In This Article:
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Total Revenue: $30.2 million, up 2% year-over-year.
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Systemwide Sales: $129.3 million, up 8% year-over-year.
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Systemwide Comp Sales: Increased 4% for clinics open 13 months or more.
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Net Loss: $3.2 million, or a loss of 21 per share.
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Adjusted EBITDA: $2.4 million, compared to $2.9 million in the previous year.
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Franchise Clinic Adjusted EBITDA: Increased 9% to $5.8 million.
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Company Owned or Managed Clinic Adjusted EBITDA: Increased 3% to $2.1 million.
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Total Clinic Count: 963 clinics, with 838 franchised.
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Franchise License Sales: 7 licenses sold in Q3 2024.
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Unrestricted Cash: $20.7 million as of September 30, 2024.
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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
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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.
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Franchise operations revenue increased by 9%, contributing $12.7 million, reflecting the increased number of clinics in operation.
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The company opened 14 franchise clinics and refranchised one clinic in Q3 2024, with a total clinic count reaching 963.
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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.
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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
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The company experienced a net loss of $3.2 million in Q3 2024, including a $3.8 million loss on disposition or impairment.
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Systemwide comp sales for mature clinics opened 48 months or more decreased by 2%, indicating challenges in maintaining growth in established locations.
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The refranchising strategy impacted franchise license sales, with only seven licenses sold in Q3 2024, the same as the previous quarter.
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The company adjusted its guidance due to ongoing consumer headwinds, expecting systemwide sales between $525 and $535 million, reflecting a cautious outlook.
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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.