Business
The Joint Corp. Reports Third Quarter 2023 Financial Results
- Reaffirms 2023 Financial and Clinic Opening Guidance -- Unveils Plan to Convert the Majority of the Corporate Portfolio Clinics to Franchised Clinics -
About this update from The Joint Corp.
[{"type":"text","content":"- Reaffirms 2023 Financial and Clinic Opening Guidance -- Unveils Plan to Convert the Majority of the Corporate Portfolio Clinics to Franchised Clinics - SCOTTSDALE, Ariz., Nov. 09, 2023 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended September 30, 2023. Financial Highlights: Q3 2023 Compared to Q3 2022 Grew revenue by 11% to $29.5 million.Reported operating loss of $898,000, compared to operating income of $732,000.Reported net loss of $716,000, including a loss on disposition or impairment related to corporate clinics announced to be held for sale in September 2023, compared to net income of $731,000.Increased system-wide sales by 8%, to $119.3 million.System-wide comp sales for clinics that have been open for at least 13 full months were flat.Reported Adjusted EBITDA of $2.9 million, compared to $3.1 million. Q3 2023 Operating Highlights Sold 12 franchise licenses, compared to 12 in Q3 2022.Grew total clinic count to 914, 778 franchised and 136 company-owned or managed, up from 890 clinics at June 30, 2023. Opened 24 franchised clinics and two company-owned or managed greenfield clinics, for a total of 26 new clinics, as compared to 38 new clinics in Q3 2022.Closed two franchised clinics in both Q3 2023 and Q3 2022. “The strength of our franchise concept to revolutionize access to chiropractic care remains strong, although ongoing economic uncertainty and continued cost pressures have impacted our corporate clinic portfolio performance. We are implementing a strategic plan to leverage our greatest strength – our capacity to build a franchise – to drive long-term growth for both our franchisees and The Joint as a public company,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “After evaluating options for improvement, the board has authorized management to initiate a plan to refranchise or sell the majority of our company-owned or managed clinics and to retain a portion of the high-performing corporate clinics. With a focus on profitability, we are taking clear action to strengthen the health of our franchise network and increase our ability to reinvest in the business to create value for our stakeholders.” Financial Results for Third Quarter Ended September 30: 2023 Compa...