The Joint Corp. · NASDAQ:JYNT
The Joint — JOINT — Q2 2018 Earnings Presentation
17 slides from The Joint's earnings presentation, Aug 9, 2018
Slide 1: Reinventing Chiropractic Care: Q2 2018 Financial Results
REINVENTING CHIROPRACTIC CARE THE JOINT CORP. | NASDAQ: JYNT | thejoint.com Q2 2018 FINANCIAL RESULTS AS OF AUGUST 9, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this presentation are "forward - looking statements." We have tried to identify these forward - look ing statements by using words such as "may," "might," " will," "expect,” "anticipate,'' "'believe,“ "could," " intend," "plan," "estimate," "shou
Slide 3: Q2 18: Another Strong Quarter of Improvements
3 © 2018 | NASDAQ: JYNT | thejoint.com Achi Q2 18: Another Strong Quarter of Improvements Q2 18 vs Q2 17 System - wide gross sales +29% System - wide comp sales >13 months 1 +25% System - wide comp sales >48 months 1 +16% Revenue +26% Net Loss $43K, up $1.0M Adjusted EBITDA 2 $697K, up $1.1M Cash an
Slide 4: Leader Executing Growth Strategy: 413 Clinics
4 © 2018 | NASDAQ: JYNT | thejoint.com Achi 12 26 82 175 242 265 309 352 365 4 47 61 47 48 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 TOTAL CLINICS OPEN Franchise Company Owned/Managed • Increasing clinic scale through franchise sales and regional developers • Expanding company - owned/managed
Slide 5: Reducing Clinic Time to Breakeven
5 © 2018 | NASDAQ: JYNT | thejoint.com Achi Reducing Clinic Time to Breakeven • 2018 clinics on track to achieve breakeven in less than 6 months, down from approximately 9 months in 2017 & 18 months historically • 2017 clinics continue to grow in gross sales and ramp above the historical performance
Slide 6: RDs Accelerate Franchise License Sales
6 © 2018 | NASDAQ: JYNT | thejoint.com Franchise sales through June 2018 were 34, compared to 37 for all of 2017 • Sold 34 franchises January - June 2018, compared to 37 for 2017 and 22 for 2016 RDs Accelerate Franchise License Sales 8 11 13 16 18 18 18 Q4 2016 Q1 2027 Q2 2017 Q3 2017 Q4 2017 Q1 201
Slide 7: Digital Marketing Attracting New Patients
7 © 2018 | NASDAQ: JYNT | thejoint.com Digital Marketing Attracting New Patients ▪ Strive to lead best practices and innovation within health & wellness and small box retail ▪ Overhauled SEO strategy in 2017 including new consumer facing website ▪ 2018 pursuing performance in paid search, paid socia
Slide 8: Implementing New IT Platform
8 © 2018 | NASDAQ: JYNT | thejoint.com Implementing New IT Platform ▪ Clinic portfolio expanded to reach critical mass while third - party CRM costs decreased and external security risks increased ▪ Chosen to implement third - party CRM rather than upgrade home - grown proprietary platform ▪ Expect
Slide 9: Q2 2018 Operational Summary
9 © 2018 | NASDAQ: JYNT | thejoint.com Q2 2018 Operational Summary • System - wide gross sales up 29% to $39.4M, from $30.5M in Q2 2017 • System - wide comp sales 1 for clinics >13 months in operation 1 increased 25%, compared to 19% in Q2 2017 • System - wide comp sales 1 for clinics >48 months in
Slide 10: Q2 2018 Financial Summary
10 © 2018 | NASDAQ: JYNT | thejoint.com Achi $ in M Q2 2018 Q2 2017 IMPROVEMENT Revenue Corporate clinics Franchise fees $7.6 3.4 4.2 $6.0 2.7 3.3 $1.6 0.7 0.9 26% 28% 25% Inc. revenue contribution • 45% Corp. • 55% Franchise Cost of revenue 1.1 0.8 (0.3) (37%) Inc. gross sales and RD fees Gross pro
Slide 11: Reaffirming 2018 Guidance
11 © 2018 | NASDAQ: JYNT | thejoint.com $ in M LOW HIGH New Franchise Openings 40 50 Additional Company - owned or Managed Clinics 1 0 5 New Clinic Openings 1 40 52 Revenues $31.0 $32.0 Adjusted EBITDA 2 $2.5 $3.5 Reaffirming 2018 Guidance 1 Existing clinics are acquired from franchisees and are neu
Slide 12: Opportunity in Highly Fragmented Market
12 © 2018 | NASDAQ: JYNT | thejoint.com Opportunity in Highly Fragmented Market Chiropractic care represents only • 17% of $90B in back pain alone • 2% of $650B in pain costs $15B 1 on chiropractic care 39,000 2 independent practitioners 1 IBIS World Chiropractors Market Research Report; August 2016
Slide 13: 2018 Growth Strategy: Driving Scale
13 © 2018 | NASDAQ: JYNT | thejoint.com 2018 Growth Strategy: Driving Scale • Accelerate franchise sales • Leverage Regional Developers • Reengage growth of company owned/managed units • Acquire buyback clinics opportunistically • Build greenfield clinics in clustered locations Building nationwide b
Slide 14: Non-GAAP Measure Definition
Non - GAAP Measure Definition This presentation includes a presentation of EBITDA and Adjusted EBITDA, which are non - GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they
Slide 15: Q2 2018 Segment Results & GAAP Reconciliation
15 © 2018 | NASDAQ: JYNT | thejoint.com Q2 2018 Segment Results & GAAP Reconciliation 2018 Q2 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 3,421$ 4,136$ 0$ 7,557$ Total Operating Costs (3,507) (2,162) (1,989) (7,657) Operating Income (Loss) (86)
Slide 16: GAAP – Non-GAAP Reconciliation
16 © 2018 | NASDAQ: JYNT | thejoint.com GAAP – Non - GAAP Reconciliation 1 1 All periods shown are restated in new accounting standards related to ASC606, which was adopted at the beginning of 2018. Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Net Income (Loss) (3,652)$ (3,255)$ (2,88
Slide 17: The Joint Corp. Contact Information
17 © 2018 | NASDAQ: JYNT | thejoint.com Peter D. Holt, President and CEO peter.holt@thejoint.com Jake Singleton, Corporate Controller jake.singleton@thejoint.com Kirsten Chapman, LHA Investor Relations thejoint@lhai.com The Joint Corp. Contact Information https://www.facebook.com/thejointchiro @ the