The Joint Corp. (JYNT) Q2 2025 Earnings Call

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WEBVTT 00:00:00.000 -- 00:00:05.060 Our corporate clinics are attracting investments from sophisticated multi-unit franchisees, 00:00:05.060 -- 00:00:10.100 both existing and new to our system. This conveys confidence in our 00:00:10.100 -- 00:00:12.780 business model and our growth initiatives. 00:00:12.780 -- 00:00:18.320 We started Q2 2025 with 13% corporate clinics in our portfolio. 00:00:18.320 -- 00:00:24.320 During the quarter, we refranchised 37 clinics, reducing that to 8%. 00:00:24.320 -- 00:00:29.640 In Arizona and New Mexico, we sold 31 corporate clinics for an aggregate purchase 00:00:29.640 -- 00:00:35.820 price of $11.1 million to our largest franchisee, Joint Ventures. 00:00:35.820 -- 00:00:41.280 We are excited to expand our partnership with Joint Ventures to 96 clinics, 00:00:41.280 -- 00:00:46.780 with 10 more committed over time. We received $8.3 million in 00:00:46.780 -- 00:00:51.960 cash, and as part of this deal, bought the regional developer rights to the 00:00:51.960 -- 00:00:57.120 Northwest region for $2.8 million. This transaction 00:00:57.120 -- 00:01:02.380 also reduced our annual royalties and commissions obligation, which 00:01:02.380 -- 00:01:06.420 in 2024 was $855,000. 00:01:07.200 -- 00:01:12.380 This territory consists of 46 existing franchise clinics and holds 00:01:12.380 -- 00:01:19.160 significant opportunity for growth with 30 sites planned for future clinic development. 00:01:19.160 -- 00:01:24.240 In Kansas City, we sold the five corporate clinics, and we are all actively engaged 00:01:24.240 -- 00:01:29.200 in refranchising the balance of the corporate portfolio. 00:01:29.200 -- 00:01:34.820 Turning to slide six, let's review our long-term profitability improvement initiatives, 00:01:34.820 -- 00:01:40.440 starting with h...