Joint Corp (JYNT) Earnings Call Transcript: 2014 Q3 Results

While our plan for expansion is well underway, we do not expect to provide more complete annual financial guidance until the release of our 2014 fourth quarter year-end results in March. This will allow us time to rewrite a more complete frame of reference for 2015 and beyond.

However, in general, we expect to add between 70 and 90 clinics during 2015, which will be comprised of a blend of company and franchise units. The company-owned clinics will be further broken down into buybacks of existing franchise units and greenfielded or newly constructed units.

Moving forward, our revenue will be composed of three distinct streams. Franchise revenue derived from royalties, franchise revenue derived from the sale of franchise licenses, and corporate revenue derived from acquired or newly built greenfield corporately operating clinics. In 2015, we expect this revenue to evolve our enterprise from one of 100% franchise-generated revenue in 2014 to one that will reflect an increase in proportion of corporate revenue contributed by the year end. This plan will continue to evolve in favor of corporate units as our growth in this area accelerates.

As we noted previously, the addition of corporate units will have a positive impact on overall profitability and enterprise value over the long term. With that, I’ll now turn it back to John.

John Richards

Thank you, David. This has been a very exciting year for the Joint Corp,both in terms of our successful IPO as well as the continued momentum we are now experiencing in our business. I like to take a moment to thank each and every one of our employees, our franchisees, and of course, our investors, for their support and dedication to our business.

As a reminder, our strategy is to become the leader in the national market for routine chiropractic care through the rapid expansion of private pay, corporate-owned clinics, and the continued, more-focused expansion of franchise clinics. We have a proper unit model which is inexpensive to build, lends itself to rapid expansion, is convenient and affordable, and is staffed by an exceptional team of licensed chiropractors.

We are continuingto execute our plan today and look forward to update you on our progress going forward. Thank you.

And with those comments, we’d like to open the floor for questions. Operator?