Business
The Joint Corp. Reports First Quarter 2020 Financial Results
- Grows System-Wide Sales 24% and Comp Sales 15%, Compared to Q1 2019 - - Increases Total Clinic Count to 530 -- Sells 24 Franchise Licenses - SCOTTSDALE,
About this update from The Joint Corp.
[{"type":"text","content":"- Grows System-Wide Sales 24% and Comp Sales 15%, Compared to Q1 2019 - - Increases Total Clinic Count to 530 -- Sells 24 Franchise Licenses -\n SCOTTSDALE, Ariz., May 07, 2020 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the first quarter ended March 31, 2020. First Quarter Financial Highlights: 2020 Compared to 2019 Increased system-wide sales1 24%, to $60.6 million.Grew system-wide comp sales2 15%.Reported quarterly net income of $815,000, compared to $953,000.Increased Adjusted EBITDA of $1.7 million, compared to $1.6 million. First Quarter 2020 Operating Achievements Sold 24 franchise licenses, compared to 30 sold in first quarter of 2019. Increased total clinic count to 530 as of March 31, 2020, up from 513 at December 31, 2019. 469 franchised clinics: Opened 16 during the quarter.61 company-owned or managed clinics: Opened 1 greenfield in February. “Given our robust unit growth and focus on operational improvements over the past four years, we are better prepared to manage the uncertainty related to COVID-19,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “Chiropractic care is viewed by most states’ directives as an essential healthcare service, and we are committed to remaining open wherever and whenever it is possible. At the end of April, approximately 90% of our clinics were open, treating our patients. “Strong growth momentum continued for first two- and one-half months of 2020. As a result, we increased gross system-wide sales, grew revenue, opened 17 clinics and sold 24 franchise licenses during the first quarter of 2020. Since the outbreak of COVID-19, our core patient base remains engaged and appreciative that we are open. Member attrition has been fairly stable. While new patient conversion is up, we have experienced a significant drop in our new patient counts compared to prior periods. In April 2020, we maintained approximately 60% of our expected patient visits, reflecting the importance of chiropractic to our patients; however, gross sales are down over 30% compared to pre-COVID-19 expectations. Given today’s uncertainties, we are preserving our cash liquidity by deferring capital expenditures, slowing the pace of our corporate clinic expansion, negotiating with landlo...