Slide 1: Q3 2024 Results
Q3 2024 Results As of Sept. 30, 2024 | Reported on Nov. 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: Sanjiv Razdan, CEO, President and Director
Sanjiv Razdan CEO, President and Director © 2024 The Joint Corp. All Rights Reserved. 3
Slide 4: Guiding Principles
Guiding Principles • Elevate Patient Care • Strengthen Clinic Economics • Drive Innovation • Build People Capability & Culture Increased Profitability and Shareholder Value © 2024 The Joint Corp. All Rights Reserved. 4
Slide 5: Refranchising Vast Majority of Corporate Clinics
Refranchising Vast Majority of Corporate Clinics Aggressively Marketing Clusters: • Executing Letters of Intent (LOIs) • Conducting meetings with bidders • Starting due diligence Value Maximization: • Generates capital • Increases franchise royalty revenue • Reduces corporate costs © 2024 The Joint
Slide 6: Improving New Patient Experience Increases Conversion Rates
Improving New Patient Experience Increases Conversion Rates Initial Visit Bookings Enhanced Digital Intake Forms IVB Impact to Digital Lead Conversion Avg. per Clinic 49% 48% 46% July Aug. Sept. ©2024 The Joint Corp All Rights Reserved 6
Slide 7: Focused on New Patient Acquisition
Focused on New Patient Acquisition Shifting spend to increase awareness and generate leads Implementing Google P-Max Attracting new to chiropractic care & engaging “switchers” © 2024 The Joint Corp. All Rights Reserved. 7
Slide 8: Jake Singleton, Chief Financial Officer
Jake Singleton Chief Financial Officer © 2024 The Joint Corp. All Rights Reserved. 8
Slide 9: Increasing Franchised Clinics to 87% Total Count
Increasing Franchised Clinics to 87% Total Count TOTAL CLINICS OPEN Q3 Q2 Q3 24 24 23 Franchised Company-owned and managed 963 Franchised 935 Clinics 14 9 24 838 135 125 Opened 126 Franchised 706 Clinics 61 1 2 96 Closed 579 Refranchised 513 64 /(Acquired) 1 2 0 442 60 Clinics 399 370 48 838 800 47
Slide 10: Development Pipeline
Development Pipeline 7 148 1,277 Franchise Clinics in active Gross cumulative licenses development 1 franchise licenses sold 1 sold in Q3 2024 of Sept. 30, 2024 of Sept. 30, 2024 71% 57% 48% Franchise licenses sold Of clinics supported Metropolitan statistical in Q3 2024 by by 16 RDs as of areas (MS
Slide 11: Q3 2024 Financial Results as of Sept. 30, 2024
Q3 2024 Financial Results as of Sept. 30, 2024 $ in M 1 Q3 2024 Q3 2023 Differences Revenue $30.2 $29.5 $0.7 3% • Corporate clinics 17.5 17.9 (0.3) (2)% • Franchise fees and royalties 12.7 11.6 1.0 9% Cost of revenue 2.8 2.6 0.2 8% Sales and marketing 4.8 4.3 0.5 11% Depreciation and amortization 1.
Slide 12: Strong Liquidity
Strong Liquidity $ in Ms 9/30/24 12/31/23 Unrestricted cash $20.7 $18.2 Restricted cash $1.3 $1.1 Available JP Morgan Chase LOC1 $20.0 $18.0 Cash flow for the nine months end Sept. 30, 2024: • $5.3M from operations • $374k from the net proceeds of the sales of clinics • $(2.0)M repayment of JPMorgan
Slide 13: YTD 2024 Financial Results as of Sept. 30, 2024
YTD 2024 Financial Results as of Sept. 30, 2024 $ in M 1 9 mo.s 9/30/24 9 mo.s 9/30/23 Differences Revenue $90.2 $87.1 $3.1 4% • Corporate clinics 52.7 52.8 (0.1) 0% • Franchise fees and royalties 37.4 34.3 3.2 9% Cost of revenue 8.4 7.7 0.7 9% Sales and marketing 14.1 13.2 0.9 7% Depreciation and a
Slide 14: Revising 2024 Guidance
Revising 2024 Guidance 2023 2024 Low 2024 High $ in M Actual Guidance Guidance System-wide sales 1 $488.0 $525 $535 System-wide comp sales for all clinics open 13 months or more 2 4% 3% 4% New franchised clinic openings excluding the impact of refranchised clinics 104 55 60 1 System-wide sales inclu
Slide 15: 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 87% franchised 85% of 2023 41 state presence, 963 clinics at 9/30/24, chiropractic clinics and system-wide successful r
Slide 16: Contact details
Sanjiv Razdan, President & CEO sanjiv.razdan@thejoint.com anjiv.razdan@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 110, Scottsdale, AZ 85260 | (480) 245-5960 https://www.facebook.com/thejointchiro https://www.facebook.com/thejointchiro @thejointchiro Jake Singleton, CFO https://twit
Slide 17: Performance Metrics and Non-GAAP Measures
Performance Metrics and Non-GAAP Measures This presentation of commonly discussed performance metrics. System-wide sales include revenues 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 inf
Slide 18: Q3 2024 Segment Results as of Sept. 30, 2024
Q3 2024 Segment Results as of Sept. 30, 2024 $ in 000s 2024 Q3 © 2024 © The 2024 Joint TheCorp. JointAll Corp. Rights All Reserved. Rights Reserved. 18
Slide 19: YTD 2024 Segment Results as of Sept. 30, 2024
YTD 2024 Segment Results as of Sept. 30, 2024 $ in 000s 2024 YTD © 2024 © The 2024 Joint TheCorp. JointAll Corp. Rights All Reserved. Rights Reserved. 19
Slide 20: 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. 20