The Joint Corp. · NASDAQ:JYNT
The Joint — JOINT — Q2 2019 Earnings Presentation
21 slides from The Joint's earnings presentation, Aug 8, 2019
Slide 1: Q2 2019 Financial Results
THE JOINT CORP. | NASDAQ: JYNT | thejoint.com Q2 2019 FINANCIAL RESULTS AS OF JUNE 30, 2019 REPORTED AUGUST 8, 2019 © 2019 The Joint Corp. All Rights Reserved.
Slide 2: Safe Harbor Statements
Safe Harbor Statements Forward looking Statements 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
Slide 3: Our Mission and Q2 2019 vs Q2 2018 Highlights
3 © 2019 | NASDAQ: JYNT | thejoint.com 1 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months and exclude any clinic s t hat have closed.| 2 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the Appendix. Our Mission TO IMPROVE QUALIT
Slide 4: Accelerating Momentum
4 © 2019 | NASDAQ: JYNT | thejoint.com 12 26 82 175 242 265 309 352 394 417 4 47 61 47 48 51 2010 2011 2012 2013 2014 2015 2016 2017 2018 6-30-19 TOTAL CLINICS OPEN Franchise Company Owned/Managed Accelerating Momentum Continue to experience unusually low clinic closure rates of less than 1% 312 370
Slide 5: RDs Accelerate Franchise License Sales
5 © 2019 | NASDAQ: JYNT | thejoint.com 50% 49% 89% 95% Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 June 30, 2019 RDs Accelerate Franchise License Sales PIPELINE OF 200+ UNDEVELOPED LICENSES & LOIs AT JUNE 30, 2019 % of SALES BY REGIONAL DEVELOPERS GROSS CUMULATIVE FRANCHISE LICENSES SOLD 1 22 37 99 75
Slide 6: Reducing Time to Breakeven
6 © 2019 | NASDAQ: JYNT | thejoint.com Reducing Time to Breakeven • Implementing 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 support • Ma
Slide 7: Building a Robust Health & Wellness Brand
7 © 2019 | NASDAQ: JYNT | thejoint.com Building a Robust Health & Wellness Brand Awareness Building Tactics • Educate the greater market of “relief seekers” • Improve name recognition New Brand Campaign Leveraging insights from 2018 consumer research PR Web Outdoor Print Social Fall 2019 Launch TV C
Slide 8: Implementing AXIS, New IT Platform
8 © 2019 | NASDAQ: JYNT | thejoint.com Implementing AXIS, New IT Platform CRITICAL: Driven to get it RIGHT! • Completed development • Conducting internal testing • Completing robust training
Slide 9: Exceptional System-wide Comp Sales
9 © 2019 | NASDAQ: JYNT | thejoint.com System - wide sales 2 Comp sales 1 for clinics >13 months in operation Comp sales 1 for clinics >48 months in operation Exceptional System - wide Comp Sales 1 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months
Slide 10: Q2 2019 Improvements
10 © 2019 | NASDAQ: JYNT | thejoint.com Achi $ in M 1 Q2 2019 Q2 2018 IMPROVEMENT Revenue • Corporate clinics • Franchise fees $11.2 5.8 5.4 $8.8 4.7 4.1 $2.4 1.1 1.3 27% 24% 30% Cost of revenue 1.3 1.1 (0.2) (24%) Sales and marketing 1.8 1.3 0.5 (37%) Depreciation 0.4 0.4 (0.0) (0%) G&A 7.2 5.9 (1.
Slide 11: Reiterating 2019 Guidance
11 © 2019 | NASDAQ: JYNT | thejoint.com $ in M 2018 ACTUAL LOW HIGH Revenues $36.7 26% 32% Adjusted EBITDA 1 $2.9 67% 100% New Franchise Openings 47 70 80 Additional Company - owned/Managed Clinics 2 1 8 12 Reiterating 2019 Guidance 1 Reconciliation of Adjusted EBITDA to GAAP earnings is included in
Slide 12: Opioid Epidemic Continues
12 © 2019 | NASDAQ: JYNT | thejoint.com Opioid Epidemic Continues are written for every 100 Americans in 2017, according to the CDC. will be prescribed opioids at some point in their lives. from July 2016 through September 2017 in 52 areas in 45 states. in the United States after overdosing on opioi
Slide 13: Upside for Future Growth
13 © 2019 | NASDAQ: JYNT | thejoint.com Upside for Future Growth of Americans don’t know what the word “chiropractic” means saw a chiropractor in the last 12 months understand chiropractic but are scared Gallup - Palmer College of Chiropractic Report 2017 Gallup - Palmer College of Chiropractic Repo
Slide 14: Market Opportunity
14 © 2019 | NASDAQ: JYNT | thejoint.com Market Opportunity 1% SHARE WITH 1700+ POTENTIAL CLINICS Only 1.06% US market penetration • 52.3M people have used chiropractic care in the last 12 months* • 557,000 unique active patients in 2018 1700+ similar points of distribution based on 557k patient reco
Slide 15: Expansion: New Markets
15 © 2019 | NASDAQ: JYNT | thejoint.com Expansion: New Markets Small Markets • Recent openings to help understand growth potential Urban • Pedestrian focus • Very few now; will be important Non - traditional • Airports • Dual concepts
Slide 16: Growth Strategy
16 © 2019 | NASDAQ: JYNT | thejoint.com Growth Strategy BUILDING NATIONWIDE BRAND TO DELIVER SHAREHOLDER VALUE Continue to focus on franchise sales • Further leverage RD strategy Accelerate the expansion of corporate clinic portfolio within clustered locations • Build greenfield clinics • Acquire fr
Slide 17: 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 18: Q2 2019 Segment Results
18 © 2019 | NASDAQ: JYNT | thejoint.com Q2 2019 Segment Results 2019 Q2 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 5,777$ 5,393$ 0$ 11,170$ Total Operating Costs (5,213) (2,762) (2,708) (10,682) Operating Income (Loss) 564 2,631 (2,707) 488 Oth
Slide 19: H1 2019 Segment Results
19 © 2019 | NASDAQ: JYNT | thejoint.com H1 2019 Segment Results 2019 H1 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 11,416$ 10,433$ 0$ 21,849$ Total Operating Costs (10,012) (5,412) (4,993) (20,418) Operating Income (Loss) 1,404 5,020 (4,993) 1,
Slide 20: GAAP – Non-GAAP Reconciliation
20 © 2019 | NASDAQ: JYNT | thejoint.com GAAP – Non - GAAP Reconciliation
Slide 21: Contact Information
21 © 2019 | NASDAQ: JYNT | thejoint.com Peter D. Holt, President and CEO peter.holt@thejoint.com Jake Singleton, CFO jake.singleton@thejoint.com Kirsten Chapman, LHA Investor Relations thejoint@lhai.com The Joint Corp. Contact Information https://www.facebook.com/thejointchiro @ thejointchiro https: