Core Viewpoint - The Joint Corp. has announced a stock repurchase program of up to $5 million, reflecting the board's confidence in the company's long-term strategy and projected cash flow generation [1][2]. Company Overview - The Joint Corp. is the largest provider of chiropractic care in the U.S. through The Joint Chiropractic network, with over 950 locations and more than 14 million patient visits annually [3]. - The company operates a retail healthcare business model that eliminates the need for insurance, making chiropractic care more accessible and affordable [3]. - The Joint Corp. has received multiple accolades, including being named "No. 1 in Chiropractic Services" by Entrepreneur and consistently ranking in Franchise Times' annual lists [3]. Business Structure - The Joint Corp. functions as both a franchisor and operator of clinics in various states, providing management services to affiliated chiropractic practices [4]. Stock Repurchase Program Details - The stock repurchase program is set to begin in August 2025 and will have a termination date of June 3, 2027. The program allows for repurchases through various means, subject to market conditions [2]. - The finance committee of the board will determine the timing, number, and amount of repurchases at its discretion [2].

Financial Data and Key Metrics Changes - System wide sales for Q1 2025 were $132.6 million, up 5% compared to Q1 2024, indicating resilience in the current economic environment [10] - Revenue from continuing operations increased by 7% to $13.1 million from $12.2 million in Q1 2024 [27] - Adjusted EBITDA from continuing operations was $46,000, a significant decrease from $425,000 in Q1 2024 [10][29] - Net loss from continuing operations was $506,000, compared to a loss of $399,000 in Q1 2024 [29] Business Line Data and Key Metrics Changes - Comp sales for all clinics open for at least 13 months were up 3% for Q1 2025 and increased to 4% in March 2025 [10][23] - Comp sales for mature clinics (open for at least 48 months) were down 2% [23] - The company refranchised two corporate clinics and opened five franchise clinics during Q1 2025, with a total of 969 clinics, of which 847 (87%) are franchise clinics [25] Market Data and Key Metrics Changes - The company is experiencing a dynamic consumer environment, with consumer sentiment affecting new patient volumes [11][43] - The company anticipates system wide sales for 2025 to be between $550 million and $570 million, compared to $530.3 million in 2024 [31] Company Strategy and Development Direction - The company aims to become a pure play franchisor, with 93% of corporate clinics under Letters of Intent (LOIs) for refranchising [12][49] - The focus is on strengthening core operations, reigniting growth, and improving profitability through dynamic revenue management and enhanced digital marketing strategies [12][18] - The company plans to launch a new marketing campaign centered around pain relief in the second half of the year [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of economic headwinds, inflation, and consumer sentiment on operations but remains optimistic about transitioning to a franchise model [33] - The company expects to see a transformative financial impact as corporate clinics transition to franchise royalties and fees, leading to increased profitability [33] Other Important Information - The company has welcomed new executives to enhance legal strategy and patient experience [39] - The Joint has been recognized as one of the fastest-growing franchises and ranked 37th in the Franchise 500 by Entrepreneur Magazine [40] Q&A Session Summary Question: New patient ad metrics and retention trends - Management noted that new patient volumes have been affected by consumer sentiment, but retention rates remain stable [42][44] Question: Metrics on profitability and overhead reduction - Management is not ready to provide specific metrics but expects profitability to improve as G&A expenses are reduced [45][47] Question: Timeline for refranchising process completion - Management intends to exit 2025 as a pure play franchisor and hopes to accelerate the refranchising process [49] Question: Comp sales performance and strategies for mature clinics - Comp sales for mature clinics have been consistent, and operational strategies will be geared towards strengthening these clinics [80][81] Question: Dynamic pricing impact - Management is exploring various pricing models and anticipates that pricing adjustments could significantly impact total system wide sales [60][62] Question: Selling and marketing expenses normalization - Management expects selling and marketing expenses to normalize by Q3 2025 as the transition to a single marketing agency is completed [66] Question: Cost of the franchisee spring convention - The cost of the convention was lower than previous years, impacting the sales and marketing line [75][76]

Financial Performance - Q1 2025 - Revenue from continuing operations increased by 7% to $131 million compared to $122 million in Q1 2024[33] - Cost of revenue increased by 10% to $30 million [33] - Sales and marketing expenses increased significantly by 57% to $35 million [33] - System-wide sales increased by 5% in Q1 2025 [29] - Comp sales increased by 3% in Q1 2025 [29] - Net loss from continuing operations was $(05) million [33] - Consolidated Adjusted EBITDA was $29 million [33] Liquidity and Cash Flow - Unrestricted cash was $219 million as of March 31 2025 [35] - The company has access to a $20 million line of credit through February 2027 [35, 37] - $37 million was used in operations during the quarter [38] 2025 Guidance - The company reiterates its 2025 guidance for system-wide sales between $550 million and $570 million [39] - The company anticipates mid-single-digit comp sales growth for clinics open 13 months or more [39] - Consolidated Adjusted EBITDA is expected to be between $100 million and $115 million [39]

Financial Performance - Q4 2024 system-wide sales increased by 9%, up from 8% in Q3 2024[13] - Q4 2024 comp sales increased by 6%, up from 4% in Q3 2024[13] - Q4 2024 revenue from continuing operations increased by 14%, up from 10% in Q3 2024[13] - 2024 revenue from continuing operations was $51.9 million, a 10% increase compared to $47.0 million in 2023[35] Operational Metrics - The Joint Corp treated 1.9 million unique patients in 2024, up from 1.7 million in 2023[25] - The Joint Corp had 957,000 new patients in 2024, compared to 932,000 in 2023[25] - There were 14.7 million adjustments in 2024, up from 13.6 million in 2023[25] - 36% of new patients in 2024 were new to chiropractic[25] - 85% of system-wide gross sales in 2024 were from monthly memberships, consistent with 2023[25] 2025 Guidance - The Joint Corp projects system-wide sales between $550 million and $570 million for 2025[36] - The Joint Corp anticipates mid-single-digit system-wide comp sales growth for clinics open 13 months or more in 2025[36] - The Joint Corp estimates consolidated Adjusted EBITDA between $10.0 million and $11.5 million for 2025[36]