Slide 1: Q4 2023 Financial Results
Q4 2023 Financial Results As of December 31, 2023 | Reported on March 7, 2024
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: Strong Operational KPIs
Strong Operational KPIs 13.6M 1.7M 932K 36% 85% adjustments unique patients new patients of new patients were new to system-wide gross sales in 2023 treated in 2023 in 2023 chiropractic in 20231 from monthly memberships in 2023 Up from 12.2M in 2022 Up from 1.6M in 2022 Compared to 845K in 2022 ~336
Slide 4: Building upon Foundation for Growth
Building upon Foundation for Growth Q4 Q4 FY FY 2023 2022 2023 2022 Revenue $30.6M $27.7M $117.7M $101.3M 12% 4% (1)% Loss on disposition or impairment 3 $1.5M $50k $2.6M $410k Increase in Increase in Decrease in Operating (loss) / inc. $(147)k $1.5M $(2.1)M $828k system-wide sales1 system–wide comp
Slide 5: 97 Net, New Clinics in 2023
2023 2022 97 Net, New Clinics in 2023 Franchise 935 Licenses Sold 55 75 TOTAL CLINICS OPEN 838 135 Franchise Company Owned/Managed 126 Franchised Clinics 706 Opened 1 104 121 96 579 513 64 442 60 Corporate Clinics 399 Opened 1 10 16 370 47 48 800 312 61 712 246 47 610 4 515 453 394 352 Corporate Cli
Slide 6: Refranchising Strategy
Refranchising Strategy Majority of corporate clinics: • Quality assets of value • Methodical clustering Prepared framework for sales • 100+ Requests from existing franchisees • Broadening the scope to prospective new franchisees Value maximization: • Generates capital • Increases franchise revenue •
Slide 7: Pipeline for Growth
Pipeline for Growth Franchise Licenses Sold Annually Clinics in Active Development1 Gross Cumulative Franchise Licenses Sold1 283 1248 1193 156 253 1118 235 962 126 121 204 841 99 172 155 715 616 75 112 55 37 Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, D
Slide 8: Key Performance Indicators
Key Performance Indicators 200 bpt.s increase in Conversion and 100 bpt.s improvement in Attrition New Patients Total Conversion Attrition Avg. per Clinic Avg. per Clinic Avg. per Clinic 105 52.1% 12.0% 91 86 50.5% 11.2% 50.1% 11.0% 2021 2022 2023 2021 2022 2023 2021 2022 2023 © 2024 The Joint Corp.
Slide 9: Implementing New Marketing Programs
Implementing New Marketing Programs Increasing membership and package sales and with strong annual year-end promotions Driving new patients with new media and advertising Increasing existing and lapsed patient engagement Expanding brand architecture © 2024 The Joint Corp. All Rights Reserved. 9
Slide 10: Q4 2023 Financial Results as of Dec. 31, 2023
Q4 2023 Financial Results as of Dec. 31, 2023 $ in M 1 Q4 2023 Q4 2022 Differences Revenue $30.6 $27.7 $2.9 11% • Corporate clinics 17.9 16.5 1.4 9% • Franchise fees 12.7 11.2 1.5 14% Cost of revenue 2.9 2.5 0.4 16% Sales and marketing 3.4 3.3 0.1 2% Depreciation and amortization 1.7 2.1 (0.4) (18)%
Slide 11: 2023 Financial Results as of Dec. 31, 2023
2023 Financial Results as of Dec. 31, 2023 $ in M 1 FY 2023 FY 2022 Differences Revenue $117.7 $101.3 $16.4 16% • Corporate clinics 70.7 59.4 11.3 19% • Franchise fees 47.0 41.8 5.2 12% Cost of revenue 10.5 9.2 1.4 15% Sales and marketing 16.5 14.0 2.6 18% Depreciation and amortization 8.6 6.6 1.9 2
Slide 12: Initiating 2024 Guidance
Initiating 2024 Guidance 2023 2024 Low 2024 High $ in M Actual Guidance Guidance System-wide sales1 $488.0 $530 $545 System-wide comp sales for all clinics open 13 months or more2 4% Mid-single digits New franchised clinic openings excluding the impact of refranchised clinics 104 60 75 1 System-wide
Slide 13: Leading Market Growth
Leading Market Growth The Joint Corp. 13-yr. CAGR 58%1 vs. Industry 5-yr. CAGR 5.1%2 System-wide Sales People will ($ in M) continue to seek $488.0 more noninvasive, 58% CAGR1 $435.3 holistic ways to (2010 - 2023) manage their pain. $361.1 $260.0 We’ll be there to $220.3 treat them. $165.1 $126.9 $9
Slide 14: Leading Chiropractic Care Franchise Concept
Leading Chiropractic Care Franchise Concept Large & Attractive Recurring Premier Category Growing Asset-light Revenue Nationwide Leader & Market Model Model Brand Creator $20.5B on chiropractic 86% franchised clinics 85% of 2023 41 state presence, 935 clinics at 12/31/23, $8.5B out-of-pocket and imp
Slide 15: Appendix
Appendix © 2024 The Joint Corp. All Rights Reserved. 15
Slide 16: 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 17: Q4 2023 Segment Results as of Dec. 31, 2023
Q4 2023 Segment Results as of Dec. 31, 2023 $ in 000s Q4 2023 Due to rounding, numbers may not add up precisely to the totals. © 2024 © 2022 The The Joint Joint Corp. Corp. All All Rights Rights Reserved. Reserved. 17
Slide 18: 2023 Segment Results through Dec. 31, 2023
2023 Segment Results through Dec. 31, 2023 $ in 000s 2023 Due to rounding, numbers may not add up precisely to the totals. © 2024 © 2022 The The Joint Joint Corp. Corp. All All Rights Rights Reserved. Reserved. 18
Slide 19: GAAP – Non-GAAP Reconciliation
GAAP – Non-GAAP Reconciliation $ in 000s Due to rounding, numbers may not add up precisely to the totals. © 2024 The Joint Corp. All Rights Reserved. 19
Slide 20: 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