Slide 1: Q1 2020 Financial Results
Q1 2020 Financial Results As of March 31, 2020 | Reported On May 7, 2020 © 2020 The Joint Corp. All Rights Reserved. 1
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-looking statements by using words such as "may," "might," " will," "expect,” "anticipate,'' "'believe,“ "could," " intend," "plan," "estimate," "should,"
Slide 3: Our Mission is to Improve Quality of Life
Our Mission is to Improve Quality of Life through Routine and Affordable Chiropractic Care Q1 2020 vs Q1 2019 $13.6M 24% 15% 10% Revenue up 28% $815k Increase in Increase in Increase in Net Income system-wide sales comp sales1 for clinics comp sales1 for clinics vs $953k Q1 2020 over Q1 2019 >13 mon
Slide 4: Continued Clinic Growth
Continued Clinic Growth Opened another greenfield in February 2020, bringing the corporate portfolio count to 61 Total Clinics Open 513 530 Franchise Company Owned/Managed 61 60 442 399 48 370 47 312 61 246 47 4 469 453 394 352 309 242 265 175 82 26 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1-20
Slide 5: Increased RDs to 22 in March 2020
Increased RDs to 22 in March 2020 Pipeline of 200+ Undeveloped Licenses & LOIs at March 31, 2020 % of Sales Franchise Licenses Gross Cumulative by Regional Developers Sold Annually Franchise Licenses Sold1 126 92% 841 865 89% 89% 99 715 616 49% 37 24 Dec. 31, Dec. 31, Dec. 31, Mar. 31, Dec. 31, Dec.
Slide 6: COVID-19 Response
COVID-19 Response Preparing for the Challenge Supporting Franchisees Franchisee Communication Feedback Survey • Increasing communication to • Waiving the minimum royalty franchisees and clinic teams requirement for all franchises • 88% either very positive or for the remainder of 2020 mostly positiv
Slide 7: Q1 2020 Financial Results
Q1 2020 Financial Results $ in M1 Q1 2020 Q1 2019 Increases Revenue $13.6 $10.7 $2.9 28% • Corporate clinics 7.3 5.6 1.7 29% • Franchise fees 6.4 5.1 1.3 26% Cost of revenue 1.5 1.2 0.3 23% Sales and marketing 2.1 1.5 0.5 36% Depreciation 0.7 0.4 0.3 79% G&A 8.7 6.7 2.0 31% Net Income / (Loss) 0.8 1
Slide 8: Business Model Continues to Drive Long-term Growth
Business Model Continues to Drive Long-term Growth The Joint Corp. 9-yr. CAGR 77%1 vs. Industry CAGR 1.2%2* System-wide Gross Sales $220.3 People will continue to ($ in M) seek more noninvasive, $165.1 holistic ways in which 77% CAGR1 to manage their pain. (2010 - 2019) $126.9 $98.6 $70.1 $60.6 We w
Slide 9: 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 pro
Slide 10: Q1 2020 Segment Results
Q1 2020 Segment Results Franchise Unallocated The Joint Corporate Clinics Operations Corporate Consolidated Total Revenues $ 7,294 $ 6,350 $ 0 $ 13,644 Q1 Total Operating Costs Operating Income (Loss) (6,510) 784 (3,506) 2,844 (2,875) (2,875) (12,891) 753 Other Income (Expense), net (1) 3 (6) (4) 20
Slide 11: GAAP – Non-GAAP Reconciliation
GAAP – Non-GAAP Reconciliation Q1-18 Q2-18 Q3-18 Q4-18 FY18 Q1-19 Q2-19 Q3-19 Q4-19 FY19 Q1-20 Total Revenue 8,647 8,805 9,242 9,968 36,662 10,679 11,170 12,726 13,875 48,451 13,644 Total Cost of Revenue 972 1,052 1,085 1,202 4,310 1,206 1,299 1,427 1,634 5,566 1,486 Gross Profit $ 7,675 $ 7,753 $ 8
Slide 12: The Joint Corp. Contact Information
The Joint Corp. Contact Information Peter D. Holt, President and 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 https://twitter.com/thejointchiro jake.sin