EXHIBIT 99.1

The Joint Corp. Reports Second Quarter 2017 Financial Results

Revenue Increased 21% to $6.0 Million Compared to Prior Year Period

 Added 11 New Franchised Clinics in Second Quarter

Reaffirmed 2017 Guidance

Matthew E. Rubel Appointed Lead Director

SCOTTSDALE, Ariz., Aug. 10, 2017 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ:JYNT), a national operator, manager and franchisor of chiropractic clinics, today reported results for the quarter ended June 30, 2017.    


Second Quarter 2017 Financial Highlights

  • Revenue increased 21% in the second quarter to $6.0 million, up from $5.0 million in the prior year second quarter
  • System-wide comp sales1 were 19%
  • Net loss improved 69% compared to the same quarter last year to ($1.0) million
  • Adjusted EBITDA was ($0.3) million in the second quarter, an 82% improvement compared to ($2.0) million in the same quarter last year
  • Added 11 new franchised clinics, ending the second quarter of 2017 with 383 total clinics in operation, a net increase of 42 clinics from June 30, 2016

“Positive trends continued throughout our operations during the second quarter,” said Peter D. Holt, president and chief executive officer of The Joint Corp. “Our revenue grew by 21%, we experienced our sixth consecutive quarterly improvement in Adjusted EBITDA, and our cash balance improved on a sequential quarter to quarter basis. We made further progress on our growth goals with the opening of 11 new franchises in the second quarter. Additionally, we sold two new regional developer licenses, and continued improvement in the operating performance of our company clinics, all of which positions us for accelerated growth.”

Holt added, “System-wide comp sales were up 19%, which reflects the growing market acceptance of our chiropractic services. For the remainder of the year, we are focused on achieving company-wide profitability and expanding our franchise network by adding 50 to 60 new franchised clinics in 2017.”    

___________________
1 Comp sales refers to the amount of sales a clinic generates in the most recent accounting period, compared to sales in the comparable period of the prior year, and (i) includes sales only from clinics that have been open at least 13 full months and (ii) excludes any clinics that have closed.

Second Quarter 2017 Financial Results

Revenue for the second quarter of 2017 increased 21% to $6.0 million from $5.0 million in the second quarter of 2016 due primarily to the net increase of 56 franchised clinics and increasing sales in our existing company-owned or managed clinics since June 30, 2016.

Cost of revenue in the second quarter of 2017 increased 6% compared to the second quarter of 2016 due primarily to higher regional developer royalties from increased sales of franchises.

Selling and marketing expenses decreased by 10% to $1.1 million in the second quarter of 2017, compared to $1.2 million in the same period last year due primarily to 14 fewer corporate clinics in the second quarter of 2017 compared to the same period last year.

General and administrative expenses decreased to $4.7 million in the second quarter of 2017, compared to $5.6 million in the second quarter of 2016 due to lower payroll and occupancy costs from 14 fewer corporate clinics in the second quarter of 2017 compared to the second quarter of 2016. In addition, the second quarter of 2016 was negatively impacted by a $0.3 million charge related to halting greenfield clinic development.

Total depreciation and amortization expense decreased for the second quarter of 2017, compared to the prior year quarter due to the aforementioned 14 fewer clinics in the 2017 second quarter compared to the same quarter last year.

Net loss in the second quarter of 2017 was ($1.0) million, or ($0.08) per share, compared to a net loss of ($3.3) million, or ($0.26) per share, in the same period last year.

Adjusted EBITDA (a non-GAAP measure) in the second quarter of 2017 was ($0.3) million, an 82% improvement compared to ($2.0) million in the same quarter last year. 

As of June 30, 2017, cash and cash equivalents were $3.0 million, compared to $3.0 million at December 31, 2016.  Pursuant to the terms of our credit agreement, during the first quarter of 2017, we borrowed a required $1.0 million on our line of credit, which remains unused as part of cash and cash equivalents on our balance sheet as of June 30, 2017.

Effective August 8, 2017, newly elected board member Matthew E. Rubel was appointed Lead Director of The Joint Corp. Rubel brings extensive C-suite and public company board experience to The Joint Corp., and most recently served as chief executive officer, president and board member of Varsity Brands, Inc. From 2005 to 2011 he served as chief executive officer and president of Collective Brands, Inc. Rubel succeeds Ronald V. DaVella as Lead Director who will remain on the Company’s board of directors and remain chairperson of the Company’s audit committee.

2017 Financial Guidance

For full year 2017, we are reiterating our guidance set forth below:

  • Total revenues in the range of $22 million to $24 million
  • Adjusted EBITDA in the range of ($1.5) million to ($0.5) million
  • Net new franchised clinic openings in the range of 50 to 60

Conference Call

The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, August 10, 2017, to discuss the second quarter 2017 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931, and referencing 41541211. A live webcast of the conference call will also be available on the investor relations section of the Company’s website at www.thejoint.com. An audio replay will be available two hours after the conclusion of the call through August 17, 2017. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 41541211.

Non-GAAP Financial Information

This earnings release includes a presentation of EBITDA and Adjusted EBITDA which are non-GAAP financial measures. These are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the Company’s underlying operating performance and operating trends. Reconciliation of net loss to EBITDA and Adjusted EBITDA is presented in the table below. The Company defines Adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, loss on disposition or impairment, and stock-based compensation expenses. The Company defines EBITDA as net income (loss) before net interest, tax expense, depreciation, and amortization expenses.

EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the Company’s financial statements filed with the SEC.

Forward-Looking Statements

This 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. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our failure to develop or acquire corporate clinics as rapidly as we intend, our failure to profitably operate corporate clinics, and the factors described in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the SEC. 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. 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)

Based in Scottsdale, Arizona, The Joint is an emerging growth company that is reinventing chiropractic by making quality care convenient and affordable for patients seeking pain relief and ongoing wellness. Its no-appointment policy and convenient hours and locations make care more accessible, and affordable membership plans and packages eliminate the need for insurance. With nearly 400 clinics nationwide and more than 4 million patient visits annually, The Joint is a key leader in the chiropractic profession. For more information, visit www.thejoint.com or follow the brand on Twitter, Facebook, YouTube and LinkedIn.

Business Structure

The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, Florida, Illinois, Kansas, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee and Washington, The Joint and its franchisees provide management services to affiliated professional chiropractic practices.

 
THE JOINT CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
     
  June 30, December 31,
  2017 2016
ASSETS (unaudited)  
Current assets:        
Cash and cash equivalents $3,046,777  $3,009,864 
Restricted cash  280,414   334,394 
Accounts receivable, net  1,135,574   1,021,733 
Income taxes receivable  3,054   42,014 
Notes receivable - current portion  53,475   40,826 
Deferred franchise costs - current portion  516,981   748,300 
Prepaid expenses and other current assets  557,246   499,525 
Total current assets  5,593,521   5,696,656 
Property and equipment, net  4,071,501   4,724,706 
Notes receivable, net of current portion  148,525   - 
Deferred franchise costs, net of current portion  887,900   836,350 
Intangible assets, net  2,017,169   2,338,922 
Goodwill  2,750,338   2,750,338 
Deposits and other assets  657,202   707,889 
Total assets $16,126,156  $17,054,861 
         
LIABILITIES AND STOCKHOLDERS' EQUITY         
Current liabilities:        
Accounts payable $971,326  $1,054,946 
Accrued expenses  267,425   299,997 
Co-op funds liability  82,583   73,246 
Payroll liabilities  609,544   750,421 
Notes payable - current portion  100,000   331,500 
Deferred rent - current portion  146,618   215,450 
Deferred revenue - current portion  2,360,516   3,077,430 
Other current liabilities  52,071   60,894 
Total current liabilities  4,590,083   5,863,884 
Revolving credit - notes payable  1,000,000   - 
Deferred rent, net of current portion  875,845   1,400,790 
Deferred revenue, net of current portion  3,876,388   2,231,712 
Deferred tax liability  176,032   120,700 
Other liabilities  1,030,003   512,362 
Total liabilities  11,548,351   10,129,448 
Commitments and contingencies        
Stockholders' equity:        
Series A preferred stock, $0.001 par value; 50,000        
shares authorized, 0 issued and outstanding, as of June 30, 2017,        
and  December 31, 2016  -   - 
Common stock, $0.001 par value; 20,000,000 shares        
authorized, 13,461,044 shares issued and 13,164,540 shares outstanding        
as of June 30, 2017 and 13,317,393 shares issued and 13,020,889        
outstanding as of December 31, 2016  13,461   13,317 
Additional paid-in capital  36,709,063   36,398,588 
Treasury stock, at cost, 296,504 shares as of June 30, 2017        
and December 31, 2016  (503,118)  (503,118)
Accumulated deficit  (31,641,601)  (28,983,374)
Total stockholders' equity  4,577,805   6,925,413 
Total liabilities and stockholders' equity $16,126,156  $17,054,861 
         

 

 
THE JOINT CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
     
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2017 2016 2017 2016
Revenues:                
Revenues and management fees from company clinics $2,707,458  $2,137,252  $5,223,059  $3,795,805 
Royalty fees  1,854,087   1,428,548   3,560,160   2,797,379 
Franchise fees  357,600   524,209   807,100   1,039,009 
Advertising fund revenue  621,578   356,580   1,220,014   622,301 
IT related income and software fees  282,525   229,400   549,538   450,534 
Regional developer fees  119,733   225,080   196,629   372,617 
Other revenues  71,827   72,972   132,165   161,432 
Total revenues  6,014,808   4,974,041   11,688,665   9,239,077 
Cost of revenues:                
Franchise cost of revenues  704,767   668,851   1,388,010   1,363,586 
IT cost of revenues  65,452   58,888   124,313   104,116 
Total cost of revenues  770,219   727,739   1,512,323   1,467,702 
Selling and marketing expenses  1,058,224   1,174,178   2,016,930   1,912,861 
Depreciation and amortization  503,226   637,115   1,081,212   1,212,659 
General and administrative expenses  4,667,688   5,621,771   9,231,768   11,313,826 
Total selling, general and administrative expenses  6,229,138   7,433,064   12,329,910   14,439,346 
Loss on disposition or impairment  -   -   417,971   - 
Loss from operations  (984,549)  (3,186,762)  (2,571,539)  (6,667,971)
                 
Other (expense) income, net  (24,030)  (1,150)  (43,496)  (677)
Loss before income tax expense  (1,008,579)  (3,187,912)  (2,615,035)  (6,668,648)
                 
Income tax expense  (2,583)  (73,470)  (43,192)  (117,867)
                 
Net loss and comprehensive loss $(1,011,162) $(3,261,382) $(2,658,227) $(6,786,515)
                 
Loss per share:                
Basic and diluted loss per share $(0.08) $(0.26) $(0.20) $(0.54)
                 
Basic and diluted weighted average shares  13,127,255   12,672,974   13,085,159   12,620,438 
                 
Non-GAAP Financial Data:                
Net income (loss) $(1,011,162) $(3,261,382) $(2,658,227) $(6,786,515)
Interest expense  25,000   4,225   50,000   8,676 
Depreciation and amoritzation expense  503,226   637,115   1,081,212   1,212,659 
Tax expense (benefit) penalties and interest  2,583   73,470   43,192   117,867 
EBITDA $(480,353) $(2,546,572) $(1,483,823) $(5,447,313)
Stock compensation expense  132,056   559,726   227,121   757,394 
Acquisition related expenses  492   18,958   13,142   49,818 
Loss on disposition or impairment  -   -   417,971   - 
Adjusted EBITDA $(347,806) $(1,967,889) $(825,590) $(4,640,100)
                 

 The above table represents the reconciliation of net income (loss) to Adjusted EBITDA for the three and six month periods ended June 30, 2017 and 2016.

THE JOINT CORP. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
     
  Six Months Ended
  June 30,
  2017  2016 
Net loss $  (2,658,227) $  (6,786,515)
Adjustments to reconcile net loss to net cash  1,695,104   1,636,564 
Changes in operating assets and liabilities    228,466     (2,905,287)
Net cash used in operating activities    (734,657)    (8,055,238)
Net cash used in investing activities    (80,428)    (2,465,949)
Net cash provided by (used in) financing activities    851,998     (152,900)
Net increase (decrease) in cash $  36,913  $  (10,674,087)
         

Investor Contact:
Peter Vozzo
peter.vozzo@westwicke.com
443-213-0505


The following information was filed by Joint Corp (JYNT) on Thursday, August 10, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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