The Joint Corp. · NASDAQ:JYNT
The Joint — JOINT — Q1 2018 Earnings Presentation
17 slides from The Joint's earnings presentation, May 10, 2018
Slide 1: Q1 2018 Financial Results
REINVENTING CHIROPRACTIC CARE THE JOINT CORP. | NASDAQ: JYNT | thejoint.com Q1 2018 FINANCIAL RESULTS AS OF MAY 10, 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: Leader Executing Growth Strategy: 400+ Clinics
3 © 2018 | NASDAQ: JYNT | thejoint.com Achi • Increasing clinic scale through franchise sales and regional developers • Reengaging in company - owned/managed clinic acquisition or build - out, first purchased in April 2018 92% CAGR (7 year) SYSTEM - WIDE GROSS SALES ($ in Ms ) Leader Executing Growt
Slide 4: Another Strong Quarter of Improvements
4 © 2018 | NASDAQ: JYNT | thejoint.com Achi Another Strong Quarter of Improvements 2018 vs 2017 System - wide gross sales 32% System - wide comp sales >13 months 1 26% System - wide comp sales >48 months 1 17% Revenue 29% Net loss $(387)k, up $1.4M Adjusted EBITDA 2 $156k, up $753k Cash and equivale
Slide 5: Reducing Clinic Time to Breakeven
5 © 2018 | NASDAQ: JYNT | thejoint.com Achi $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Avg. Monthly Gross Sales Month In Operations Historical Ramp* 2016 Class (64 Clinics) 2017 Class (41 Clinics) Reducing Clinic Time to B
Slide 6: RDs Accelerate Franchise License Sales
6 © 2018 | NASDAQ: JYNT | thejoint.com Achi RDs Accelerate Franchise License Sales 8 11 13 16 18 18 Q4 2016 Q1 2027 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Franchise sales through April 2018 were 27, compared to 37 for all of 2017 NUMBER OF REGIONAL DEVELOPERS 6 © 2018 | NASDAQ: JYNT | thejoint.com GROSS CU
Slide 7: IT Supports Franchises, RDs & Corp. Clinics
7 © 2018 | NASDAQ: JYNT | thejoint.com IT Supports Franchises, RDs & Corp. Clinics ▪ Launched a new sophisticated cloud - based franchise management software and communication platform ▪ Provides access tools, documents, resources; disseminate communications, assign tasks, join events, engage and co
Slide 8: Digital Marketing to Drive Growth
8 © 2018 | NASDAQ: JYNT | thejoint.com Digital Marketing to Drive Growth ▪ Strive to lead best practices and innovation within health & wellness and small box retail ▪ Overhauled SEO strategy including new consumer facing website ▪ Yielding strong gains in web traffic, leads and new patient conversi
Slide 9: Q1 2018 Operational Summary
9 © 2018 | NASDAQ: JYNT | thejoint.com Q1 2018 Operational Summary • System - wide gross sales up 32% to $37.0M, from $28.1M in Q1 2017 • System - wide comp sales 1 for clinics >13 months in operation 1 increased 26%, compared to 19% in Q1 2017 • System - wide comp sales 1 for clinics >48 months in
Slide 10: Q1 2018 Financial Summary
10 © 2018 | NASDAQ: JYNT | thejoint.com Achi $ in Ms Q1 2018 Q1 2017 IMPROVEMENT Revenue Corporate clinics Franchise fees $7.1 3.3 3.8 $5.5 2.5 3.0 $1.6 0.8 0.8 29% 30% 28% Inc. revenue contribution • 48% Corp. • 52% Franchise Cost of revenue 1.0 0.7 (0.3) (40%) Inc. gross sales and RD fees Gross pr
Slide 11: Driving Shareholder Value: 2018 Guidance
11 © 2018 | NASDAQ: JYNT | thejoint.com $ in Ms 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 Driving Shareholder Value: 2018 Guidance 1 Existing clinics are acquired from franchi
Slide 12: Opportunity in Highly Fragmented Market
12 © 2018 | NASDAQ: JYNT | thejoint.com Opportunity in Highly Fragmented Market • $650B in pain costs • $90B in back pain alone • 78% of adults in the US prefer drug - free pain management 3 • 79% of surveyed significantly reduced pain and disability using utilizing manipulation or mobilization 4 $1
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: Stable Model, Significant Growth Potential
14 © 2018 | NASDAQ: JYNT | thejoint.com Stable Model, Significant Growth Potential 1 IBIS World Chiropractors Market Research Report; August 2016 2 For the year - ended December 31, 2017 • $ 15B growing chiropractic market 1 • Experienced, proven management • 1,700+ clinic national footprint opportu
Slide 15: 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 16: Q1 2018 Segment Results & GAAP Reconciliation
16 © 2018 | NASDAQ: JYNT | thejoint.com Q1 2018 Segment Results & GAAP Reconciliation 2018 Q1 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 3,257$ 3,841$ -$ 7,098$ Total Operating Costs (3,146) (2,027) (2,365) (7,537) Operating Income (Loss) 111 1
Slide 17: The Joint Corp. Contact Information
17 © 2018 | NASDAQ: JYNT | thejoint.com Peter D. Holt, President and CEO peter.holt@thejoint.com John P. Meloun, Chief Financial Officer john.meloun@thejoint.com Kirsten Chapman, LHA Investor Relations thejoint@lhai.com The Joint Corp. Contact Information https://www.facebook.com/thejointchiro @ the