The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and
franchisor of chiropractic clinics, provided operating metrics for
the year ended 2023.
2023 Full Year Operating Highlights
- Performed 13.6 million patient visits, compared to 12.2 million
in 2022.
- Treated 932,000 new patients, compared to 845,000 in 2022.
- Increased system-wide sales1 12%, compared to 21% in 2022.
- Delivered comp sales2 of 4%, compared to 9% in 2022.
- Sold 55 franchise licenses, compared to 75 in 2022.
- Expanded total clinic count to 935, up from 838 clinics at
December 31, 2022.
- Opened 104, closed 13, and sold to corporate three franchised
clinics for a total of 800 at December 31, 2023, compared to 712 at
December 31, 2022.
- Opened 10, closed four, and acquired three company-owned or
managed clinics for a total of 135 at December 31, 2023, compared
to 126 at December 31, 2022.
“Our team’s dedication to improving quality of life through
routine and affordable chiropractic care increased patient count
and delivered continued growth in 2023, despite ongoing
macroeconomic challenges,” stated Peter D. Holt, President and
Chief Executive Officer of The Joint Corp. “In the fall, we began
implementing several initiatives that we expect to improve our 2024
performance and profitability. To drive top-line growth and new
patient count, we are enhancing our promotions, brand positioning,
and media with an increased focus on attracting lapsed patients as
well as elongating membership of existing patients. To improve the
bottom line, we are executing our refranchising strategy for the
majority of our corporate clinics. In the fourth quarter, we set
systems in place to manage sales in clusters and sent
non-disclosure agreements to approximately 100 franchisees who
expressed interest. These actions are expected to strengthen the
health of our franchise network and increase our ability to
reinvest in the business to create value for our stakeholder.”
Q4 2023 Financial Results Reporting Management
intends to report its fourth quarter and year-end 2023 financial
results on Thursday, March 7, 2024, after the market close.
President and CEO Peter D. Holt and CFO Jake Singleton will hold a
conference call at 5:00 p.m. ET that day to discuss the
results.
Forward-Looking StatementsThis press release
contains statements about future events and expectations that
constitute forward-looking statements. Forward-looking statements
are based on our beliefs, assumptions and expectations of industry
trends, our future financial and operating performance and our
growth plans, taking into account the information currently
available to us. These statements are not statements of historical
fact. Words such as, "anticipates," "believes," "continues,"
"estimates," "expects," "goal," "objectives," "intends," "may,"
"opportunity," "plans," "potential," "near-term," "long-term,"
"projections," "assumptions," "projects," "guidance," "forecasts,"
"outlook," "target," "trends," "should," "could," "would," "will,"
and similar expressions are intended to identify such
forward-looking statements. Specific forward looking statements
made in this press release include, among others, our belief that
in the fall we began implementing several initiatives that we
expect will improve our 2024 performance and profitability; our
plan to drive top-line growth and new patient count by enhancing
our promotions, brand positioning, and media with an increased
focus on attracting lapsed patients as well as elongating
membership of existing patients; our plan to improve the bottom
line by executing our refranchising strategy for the majority of
our corporate clinics; our belief that our recent actions are
expected to strengthen the health of our franchise network and
increase our ability to reinvest in the business to create value
for our stakeholders. Factors that could contribute to these
differences include, but are not limited to, our inability to
identify and recruit enough qualified chiropractors and other
personnel to staff our clinics, due in part to the nationwide labor
shortage and an increase in operating expenses due to measures we
may need to take to address such shortage; inflation, exacerbated
by COVID-19 and the current war in Ukraine, which has increased our
costs and which could otherwise negatively impact our business; the
potential for further disruption to our operations and the
unpredictable impact on our business of the COVID-19 outbreak and
outbreaks of other contagious diseases; our failure to profitably
operate company-owned or managed clinics; short-selling strategies
and negative opinions posted on the internet, which could drive
down the market price of our common stock and result in class
action lawsuits; our failure to remediate future material
weaknesses in our internal control over financial reporting, which
could negatively impact our ability to accurately report our
financial results, prevent fraud, or maintain investor confidence;
and other factors described in our filings with the SEC, including
in the section entitled “Risk Factors” in our Annual Report on Form
10-K/A for the year ended December 31, 2022 filed with the SEC on
September 26, 2023 and subsequently filed current and quarterly
reports. We qualify any forward-looking statements entirely by
these cautionary factors. We assume no obligation to update or
revise any forward-looking statements for any reason or to update
the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new
information becomes available in the future. Comparisons of results
for current and any prior periods are not intended to express any
future trends or indications of future performance, unless
expressed as such, and should only be viewed as historical
data.
About The Joint Corp. (NASDAQ: JYNT)The Joint
Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care
when it introduced its retail healthcare business model in 2010.
Today, it is the nation's largest operator, manager and franchisor
of chiropractic clinics through The Joint Chiropractic network. The
company is making quality care convenient and affordable, while
eliminating the need for insurance, for millions of patients
seeking pain relief and ongoing wellness. With more than 900
locations nationwide and over 13 million patient visits
annually, The Joint Chiropractic is a key leader in the
chiropractic industry. Consistently named to Franchise
Times “Top 500+ Franchises”
and Entrepreneur’s “Franchise 500” lists and recognized
by FRANdata with the TopFUND award, as well as Franchise
Business Review’s “Top Franchise for 2023,” “Most Profitable
Franchises” and “Top Franchises for Veterans” ranking, The Joint
Chiropractic is an innovative force, where healthcare meets
retail.
For more information, visit www.thejoint.com. To learn
about franchise opportunities,
visit www.thejointfranchise.com.
Business StructureThe Joint Corp. is a
franchisor of clinics and an operator of clinics in certain states.
In Arkansas, California, Colorado, District of Columbia, Florida,
Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New
Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode
Island, South Dakota, Tennessee, Washington, West Virginia and
Wyoming, The Joint Corp. and its franchisees provide management
services to affiliated professional chiropractic practices.
Media Contact: Margie Wojciechowski, The
Joint Corp., margie.wojciechowski@thejoint.comInvestor
Contact: Kirsten Chapman, LHA Investor
Relations, 415-433-3777, thejoint@lhai.com
1 System-wide sales include sales 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 information is important in understanding the Company’s
financial performance, because these sales are the basis on which
the Company calculates and records royalty fees and are indicative
of the financial health of the franchisee base.
2 Comp sales include the sales from both company-owned or
managed clinics and franchised clinics that in each case have been
open at least 13 full months and exclude any clinics that have
closed, respectively.
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