Slide 1: Q3 2020 Financial Results
Q3 2020 Financial Results As of September 30, 2020 | Reported on November 5, 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: Revolutionizing Access to Chiropractic Care
Revolutionizing Access to Chiropractic Care As an essential healthcare service, The Joint Chiropractic’s mission is to improve the quality of life through routine and affordable chiropractic care. BUILD INCREASE ATTRACT OPEN BRAND AWARENESS NEW PATIENTS NEW CLINICS © 2020 The Joint Corp. All Rights
Slide 4: Return to Accelerating Resilient Business Model
Return to Accelerating Resilient Business Model Q3 2020 Q3 2019 21% 12% 7% Revenue $15.4M Up 21% Increase in Increase in Increase in Net Income $1.6M Up 160% system-wide sales comp sales1 for all clinics comp sales1 for all clinics Q3 2020 over Q3 2019 >13 months in operation >48 months in operation
Slide 5: New Clinic Openings Accelerated in Q3 2020
New Clinic Openings Accelerated in Q3 2020 22 new clinics opened in Q3 2020, equal to Q3 2019 and compared to 13 in Q2 2020 TOTAL CLINICS OPEN 560 513 63 Franchise Company Owned/Managed 60 442 399 48 370 47 312 61 47 246 4 497 453 394 352 309 242 265 175 82 12 26 2010 2011 2012 2013 2014 2015 2016 2
Slide 6: Franchise License Sales Accelerated in Q3 2020
Franchise License Sales Accelerated in Q3 2020 Targeting 1,000 clinics opened by the end of 2023 Franchise Licenses Gross Cumulative Sold Annually Franchise Licenses Sold1 126 • License sales catching up 99 to pre-COVID levels 65 • Franchisees continue to 37 locate sites and negotiate Dec. 31, Dec.
Slide 7: Fourth Quarter Promotions
Fourth Quarter Promotions Black Friday Membership Drive © 2020 The Joint Corp. All Rights Reserved. 7
Slide 8: Returning Focus to AXIS, New IT Platform
Returning Focus to AXIS, New IT Platform • Improving capabilities: POS, financial systems, business intelligence, marketing automation, and patient feedback • Implement robust training and certification • Rollout to be completed in the first half of 2021 © 2020 The Joint Corp. All Rights Reserved. 8
Slide 9: Q3 2020 Financial Results
Q3 2020 Financial Results $ in M1 Q3 2020 Q3 2019 Differences Revenue $15.4 $12.7 $2.7 21% • Corporate clinics 8.4 6.8 1.6 23% • Franchise fees 7.0 5.9 1.1 19% Cost of revenue 1.7 1.4 0.3 20% Sales and marketing 1.8 1.8 0.0 3% Depreciation and amortization 0.7 0.5 0.2 33% G&A 9.4 8.3 1.1 13% Net Inc
Slide 10: Year-to-Date September 30, 2020 Financial Results
Year-to-Date September 30, 2020 Financial Results $ in M1 YTD 2020 YTD 2019 Differences Revenue $41.6 $34.6 $7.1 20% • Corporate clinics 22.5 18.2 4.3 24% • Franchise fees 19.1 16.3 2.8 17% Cost of revenue 4.6 3.9 0.6 16% Sales and marketing 5.7 5.1 0.6 12% Depreciation and amortization 2.1 1.3 0.8
Slide 11: Reestablished 2020 Guidance
Reestablished 2020 Guidance 2019 Low High $ in M Actual Guidance Guidance Revenues $48.5 $58 $59 Adjusted EBITDA1 $6.2 $8.5 $9.0 New Franchised Clinic Openings 71 65 72 New Company-owned/Managed Clinics2 13 4 7 1Reconciliation of Adjusted EBITDA to GAAP earnings is included in the appendix. | 2 Thro
Slide 12: Substantial Opportunity for Market Share Growth
Substantial Opportunity for Market Share Growth • Annual spending The Joint Chiropractic Chiropractic Is a Natural Solution Other Chains 3 on back pain: $90B1 $220M, 1% • Chiropractic is a part of the first $300M, 2% line of therapy5 • Chiropractic care: $16B2 • Patients who visit a chiropractor are
Slide 13: Resilient Business Model Drives Long-term Growth
Resilient Business Model Drives Long-term Growth The Joint Corp. 9-yr. CAGR 77%1 vs. Industry CAGR 1.4%2* System-wide Gross Sales People will continue to ($ in M) $220.3 seek more noninvasive, $182.4 $165.1 holistic ways in which to 77% CAGR1 manage their pain. (2010 - 2019) $126.9 $98.6 $70.1 We wi
Slide 14: 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 15: Q3 2020 Segment Results
Q3 2020 Segment Results 2020 Q3 © 2020 The Joint Corp. All Rights Reserved. 15
Slide 16: YTD September 30, 2020 Segment Results
YTD September 30, 2020 Segment Results 2020 © 2020 The Joint Corp. All Rights Reserved. 16
Slide 17: GAAP – Non-GAAP Reconciliation
GAAP – Non-GAAP Reconciliation © 2020 The Joint Corp. All Rights Reserved. 17
Slide 18: 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