JOINT Corp Q3 FY2024 earnings call

• Sanjiv Razdan joined The Joint with experience in leading multisite consumer service companies and franchise businesses. • Focus on refranchising, with broad interest in marketing corporate clinics, and two transactions with existing franchisees in due diligence. • Marketing efforts to increase new patient counts, including rolling out initial visit bookings platform to clinics, seeing new patient digital lead conversion increase from 46% in July to 49% in September, and working on mobile app for in-clinic check-in. • Clinic metrics: opened 14 franchise clinics, refranchised 1, had 963 clinics total with 87% franchised, sold 7 franchise licenses in Q3, reacquired Maryland D.C. regional developer territory rights.

In Q3 2024, system-wide sales for all clinics opened for any amount of time increased to $129.3 million, up 8%. System-wide comp sales for all clinics opened 13 months increased 4%, while system-wide comp sales for mature clinics opened 48 months or more decreased 2%. Revenue was $30.2 million, up $725,000 or 2%. Revenue from franchise operations increased 9% to $12.7 million, and company-owned or managed clinic revenue decreased 2% to $17.5 million. Cost of revenues was $2.8 million, up 8% year-over-year. Selling and marketing expenses were $4.8 million, up 11% year-over-year. Depreciation and amortization expenses decreased $1.1 million or 47%. G&A expenses were $20.8 million, up from $20.2 million. Loss on disposition or impairment was $3.8 million. Net loss was $3.2 million. Adjusted EBITDA was $2.4 million, with franchise clinic adjusted EBITDA up 9% to $5.8 million and company-owned or managed clinic adjusted EBITDA up 3% to $2.1 million.

• System-wide sales expected to be between $525 million and $535 million. • System-wide comp sales for all clinics opened 13 months or more expected to increase between 3% to 4%. • New franchise clinic openings, excluding refranchised clinics, expected to be between 55 and 60. • In 2025, franchise license sales and clinic openings likely to be less than 2024 due to refranchising efforts and economic headwinds over the last two years.

• Forward-looking statements carry risks as actual results may differ due to various uncertainties.需 review risk factors in Forms 10-K and 10-Q as well as other SEC filings.

Q: George Kelly asked about pricing levers and comp growth.

A: Sanjiv Razdan discussed pricing on walk-in prices and how it makes recurring revenue packages more attractive, Jake Singleton mentioned comps cooled due to economic headwinds and a promotion launched.

Q: Jeff Van Sinderen asked about Sanjiv's focus areas and innovation.

A: Sanjiv mentioned elevating patient care, strengthening clinic economics, driving innovation, and building culture and capability as focus areas, and noted he's still learning about potential added services and platform expansion.