The Joint (US:JYNT)2025-08-07 22:00Financial Data and Key Metrics Changes - System wide sales increased to $129.6 million, up 2.6% compared to Q2 2024 [10] - Comp sales for clinics open for at least 13 months rose by 1.4% for the quarter [10] - Revenue from continuing operations grew by 5% to $13.3 million [23] - Consolidated adjusted EBITDA reached $3.2 million, a 52% increase compared to Q2 2024 [10][25] - Unrestricted cash and equivalents as of June 30, 2025, were $30 million [11] Business Line Data and Key Metrics Changes - The company refranchised 37 clinics, reducing corporate clinics from 13% to 8% of the portfolio [12] - The refranchising included the sale of 31 corporate clinics in Arizona and New Mexico for $11.1 million [12] - The company opened 7 franchise clinics and closed 6 during the quarter [22] Market Data and Key Metrics Changes - The company noted macroeconomic headwinds affecting new patient counts, impacting overall performance [14] - The focus on pain relief messaging is expected to attract more patients, as 80% of new patients cite pain as their reason for visiting [15][56] Company Strategy and Development Direction - The company aims to become a pure play franchisor and is pursuing "The Joint 2.0" strategy to enhance profitability and patient experience [9] - Initiatives include a shift in marketing focus from general wellness to pain relief, enhancing digital marketing, and optimizing pricing strategies [9][15] - The company plans to explore additional revenue streams and new markets in the future [28][80] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softer sales trends and macroeconomic challenges but expressed confidence in addressing these through marketing and pricing strategies [27][39] - The company revised its 2025 guidance for system wide sales to a range of $530 million to $550 million, down from previous estimates [27] - Management emphasized the importance of brand awareness and targeted marketing to improve patient acquisition [15][56] Other Important Information - The company plans to continue its stock repurchase program, authorizing up to $5 million through June 2027 [26] - Two new directors were added to the board, enhancing governance and strategic oversight [30] Q&A Session Summary Question: Details on the lowered comp guide - Management noted recent trends showed softness mainly in new patient counts, despite improved conversion rates and consistent attrition [36][39] Question: Impact of pricing increases - Management confirmed ongoing dynamic revenue management strategies, including smaller, more frequent price increases to maintain affordability [43][73] Question: Breakdown of EBITDA guidance - Management typically does not split guidance between continuing and discontinued operations but noted ongoing efforts to manage G&A expenses [45][46] Question: Effect of recent clinic sales on back office expenses - Management indicated potential reductions in G&A expenses as clinics transition to franchise operations, with long-term savings expected [70][71] Question: Exploration of additional products and services - Management is committed to exploring incremental products and services related to pain management while maintaining operational simplicity [78][80]