Below is Joint Corp (NASDAQ:JYNT)’s 2014 Q3 earnings call transcript.
Peter Vozzo– Managing Director, Westwicke Partners
John Richards– Chief Executive Officer, Joint Corp
David Orwasher – Chief Operating Officer, Joint Corp
Tony Brenner – Roth Capital Partners
Good morning, ladies and gentlemen,and welcome to the Joint Corp (NASDAQ:JYNT) 2014 Third Quarter and Nine Months Results conference call. At this time, all participants are in listen-only mode. Later, we’ll conduct a question-and-answer session and instructions will follow at that time.
I would now like to turn the conference over to your host, Peter Vozzo of Westwicke Partners, the Joint Corp investor relations firm.
Peter Vozzo, Managing Director, Westwicke Partners
Thank you, Saeed. Good morning, everyone, and welcome to the Joint Corp Third Quarter and Nine Months 2014 results conference call. I am joined by John Richards, Chief Executive Officer, and David Orwasher, Chief Operating Officer.
Before we begin, if you do not already have a copy, the third quarter and nine month results press release with financial statements and our 10-Q can be found in the investor relations section of our website at www.thejoint.com.
Please be advised that today’s discussion includes forward-looking statements including predictions, expectations, estimates, and other information that might be considered forward-looking. Throughout today’s discussion, we will present some important factors relating to our business, which could affect these forward-looking statements. The forward-looking statements are also subject to risks and uncertainties that may cause actual results to differ materially from the statements we make today. As a result, we caution you against placing undue reliance on these forward-looking statements and we encourage you to review our filings with the SEC for discussion of these factors and other risks that may affect our future results with the market price of our stock.
Finally, we are not obligating ourselves to revise the results or publicly release any updates to these forward-looking statements in light of new information or future events.
With that, I’ll turn the call over to John.
John Richards, Chief Executive Officer, Joint Corp
Thank you, Peter, and welcome to everyone on the call. And thank you for joining us on our first conference call as a public company.
Now, we met many of you in the process leading up to our IPO in November. But for those new to the Joint Corp (NASDAQ:JYNT), I would like to provide a brief summary of what we do and highlight some of the strength of our business model. David will then discuss briefly our results for the quarter and nine months ended September 30, 2014, and provide a general outlook on the business.
The Joint Corp provides a portable, high quality chiropractic services for more than 240 chiropractic clinics in the US. Our affordable, private pay/cash-only plans and packages eliminate the need for insurance and our no appointment policy, convenient hours and locations, make care more accessible to a broad cross-section of our customers.
Our strategy is to become the leader in the national market for core chiropractic adjustment services through the rapid expansion of corporate-owned clinics and the continued more focused expansion of franchised clinics. While all of our clinics today are operated by franchisees, our future growth strategy will increasingly focus on opening clinics that are directly owned and operated by us while continue to grow through sale of additional franchises. This strategy is based on an existing and proven unit model at the franchise level that is inexpensive to build and lends itself to rapid expansion.
On the average, these units turn cash positive when they are approximately 12 to 15 months and generates EBITDA margins in the range of 25% to 35% as they approach maturity. A greater control over company-owned clinics will enable us to accelerate our clinic development, implement our operating standards, and capture a greater share of clinic economics.