The Joint Corp. (NASDAQ:JYNT) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


The Joint Corp. (NASDAQ:JYNT) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon, everyone. Welcome to The Joint Corp. Second Quarter of 2019 Results Conference Call. Today, President and CEO, Peter Holt, will review our operating metrics and our growth strategy; CFO, Jake Singleton, will discuss our financial performance; and Peter will close with our long-term vision and open the call for questions.

Please note, we're using a slide presentation that can be found on the Investor Relations section of The Joint's website. Today, after the close of the market, The Joint Corp. issued its financial results for the quarter ended June 30th, 2019. If you do not already have a copy of this press release, it can be found in the Investor Relations section of the company's website. As provided on slide 2. Please be advised, today's discussion includes forward-looking statements, including statements concerning our strategy, future operations, future financial position and plans and objectives of management.

Throughout today's discussion, we'll present some important factors relating to our business that could affect these forward-looking statements. The forward-looking statements are made based on our current predictions, expectations, estimates and assumptions and 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 encourage you to review our filings with the SEC for a discussion of these factors and other risks that may affect our future results or the market price of our stock.

Finally, we're not obliged to revise our results or publicly release any updates to these forward-looking statements in light of new information or future events. The company intends to file the SEC Form 10-Q for the quarter ended June 30th, 2019, on August 9th.

Management uses EBITDA and adjusted EBITDA, which are non-GAAP financial measures. These are presented because they're -- they are important measures used by management to assess financial performance. Management believes they provide a more transparent view of the company's underlying operating performance and operating trends. Reconciliation of net income or loss to EBITDA and adjusted EBITDA is presented in the press release. The company defines adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, loss [Technical Issues] or impairment and stock-based compensation expenses. The company defines EBITDA as net income loss before net interest, tax expense, depreciation and amortization expenses.

It's my pleasure to turn the call over to Peter Holt. Go ahead, Peter.

Peter D. Holt

Thank you, Mary, and thank you all for joining us. Turning to slide 3. Our performance in the second quarter of 2019 once again illustrates our success in executing key initiatives to accelerate our growth momentum and drive sustainable profitability. Q2 marked our third consecutive quarter of positive net income and our eighth consecutive quarter of positive adjusted EBITDA. Over the past 3 years, we've delivered exceptional growth on our system-wide and comp sales or same-store sales. And I'm now -- I'll now review our most recent results.

For the second quarter of 2019 compared