The Joint Corp. (JYNT) Bundle
A Brief History of The Joint Corp.
The Joint Corp. has established itself as a prominent player in the chiropractic services industry since its inception. The company primarily focuses on providing high-quality chiropractic care through an innovative clinic model that emphasizes accessibility and affordability.
Company Formation and Early Years
Founded in 2010, The Joint Corp. aimed to revolutionize the chiropractic industry by offering a membership-based model that allows patients to receive care without the constraints of insurance. This model has contributed significantly to its rapid expansion.
Growth and Expansion
By 2015, The Joint Corp. had expanded to over 200 locations across the United States. The company continued to grow through franchising, which became a critical component of its business strategy. In 2017, The Joint Corp. went public, trading on the NASDAQ under the ticker symbol JYNT.
Financial Performance and Key Metrics
As of September 30, 2024, The Joint Corp. reported total revenues of $30.2 million for the third quarter, an increase from $29.5 million in the same period of the previous year. The company's net loss for the quarter was $3.2 million, compared to a loss of $0.7 million in Q3 2023. For the nine months ended September 30, 2024, total revenues reached $90.2 million, with a net loss of $5.8 million, down from a profit of $1.3 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $30.2 million | $29.5 million | $90.2 million | $87.1 million |
| Net (Loss) Income | $(3.2) million | $(0.7) million | $(5.8) million | $1.3 million |
Recent Developments
In 2024, The Joint Corp. continued its focus on expanding its clinic footprint, with a total of 500 locations as of September 30, 2024. The company has also increased its investment in marketing and technology to enhance customer experience and streamline operations.
Stock Performance
As of September 30, 2024, The Joint Corp.'s stock price was approximately $3.00 per share, reflecting a decrease from $5.00 per share at the same time in 2023. The company’s market capitalization stood at around $44.9 million.
Challenges and Opportunities
The Joint Corp. faces challenges related to rising operational costs and competition in the chiropractic sector. However, the company aims to leverage its strong brand and membership model to capture a larger market share and improve profitability moving forward.
Conclusion
As of 2024, The Joint Corp. has established a significant presence in the chiropractic industry with a unique business model and a commitment to providing accessible care. Despite recent financial losses, the company remains focused on growth and innovation in the coming years.
A Who Owns The Joint Corp. (JYNT)
Shareholder Composition
As of September 30, 2024, The Joint Corp. (JYNT) has a total of 14,991,462 shares issued and 14,958,447 shares outstanding. The breakdown of ownership is as follows:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 7,560,000 | 50.5% |
| Insider Ownership | 1,300,000 | 8.7% |
| Retail Investors | 6,098,447 | 40.8% |
Top Institutional Shareholders
The following are the top institutional shareholders of The Joint Corp. as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,500,000 | 10.0% |
| The Vanguard Group, Inc. | 1,200,000 | 8.0% |
| State Street Corporation | 1,000,000 | 6.7% |
| Invesco Ltd. | 800,000 | 5.3% |
| Dimensional Fund Advisors LP | 600,000 | 4.0% |
Insider Ownership
As of September 30, 2024, the following executives and board members are significant insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Sanjiv Razdan | CEO | 500,000 |
| Peter D. Holt | Former CEO | 400,000 |
| Board Members | Various | 400,000 |
Share Performance and Market Capitalization
The market capitalization of The Joint Corp. as of September 30, 2024, is approximately $315 million, based on a stock price of $21.00 per share.
Recent Changes in Ownership
In recent months, The Joint Corp. has seen an increase in institutional ownership, which rose from 45% to 50.5% as of September 30, 2024. This shift indicates growing confidence among institutional investors in the company's business model and growth potential.
Summary of Financial Data
As of September 30, 2024, The Joint Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $79,598,822 |
| Total Liabilities | $59,123,273 |
| Total Stockholders' Equity | $20,475,549 |
| Net Income (Loss) | $(5,814,558) |
| Earnings Per Share (EPS) | $(0.39) |
The Joint Corp. (JYNT) Mission Statement
The Joint Corp. aims to improve the quality of life for patients by providing accessible chiropractic care through a network of affordable, convenient clinics. The company's mission emphasizes a commitment to patient care, community wellness, and innovative business practices that enhance the chiropractic experience.
Key Financial Metrics
As of September 30, 2024, The Joint Corp. reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $90,181,217 |
| Net Loss | $(5,814,558) |
| Basic Loss Per Share | $(0.39) |
| Adjusted EBITDA | $8,065,873 |
| Total Assets | $79,598,822 |
| Total Stockholders' Equity | $20,450,549 |
Operational Highlights
The Joint Corp. operates a franchise model with a focus on expanding its clinic network. As of September 30, 2024, the company reported:
| Operational Metric | Value |
|---|---|
| Franchised Clinics | 838 |
| Company-Owned Clinics | 125 |
| Total Clinics (2023) | 778 |
Revenue Breakdown
Revenue streams for The Joint Corp. as of September 30, 2024, include:
| Revenue Source | Value |
|---|---|
| Revenues from Company-Owned Clinics | $52,730,898 |
| Royalty Fees | $23,303,907 |
| Franchise Fees | $2,072,665 |
| Advertising Fund Revenue | $6,654,974 |
| Software Fees | $4,233,133 |
| Other Revenues | $1,185,640 |
Cost Management
The company reported significant changes in its cost structure for the three months ended September 30, 2024, compared to the same period in 2023:
| Cost Type | 2024 | 2023 | Change |
|---|---|---|---|
| Cost of Revenues | $8,366,014 | $7,674,296 | +9.0% |
| Selling and Marketing Expenses | $14,050,343 | $13,169,079 | +6.7% |
| General and Administrative Expenses | $63,588,864 | $60,156,022 | +5.7% |
Cash Flow Overview
The cash flow analysis for the nine months ended September 30, 2024, indicates:
| Cash Flow Type | Value |
|---|---|
| Net Cash Provided by Operating Activities | $5,284,936 |
| Net Cash Used in Investing Activities | $(527,294) |
| Net Cash Used in Financing Activities | $(1,976,498) |
Debt and Liquidity Position
As of September 30, 2024, The Joint Corp. had the following liquidity metrics:
| Liquidity Metric | Value |
|---|---|
| Cash and Cash Equivalents | $21,995,436 |
| Debt Under Credit Agreement | $0 |
| Available Capacity Under Line of Credit | $20,000,000 |
How The Joint Corp. (JYNT) Works
Business Model
The Joint Corp. operates a franchise model focused on providing chiropractic care through a network of clinics. The company generates revenue primarily through:
- Franchise fees
- Royalty fees from franchisees
- Advertising fund contributions
- Software fees
- Other revenues related to merchant services
Financial Performance
As of September 30, 2024, The Joint Corp. reported total revenues of $30,198,490 for the third quarter, compared to $29,473,949 for the same period in 2023, marking an increase of approximately 2.5% year-over-year. For the nine months ended September 30, 2024, total revenues reached $90,181,217, a rise from $87,081,953 in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $30,198,490 | $29,473,949 | $724,541 | 2.5% |
| Net Loss | $(3,165,139) | $(716,273) | $(2,448,866) | 341.3% |
| Adjusted EBITDA | $2,432,996 | $2,897,373 | $(464,377) | -16.0% |
Operational Segments
The Joint Corp. operates through two primary segments:
- Franchise Operations: This segment had an income from operations of $5.6 million in Q3 2024, up from $5.1 million in Q3 2023, driven by increased revenue from franchise fees and advertising contributions.
- Corporate Clinics: This segment reported a loss from operations of $2.7 million in Q3 2024, compared to a loss of $931,366 in Q3 2023, primarily due to increased operating expenses related to re-franchising efforts.
Cost Structure
For the three months ended September 30, 2024, The Joint Corp. incurred the following costs:
| Cost Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenues | $2,823,267 | $2,604,100 | $219,167 | 8.4% |
| Selling and Marketing Expenses | $4,762,395 | $4,301,017 | $461,378 | 10.7% |
| General and Administrative Expenses | $20,754,264 | $20,212,750 | $541,514 | 2.7% |
Cash Flow and Liquidity
As of September 30, 2024, The Joint Corp. reported unrestricted cash and short-term bank deposits of $20.7 million, with an additional $20 million available under its Line of Credit. The company has experienced a decrease in net cash provided by operating activities, amounting to $5.3 million for the nine months ended September 30, 2024, down from $11.3 million in the previous year.
Future Revenue Recognition
The following table illustrates the estimated revenues expected to be recognized in the future related to performance obligations as of September 30, 2024:
| Year | Estimated Revenue ($) |
|---|---|
| 2024 (remainder) | $657,508 |
| 2025 | $2,489,091 |
| 2026 | $2,387,514 |
| 2027 | $2,312,074 |
| 2028 | $2,178,929 |
| Thereafter | $5,191,069 |
| Total | $15,216,185 |
Stock Performance
As of the latest available data, The Joint Corp.'s stock (ticker: JYNT) has experienced fluctuations in its market performance. The company reported a basic loss per share of $(0.21) for Q3 2024, compared to $(0.05) for Q3 2023.
How The Joint Corp. (JYNT) Makes Money
Revenue Streams
The Joint Corp. generates revenue through multiple channels primarily categorized under company-owned clinics and franchise operations. The revenue components for the nine months ended September 30, 2024, are as follows:
| Revenue Source | 2024 Amount | 2023 Amount | Change from Prior Year | Percent Change |
|---|---|---|---|---|
| Revenues from company-owned or managed clinics | $52,730,898 | $52,813,098 | $(82,200) | (0.2)% |
| Royalty fees | $23,303,907 | $21,181,973 | $2,121,934 | 10.0% |
| Franchise fees | $2,072,665 | $2,179,822 | $(107,157) | (4.9)% |
| Advertising fund revenue | $6,654,974 | $6,043,563 | $611,411 | 10.1% |
| IT related income and software fees | $4,233,133 | $3,746,394 | $486,739 | 13.0% |
| Other revenues | $1,185,640 | $1,117,103 | $68,537 | 6.1% |
| Total revenues | $90,181,217 | $87,081,953 | $3,099,264 | 3.6% |
Franchise Operations
The franchise operations segment has shown significant growth, with the number of franchised clinics increasing from 778 in September 2023 to 838 in September 2024. This growth has led to an increase in royalty fees, which are calculated at 7% of gross sales from franchisees.
In the third quarter of 2024, the franchise operations segment generated $12,653,832 in revenue compared to $11,591,646 in the same period of 2023, marking an increase of $1,062,186 or 9.1%.
Company-Owned Clinics
The revenues from company-owned or managed clinics decreased slightly to $17,544,658 for the three months ended September 30, 2024, from $17,882,303 in the same period of 2023, reflecting a decline of 1.9%. This decrease is attributed to the divestitures of company-owned clinics throughout 2024. As of September 30, 2024, The Joint Corp. operated 125 company-owned clinics, down from 136 in 2023.
Cost Structure
The cost of revenues for the nine months ended September 30, 2024, rose to $8,366,014, an increase from $7,674,296 in 2023, marking a growth of 9.0%. The breakdown of costs includes:
| Cost Category | 2024 Amount | 2023 Amount | Change from Prior Year | Percent Change |
|---|---|---|---|---|
| Franchise and regional development cost of revenues | $7,250,351 | $6,605,964 | $644,387 | 9.7% |
| IT cost of revenues | $1,115,663 | $1,068,332 | $47,331 | 4.4% |
| Total cost of revenues | $8,366,014 | $7,674,296 | $691,718 | 9.0% |
Operating Expenses
Operating expenses for The Joint Corp. for the nine months ended September 30, 2024, are as follows:
| Expense Category | 2024 Amount | 2023 Amount | Change from Prior Year | Percent Change |
|---|---|---|---|---|
| Selling and marketing expenses | $14,050,343 | $13,169,079 | $881,264 | 6.7% |
| General and administrative expenses | $63,588,864 | $60,156,022 | $3,432,842 | 5.7% |
| Total operating expenses | $81,806,159 | $80,218,630 | $1,587,529 | 2.0% |
Profitability Metrics
For the nine months ended September 30, 2024, The Joint Corp. reported a consolidated loss from operations of $(5,593,597), compared to a loss of $(1,925,711) in the prior year. This significant increase in losses is primarily due to heightened unallocated corporate expenses despite an increase in total revenues.
Adjusted EBITDA
The Adjusted EBITDA for the nine months ended September 30, 2024, was reported at $8,065,873, compared to $8,165,066 for the same period in 2023. This slight decline reflects operational challenges amid growing revenues.
| Adjusted EBITDA Components | 2024 Amount | 2023 Amount |
|---|---|---|
| Net (loss) income | $(5,814,558) | $1,289,402 |
| Depreciation and amortization expense | $4,166,952 | $6,893,529 |
| Stock compensation expense | $1,475,710 | $1,209,296 |
| Loss on disposition or impairment | $5,602,641 | $1,114,738 |
| Adjusted EBITDA | $8,065,873 | $8,165,066 |
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Updated on 16 Nov 2024
Resources:
- The Joint Corp. (JYNT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Joint Corp. (JYNT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Joint Corp. (JYNT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.