Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to The Joint Corp.

Second Quarter 2023 Financial Results Conference Call. [Operator Instruction] Please note this event is being recorded. I would now like to turn the conference over to Kirsten Chapman of LHA Investor Relations. Please go ahead.

Kirsten Chapman

MJ. you, Thank everyone. Good afternoon, Kirsten Chapman Relations. is LHA of This Investor

can today and Singleton. XXXX. after CEO, Joining presentation note us its Holt the XX, President metrics call the that slide the a Jake on close Peter of ir.thejoint.com. Joint June are and for are the using found ended market, be at we issued Today, Please operating CFO, quarter

copy Relations of found If of this release, have you do be Investor not it website. in company’s a the section already the can press

provided Slide discussion future objectives statements strategy, As on advised and X, that operations, includes concerning please today’s future financial be plans management. including position and forward-looking statements, of our

forward-looking outbreaks predictable otherwise on of and cost could disruption by shortage, Due and the from some to today. in and exasperated factors staff but also are will contribute to negatively uncertainties today’s statements differ our our recruit the to predictions, statements. actual our clinics. the made we our based in Throughout for Ukraine, results on increased the cause and an to nation-wide current these which enough in risks estimates of diseases. materially limited qualified operating to not we need are relating are The these make important COVID-XX statements to part and such discussion, contagious to COVID-XX our our and to to chiropractors impact to, inflation, assumptions our current has that address shortage labor identify may increase we War personnel inability forward-looking business present and measures to impact and further could which due other that and differences expectations, subject potential business expenses may operations affect other that Factors include, outbreak take business, to could

we Our intend. or failure as rapidly clinics managed company-owned to acquire as develop or

price clinics managed resulting negative action operate the stock company-owned could posted Our on which to short our or internet, lawsuits. opinions market and and selling failure possibly of the common strategies down class drive

filings weaknesses our with and our maintain reports. Our Factors XXXX, failure to report the section prevent the described year Form negatively over report remediate December internal financial fraud accurately control for impact including future March subsequently reporting, confidence XX, SEC, could ability in the and results, our any and to other current or XXXX XX, financial the which entitled filed quarterly investor in Risk XX-K annual SEC filed in our factors ended on with our material on

we result, a As the reliance undue our results a and to other caution of our with review these for statements our price market stock. the or you against of may encourage you on discussion future factors filings placing risks that forward-looking these affect and SEC

issuance of are not quarterly June Joint’s to conjunction XXXX. in Finally, information our these has obligating new its ongoing to procedures in we results to firm publicly or independent forward-looking as postponed statements with quarter management revise light results accounting events. Due or ourselves future performed public of updates the release being financial review second any of XX,

the commonly all The clinics, to sales franchisees. matter impact statements. operated the non-cash company company’s to our is arrangements System-wide by that also have Management revenue at would regional includes or in question developer related includes financial performance a whether discussed by metrics.

that months franchise on the revenues information or are calculates are at management clinics in recorded clinics company, not been these sales indicative each have and least believes full records full which and revenues financial release from is as of and are the the the been basis include company’s sales managed excludes by company-owned royalty sales closed. open months company Comp the XX clinics performance any case because important XX and base. franchise and franchise understanding in health While that financial both the have the and

It’s Turning the to my turn to Slide Peter. pleasure call Please to X. over go Peter ahead, Holt.

Peter Holt

the everybody Kirsten, call. you, to I Thank and welcome

XXXX, we license environment to posted uncertainty, new of during system-wide said, sales, ongoing we our acquisitions. openings supported economic clinic by in better. an sales, QX to and patient That growth continued franchise more do and strive For do

I’ll our such, As to detail increase implementing in a in strategies we’re opportunities. long-term review moment. these

providing The affordable First, convenient settings. is for services to the in care chiropractic new to investors who Joint access retail concierge-style company, those are revolutionizing membership-based by

Turning to Slide X.

operating XX sales million, quarter System-wide $XXX.X sales Let’s metrics clinics compared ‘XX. XX%. second of have for at June $X.X cash the second XXXX. And to months review that our unrestricted by XX, Comp compared was for XXXX, least the million opened increasing quarter increased of to our XX, grew XXXX to million December $XX.X at been the at X%. for full end

clinic I’ll to our Turning discuss X, metrics. Slide

in California, to third we and the franchise QX, X Dix Santa Jersey During is XX another Service. in greenfields. ‘XX conjunction our franchise Southern with X QX New opened and XX greenfields, which we and Army Fe XX Exchange clinics, Force compares in This XX in and which one on Fort in Air of clinics, opened

as acquisition in We ’XX, in clinics also developer previously acquired Northern previously In of X ‘XX. made to California, QX to possible X by April franchised regional acquisition in territory rights the the franchised clinic corporate clinics, clinics, of compared is which we clinics XXXX. At X%, franchise ‘XX, than to the that lowest closure X of our remains franchise rate X X less compared which closed the community. will franchise be relocated in X in QX the one closing QX and

and XX, XXXX, had are XXXth XXX announce summary, clinic X we Texas and franchise portfolio a XX% clinics and franchise Subsequent managed the to quarter to or June we mix remained in at of or clinics clinic company-owned end, the clinics. In franchise company-owned week. X franchise opened consisting end development. managed – clinics. solid And and X, clinic earlier we we XXX our greenfield XXX operation, quarter clinics The we with in in franchise for future August XX% that At clinics licenses had openings pipeline XXX active this in through clinics. of opened delighted

to health regional QX In count even of XX XX Their XX% XXXX. to to we XXXX, licenses quarter, In franchise the and demonstrates the our reflects compared licenses, territory in licenses environment, June, our XX. model in Joint, system. our were Wisconsin reinvestment indicates we of in and rights XX This acquired our the developer Turning confidence in we franchise which believe XXXX strength the past new reducing QX this opened the business of by their franchisees. of QX from X. sold franchise up understanding existing purchased Slide

XX-year schedule Our XXX territories RD is aggregate for clinics. minimum development new XXXX established since

X. Turning to Slide

review Let’s our efforts. marketing

have first lead QX, marketing our in the in right campaign onboarding needs perceptions new tests. message automation Our new are their tailored is our at right current patient e-mail initiative new time that launched our phase of and with on sending journey. unique to And patient the marketing e-mail retention. generation, the on patient and a series few to review We a several implemented priority. programs is chiropractic of tools, highest Using May we and Each the and journey. different automating technology, patients of patient now. the perspective new XX acquisition our for I’ll And support we you designed based

lead regional pages. employee have including initiatives incentive management new multiple programs and new landing plans, We underway,

assessing first-time the the are to ensure clinics. improve Additionally, for patient we smooth appointments flow and patients experience in

digital We continue marketing also expand our to efforts.

than additional For TikTok lower include with the expanding better compared when four the started in initial updating Subsequently, lead positive creative Meta. on costs results markets optimization. XX% example, a were targeted we increased to test and the we with radius The four markets. to for test

In launched most digital to We effective drive new program counts continue during referral two validation April, new patient our promotions in the marketing. a we mix.

[indiscernible] successful their In June, sale, X-month any the to patients commitment months introduced purchase an advanced treatment value which demonstrating allowed X the very of plan. is free to X wellness in receive XX plan wellness free our affordable and we patient get

updating chiropractor our and or patient. experience journey initial Lastly, patient a findings becoming customer their message remaining inform research. search we These from for optimization are and will

As noted Reserve improves a veterans found service dogs characteristics The active received fitness Department isometric conducted veterans traumas. lower noted affairs and among endurance is we local increased care chiropractic members June, enjoyed support that the service to and key fit connected chiropractic highly suffering KXs military, in and in a service members for pairs with sports chiropractic back we collaboration trial with care strength on military of of who began the Manpower natural adjustments among trained non-profit organization with teams. and and duty pain. prior a calls, opportunities In with support from military our Warriors,

the the philosophy can Warriors KX a to a take the can service natural and the in mirrors deployment relief. mental from and serious body’s that on physical training, state program pain joints toll benefit everyone approach Military for

discounted surrounding first has drug-free retired service military for excited immediate that visits also the chiropractic named of the appreciation with chiropractic a sports boot official philosophy for rehab. major was We with of supports as active NFL Also, program training and to wellness a are planned. a chiropractic second the July, sponsoring that chiropractor families shared impactful we an members articles and in to announce end Bay a economics that pairing we [indiscernible] approach partnership sponsorship. wellness performance our league their veteran Buccaneers, as To as dog were several nationwide demonstrate well monthly In and the year need. citing honor assist to and conversation Tampa initial well Joint the as study our sports the

groups, community. partnered the cover routine the chiropractic for to The the of which co-op surrounding Tampen the fan almost clinics in highlight base loyal Orlando benefit team marketing care XX with

Jake, is Chief that experience, expert building next and we in I’d franchise the customer experience, loyalty. Officer, to I an our will Marketing excited note she Before that welcome week, marketing new digital to turn call with like I’m vast

including excited her we the programs, are focus join team to as acquisition. our patient additional new have on implement efforts brand-building with increasing a We

I’ll Jake, with to And over turn it that, you.

Jake Singleton

will turn to X. Slide we and Peter, Thanks,

to ‘XX XX%. is postponed to for company’s public conjunction sales all being regional QX for XX for comps results in XX of the and decreased System-wide clinic clinics of issuance amount comp compared earlier, to opened months financial Joint’s as of related mentioned our XX, have the months sales $XXX.X review Management X%. question million, XXXX. QX comp will As mature increased any increased performed all X%. to System-wide impact ‘XX. opened clinics developer would clinics our time more due the independent for more opened I quarter firm. non-cash review ongoing financial or has accounting for sales its System-wide in procedures or statements. arrangements up a quarterly The second to with matter June

clinics. mature was more fewer reflects at compared can some our I new comp XXXX. This than the to unrestricted patients December anticipated XX, $XX.X XXXX, at million cash XX, state at million that of June $X.X

was For cash the XXXX, quarter. flow the June employee the X of $X.X ended of operations months first million including receipt the $X.X million, retention in from credits XX,

franchised an of RD JPMorgan For to upgrading an the Also, in million and million territory X-month clinics million clinics. have to have ongoing Today, as period, cash invested rights to line greenfield available. existing access acquiring drawn clinics and $XX $X we have our additional and Chase. we credit we $X.X as with the continue additional previously through well

quarterly this guidance ongoing can’t at provide to review the financial procedures, Due I time.

our I clinic for for reaffirm openings XXXX. is However, on track can guidance

And compared of to to XX XX in openings between For to XXX X Greenfield and to we clinics, to open for clinics, we a to continue franchise XXXX. range to expect XXX continue compared in range expect XXXX. XXX

turn And over with that, call Peter. you, the back to I’ll

Peter Holt

Thanks, Jake.

XXX methodically performance selling change. loss the unit strip an relocating clinics as new certain talented the we execution obligations and clinics closing has a performance franchisees, with XX over center we considering that others where enable retail the respond stage conference quarter on clinics, and teams, the environments portfolio XXX to have and or softly market said, important market. evaluate of national greenfield we’re it’s more anchor a to note strategy. our clinics, that Joint’s entering key consider. we With resources of lease accretive territory. due will Slide end our and other to success as local areas. Also, of and changes to to have been we’re be reached and factors retail entails discussed analysis to devote especially are in corporate continually are growth exiting and and Turning the to certain since clinics This slowing we With calls, previous natural would with This store down productive us

and then we’re economics obligations Jake general fulfill mentioned, Further, cutting initiatives. also outstanding will markets We demographics. on our cost focusing we strategic on pass began based to and lease administrative as to assess and

to tactics we’re acquisition. Finally, patient implementing drive new

approximately me by recent up from Let to XX% low and start remains compared XX% pre-COVID. conversion still new patients around in month our at our is total XX% XX% strong saying the to years. Also, attrition around XX% per

As leads. patient such, new we’re focused on increasing

noted earlier, also digital, As national we’re my in traditional marketing through automated marketing. and our building review brand

this unusual to are understand Americans, epidemic on business, strong the ones, and managing base pain it’s underlying compelling. fundamentals treat are growth ways market our to care. patient for our are billion younger particularly year we’re While chiropractic about natural, is a opioid critical our plague more which economic our for drivers nation. environment, obesity and of long-term searching holistic spending Pain, continue to remain $XX.X

of and importantly, doctors whole software staffing, of tools from schools with and resources marketing. system-wide clinic benefits our efforts like to path associations they sustainable system practice The and frequent leverage educational what chiropractic. outreach more love chiropractic productivity also Our

we our clinic a enjoyed core event example, few our G&A long-term reduce chiropractic team, impact quality programs chiropractic to affordable For mission largest and principle. care, Texas we’re world’s national improve Chiropractic chiropractic to with of performance Florida guiding by our to to and with focused remain of on the of homecoming care is weeks the improve and and for profitable Colleges what The of week routine – doing convention organized growth. we’re headed next life back, team my what participating my in the control XXXth executing the We Association. the I

chiropractic, thank developers dedication. our market, coordinators, consumer with growing all the I’d and performance, the like of franchisees, fulfilling the in and our about wellness The of is committed to share greater community overall doctors, passion of a chiropractic regional to efficacy for employees team educating goal the their capturing enhancing care mission.

to I’m ready And take the with Q&A. that, MJ,

Operator

Today’s Hamblin first Thank go you. Capital Instruction] Craig-Hallum from Please Group. [Operator with Jeremy question ahead. comes

Jeremy Hamblin

Thanks.

the AFA, points So them AFA a question the having working share kind the about types more representing franchise of discussion points to help I engagement interest can and of wanted which ask clinics. to of to just that you with are from of what about you’re of the AFA is Association, with major the And what XX% and understand you’re than now little the build a Franchisee brand. bit how the Aligned more

Peter Holt

and see that question. formed the take you has time organization, Obviously, – I’ll independent form. to in in will any Jeremy. can Sure, AFA franchise they a from an association franchise time, system

formal We Franchise of franchise our and any that of X network. also a have is elected National are our course, call will This I our that up members made position, our Outside of is Advisory in form with community. that to take of, communication franchisee Board. from

is formal the most concerns the of Advisory association And address and Board the have has. the believe so Franchise independent communication issues a the really independent that we relationship that and association that with to at this – don’t that association point National we form the appropriate

the so to taking that’s And approach kind really that the of situation. we’re

Jeremy Hamblin

the you you’re Okay. can on like issue expect the you call line it Got it. to have more since time the And you seems more planning results? release. can with in limited have in which this formal auditors call, formal discuss resolved And the you you then are like what of kind matter a after full or discuss follow-up maybe to in

Jake Singleton

around know and that have all information. adhere to going developer review on results to late deadline additional know have through some have dedicating Jake. we a today the our further align filing but came Yes. get we documentation question yes, that. to up and on to that, Monday arrangements. have There procedures We release we’re procedures. to we that impact, resources ongoing release are that. non-cash We this But regional an to XX-Q disappointed a would financial press release Jeremy, that’s Yes, to we a couldn’t the quarterly we is due was

Jeremy Hamblin

to But are conference call? you have going additional an

Jake Singleton

that time. made this determination haven’t at We

Jeremy Hamblin

though you kind definitively of to fair Okay. And that end would it up month? by the of reporting be wrapped is the QX with assume

Jake Singleton

goal. Yes, the that is

We’re ongoing issues. down to a of range narrow

are all get financial information out our said, like to issue possible. quickly So as we and address I resources dedicating the as there

Jeremy Hamblin

good Okay. Got it. Thanks, luck.

Operator

question you. Van go comes Jeff next from The Thank Riley. with Sinderen Please B. ahead.

Jeff Van Sinderen

to the Yes, what horse the impacted, that RDs. to not you’re financials end here, might else is the little XX-Q you. said the by with is if be to shed by related of I’m planning file month. you of on light your the you the of you confused said a a dead there? what but auditors, maybe issue get Thank to can when you sort of And heart Or part related beat just results Maybe there’s the anything your issue the right? of Monday,

Jake Singleton

filing we to know a We can time line. we a We through. doing No. do to adhere deadline, that have that deadline issues have filing to Monday, are we and everything work we for timely unresolved have

And the dedicating transactions to on arrangements. We past a has we’ve treatments that under the with accounting executed and reacquisition that accounting documentation align our through to the heart that filing in that These of regional the question audits. the there. get That’s information, used similar we together new issue of previous the the past work also And hit I’m we we’ve past. entered firm. absolutely there’s to have in resources done that yes, and our quarter developer so use shooting in that arisen outside that and Monday. around true. were urgency is the we’ve the we’re The we get a deadline to know But in into out

Jeff Van Sinderen

Okay.

sounds around like correct not that? sounds I’m the words on more it – wrong come probably here, if Am reacquisition would and I you the really in This like it’s if revolving not reacquired it other but quarter. issue me So correct up.

Jake Singleton

Yes. correct. That’s

you have got place new Sometimes eyes, a that’s agree so have make that questions, what the the get documentation we the sure we financial release and And you parties in when to we set information. had this of time. can to appropriate all

Jeff Van Sinderen

Okay, it. got

Peter Holt

Absolutely. Yes.

to just revenue we issue. with sure are is terms. to It a make emphasize, definitely GAAP complying it’s Just non-cash that

Jeff Van Sinderen

Understood.

Jake Singleton

will flow be be really that. same. funds GAAP the of It that accounting sits just The behind will the

Jeff Van Sinderen

maybe speak if for Okay. could corporate Got you plans your it. And more about the clinics. then mature

you has of been just the close what highlighted guys now to and low performance there in that, expect question probably threshold them. a close? kind maybe looking how And what have you’re bit think of many press that very realize a to to rate. I know the Maybe the little expansion some release, on a kind that. I you reductions the is evaluating I a also closure as just more tough follow-up because you into? it’s you’re of then touch

Jake Singleton

questions. Yes, Can that great we strategic a more review. of categorize

don’t that so strategic have or shooting And I for. number we’re a target a

allocating We’re realizing looking be can more we resources. at and efficient how there. And we’re that

Peter Holt

also them of closures always be can be aren’t that these some And a clear, then Jeff, that to just sold franchise. to

our at. In lot terms factors of just really looking looking of there’s we’re that spread, so at a geographical there

can Others that be sold be So will could sold, some will relocated. off. be others be

Jake Singleton

for a Yes. you today, Jeff. fixed number don’t I have

you that action item a on going of our if We’re are of We’ve through will. already number process. kind list, that identified clinics

corporate a to I’ll not going expect with consider. the potentially point franchise methodical the is of Realizing as is this that of do And portion we in and there’s we exercise. that. be reiterate that we’re it, shift an closure lot factors that. with mentioned Peter’s I in Again, This to to of So transcript. have refranchising a mix immediate accordance

corporate units. of that we have So still vast profitable majority what is do know the portfolio we are our

good We pretty young business a have of strong. still we’ve that cycle that significant still number of fundamentals investing units. are are in And a Obviously, the units through gone space. the

means. approach the abandoning any not we’re So corporate by

that exercise, efficiencies those our kind we’re going for and resources we is issues address, portfolio allocate realizing have strategic a of a appropriately. looking and optimization also in This to to the

again, that’s, question, G&A review. strategic your a as far As

G&A a portfolio, also there’s that effort happen trimming we pull the exert back and can we’re sure flow-through to of natural going of the As scale with where and some kind that efficiencies that the development we’re then structure. and in finding our our making there of level

And think to of so looking the I company. we’re periods where accelerate in profitability the

structures for on. we’re only cost prudent go it’s at your that’s your sized the make that to that sure and they’re think exercise back I take look and organization. right And to going

Jeff Van Sinderen

And franchise Okay. between difference I to follow-up tell and that, corporate-owned Can comps could. clinics. a as the you clinics the in us then the the if just

Jake Singleton

Yes, split out. that don’t we

than I think X% for second difference it a was quarter. less the

spread So model don’t like traditionally between see a historically, again, its two, just given large the the some we simplicity. we’ve of said and

or second a outsized in a But there P&L, franchise. on position we not the economics and impact given obviously, unit captured full the just just there’s have first So more consolidated the the economics material quarter delta quarter. the our have in versus we corporate when really overall flow-through the of the our to

Jeff Van Sinderen

to speaks a suggests corporate X%. positive. of overall sort clinics is performing that But comping comp X% difference on in your if and well still the are there’s That Right. that only

Jake Singleton

don’t strategic that that of This the Yes. We and vast have come fundamentals across said, that here. maturing. a profitable still business the performing units strong. are to like is want out the something we’re there. drastic we’re I I the it majority is of are because portfolio absolutely review our still still fundamentals doing

Jeff Van Sinderen

impact that then accretion. should And be Right.

very that’s So positive. also

Jake Singleton

line. bottom the To

Jeff Van Sinderen

Appreciate line. take taking Correct. Thanks bottom that. the for I’ll offline. my rest questions. To the

Jake Singleton

Thanks, Jeff.

Operator

Instructions] Thank Maxim you. question McGovern with next ahead. Group. Thomas go from Please The [Operator comes

Thomas McGovern

I sure conversion the you specifically with and rates? So Hi, provide just you you you – are guys those mentioned some review down. of doing? retention the have know call, I real quick briefly Could guys wanted to attrition it just I How on the but just us numbers guys. make KPIs

Peter Holt

Sure.

is there’s our course, of revenue patients source very clinics. that’s, on. our at If for the really you really KPIs very closely focus of system, important that we our the One three new and look fundamental track really that we

second is conversion. one The

they so conversion, I membership that for that new that somewhere is were around convert comes And when say, do right And a converts, in probably that’s And a little existing running package what that running buying in, and both patient that I it’s XX% clinics franchise Actually and saying new a around per patient XX% environment XX% said corporate month. roughly by whether right we I with we that XX%, that around attrition, or or pre-COVID pre-COVID and so was running when compare better number. patient XX% I are then running a if our now that, in at let’s compares years. it’s to than that a XX% look total corporate XX%. think recent under to,

seeing call, and forward. focused are overall are is our really is new mentioned on, one an area rate. focus we the The have that’s as patient attrition you So, going account. today where improving in improvement that the real in the I again And

Thomas McGovern

my question, trending color I in that are that like you slide. went right direction on And guys little campaign? more provide next in bit know you for sounds your color the digital marketing then the Great. Thanks could there. things and over it a

of of Meta? And bit more solved touch kind maybe issues on then are kind with little you that? you Just at the where guys a with

Peter Holt

doctor. has we to friends of new great a new And family doctor, strategy, coming referral. is, have new just Sure. they our with And patient basically, three directly refer that is and are patients. existing And the patients is right if experience you from One for referral. at patient their what our and an now, XX% about sources whole look that

just supported that, search. second is increasingly more paid range activity. whole there of organic marketing The are both and that digital important our by a is services And

been we point, measure have series XX% to programs a whole using. them And that Of at us And that of and are have over our that. evolves able we now, so time patients of we that right had touched new digitally. different have least at some

I example, how platform new that started And we or four so And markets. we new with have TikTok. entered in program about a for talked a

for We that that. found markets was in have is more Meta that some fact important what of positive new leads have the seeing spend also with and – has we to that four patients some Facebook what come increased And that and have are increased of we an expanded have is we that activity. really results from number source of Meta, us.

we on that. And we we a back go YouTube, you So, finding your a we that of time lot spending century drive bit, little would that’s an were little back relevant. you If pull the focused. so and changes bit probably And area are on that what also and only more XXst becomes in are have marketing more data because is to the quickly. marketing a

path they the is in patient to the driven we that order are able have whole one of what updating be what’s need be they the So, it research things to that our finishing up is journey. the on potential clinic. When messages go, been really one, but into patient coming in,

our there activities that. a will And then been so with going is that’s work And marketing that done research guide lot of forward.

marketing travels that lives, you there they the and – box that your new activity. call live, you what small for and X-minute That’s product all around to patients are have retail of is that do travels that XX-minute got educate gorilla third would works or just service. to when The consumer that going am that I what within for to typical be because source need radius us box

coupon or that clinic. And from new the gym the outreach science count that so the our around or XX%, right of the or about drop coming say the hospital school is specific patient or to now, XX% is let’s whatever or

source of overall kind the patients. so And our of new that’s

Thomas McGovern

hop I And real before quick Got the then it. that I appreciate queue. color. back in

are provide you. Can you guys you trend on little – throughout last retention. call you some quarter a a color how about guys mentioned and to of at and year? briefly this the staff new to you where quarter versus on initiative your guys increased guys mentioned Thank staff just you retention more have again the bit you If anticipate that also that

Jake Singleton

Yes.

categorize you your success would important wellness that the still the when and lifeblood is tight. clinics, your I doctors within And each think two do market the here. is quality know of the what the what for you we to clinic. roles And of your we doctor have is are vitally have is us, way I labor coordinator, absolutely

think a And strategic of always initiative certainly retention employees. will focused employees, our our so we on have I the field

and through the maintain a not schools goals have also growth focused where have really space think attended mentioned only off. those go our especially and or you workforce that be I have, ambitious just for help doctors on those initiatives times, that successes all the as prepare of with but growth. associations the that the to only as going critically had so And economic that. is of And we will that which will have you do we we starting have attending just that’s that we we today, have Peter to pay just these yourself couple is that And need position and future retention attraction be you to forward. And chiropractic improving the within the

Thomas McGovern

in guys hop will Thank queue. you, for Awesome. I back taking my questions.

Operator

Kelly with Thank ahead. from next comes George ROTH MKM. you. The go Please question

George Kelly

of been questions. have the part And kind the sale of these And could strategic asked. on this on my of – is second there? could lead the But I this Thanks of question beginning very portfolio, is process And four-wall apologies was portfolio? EBITDA mean topic everybody. taking the wasn’t up the to Hi what that call. the well is units on review? the I I – of curious, the then for same entire a on for most review portfolio was I if your first

Jake Singleton

is just review are either wholesale geographic review specific that, These not targeted in a strategic of this that are the clinics The portfolio. No. unique areas. Yes. is

smaller portfolio an attention a but strategy. pay critically We within specific we dynamics those review a to, subset. optimize be of And to indication are that have have. trying you that clinics. in ones be part exiting will markets seen market This corporate the are unprofitable that a change is we are strategic only and the really they or That underperforming. that could of handful that are they have certainly, operating We not this

those the XX%. – then If have brings are the profitability the you that. at profitability bleed above seeing outside four-wall whole, we that we of the overall it into a still down as units, the look And

get release financial update excited segment. to you by results those will we and full So, an be

So, are trending. you see how can those

We the have quarter-over-quarter units. sequential in seen the improvement profitability of

in portfolio. this we a is It’s subset again, by of of of importance that a exit, environment, of in to affected outside So, G&A this of forward. is moving look by and at profitability review unallocated G&A organization the this not really, all this take try our system, and have clinics, are those understand a four-wall affected why that the we this to to a the strategic is we know and associated have the into because going we we strategic corporate that’s drive the performance profitability that, wholesale

Peter Holt

not change refinement, policy. in a it’s Yes, a

George Kelly

I part think have the guess of a What’s Okay. Then I the checks I would press of review? call a in and I lot mean are your that the about that here your in attention unique doing always it’s normal listened locations. you release. business? status course that to on of I surprised isn’t am bit gotten

guess there, this So, what I off – am I seems but maybe to...?

Peter Holt

mean doing George, this will every think portfolio making more a do organization, again, do, is I we that. – short of And that point over we you we relatively our should No, are as doubled of time. an correct. just have say than of the the and I this I part is period be size day,

increasing was more of what do we and a with need attention And much portfolio on the the of really so to opposed that. of maybe kind the on to portfolio little as that existing focus

to it’s that’s the And portfolio we are recognizing really really and goes size importance in company as so to we have the be and on, much seeing. more focused just that got what

George Kelly

you Okay. year question on on is of second kind And then any Did update provide your guidance? full guidance.

Jake Singleton

we can’t the for We did reaffirmed and I No, openings guidance this give do that, both at corporate the but and time. financial update openings greenfields. certainly franchise the range the metrics will

George Kelly

are last then X there and and a lot X line your you. corporate I that or unallocated And at back is years. and targeting said initiatives question Thank that could also for to am you And a increase you some curious of cost be the of looking Is of there different cost last overhead, has and and well. had. in the been years in own of strategic are way, And if that kind as there savings all that’s great. the I G&A, portfolio your look the me outside sort everything. Okay, savings of I review at savings

Jake Singleton

part Yes. on optimize and rate we back rate and can what and profitability. striving the go-forward reduce run That leverage review looking unallocated to for G&A overall and at infrastructure are run And that that we in basis. and is doing stepping the and of a bucket

to do so need do we get what we there. to And going to are

George Kelly

sorry, we through I sort this you see I When could Okay. more. I by start have year-end? do to process? this to of am play something one guess conclude expect Is

Jake Singleton

that we to now, started continue – go we Yes, we exercise. through have are and will

in XXXX strategic for of and As right absolutely now, throes beyond. we of the are planning

align quickly on will for go-forward strategies our We a basis. budgeting

in So, that discussions now we some further are forward. – absolutely are we now, place find at them we efficiency that in active will of what then can able these move as and we we put will right having to look are

So, there I would other us. focus timeline not this both, than be a and going say would say to is definitive is ongoing for strategic an I

George Kelly

Thanks. Okay.

Operator

the over call I for Seeing back remarks. Instructions] closing now would Holt [Operator to turn questions, further Peter like to no

Peter Holt

you, Thank MJ.

Markets Lake Consumer in would BigX Riley New Securities be I like that at Before B. and City meetings close, note Street York Capital on to Conference. September I and the Conference XXth, will the we conducting presenting

Our a Corp patient Melanie, comes story today Marine veteran. from

our training often participate back, carrying to During lower amount She in her gear. significant and left XX suffered would with which lasted her and a up of hours, injuries, service, while Melanie upper neck back Seeking difference daily She again. a her in joined that Joint relief and out Melanie claims made at XXXX, enabled to and which got full work pain. pain her in life chronic a into alignment, the one The giving back her things to adjusted. word, both and necessary. Joint life words, chiropractic helped opportunity her like dog stated, realizing care the her. in with Then with that’s giving chiropractic says Joint you her how two body When changing, her, Melanie their the back well-being. do she The and or physical Thank hiking healthy it describe is because to to well mental and supporting stay asked both

Operator

The your conference has concluded. Thank participation. for now you

your disconnect now may lines. You

The Joint Corp. (JYNT) 10 Aug 232023 Q2 Earnings call transcript