8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________

Form 8-K
______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): November 7, 2019

The Joint Corp.
(Exact Name of Registrant as Specified in Charter)

Delaware	001-36724	90-0544160
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

16767 N. Perimeter Drive, Suite 240
Scottsdale, AZ 85260

(Address of Principal Executive Offices)

Registrant's telephone number, including area code:
(480) 245-5960

 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
	[   ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	[   ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	[   ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	[   ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ X ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ X ]

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value Per Share	JYNT	The NASDAQ Capital Market LLC

Item 2.02. Results of Operations and Financial Condition.

          On November 7, 2019, The Joint Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

          The information furnished in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

          The Company is posting an earnings presentation to its website at https://ir.thejoint.com/. A copy of the earnings presentation is being furnished herewith as Exhibit 99.2. The Company will use the earnings presentation during its earnings conference call on November 7, 2019 and also may use the earnings presentation from time to time in conversations with analysts, investors and others.

          The presentation is furnished by the Company pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

          The information contained in Exhibit 99.2 is summary information that is intended to be considered in the context of the Company’s filings with the SEC. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.

Item 9.01. Financial Statements and Exhibits.

          (d) Exhibits

Exhibit Number	Description
99.1	Press Release dated November 7, 2019
99.2	The Joint Corp Earnings Presentation, November 2019

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The Joint Corp.
Date: November 7, 2019	By:	/s/ Peter D. Holt
		Name: Peter D. Holt
		Title: President and Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated November 7, 2019
99.2	The Joint Corp Earnings Presentation, November 2019

EX-99.1

EXHIBIT 99.1

The Joint Corp. Reports Third Quarter 2019 Financial Results

- Grows System-Wide Sales 33% Quarterly and Year-to-Date, Compared to 2018 -
- Increases Franchise Licenses Sales to 103 at Sept. 30, 2019, Up 172% Year-to-Date -  
- Raises Revenue, Adjusted EBITDA and Corporate Clinic 2019 Guidance -
- Opens 21 Franchised Clinics in Q3 2019, Bringing the Year-to-Date Total to 47 -

SCOTTSDALE, Ariz., Nov. 07, 2019 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the third quarter ended September 30, 2019.

Third Quarter Highlights: 2019 Compared to 2018

• Increased system-wide sales¹ 33%, to $56.2 million.
• Achieved comp sales² of 23%.
• Reached revenue of $12.7 million, up 38%.
• Posted fourth consecutive quarter of positive net income at $617,000, up $825,000.
• Reported ninth consecutive quarter of positive Adjusted EBITDA at $1.4 million, up 134%.

Third Quarter 2019 Operating Achievements

• Sold 28 franchise licenses, compared to 26 sold in the third quarter of 2018.  The total number of franchise licenses sold year-to-date rose to 103, compared to 60 in the first nine months of 2018.
• Grew total clinics to 488 at September 30, 2019: 430 franchised and 58 company-owned or managed.
  • Opened 21 franchised clinics and closed two franchised clinics, compared to opening 10 and closing one in the third quarter of 2018.
  • Opened one company-owned or managed greenfield clinic and acquired six franchises, compared to no changes in the third quarter of 2018.
  • Subsequent to the quarter end, acquired one previously franchised clinic and opened a greenfield clinic.
  • Year-to-date through November 7, 2019, opened five greenfields and acquired eight previously franchised clinics, bringing the total new company-owned or managed clinics for 2019 to 13, exceeding 2019 guidance.

¹ System-wide sales include sales at all clinics, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance, because these sales are the basis on which the Company calculates and records royalty fees and are indicative of the financial health of the franchisee base. 
² Comp sales include the sales from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed, respectively.

“Our team’s efforts executing key growth and productivity initiatives over the last three years continue to accelerate our business momentum, and our strong financial performance led us to increase 2019 guidance,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “Our system-wide sales for the nine months ended September 30, 2019 reached $158 million, up 33% compared to the same period last year. Year-to- date through November 7, 2019, we bought back eight clinics from franchisees and opened five greenfield clinics, exceeding our previous 2019 guidance on new company-owned or managed clinics. Further, our franchise sales increased 172% year-to-date and have already surpassed the total for all of 2018. These leading indicators combined with growing interest in the utilization of chiropractic care for pain relief and management support our confidence in our ability to continue to drive shareholder value.”

Third Quarter Unaudited Financial Results: 2019 Compared to 2018
Revenue was $12.7 million in the third quarter of 2019, compared to $9.2 million in the third quarter of 2018, up 38%.  The growth is primarily related to a greater number of clinics as well as increased adoption of chiropractic care.

Cost of revenue was $1.4 million, up 32% compared to the third quarter of 2018, reflecting the success of the regional developer (RD) program resulting in higher commissions and royalties related to an increased number of franchised locations sold and opened within RD territories. Selling and marketing expenses were $1.8 million, or 14% of revenue, compared to $1.2 million, or 13% of revenue, in the third quarter of 2018, reflecting the increased local marketing spend associated with the corporate clinic expansion. General and administrative expenses were $8.3 million, or 65% of revenue, compared to $6.8 million, or 74% of revenue in the third quarter of 2018. The absolute dollar increase reflects both the corporate clinic expansion as well as increases in employee head count to support growth.  The decrease in general and administrative expenses as a percent of revenue reflects the improving leverage in the operating model.

Net income was $617,000, or $0.04 per diluted share, compared to a net loss of $208,000, or $0.02 per share, in the third quarter of 2018.

Adjusted EBITDA was $1.4 million, an improvement of 134% compared to Adjusted EBITDA of $609,000 in the third quarter last year.  The company defines Adjusted EBITDA, a non-GAAP measure, as EBITDA before acquisition-related expenses, bargain purchase gain, net (gain)/loss on disposition or impairment, and stock-based compensation expenses. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses.

Balance Sheet Liquidity
Unrestricted cash was $7.8 million at September 30, 2019, compared to $8.7 million at December 31, 2018, reflecting increased cash flow from operations, offset by continued investment in corporate clinic expansion and the development of the new IT platform.

2019 Guidance for Financial Results and Clinic Openings
Management increased its full year 2019 guidance and expects:

• Revenue to increase between 30% and 33%, up from 26% and 32% previously forecasted, compared to $36.7 million dollars in 2018;
• Adjusted EBITDA to grow between 100% and 110%, up from 67% and 100% previously forecasted, compared to $2.9 million in 2018;
• Franchised clinic openings to range from 70 to 80; and    
• New company-owned or managed clinics expansion, through a combination of both greenfields and buybacks, to be 13, up from 8 to 12 previously forecasted.    

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, November 7, 2019, to discuss the third quarter 2019 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931 and referencing conference code 5953258. A live webcast of the conference call will also be available on the IR section of the company’s website at https://ir.thejoint.com/events. An audio replay will be available two hours after the conclusion of the call through November 14, 2019. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 5953258.

Non-GAAP Financial Information

This release includes a presentation of non-GAAP financial measures. System-wide sales include sales at all clinics, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance, because these sales are the basis on which the Company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the sales from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed, respectively.

EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is presented in the table below. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, net (gain)/loss on disposition or impairment, and stock-based compensation expenses. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses.

EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the company’s financial statements filed with the SEC.

Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements, including our expectation relating to the timing of the filing of our Form 10-Q for the quarter ended September 30, 2019. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our failure to develop or acquire company-owned or managed clinics as rapidly as we intend, our failure to profitably operate company-owned or managed clinics, and the factors described in “Risk Factors” in our Annual Report on Form 10-K as filed with the SEC for the year ended December 31, 2018 and as may be described in any “Risk Factors” in subsequently filed Quarterly Reports on Form 10-Q.  Words such as, "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

About The Joint Corp. (NASDAQ: JYNT)
Based in Scottsdale, Arizona, The Joint is an emerging growth company that is reinventing chiropractic care by making quality care convenient and affordable for patients seeking pain relief and ongoing wellness. Its no-appointment policy and convenient hours and locations make care more accessible, and affordable membership plans and packages eliminate the need for insurance. With nearly 500 clinics nationwide and over 6 million patient visits annually, The Joint is a key leader in the chiropractic profession. For more information, visit http://www.thejoint.com or follow the brand on Twitter, Facebook, YouTube and LinkedIn. 

Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.

Media Contact: Margie Wojciechowski, The Joint Corp., margie.wojciechowski@thejoint.com
Investor Contact: Kirsten Chapman, LHA Investor Relations, 415-433-3777, thejoint@lhai.com

      -- Financial Tables Follow --

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30,			December 31,
		2019			2018
ASSETS	(unaudited)			(as adjusted)
Current assets:
Cash and cash equivalents	$	7,826,949		$	8,716,874
Restricted cash		169,044			138,078
Accounts receivable, net		1,339,499			806,350
Notes receivable - current portion		164,640			149,349
Deferred franchise costs - current portion		738,341			611,047
Prepaid expenses and other current assets		1,055,135			882,290
Total current assets		11,293,608			11,303,988
Property and equipment, net		5,698,143			3,658,007
Operating lease right-of-use asset		13,149,467			-
Notes receivable, net of current portion and reserve		2,827			128,723
Deferred franchise costs, net of current portion		3,618,751			2,878,163
Intangible assets, net		3,566,105			1,634,060
Goodwill		4,123,176			3,225,145
Deposits and other assets		326,633			599,627
Total assets	$	41,778,710		$	23,427,713
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,682,685		$	1,253,274
Accrued expenses		320,821			266,322
Co-op funds liability		169,044			104,057
Payroll liabilities		1,960,536			2,035,658
Notes payable - current portion		1,000,000			1,100,000
Deferred rent - current portion		-			136,550
Operating lease liability - current portion		2,195,852			-
Finance lease liability - current portion		23,656			-
Deferred franchise and regional developer fee revenue - current portion		2,750,944			2,370,241
Deferred revenue from company clinics		2,818,320			2,529,497
Other current liabilities		446,277			477,528
Total current liabilities		13,368,135			10,273,127
Deferred rent, net of current portion		-			721,730
Operating lease liability - net of current portion		11,798,120			-
Finance lease liability - net of current portion		40,689			-
Deferred franchise and regional developer fee revenue, net of current portion		12,654,095			11,239,221
Deferred tax liability		86,633			76,672
Other liabilities		27,230			389,362
Total liabilities		37,974,902			22,700,112
Commitments and contingencies
Stockholders' equity:
Series A preferred stock, $0.001 par value; 50,000 shares authorized,
0 issued and outstanding, as of September 30, 2019 and December 31, 2018		-			-
Common stock, $0.001 par value; 20,000,000 shares
authorized, 13,894,621 shares issued and 13,878,859 shares outstanding
as of September 30, 2019 and 13,757,200 shares issued and 13,742,530
outstanding as of December 31, 2018		13,895			13,757
Additional paid-in capital		39,253,617			38,189,251
Treasury stock 15,762 shares as of September 30, 2019 and 14,670 shares as of December 31, 2018, at cost		(111,040	)		(90,856	)
Accumulated deficit		(35,352,764	)		(37,384,651	)
Total The Joint Corp. stockholders' equity		3,803,708			727,501
Non-controlling Interest		100			100
Total equity		3,803,808			727,601
Total liabilities and stockholders' equity	$	41,778,710		$	23,427,713

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2019			2018			2019			2018
				(as adjusted)						(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	6,829,576		$	4,853,841		$	18,245,940		$	14,328,152
Royalty fees		3,447,270			2,588,666			9,737,616			7,283,839
Franchise fees		541,339			457,516			1,405,678			1,254,997
Advertising fund revenue		978,209			736,987			2,797,576			2,083,769
Software fees		514,350			324,250			1,256,711			947,635
Regional developer fees		210,233			142,651			594,615			410,075
Other revenues		205,400			137,776			537,596			384,970
Total revenues		12,726,377			9,241,687			34,575,732			26,693,437
Cost of revenues:
Franchise cost of revenues		1,318,966			1,005,162			3,634,397			2,855,712
IT cost of revenues		107,903			79,545			297,561			252,911
Total cost of revenues		1,426,869			1,084,707			3,931,958			3,108,623
Selling and marketing expenses		1,793,229			1,194,595			5,068,585			3,590,562
Depreciation and amortization		538,372			389,269			1,308,515			1,181,661
General and administrative expenses		8,297,680			6,476,903			22,078,244			18,613,101
Total selling, general and administrative expenses		10,629,281			8,060,767			28,455,344			23,385,324
Net loss on disposition or impairment		29,848			343,255			116,775			594,934
Income (loss) from operations		640,379			(247,042	)		2,071,655			(395,444	)
Other income (expense):
Bargain purchase gain		-			-			19,298			30,455
Other expense, net		(16,697	)		(10,672	)		(43,469	)		(32,582	)
Total other expense		(16,697	)		(10,672	)		(24,171	)		(2,127	)
Income (loss) before income tax (expense) benefit		623,682			(257,714	)		2,047,484			(397,571	)
Income tax (expense) benefit		(6,702	)		50,171			(15,597	)		107,575
Net income (loss) and comprehensive income (loss)	$	616,980		$	(207,543	)	$	2,031,887		$	(289,996	)
Less: income (loss) attributable to the non-controlling interest	$	-		$	-		$	-		$	-
Net income (loss) attributable to The Joint Corp. stockholders	$	616,980		$	(207,543	)	$	2,031,887		$	(289,996	)
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.04		$	(0.02	)	$	0.15		$	(0.02	)
Diluted earnings (loss) per share	$	0.04		$	(0.02	)	$	0.14		$	(0.02	)
Basic weighted average shares		13,846,045			13,727,712			13,798,593			13,646,599
Diluted weighted average shares		14,526,538			13,727,712			14,442,203			13,646,599

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
	Nine Months Ended
	September 30,
		2019			2018
				(as adjusted)
Net income (loss)	$	2,031,887		$	(289,996	)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities		1,852,280			1,892,261
Changes in operating assets and liabilities		821,041			286,148
Net cash provided by operating activities		4,705,208			1,888,413
Net cash used in investing activities		(5,955,484	)		(698,770	)
Net cash provided by financing activities		391,317			286,721
Net (decrease) increase in cash	$	(858,959	)	$	1,476,364

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
RECONCILIATION FOR GAAP TO NON-GAAP

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
Non-GAAP Financial Data:		2019		2018			2019			2018
			(as adjusted)						(as adjusted)
Net income (loss)	$	616,980	$	(207,543	)	$	2,031,887		$	(289,996	)
Net interest		16,697		10,672			43,469			32,581
Depreciation and amortization expense		538,372		389,269			1,308,515			1,181,661
Tax expense (benefit)		6,702		(50,171	)		15,597			(107,575	)
EBITDA	$	1,178,751	$	142,227		$	3,399,467		$	816,671
Stock compensation expense		186,020		122,777			536,744			469,405
Acquisition related expenses		33,091		701			36,241			3,950
Bargain purchase gain		-		-			(19,298	)		(30,455	)
Net loss on disposition or impairment		29,848		343,255			116,775			594,934
Adjusted EBITDA	$	1,427,710	$	608,960		$	4,069,929		$	1,854,505

EX-99.2

Exhibit 99.2

© 2019 The Joint Corp. All Rights Reserved. 1 Q3 2019 Financial Results As of September 30, 2019 | Reported On November 7, 2019

Safe Harbor Statement © 2019 The Joint Corp. All Rights Reserved. 2 Certain statements contained in this presentation are "forward - looking statements." We have tried to identify these forward - look ing statements by using words such as "may," "might," " will," "expect,” "anticipate,'' "'believe,“ "could," " intend," "plan," "estimate," "should," "if,“ "project," and similar expressions. All st ate ments other than statements of historical facts contained in this presentation, including statements regarding our growth strategies, our vision, future operations, future financial position, future revenue, project ed costs, prospects, plans, objectives of management and expected market growth and potential are forward - looking statements. We have based these forward - looking statements on our current expectations and pro jections about future events. However, these forward - looking statements are subject to risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievem ent s to be materially different from our expectations and projections. Some of these risks, uncertainties and other factors are set forth in this presentation and in other documents we file with the United Stat es Securities and Exchange Commission (the "SEC"). Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward - looking statements. Projections and other forwar d - looking statements included in this presentation have been prepared based on assumptions, which we believe to be reasonable, but not in accordance with U.S. Generally Accepted Accounting Principals ( “GA AP”) or any guidelines of the SEC. Actual results may vary, perhaps materially. You are strongly cautioned not to place undue reliance on such projections and other forward - looking statements. All subsequent written and oral forward - looking statements attributable us or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal sec urities laws, we disclaim any intention or obligation to update or revise any forward - looking statements, whether as a result of new information, future events or otherwise. Any such forward - looking statements, whe ther made in this presentation or elsewhere, should be considered in the context of the various disclosures made by us about our businesses including, without limitation, the risk factors discussed abo ve. Accounting Adjustments Related to the Consolidation of the Operations of the PCs In those states which require a licensed Doctor of Chiropractic to own the entity that offers chiropractic services, the Comp any enters into a management agreement with a professional corporation (PC) licensed in that state to provide chiropractic services. To increase transparency into operating results and to align with ac cou nting rules, the Company will now consolidate the full operations of the PC. This will result in increases to our revenue and G&A expenses by an identical amount and would have no impact on our bottom line except in instances when the PC has sold treatment packages and wellness plans. Revenue from these packages and plans will now be deferred and will be recognized when patients use their visits. The Company ha s previously consolidated its clinic operations in Non - PC states such as Arizona and New Mexico, and the deferred revenue around packages and plans in those states was already reflected in its finan cia l statements. Therefore, these adjustments are isolated to the managed clinics in PC states. These adjustments will have no impact on cash flow. Business Structure The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, D ist rict of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, Wes t V irginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.

Our Mission © 2019 The Joint Corp. All Rights Reserved. 3 To improve quality of life through routine and affordable chiropractic care Q3 2019 vs Q3 2018 System - wide sales Comp sales >13 months 1 Comp sales >48 months 1 33% 23% 17% Revenue 38% Net Income $617K, up $825K Adjusted EBITDA 2 $1.4M, up $819K Unrestricted cash $7.8 M at September 30, 2019, compared to $8.7M at Dec. 31, 2018 LIVE A BETTER YOU 1 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months and exclude any clinic s t hat have closed.| 2 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the Appendix.

12 26 82 175 242 265 309 352 394 430 4 47 61 47 48 58 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep. 30, 2019 Total Clinics Open Franchise Company Owned/Managed Accelerating Momentum © 2019 The Joint Corp. All Rights Reserved. 4 2018 2019 0 2018 5 Nov. 7, 2019 Franchise Licenses Sold Total New Franchised Clinics Opened Opened Greenfield Clinics Acquired Franchise Clinics 2018 2019 60 First 9 Mos. 103 9 Mos. 25 First 9 Mos. 47 9 Mos. 1 2018 8 Nov. 7, 2 019 Continue to experience unusually low clinic closure rates of less than 1% 370 399 442 488 312 246 FIRST NINE MONTHS OF YEAR THROUGH NOVEMBER 7

RDs Accelerate Franchise License Sales © 2019 The Joint Corp. All Rights Reserved. 5 1 Of the 818 franchise licenses sold as of September 30, 2019, 208 are in active development, 488 are currently operating and t he balance represents terminated/closed licenses. • 77% of clinics supported by RDs • RDs cover 53% of Metropolitan Statistical Areas (MSAs) in the US Pipeline of 200+ Undeveloped Licenses & LOIs at September 30, 2019 50% 49% 89% 93% Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Sept. 30, 2019 % of Sales by Regional Developers Gross Cumulative Franchise Licenses Sold 1 22 37 99 103 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Sept. 30, 2019 Franchise Licenses Sold Annually 579 616 715 818 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 Sept. 30, 2019

Reducing Time to Breakeven © 2019 The Joint Corp. All Rights Reserved. 6 • Implementing new operational standards and protocols • Enhancing grand openings with t urnkey, s tep - by - step program • Franchise grassroots marketing tactics with pre - registration program, PR, digital and social media support • Marketing resource at headquarters, plus the RD or field support *Based on average historical gross sales growth rates from January 2013 through September 2019. Class of 2019 of 49 clinics i ncl udes 4 greenfields and 47 franchises, less 2 non - traditional franchises with the airport and store - in - store concepts. Gross Sales data is dynamic until the last clinic opened within that cohort completes its 24th month in operation.

Building a Positive, Authentic Brand © 2019 The Joint Corp. All Rights Reserved. 7 Multiple Campaign Channels New Brand Campaign Leveraging insights from 2018 consumer research, which mapped patient journey to chiropractic • Refining our consumer voice and presentation • Connecting with large market of “relief seekers” • Focused on everyday drivers of pain and positive outcomes with chiropractic • Gaining consideration with real stories of success PR Web Outdoor Print Social October 2019 Launch TV New Television s pots focus on everyday drivers of pain Testimonials from real patients of The Joint (thejoint.com/stories) New campaign tagline: You’re Back, Baby SM

Implementing AXIS, New IT Platform © 2019 The Joint Corp. All Rights Reserved. 8 CRITICAL: Driven to get it RIGHT! • Completed development • Conducting internal testing • Completing robust training • Delayed rollout to 2020

Exceptional System - wide Comp Sales © 2019 The Joint Corp. All Rights Reserved. 9 33% System - wide sales 1 Q3 2019 over Q3 2018 23% Comp sales 2 for clinics >13 months in operation Q3 2019 over Q3 2018 17% Comp sales 2 for clinics >48 months in operation Q3 2019 over Q3 2018 1 System - wide sales include sales at all clinics, whether operated by the company or by franchisees 2 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months and exclude any clinic s t hat have closed. 13% 17% 18% 21% 25% 24% 2017 2018 YTD Sept. 30, 2019 Comp Sales % Growth Quarterly Comp Sales > 48months Quarterly Comp Sales > 13months

Q3 2019 Improvements © 2019 The Joint Corp. All Rights Reserved. 10 4 th Consecutive Quarter of Net Income, 9 th Consecutive Quarter of Positive Adjusted EBITDA $ in M 1 Q3 2019 Q3 2018 Improvement Revenue • Corporate clinics • Franchise fees $12.7 6.8 5.9 $9.2 4.9 4.4 $3.5 1.9 1.5 38% 41% 34% Cost of revenue 1.4 1.1 (0.3) (32%) Sales and marketing 1.8 1.2 (0.6) (50%) Depreciation 0.5 0.4 (0.1) (38%) G&A 8.3 6.8 (1.5) (22%) Net Income / (Loss) 0.6 ( 0.2) 0.8 Adj. EBITDA 2 1.4 0.6 0.8 134% Unrestricted cash $7.8M at September 30, 2019, compared to $8.7M at Dec. 31, 2018 1 Due to rounding, numbers may not add up precisely to the totals. 2 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the Appendix.

Increasing 2019 Guidance © 2019 The Joint Corp. All Rights Reserved. 11 1 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the appendix. | 2 Through a combination of both greenfields and buybacks. $ in M 2018 Actual Original Low Original High Updated Low Updated High Revenues $36.7 26% 32% 30% 33% Adjusted EBITDA 1 $2.9 67% 100% 100% 110% New Franchise Openings 47 70 80 Unchanged Unchanged Additional Company - owned/Managed Clinics 2 1 8 12 13 13

© 2019 The Joint Corp. All Rights Reserved. 12 Revenue Growth Drivers Market Opportunity Expansion Strategy New Markets

$1.3 $2.8 $8.1 $22.3 $46.2 $70.1 $98.6 $126.9 $165.1 $157.9 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sep. 30, 2019 © 2019 The Joint Corp. All Rights Reserved. 13 Building Nationwide Brand to Deliver Shareholder Value Continue to focus on franchise sales • Further leverage RD strategy Accelerate the expansion of corporate clinic portfolio within clustered locations • Build greenfield clinics • Acquire franchised clinics opportunistically Growth Strategy Delivers Continued Momentum System - wide Gross Sales ($ in M) 83% CAGR (2010 - 2018)

Non - GAAP Measure Definition © 2019 The Joint Corp. All Rights Reserved. 14 This presentation includes a presentation of EBITDA and Adjusted EBITDA, which are non - GAAP financial measures. EBITDA and Adjus ted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the Company’s underlying operating performance and operating trends. Reconci lia tions of net loss to EBITDA and Adjusted EBITDA are presented where applicable. The Company defines EBITDA as net income (loss) bef ore net interest, taxes, depreciation and amortization expenses. The Company defines Adjusted EBITDA as EBITDA before acquisition - relate d expenses, bargain purchase gain, loss on disposition or impairment, and stock - based compensation expenses. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operat ion s, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are fr equ ently used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily compara ble to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjus ted EBITDA should be reviewed in conjunction with the Company’s financial statements filed with the SEC.

Q3 2019 Segment Results © 2019 The Joint Corp. All Rights Reserved. 15 2019 Q3 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues $ 6,830 $ 5,896 $ 0 $ 12,726 Total Operating Costs (6,009) (3,022) (3,056) (12,086) Operating Income (Loss) 821 2,875 (3,055) 640 Other Income (Expense), net - 5 (22) (17) Loss Before Income Tax Expense 821 2,880 (3,077) 624 Total Income Taxes - - 7 7 Net Income (Loss) 821 2,880 (3,084) 617 Net Interest - (5) 22 17 Income Taxes - - 7 7 Total Depreciation and Amortization Expense 490 0 48 538 EBITDA 1,311 2,875 (3,007) 1,179 Stock Based Compensation Exp - - 186 186 Bargain Purchase Gain - - - - Loss on Disposition/Impairment 28 - 1 30 Acquisition Expenses 0 - 33 33 Adjusted EBITDA 1,339 2,875 (2,787) 1,428

YTD 2019 Segment Results © 2019 The Joint Corp. All Rights Reserved. 16 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues $ 18,246 $ 16,329 $ 0 $ 34,576 Total Operating Costs (16,021) (8,434) (8,049) (32,504) Operating Income (Loss) 2,225 7,895 (8,049) 2,072 Other Income (Expense), net 22 18 (64) (24) Loss Before Income Tax Expense 2,247 7,912 (8,112) 2,047 Total Income Taxes - - 16 16 Net Income (Loss) 2,247 7,912 (8,128) 2,032 Net Interest (3) (18) 64 43 Income Taxes - - 16 16 Total Depreciation and Amortization Expense 1,156 1 152 1,309 EBITDA 3,400 7,896 (7,897) 3,399 Stock Based Compensation Exp - - 537 537 Bargain Purchase Gain (19) - - (19) Loss on Disposition/Impairment 115 - 1 117 Acquisition Expenses - - 36 36 Adjusted EBITDA 3,496 7,896 (7,322) 4,070 2019 9 Mos.

GAAP – Non - GAAP Reconciliation © 2019 The Joint Corp. All Rights Reserved. 17

Jake Singleton, CFO jake.singleton@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 240, Scottsdale, AZ 85260 | (480) 245 - 5960 https://www.facebook.com/thejointchiro @ thejointchiro https://twitter.com/thejointchiro @ thejointchiro https://www.youtube.com/thejointcorp @ thejointcorp Peter D. Holt, President and CEO peter.holt@thejoint.com The Joint Corp. | 16767 N. Perimeter Dr., Suite 240, Scottsdale, AZ 85260 | (480) 245 - 5960 Kirsten Chapman, LHA Investor Relations thejoint@lhai.com LHA Investor Relations | One Market Street, Spear Tower, Suite 3600, San Francisco, CA 94105 | (415) 433 - 3777 © 2019 The Joint Corp. All Rights Reserved. 18 The Joint Corp. Contact Information