The Joint Corp (JYNT) Q3 2024 Earnings Call Highlights: Navigating Growth Amid Economic Headwinds

In This Article:

  • Total Revenue: $30.2 million, up 2% year-over-year.

  • Systemwide Sales: $129.3 million, up 8% year-over-year.

  • Systemwide Comp Sales: Increased 4% for clinics open 13 months or more.

  • Net Loss: $3.2 million, or a loss of 21 per share.

  • Adjusted EBITDA: $2.4 million, compared to $2.9 million in the previous year.

  • Franchise Clinic Adjusted EBITDA: Increased 9% to $5.8 million.

  • Company Owned or Managed Clinic Adjusted EBITDA: Increased 3% to $2.1 million.

  • Total Clinic Count: 963 clinics, with 838 franchised.

  • Franchise License Sales: 7 licenses sold in Q3 2024.

  • Unrestricted Cash: $20.7 million as of September 30, 2024.

  • Cash Flow from Operations: $5.3 million for the nine-month period.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Joint Corp (NASDAQ:JYNT) reported an 8% increase in systemwide sales for all clinics open for any amount of time, reaching $129.3 million.

  • Franchise operations revenue increased by 9%, contributing $12.7 million, reflecting the increased number of clinics in operation.

  • The company opened 14 franchise clinics and refranchised one clinic in Q3 2024, with a total clinic count reaching 963.

  • The initial visit bookings platform rollout to 500 clinics showed strong results, increasing new patient digital lead conversion from 46% in July to 49% in September.

  • The Joint Corp (NASDAQ:JYNT) celebrated its 25th anniversary and was recognized in the Franchise Times' TOP200 list, moving up 18 spots to position 150.

Negative Points

  • The company experienced a net loss of $3.2 million in Q3 2024, including a $3.8 million loss on disposition or impairment.

  • Systemwide comp sales for mature clinics opened 48 months or more decreased by 2%, indicating challenges in maintaining growth in established locations.

  • The refranchising strategy impacted franchise license sales, with only seven licenses sold in Q3 2024, the same as the previous quarter.

  • The company adjusted its guidance due to ongoing consumer headwinds, expecting systemwide sales between $525 and $535 million, reflecting a cautious outlook.

  • Marketing expenses increased by 11% year over year, reflecting higher advertising spend, which may pressure profitability if not matched by revenue growth.

Q & A Highlights

Q: Can you elaborate on the pricing changes you mentioned and their expected impact? A: Sanjiv Razdan, President and CEO, explained that the pricing changes are focused on the walk-in prices, which will not only provide incremental revenue but also make recurring revenue packages more attractive to patients. He is also evaluating all pricing levers to maximize revenue while maintaining affordability.

Waiting for permission
Allow microphone access to enable voice search

Try again.