$JYNT Posted an incredible earnings beat this afternoon helping to justify the move in shares YTD. Details below:
Revenues beat by 2.2% (up 23% YoY)
EPS beats by 414%! ($0.72 vs. $0.14E but this was aided by a $7.9M tax benefit)
Without the tax benefit, EPS still beat by 34%
Revenues beat by 2.2% (up 23% YoY)
EPS beats by 414%! ($0.72 vs. $0.14E but this was aided by a $7.9M tax benefit)
Without the tax benefit, EPS still beat by 34%
Operating Income up 115% YoY to $2.8M
Guides revenues to $75M at the midpoint up 28% YoY (3.8% above consensus)
Guides Adj. EBITDA to $11.25M at the midpoint up 24% YoY (3.2% above consensus)
Plans to open 80-100 franchised clinics vs. 70 in 2020 (515 total currently)
Guides revenues to $75M at the midpoint up 28% YoY (3.8% above consensus)
Guides Adj. EBITDA to $11.25M at the midpoint up 24% YoY (3.2% above consensus)
Plans to open 80-100 franchised clinics vs. 70 in 2020 (515 total currently)
Plans to add 20-30 company-owned clinics through a combination of greenfields and buybacks (mostly greenfields) vs. 4 in '20
Repaid the entire $2.7M PPP loan
$20.6M in cash vs. $8.5M last year primarily due to $11.2M OCF
Reiterates goal of opening 1,000 clinics by EOY 2023
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Repaid the entire $2.7M PPP loan
$20.6M in cash vs. $8.5M last year primarily due to $11.2M OCF
Reiterates goal of opening 1,000 clinics by EOY 2023
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Important Call Notes:
"85% of the system-wide gross sales came from monthly memberships, up from 80% in 2019"
"27% of our new patients had never been to a chiropractor before, up from 26% in 2019."
Rolling out proprietary IT system Axis by early summer
"85% of the system-wide gross sales came from monthly memberships, up from 80% in 2019"
"27% of our new patients had never been to a chiropractor before, up from 26% in 2019."
Rolling out proprietary IT system Axis by early summer
"In October 2020, The Joint achieved a franchise satisfaction index, or FSI, of 75%. This is up from 65% in November of 2018 and 58% in April '17"
"In 2021, we've launched 2 new additional partnerships with media and creative agencies to elevate our brand advertising"
"In 2021, we've launched 2 new additional partnerships with media and creative agencies to elevate our brand advertising"
Mgmt. estimates $JYNT has captured 1% of the chiropractic market
Plans to have unit growth accelerate to hit 1,000 goal by EOY 2023. Mgmt. needs to average 140/year and just guided for 115 at the midpoint.
"Units are breaking even somewhere in that 6 to 9-month time frame"
Plans to have unit growth accelerate to hit 1,000 goal by EOY 2023. Mgmt. needs to average 140/year and just guided for 115 at the midpoint.
"Units are breaking even somewhere in that 6 to 9-month time frame"
Not planning to increase franchisee IT fees due to Axis but do expect a bump in average revenue per location starting in '22
"Our attrition rate actually has flattened or improved as the overall system"
No plans to allocate cash to anything but growth in the near future
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"Our attrition rate actually has flattened or improved as the overall system"
No plans to allocate cash to anything but growth in the near future
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Bottom line:
Trading at 57x NTM EV/Adj. EBITDA and 60x Annualized P/E, $JYNT is expensive, but there is serious operating leverage in this business and no competition
Adj. EBITDA was up 74% YoY vs. the 23% revenue growth, suggesting that the 24% YoY Adj. EBITDA guide is low
Trading at 57x NTM EV/Adj. EBITDA and 60x Annualized P/E, $JYNT is expensive, but there is serious operating leverage in this business and no competition
Adj. EBITDA was up 74% YoY vs. the 23% revenue growth, suggesting that the 24% YoY Adj. EBITDA guide is low
Like the other growth businesses I own, the multiple may compress, but mgmt. is executing fantastically and the growth runway is very long.
I'll be looking to add the shares I trimmed if I get the chance at a better valuation, but for now I am happy to hold my 3.3% position
I'll be looking to add the shares I trimmed if I get the chance at a better valuation, but for now I am happy to hold my 3.3% position
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