--- title: "The Joint Corp. Reports First Quarter 2024 Financial Results" url: https://burnaze.com/article/0e92ce68-885e-4bbf-a61f-cf78dc337784 source: "Franchising.com" original_url: https://www.franchising.com/news/20240510_the_joint_corp_reports_first_quarter_2024_financial_results.html category: "Plumbing, HVAC & electrical" industry: "Home Services" segment: "Plumbing, HVAC & electrical" topics: ["Development & multi-unit","Finance & M&A"] published: 2024-05-10T12:00:00.000Z modified: 2026-10-31T19:53:35.009Z image: https://images.unsplash.com/photo-1554469384-e58fac16e23a?w=1600&q=80&auto=format&fit=crop --- # The Joint Corp. Reports First Quarter 2024 Financial Results **TL;DR:** The Joint Corp. reported Q1 2024 revenue of $29.7 million, a 5% increase from the prior year. The company opened 23 franchised clinics, increasing the total clinic count to 954 at March 31, 2024. *originally published in Franchising.com on 2024-05-10. [Read the original](https://www.franchising.com/news/20240510_the_joint_corp_reports_first_quarter_2024_financial_results.html).* ## Key facts - The Joint Corp. grew Q1 2024 revenue 5% - System-wide sales increased 9% to $126.3 million - Opened 23 franchised clinics, increasing clinic count to 954 ## Story - ***Grew Q1 2024 Revenue 5%, System-wide Sales 9%, and System-wide Comp Sales 3% vs. Q1 2023*** - ***Opened 23 Franchised Clinics, Increasing Clinic Count to 954 at March 31, 2024*** - ***Sold 15 Franchise Licenses, Tripling Sales Compared to Q4 2023*** ## First quarter results SCOTTSDALE, Ariz., May 02, 2024 // GLOBE NEWSWIRE // -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended March 31, 2024. - Grew revenue 5% to $29.7 million. - Recorded operating income of $1.1 million, compared to operating loss of $653,000. - Reported net income of $947,000, compared to $2.3 million, including the receipt of the employee retention credits of $3.9 million in Q1 2023. - Increased system-wide sales1 9% to $126.3 million. - Reported system-wide comp sales2 of 3%. - Reported Adjusted EBITDA of $3.5 million, compared to $2.0 million. - Sold 15 franchise licenses, compared to 17 in Q1 2023 and five in Q4 2023. - Expanded total clinic count to 954, up from 935 clinics at December 31, 2023. 819 franchised clinics at March 31, 2024: Opened 23 and closed four during Q1 2024. 135 company-owned or managed clinics at March 31, 2024. ## Company outlook “With the vision to be the Champions of Chiropractic, we began 2024 focused on increasing new patient counts, improving existing patient engagement and refranchising the vast majority of our corporate portfolio, and we are making solid progress,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “In the first quarter, we grew revenue and improved bottom-line year-over-year. In addition, we tripled franchise license sales compared to the fourth quarter of 2023. The majority of buyers are new to The Joint, validating our franchise concept. We continued our refranchising negotiations with multiple qualified franchisees. In fact, the strong interest in larger, more complex transactions led us to identify an investment bank specializing in refranchising. We believe working with an expert will help ensure we select the best franchisees, accelerate the process and create value for all of our stakeholders.” Revenue was $29.7 million in the first quarter of 2024, compared to $28.3 million in the first quarter of 2023. The increase reflects a greater number of franchised and corporate clinics and continued organic growth. Cost of revenue was $2.7 million, compared to $2.5 million in the first quarter of 2023, reflecting the associated higher regional developer royalties and commissions. Selling and marketing expenses were $3.9 million, down 7%, reflecting the timing of advertising spend. Depreciation and amortization expenses decreased 37% for the first quarter of 2024, as compared to the prior year period, primarily due to the impact of corporate clinics that are being held for sale in connection with the refranchising efforts. General and administrative expenses were $20.3 million, compared to $20.0 million in the first quarter of 2023, reflecting the lower rent for corporate clinics held for sale as well as cost control initiatives offsetting the majority of increased expense to support more clinics. Loss on disposition or impairment was $362,000, related to the quarterly impairment analysis of clinics held for sale as part of the refranchising efforts, compared to $65,000 in the first quarter of 2023. Operating income was $1.1 million, compared to operating loss of $653,000 in the first quarter of 2023. Income tax expense was $179,000, compared to $842,000 in the first quarter of 2023. Net income was $947,000, or $0.06 per diluted share. This compares to net income of $2.3 million, including the receipt of the employee retention credits of $3.9 million, or $0.16 per diluted share, in the first quarter of 2023. Adjusted EBITDA was $3.5 million, compared to $2.0 million the first quarter of 2023. _______________ 1 *System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base.* *2 System-wide comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.* Unrestricted cash was $18.7 million at March 31, 2024, compared to $18.2 million at December 31, 2023, reflecting cash flow from operations partially offset by the repayment of the line of credit. ## Guidance and outlook The company reiterated all elements of its guidance. - 2024 System-wide sales are expected to be between $530 and $545 million dollars, compared to $488.0 million dollars in 2023. - System-wide comp sales for all clinics open 13 months or more are expected to be in the mid-single digits in 2024. - 2024 new franchised clinic openings, excluding the impact of refranchised clinics, are expected to be between 60 and 75, compared to 104 in 2023. The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, May 2, 2024 to discuss the first quarter 2024 financial results. Stockholders and interested participants may listen to a live broadcast of the conference call by dialing (833) 630-0823 or (412) 317-1831 and ask to be joined into the ‘The Joint’ call approximately 15 minutes prior to the start time. The live webcast of the call with accompanying slide presentation can be accessed in the IR events section and will be available for approximately one year. An audio archive can be accessed for one week by dialing (877) 344-7529 or (412) 317-0088 and entering conference ID 8179924. This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. System-wide comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed. This release also includes a presentation of 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. Reconciliation of historical net income/(loss) to EBITDA and Adjusted EBITDA is presented in the table below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs and other income related to employee retention credits. 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 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. 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. Specific forward looking statements made in this press release include, among others, our vision to be the Champions of Chiropractic; our belief that we are making solid progress in 2024 with respect to increasing new patient count, improving existing patient engagement and refranchising the vast majority of our corporate portfolio; our belief that since a majority of buyers are new to The Joint, it validates our franchise concept; our belief that working together with Capstone Capital will help ensure we select the best franchisees, derive the appropriate value for our high-quality clinics and create value for all of our stakeholders; and our expectations for 2024 system-wide sales, system-wide comp sales, and new franchised clinic openings, excluding the impact of refranchised clinics. 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 inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation, which has increased our costs and which could otherwise negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and other factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 8, 2024 and subsequently filed current and quarterly reports. 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. The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation's largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance for millions of patients seeking pain relief and ongoing wellness. With over 900 locations nationwide and more than 13 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. Consistently named to Franchise Times "Top 500+ Franchises" and Entrepreneur's "Franchise 500" lists and recognized by FRANdata with the TopFUND award, as well as Franchise Business Review's "Top Franchise for 2023," "Most Profitable Franchises" and "Top Franchises for Veterans" ranking, The Joint Chiropractic is an innovative force, where healthcare meets retail. The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices. ## Entities - Franchising.com (publication) - Multi-Unit (sector) - revenue growth (topic) - franchise sales (topic) - The Joint Corp. (company) - financial results (topic) - Peter D. Holt (person) - clinic expansion (topic) --- Originally reported by Franchising.com (https://www.franchising.com/news/20240510_the_joint_corp_reports_first_quarter_2024_financial_results.html). Summarized by Burnaze (https://burnaze.com/article/0e92ce68-885e-4bbf-a61f-cf78dc337784).