The Joint (US:JYNT)2024-05-04 19:19Financial Data and Key Metrics Changes - System-wide sales grew to $126.3 million, increasing 9% compared to the same period last year [10][73] - System-wide comp sales for clinics opened for at least 13 months increased 3% [10][73] - Revenue increased by 5% to $29.7 million, with adjusted EBITDA at $3.5 million, up 74% from Q1 2023 [10][33][100] Business Line Data and Key Metrics Changes - Revenue from franchised operations increased 9%, contributing $12.2 million, while company-owned clinic revenue increased 2%, contributing $17.5 million [10] - Franchise license sales totaled 15 in Q1 2024, down from 17 in Q1 2023, but tripled compared to Q4 2023 [8][11] Market Data and Key Metrics Changes - The clinic portfolio reached 954 units, consisting of 819 franchised and 135 corporate clinics, up from 935 at the end of 2023 [30] - The average income of the patient base is between $50,000 and $105,000, indicating sensitivity to economic pressures [45] Company Strategy and Development Direction - The company is focused on a refranchising strategy as its primary initiative for 2024, with over 100 requests for information received [97] - Marketing efforts have shifted towards social media influencers to enhance brand awareness and attract new patients [9][31] Management Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty is impacting new patient counts, with patients opting for over-the-counter solutions before seeking chiropractic care [25][55] - The company remains cautiously optimistic about achieving mid-single-digit comp growth for the fiscal year [106] Other Important Information - The company has initiated a preceptorship program to support chiropractic students and new graduates [35][78] - G&A expenses were $20.3 million, up only 1% year-over-year, reflecting cost control initiatives [76][61] Q&A Session Summary Question: What gives confidence in achieving mid-single-digit comp growth? - Management noted that new patient counts were down 3% in Q1 due to various factors, including the absence of a new patient promotion [82][83] Question: What is attributed to the decline in revenue for mature clinics? - Management attributed the decline to market saturation and challenges in attracting new patients to established clinics [87] Question: How is the refranchising effort progressing? - Management indicated strong interest from franchisees and is working with an investment banker to facilitate the process [48][97]