Slide 1: Preliminary Q2 2023 Investor Presentation
The Joint Corp. | NASDAQ: JYNT | thejoint.com Preliminary Q2 2023 Investor Presentation As of June 30, 2023 | Reported on September 13, 2023
Slide 2: Safe Harbor Statements
Safe Harbor Statements Certain statements contained in this presentation are "forward-looking statements” about future events and expectations. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our
Slide 3: Our Model: Quality, convenient, affordable chiropractic care in a retail setting
OUR MODEL Quality, convenient, affordable chiropractic care in a retail setting © 2023 The Joint Corp. All Rights Reserved. 3
Slide 4: Our Staff: Serving patients seeking pain relief and wellness
OUR STAFF Serving patients seeking pain relief and ongoing health and wellness © 2023 The Joint Corp. All Rights Reserved. 4
Slide 5: Our Clinics: membership-based, walk-in, no-insurance model
OUR CLINICS A proven membership-based, walk-in, no-insurance model in an open bay setting © 2023 The Joint Corp. All Rights Reserved. 5
Slide 6: Strong Operational KPIs
Strong Operational KPIs 12.2M 1.6M 845K 34% 84% adjustments unique patients new patients of new patients system-wide gross sales in 2022 treated in 2022 in 2022 were new to chiropractic1 from monthly memberships in 2022 Up from 10.9M in 2021 Up from 1.4M in 2021 Compared to 807K in 2021 ~287K patien
Slide 7: Upside for Future Growth
Upside for Future Growth $19.5B growing chiropractic market1 50% 30% 16% of Americans don’t understand chiropractic saw a chiropractor know what the word but are scared in the last 12 months “chiropractic” means Gallup-Palmer College of Nucleus Marketing Lab 2018 Gallup-Palmer College of Chiropracti
Slide 8: Substantial Opportunity for Market Share Growth
Substantial Opportunity for Market Share Growth The Joint Chiropractic 2022 $435M, ~2% Other Chains3 $350M, ~2% • $134B annual spending on back pain 1 • $19.5B annual spending on chiropractic care2 • ~4% of chiropractic offered at chains3 vs. ~12% for dentistry chains (DSOs)4 Independents • 80% of A
Slide 9: Only 4.9% of Franchise Concepts Have 500+ Units
Only 4.9% of Franchise Concepts Have 500+ Units 2.14% 2.72% 500-1000 units 1000+ units 14.90% 101-500 units Percentage of Franchise Brands by 34.55% <4 units 10.65% # of Units 51-100 units Only 94 brands have over 1000 units. 35.04% 5-50 units Source: FRANdata © 2023 The Joint Corp. All Rights Reser
Slide 10: JYNT Sales ~2.3x Independent Collections per Clinic
JYNT Sales ~2.3x Independent Collections per Clinic Independent Solo $597,304 Practitioners vs $600,000 $500,000 The Joint $400,000 The Joint $300,000 $313,700 $200,000 Billings $100,000 2017 2018 2019 2020 2021 2022 Collections *2021 Chiropractic Economics Compensation Survey © 2023 The Joint Corp.
Slide 11: Top Franchise Recognition... Again
Top Franchise Recognition... Again © 2023 The Joint Corp. All Rights Reserved. 11
Slide 12: Growing Market Opportunity
Growing Market Opportunity Mid-term Market ~1950 Potential Clinics The Joint Patient Base With usable addresses • All 50 States, DC and Puerto Rico • All Canadian Provinces and Territories • 66 Countries on 6 Continents Similar Points of Best Distribution Good • Analyze demographics and Fair psychog
Slide 13: The Joint: First Mover Advantage
The Joint: First Mover Advantage © 2023 The Joint Corp. All Rights Reserved. 13
Slide 14: 26 New Clinics in Q2 2023
26 New Clinics in Q2 2023 Q2 Q2 2023 2022 890 TOTAL CLINICS OPEN1 838 Franchise Licenses Sold 21 24 Franchise Company Owned/Managed 126 134 706 Total New 96 579 Franchised 23 31 513 64 Clinics Opened 442 60 399 370 48 Greenfield 756 Clinics Opened 3 3 312 61 47 712 246 47 610 4 515 453 394 Franchise
Slide 15: Growing National Footprint
890 Growing National Footprint Locations 756 Franchised Clinics 134 Corporate Clinics As of 6/30/2023 © 2023 The Joint Corp. All Rights Reserved. 15
Slide 16: Pipeline for Growth
Pipeline for Growth Franchise Licenses Sold Annually Clinics in Active Development1 Gross Cumulative Franchise Licenses Sold1 283 1231 1193 156 253 1118 235 214 962 126 121 204 841 99 715 155 616 75 112 37 38 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31, Dec. 31, D
Slide 17: Strong Clinic Economics
Strong Clinic Economics ~$300k Investment Estimated cash-on-cash return reduced from 5+ years to ~4 years System-wide Sales & Potential Company-owned/Managed Contribution1 (5 yr. avg., $ in 000s) • ~$200K initial build-out $615 • Chart includes: $580 • 2% of gross sales for the National $533 $524 Ma
Slide 18: Building upon Foundation for Growth
Building upon Foundation for Growth 13% 5% (1)% Increase in Increase in Decrease in system-wide sales comp sales1 for all clinics comp sales1 for all clinics Q2 2023 over Q2 20221 >13 months in operation >48 months in operation Q2 2023 over Q2 20222 Q2 2023 over Q2 20222 1System-wide sales include r
Slide 19: Amended Preliminary 2023 Financial Guidance
Amended Preliminary 2023 Financial Guidance 2022 2023 Low 2023 High $ in M Actual Guidance Guidance Revenues $101.9 $115.0 $118.0 Adjusted EBITDA1 $11.5 $11.0 $12.5 New Franchised Clinic Openings 121 100 120 New Greenfield Clinics2 16 8 12 1 Reconciliation of Adjusted EBITDA to GAAP earnings is incl
Slide 20: Leading Market Growth
Leading Market Growth The Joint Corp. 12-yr. CAGR 62%1 vs. Industry 5-yr. CAGR 5.1%2 System-wide Sales People will ($ in M) continue to seek $435.3 more noninvasive, $361.1 holistic ways to 62% CAGR1 manage their pain. (2010 - 2022) $260.0 $235.5 $220.3 We’ll be there to $165.1 treat them. $126.9 $9
Slide 21: Driving Long-term Shareholder Value
Driving Long-term Shareholder Value The most powerful brand-building tool is our storefronts. © 2023 The Joint Corp. All Rights Reserved. 21
Slide 22: Appendix
Appendix © 2023 The Joint Corp. All Rights Reserved. 22
Slide 23: Preliminary Q2 2023 Financial Results
Preliminary Q2 2023 Financial Results Q2 2023 Q2 2022 $ in M1 Differences (unaudited) (as restated, unaudited) Revenue $29.3 $24.9 $4.4 18% • Corporate clinics 17.8 14.5 3.3 23% • Franchise operations 11.5 10.4 1.1 11% Cost of revenue 2.6 2.3 0.3 15% Sales and marketing 4.7 3.8 0.9 23% Depreciation
Slide 24: Preliminary YTD June 30, 2023 Financial Results
Preliminary YTD June 30, 2023 Financial Results H1 2023 H1 2022 $ in M1 Differences (unaudited) (as restated, unaudited) Revenue $57.6 $47.1 $10.5 22% • Corporate clinics 34.9 27.1 7.8 29% • Franchise operations 22.7 20.0 2.7 12% Cost of revenue 5.1 4.4 0.7 16% Sales and marketing 8.9 7.1 1.7 24% De
Slide 25: Executive Team
Executive Team Krischelle Peter D. Holt Jake Singleton Lori Abou Habib Charles Nelles Jorge Armenteros Eric Simon Dr. Steve Knauf Tennessen VP, Franchise VP of Chiropractic President & CEO CFO CMO CHRO CTO SVP, Operations Sales & Compliance • Tasti D-Lite • EY • SONIC® Americ • Five Below • American
Slide 26: Board of Directors
Board of Directors Matthew E. Rubel Ronald V. DaVella, CPA Suzanne M. Decker Peter D. Holt Abe Hong Glenn J. Krevlin Lead Director, 2017 Director, 2014 Director, 2017 Director, 2016 Director, 2018 Director, 2019 • Executive Chair KidKraft, Inc. • Financial Advisor: • Former Exe. Project Sponsor • Pr
Slide 27: Revolutionizing Access to Chiropractic Care
Revolutionizing Access to Chiropractic Care Features Industry Problems The Joint’s Solutions Affordability (per appointment) $64 Average1 $36 Average Convenient Locations Medical Centers / Offices Retail Locations Multiple Locations Limited Locations 890 Clinics Walk-in / No Appointment Appointments
Slide 28: Patient Demographics
Patient Demographics The Joint Median Age 37.6 Years Generation Mix Gen Z 19% Millennial 45% Gen X 25% Baby Boomer 11% Gender Female 49% 1 Patients who visited The Joint Chiropractic in 2022. © 2023 The Joint Corp. All Rights Reserved. 28
Slide 29: Transformative Opportunity for Chiropractors
Transformative Opportunity for Chiropractors Industry The Joint Annual Salary Median $81,2401 Starting $85,0002 • Appointments required • No appointments Accessibility • Medical centers & offices • Clustered, high-visibility retail locations • Traditional office hours • Open evenings + weekends3 • P
Slide 30: Performance Metrics and Non-GAAP Measures
Performance Metrics and Non-GAAP Measures This presentation includes commonly discussed performance metrics. System-wide sales include sales 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
Slide 31: Prel. Q2 2023 Segment Results as of June 30, 2023
Prel. Q2 2023 Segment Results as of June 30, 2023 $ in 000s 2023 Q2 © 2023 © 2022 The The Joint Joint Corp. Corp. All All Rights Rights Reserved. Reserved. 31
Slide 32: Prel. YTD Segment Results as of June 30, 2023
Prel. YTD Segment Results as of June 30, 2023 $ in 000s H1 2023 © 2023 © 2022 The The Joint Joint Corp. Corp. All All Rights Rights Reserved. Reserved. 32
Slide 33: Preliminary GAAP – Non-GAAP Reconciliation
Preliminary GAAP – Non-GAAP Reconciliation $ in 000s v © 2023 The Joint Corp. All Rights Reserved. 33
Slide 34: Contact Information
Contact Information Peter D. Holt, President & CEO peter.holt@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 110, Scottsdale, AZ 85260 | (480) 245-5960 https://www.facebook.com/thejointchiro @thejointchiro Jake Singleton, CFO jake.singleton@thejoint.com https://twitter.com/thejointchir