The Joint Corp. · NASDAQ:JYNT
The Joint — JOINT — Q3 2019 Earnings Presentation
18 slides from The Joint's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Financial Results
© 2019 The Joint Corp. All Rights Reserved. 1 Q3 2019 Financial Results As of September 30, 2019 | Reported On November 7, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement © 2019 The Joint Corp. All Rights Reserved. 2 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,“
Slide 3: Our Mission
Our Mission © 2019 The Joint Corp. All Rights Reserved. 3 To improve quality of life through routine and affordable chiropractic care Q3 2019 vs Q3 2018 System - wide sales Comp sales >13 months 1 Comp sales >48 months 1 33% 23% 17% Revenue 38% Net Income $617K, up $825K Adjusted EBITDA 2 $1.4M, up
Slide 4: Accelerating Momentum
12 26 82 175 242 265 309 352 394 430 4 47 61 47 48 58 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep. 30, 2019 Total Clinics Open Franchise Company Owned/Managed Accelerating Momentum © 2019 The Joint Corp. All Rights Reserved. 4 2018 2019 0 2018 5 Nov. 7, 2019 Franchise Licenses Sold Total New Fr
Slide 5: RDs Accelerate Franchise License Sales
RDs Accelerate Franchise License Sales © 2019 The Joint Corp. All Rights Reserved. 5 1 Of the 818 franchise licenses sold as of September 30, 2019, 208 are in active development, 488 are currently operating and t he balance represents terminated/closed licenses. • 77% of clinics supported by RDs • R
Slide 6: Reducing Time to Breakeven
Reducing Time to Breakeven © 2019 The Joint Corp. All Rights Reserved. 6 • Implementing new operational standards and protocols • Enhancing grand openings with t urnkey, s tep - by - step program • Franchise grassroots marketing tactics with pre - registration program, PR, digital and social media s
Slide 7: Building a Positive, Authentic Brand
Building a Positive, Authentic Brand © 2019 The Joint Corp. All Rights Reserved. 7 Multiple Campaign Channels New Brand Campaign Leveraging insights from 2018 consumer research, which mapped patient journey to chiropractic • Refining our consumer voice and presentation • Connecting with large market
Slide 8: Implementing AXIS, New IT Platform
Implementing AXIS, New IT Platform © 2019 The Joint Corp. All Rights Reserved. 8 CRITICAL: Driven to get it RIGHT! • Completed development • Conducting internal testing • Completing robust training • Delayed rollout to 2020
Slide 9: Exceptional System-wide Comp Sales
Exceptional System - wide Comp Sales © 2019 The Joint Corp. All Rights Reserved. 9 33% System - wide sales 1 Q3 2019 over Q3 2018 23% Comp sales 2 for clinics >13 months in operation Q3 2019 over Q3 2018 17% Comp sales 2 for clinics >48 months in operation Q3 2019 over Q3 2018 1 System - wide sales
Slide 10: Q3 2019 Improvements
Q3 2019 Improvements © 2019 The Joint Corp. All Rights Reserved. 10 4 th Consecutive Quarter of Net Income, 9 th Consecutive Quarter of Positive Adjusted EBITDA $ in M 1 Q3 2019 Q3 2018 Improvement Revenue • Corporate clinics • Franchise fees $12.7 6.8 5.9 $9.2 4.9 4.4 $3.5 1.9 1.5 38% 41% 34% Cost
Slide 11: Increasing 2019 Guidance
Increasing 2019 Guidance © 2019 The Joint Corp. All Rights Reserved. 11 1 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the appendix. | 2 Through a combination of both greenfields and buybacks. $ in M 2018 Actual Original Low Original High Updated Low Updated High Revenues $36.7
Slide 12: Revenue Growth Drivers
© 2019 The Joint Corp. All Rights Reserved. 12 Revenue Growth Drivers Market Opportunity Expansion Strategy New Markets
Slide 13: Building Nationwide Brand to Deliver Shareholder Value
$1.3 $2.8 $8.1 $22.3 $46.2 $70.1 $98.6 $126.9 $165.1 $157.9 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep. 30, 2019 © 2019 The Joint Corp. All Rights Reserved. 13 Building Nationwide Brand to Deliver Shareholder Value Continue to focus on franchise sales • Further leverage RD strategy Accelerate
Slide 14: Non-GAAP Measure Definition
Non - GAAP Measure Definition © 2019 The Joint Corp. All Rights Reserved. 14 This presentation includes a presentation of EBITDA and Adjusted EBITDA, which are non - GAAP financial measures. EBITDA and Adjus ted EBITDA are presented because they are important measures used by management to assess fi
Slide 15: Q3 2019 Segment Results
Q3 2019 Segment Results © 2019 The Joint Corp. All Rights Reserved. 15 2019 Q3 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues $ 6,830 $ 5,896 $ 0 $ 12,726 Total Operating Costs (6,009) (3,022) (3,056) (12,086) Operating Income (Loss) 821 2,875 (3,0
Slide 16: YTD 2019 Segment Results
YTD 2019 Segment Results © 2019 The Joint Corp. All Rights Reserved. 16 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues $ 18,246 $ 16,329 $ 0 $ 34,576 Total Operating Costs (16,021) (8,434) (8,049) (32,504) Operating Income (Loss) 2,225 7,895 (8,049
Slide 17: GAAP – Non-GAAP Reconciliation
GAAP – Non - GAAP Reconciliation © 2019 The Joint Corp. All Rights Reserved. 17
Slide 18: Contact Information
Jake Singleton, CFO jake.singleton@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 240, Scottsdale, AZ 85260 | (480) 245 - 5960 https://www.facebook.com/thejointchiro @ thejointchiro https://twitter.com/thejointchiro @ thejointchiro https://www.youtube.com/thejointcorp @ thejointcorp Pe