% in Q4 2024 compared to 8% in Q3 2024 [15] - Revenue for continuing operations increased 14% in Q4 2024, up from 10% in Q3 2024 [16] - Consolidated adjusted EBITDA was $3.3 million for Q4 2024 and $11.4 million for the full year 2024 [17][34] Business Line Data and Key Metrics Changes - System wide comp sales for all clinics opened for thirteen months were 6% in Q4 2024, up from 4% in Q3 2024 [15] - System wide comp sales for mature clinics opened for 48 months were modestly positive for Q4 2024, improving from negative 2% in Q3 2024 [15][26] - Revenue from franchise operations reached $14.4 million in Q4 2024, compared to $12.7 million in Q4 2023, reflecting a 14% increase [29] Market Data and Key Metrics Changes - The company served approximately 950,000 new patients in 2024, with 36% of them being new to chiropractic care [10][25] - The annual spending on chiropractic care is estimated at $20.6 billion, with out-of-pocket spending increasing from 37% to 42% [37] Company Strategy and Development Direction - The company aims to strengthen its position as a leading chiropractic care provider and become a pure play franchisor [9][12] - Plans include refranchising to reduce overhead and increase operating leverage, with a focus on dynamic revenue management and enhancing digital marketing [18][21] - The company is exploring new revenue streams, including B2B opportunities and additional clinical services [19][86] Management Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is being affected by stubborn inflation and economic uncertainty, impacting patient demographics [47][48] - The company expects 2025 to be a transition year as it shifts from corporate-owned clinics to a franchise model, which will enhance profitability [35][90] - Management is focused on reducing G&A expenses to improve the bottom line significantly in the coming years [29][92] Other Important Information - The company opened 57 franchise clinics in 2024 and closed 18, resulting in a total of 967 clinics, with 87% being franchise clinics [27] - The company has received accolades, including being recognized as number 38 on the Fast and Serious 2025 list of the smartest growing franchises [44] Q&A Session Summary Question: Comments on potentially slower consumer behavior in Q1 metrics - Management acknowledged signs of consumer response to inflation and economic uncertainty, particularly affecting their target demographic [47][48] Question: Retention rates and trends - Retention rates remained stable, with strong conversion rates for new patients and slight upticks in attrition typical for January [51][53] Question: Status of refranchising efforts - The company has 125 corporate clinics, with the majority under LOI negotiations, aiming to complete refranchising in the first half of the year [55][80] Question: Trends in same store sales - Year-to-date trends are consistent with Q4 figures, with expectations for Q1 to align with previous trends [60][61] Question: Valuation of LOIs for refranchising - Management indicated that bidders are looking at a multiple of EBITDA for the corporate clinics, with ongoing negotiations [62][64] Question: Customer acquisition costs and revenue growth - Increased marketing spend is aimed at driving new patient acquisition, with a focus on optimizing customer acquisition costs [66][68] Question: Pricing strategy and legacy customer rates - The last wholesale price increase occurred in March 2022, with 80% of active members on standard rates and 20% on legacy rates [72][74] Question: Timing for new services and retail products - Exploration of new services and retail products is ongoing, with a focus on strengthening core operations before launching new initiatives [86]

Company Overview - The Joint Corp. announced operating metrics for the year ended December 31, 2024, in a press release dated January 16, 2025[4] - The company is listed on the NASDAQ Capital Market under the trading symbol JYNT[2] - The report does not indicate whether The Joint Corp. is an emerging growth company[3] Regulatory Information - The information provided in the press release is not deemed "filed" under the Securities Exchange Act of 1934[5] - The press release is furnished as Exhibit 99.1 to the Current Report on Form 8-K[4] - The report was signed by Sanjiv Razdan, President and Chief Executive Officer, on January 16, 2025[10]

- Grew revenue from continuing operations 10% annually and 14% quarterly compared to the same period in 2023 - - Increased system-wide sales 9% for both the year and Q4 2024 – SCOTTSDALE, Ariz., March 13, 2025 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended December 31, 2024. The results of operations of the corporate clinics business segment have been classified as discontinued op ...