Slide 1: Q2 2020 Financial Results
Q2 2020 Financial Results As of June 30, 2020 | Reported on August 6, 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 through Routine and Affordable Chiropractic Care
Our Mission is to Improve Quality of Life through Routine and Affordable Chiropractic Care Live a Better You BUILD INCREASE ATTRACT OPEN BRAND AWARENESS NEW PATIENTS NEW CLINICS © 2019 The Joint Corp. All Rights Reserved. 3
Slide 4: Resilient Business Model
Resilient Business Model Q2 2020 vs Q2 2019 $12.6M 2% (6)% (10)% Revenue up 13% $116k Increase in Increase in Increase in Net Income system-wide sales comp sales1 for all clinics comp sales1 for all clinics vs $462k Q2 2020 over Q2 2019 >13 months in operation >48 months in operation Q2 2020 over Q2
Slide 5: Continued Clinic Growth
Continued Clinic Growth Targeting 1,000 Clinics Opened by the end of 2023 Opened greenfields in February, June and July, bringing the corporate portfolio count to 63 as of August 6, 2020 TOTAL CLINICS OPEN 539 Franchise Company Owned/Managed 513 62 60 442 399 48 370 47 312 61 246 47 4 477 453 394 35
Slide 6: RDs Continue Driving Onward
22 RDs Continue Driving Onward Pipeline of 200+ Undeveloped Licenses & LOIs at June 30, 2020 % of Sales Franchise Licenses Gross Cumulative by Regional Developers Sold Annually Franchise Licenses Sold1 126 876 841 89% 89% 80% 99 715 616 49% 37 35 Dec. 31, Dec. 31, Dec. 31, June 30, Dec. 31, Dec. 31,
Slide 7: Chiropractic Care Is an Essential Healthcare Service
Chiropractic Care Is an Essential Healthcare Service • Critical point of differentiation versus other retailer service concepts • Service call for our doctors and staff: Now more than ever, we must be open to treat our patients Increased frequency of • Reassuring patients: Our clinics are open and t
Slide 8: Two Major Promotions: Record-Breaking Impact
Two Major Promotions: Record-Breaking Impact By end of the promotion, average members Direct Marketing National Campaign per clinic surpassed our all- time record. 8
Slide 9: Updated Patient Demographics
Updated Patient Demographics Median Age 37 Years Generation Mix Gen Z 11% Millennial 44% Gen X 30% Baby Boomer 15% Gender Female 49% 1 Patients who visited The Joint Chiropractic in 2019 © 2020 The Joint Corp. All Rights Reserved. 9
Slide 10: Q2 2020 Financial Results
Q2 2020 Financial Results $ in M1 Q2 2020 Q2 2019 Differences Revenue $12.6 $11.2 $1.4 13% • Corporate clinics 6.9 5.8 1.1 19% • Franchise fees 5.7 5.4 0.3 6% Cost of revenue 1.4 1.3 0.1 5% Sales and marketing 1.8 1.8 0.0 1% Depreciation and amortization 0.7 0.4 0.3 71% G&A 8.5 7.2 1.3 18% Net Incom
Slide 11: Year-to-Date June 30, 2020 Financial Results
Year-to-Date June 30, 2020 Financial Results $ in M1 H1 2020 H1 2019 Differences Revenue $26.2 $21.8 $4.4 20% • Corporate clinics 14.1 11.4 2.7 24% • Franchise fees 12.1 10.4 1.7 16% Cost of revenue 2.8 2.5 0.3 14% Sales and marketing 3.8 3.3 0.5 17% Depreciation and amortization 1.3 0.8 0.5 75% G&A
Slide 12: 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 1.2%2* System-wide Gross Sales $220.3 People will continue to ($ in M) seek more noninvasive, $165.1 holistic ways in which to 77% CAGR1 manage their pain. (2010 - 2019) $126.9 $98.6 $70.1 We will be r
Slide 13: 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 14: Q2 2020 Segment Results
Q2 2020 Segment Results 2020 Q2 © 2020 The Joint Corp. All Rights Reserved. 14
Slide 15: YTD June 30, 2020 Segment Results
YTD June 30, 2020 Segment Results H1 2020 © 2020 The Joint Corp. All Rights Reserved. 15
Slide 16: GAAP – Non-GAAP Reconciliation
GAAP – Non-GAAP Reconciliation © 2020 The Joint Corp. All Rights Reserved. 16
Slide 17: 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