Slide 1: Q4 2022 Financial Results
Q4 2022 Financial Results As of December 31, 2022 | Reported on March 9, 2023
Slide 2: Safe Harbor Statements
2 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 a
Slide 3: Forging the Chiropractic Dream; Accelerating Clinic Growth; Harnessing Our Data
© 2023 The Joint Corp. All Rights Reserved. 3 Forging the Chiropractic Dream Accelerating the Pace of Clinic Growth Harnessing the Power of Our Data
Slide 4: Strong Operational KPIs
Strong Operational KPIs © 2022 The Joint Corp. All Rights Reserved. 4 1 New patient survey completed early 2023. 1.6M unique patients treated in 2022 845K new patients in 2022 12.2M adjustments in 2022 34% of new patients were new to chiropractic 1 84% system - wide gross sales from monthly membersh
Slide 5: Accelerating Momentum Closing 2022
Accelerating Momentum Closing 2022 5 2022 2021 Revenue $101.9M $80.9M Operating Income $2.1M $5.4M Net Income $1.2M $6.6M Adjusted EBITDA 2 $11.5M $12.6M Unrestricted cash $9.7M at Dec. 31, 2022, compared to $19.5 M at Dec. 31, 2021, reflecting continued investment strategy © 2022 The Joint Corp. Al
Slide 6: Opened Record 137 Clinics in 2022
12 26 82 175 242 265 309 352 394 453 515 610 712 4 47 61 47 48 60 64 96 126 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL CLINICS OPEN Franchise Company Owned/Managed © 2023 The Joint Corp. All Rights Reserved. 6 Opened Record 137 Clinics in 2022, Up from 130 in 2021 2021 20
Slide 7: Solid Foundation for Growth
67% sold by Regional Developers in 2022 69% of clinics supported by 18 RDs as of Dec. 31, 2022 RD territories cover 55% of Metropolitan Statistical Areas (MSAs) as of Dec. 31, 2022 37 99 126 121 156 75 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 616 715 841 96
Slide 8: Top Franchise Recognition... Again
Top Franchise Recognition... Again 8 © 2023 The Joint Corp. All Rights Reserved.
Slide 9: Marketing Driving Growth
Marketing Driving Growth “Give Thanks, Give Back” S ocial C ampaign Sweepstakes • 2,700% increase in engagement by our patients and followers Annual Promotions • “Back Friday” package sale up 32% over 2021 • “End - of - Year” membership sale up 44% over 2021 9 © 2023 The Joint Corp. All Rights Reser
Slide 10: Q4 2022 Financial Results
Q4 2022 Financial Results 10 $ in M 1 Q4 2022 Q4 2021 Differences Revenue • Corporate clinics • Franchise fees $27.8 16.5 11.3 $22.1 11.8 10.3 $5.7 4.7 1.0 26% 20% 13% Cost of revenue 2.6 2.4 0.2 8% Sales and marketing 3.3 2.9 0.4 13% Depreciation and amortization 2.3 1.8 0.5 27% G&A 18.3 14.9 3.4 2
Slide 11: 2022 Financial Results
2022 Financial Results 11 $ in M 1 2022 2021 Differences Revenue • Corporate clinics • Franchise fees $101.9 59.4 42.5 $80.9 44.4 36.5 $21.1 15.1 6.0 26% 34% 16% Cost of revenue 9.8 8.5 1.3 15% Sales and marketing 14.0 11.4 2.5 22% Depreciation and amortization 7.6 6.1 1.6 26% G&A 68.0 49.5 18.5 37%
Slide 12: Presenting 2023 Financial Guidance
1 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the appendix. 2 Historically, company - owned or managed clinic openings included a combination of both greenfields and acquisitions. The company will continue to acquire previously franchised clinics. However, as these transactions
Slide 13: Leading Market Growth
$8.1 $22.3 $46.2 $70.1 $98.6 $126.9 $165.1 $220.3 $260.0 $361.1 $435.3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Leading Market Growth People will continue to seek more noninvasive, holistic ways to manage their pain. We’ll be there to treat them. System - wide Sales ($ in M) 62 % CAGR
Slide 14: Three Enterprise Initiatives to Advance Growth
Three Enterprise Initiatives to Advance Growth 14 Forging the Chiropractic Dream Accelerating the Pace of Clinic Growth Harnessing the Power of Our Data © 2023 The Joint Corp. All Rights Reserved.
Slide 15: Driving Long-term Shareholder Value
Driving Long - term Shareholder Value 15 © 2023 The Joint Corp. All Rights Reserved.
Slide 16: Appendix
16 Appendix Source: © 2023 The Joint Corp. All Rights Reserved.
Slide 17: Performance Metrics and Non-GAAP Measures
Performance Metrics and Non - GAAP Measures 17 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 believ
Slide 18: Q4 2022 Segment Results
Q4 2022 Segment Results as of Dec. 31, 2022 18 2022 Q4 © 2022 The Joint Corp. All Rights Reserved. $ in 000s © 2023 The Joint Corp. All Rights Reserved.
Slide 19: 2022 Segment Results
2022 Segment Results as of Dec. 31, 2022 19 2022 © 2022 The Joint Corp. All Rights Reserved. $ in 000s © 2023 The Joint Corp. All Rights Reserved.
Slide 20: GAAP – Non-GAAP Reconciliation
GAAP – Non - GAAP Reconciliation 20 $ in 000s © 2023 The Joint Corp. All Rights Reserved.
Slide 21: Contact Information
Jake Singleton, CFO jake.singleton@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 110, Scottsdale, AZ 85260 | (480) 245 - 5960 https://www.facebook.com/thejointchiro @thejointchiro https://twitter.com/thejointchiro @thejointchiro https://www.youtube.com/thejointcorp @thejointcorp Peter