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The Joint Corp.’s (JYNT - Free Report) shares have lost 2.7% since it reported third-quarter 2024 results. The quarterly results were hurt by an elevated general and administrative expense level. Impairment-related charges also affected the bottom line.
Nevertheless, the downside was offset by higher system-wide sales, led by improved royalty fees, advertising fund revenues and software fees.
JYNT reported adjusted earnings per share of 4 cents, which matched the Zacks Consensus Estimate. The bottom line compared favorably with the adjusted loss of 5 cents per share reported a year ago.
Revenues improved 2% year over year to $30.2 million. The top line surpassed the consensus mark by 5.5%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Revenues from company-owned or managed clinics of $17.5 million dipped 1.9% year over year. Royalty fees advanced 10.2% year over year to $7.9 million in the third quarter. Advertising fund revenues were $2.2 million, up 9.6% year over year. Software fees of $1.4 million improved 10% year over year. Meanwhile, franchise fees fell 7.5% year over year to $0.7 million.
Total cost of revenues amounted to $2.8 million, which escalated 8.4% year over year due to increased regional developer royalties and commissions. General and administrative expenses increased 2.7% year over year to $20.8 million. However, total selling, general and administrative costs dipped 0.4% year over year to $26.8 million.
The Joint incurred a net loss of $3.2 million, wider than the prior-year quarter’s net loss of $0.7 million due to a loss incurred on disposition or impairment.
System-wide sales rose 8% year over year to $129.3 million. As of Sept. 30, 2024, the company’s total clinic count was 963, lower than the Zacks Consensus Estimate of 975. The number of franchised clinics totaled 838, which was lower than the consensus mark of 864. Yet, company-owned or managed clinics were 125, higher than the consensus estimate of 111.
Adjusted EBITDA tumbled 16% year over year to $2.4 million.
The Joint’s Financial Update (as of Sept. 30, 2024)
JYNT exited the third quarter with cash and cash equivalents of $20.7 million, which increased 14.2% from the 2023-end level.
Total assets of $79.6 million fell 8.7% from the figure at 2023-end.
There was no reported debt under the credit agreement.
Total equity of $20.5 million declined 17.3% from the 2023-end level.
The Joint generated net cash from operations of $5.3 million for the first nine months ended Sept. 30, 2024, which dropped 53.2% from the prior-year period.
The Joint’s 2024 Guidance
The company presently estimates system-wide sales to be in the range of $525-$535 million, down from the prior view of $530-$545 million.
It expects to open 55-60 franchised clinics, down from the earlier view of 60-75.
Of the Medical sector players that have reported third-quarter 2024 results so far, the bottom-line results of Molina Healthcare, Inc. (MOH - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) beat the respective Zacks Consensus Estimate.
Molina Healthcare reported third-quarter adjusted earnings per share (EPS) of $6.01, which beat the Zacks Consensus Estimate of $5.96. Also, the bottom line grew 19% from the year-ago period. Total revenues amounted to $10.3 billion, which improved 20.9% year over year. Also, the top line outpaced the consensus mark by 3.8%. Premium revenues of $9.7 billion increased 18% year over year .
As of Sept. 30, 2024, total membership improved 8% year over year to around 5.6 million. Investment income rose 5.4% year over year to $118 million. Adjusted general and administrative expense ratio decreased to 6.4% in the third quarter from 7.1% a year ago. The consolidated medical care ratio, or MCR, was 89.2% . The metric rose from 88.7% a year ago. Its adjusted net income increased 18% year over year to $347 million.
Encompass Health reported third-quarter adjusted EPS of $1.03, which beat the Zacks Consensus Estimate by 9.6%. The bottom line increased 19.8% year over year. Net operating revenues of $1.4 billion improved 11.6% year over year. The top line beat the consensus mark by 1.7%. EHC’s net patient revenue per discharge rose 2.5% year over year.
Total discharges grew 8.8% year over year 62.7 million, higher than our growth estimate of 61 million. Net and comprehensive income climbed 29.7% year over year to $147.1 million in the third quarter. Adjusted EBITDA of $269.3 million grew 13.4% year over year and surpassed our estimate of $247.1 million. Encompass Health added 10 beds to its existing hospitals in the third quarter. It also inaugurated two de novo hospitals.
Ensign Group reported a third-quarter adjusted EPS of $1.39, which beat the Zacks Consensus Estimate by 1.5%. The bottom line increased 15.8% year over year. Operating revenues of $1.08 billion improved 15% year over year The top line outpaced the consensus mark by 1.7%. Ensign Group’s adjusted net income grew 17.7% year over year to $81.1 million .
Same-store occupancy improved 280 basis points (bps) year over year, while transitioning occupancy expanded 480 bps year over year. The Skilled Services segment’s revenues rose 14.4% year over year to $1 billion in the third quarter. Segment income of $128.5 million improved 9.1% year over year. Skilled nursing and campus operations of the segment totaled 282 and 29, respectively, at the third-quarter end.
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JYNT's Q3 Earnings Meet Estimates Amid Higher Costs, Shares Dip 3%
The Joint Corp.’s (JYNT - Free Report) shares have lost 2.7% since it reported third-quarter 2024 results. The quarterly results were hurt by an elevated general and administrative expense level. Impairment-related charges also affected the bottom line.
Nevertheless, the downside was offset by higher system-wide sales, led by improved royalty fees, advertising fund revenues and software fees.
JYNT reported adjusted earnings per share of 4 cents, which matched the Zacks Consensus Estimate. The bottom line compared favorably with the adjusted loss of 5 cents per share reported a year ago.
Revenues improved 2% year over year to $30.2 million. The top line surpassed the consensus mark by 5.5%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Joint Corp. Price, Consensus and EPS Surprise
The Joint Corp. price-consensus-eps-surprise-chart | The Joint Corp. Quote
JYNT’s Q3 Performance
Revenues from company-owned or managed clinics of $17.5 million dipped 1.9% year over year. Royalty fees advanced 10.2% year over year to $7.9 million in the third quarter. Advertising fund revenues were $2.2 million, up 9.6% year over year. Software fees of $1.4 million improved 10% year over year. Meanwhile, franchise fees fell 7.5% year over year to $0.7 million.
Total cost of revenues amounted to $2.8 million, which escalated 8.4% year over year due to increased regional developer royalties and commissions. General and administrative expenses increased 2.7% year over year to $20.8 million. However, total selling, general and administrative costs dipped 0.4% year over year to $26.8 million.
The Joint incurred a net loss of $3.2 million, wider than the prior-year quarter’s net loss of $0.7 million due to a loss incurred on disposition or impairment.
System-wide sales rose 8% year over year to $129.3 million. As of Sept. 30, 2024, the company’s total clinic count was 963, lower than the Zacks Consensus Estimate of 975. The number of franchised clinics totaled 838, which was lower than the consensus mark of 864. Yet, company-owned or managed clinics were 125, higher than the consensus estimate of 111.
Adjusted EBITDA tumbled 16% year over year to $2.4 million.
The Joint’s Financial Update (as of Sept. 30, 2024)
JYNT exited the third quarter with cash and cash equivalents of $20.7 million, which increased 14.2% from the 2023-end level.
Total assets of $79.6 million fell 8.7% from the figure at 2023-end.
There was no reported debt under the credit agreement.
Total equity of $20.5 million declined 17.3% from the 2023-end level.
The Joint generated net cash from operations of $5.3 million for the first nine months ended Sept. 30, 2024, which dropped 53.2% from the prior-year period.
The Joint’s 2024 Guidance
The company presently estimates system-wide sales to be in the range of $525-$535 million, down from the prior view of $530-$545 million.
It expects to open 55-60 franchised clinics, down from the earlier view of 60-75.
JYNT’s Zacks Rank
The Joint currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported third-quarter 2024 results so far, the bottom-line results of Molina Healthcare, Inc. (MOH - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) beat the respective Zacks Consensus Estimate.
Molina Healthcare reported third-quarter adjusted earnings per share (EPS) of $6.01, which beat the Zacks Consensus Estimate of $5.96. Also, the bottom line grew 19% from the year-ago period. Total revenues amounted to $10.3 billion, which improved 20.9% year over year. Also, the top line outpaced the consensus mark by 3.8%. Premium revenues of $9.7 billion increased 18% year over year .
As of Sept. 30, 2024, total membership improved 8% year over year to around 5.6 million. Investment income rose 5.4% year over year to $118 million. Adjusted general and administrative expense ratio decreased to 6.4% in the third quarter from 7.1% a year ago. The consolidated medical care ratio, or MCR, was 89.2% . The metric rose from 88.7% a year ago. Its adjusted net income increased 18% year over year to $347 million.
Encompass Health reported third-quarter adjusted EPS of $1.03, which beat the Zacks Consensus Estimate by 9.6%. The bottom line increased 19.8% year over year. Net operating revenues of $1.4 billion improved 11.6% year over year. The top line beat the consensus mark by 1.7%. EHC’s net patient revenue per discharge rose 2.5% year over year.
Total discharges grew 8.8% year over year 62.7 million, higher than our growth estimate of 61 million. Net and comprehensive income climbed 29.7% year over year to $147.1 million in the third quarter. Adjusted EBITDA of $269.3 million grew 13.4% year over year and surpassed our estimate of $247.1 million. Encompass Health added 10 beds to its existing hospitals in the third quarter. It also inaugurated two de novo hospitals.
Ensign Group reported a third-quarter adjusted EPS of $1.39, which beat the Zacks Consensus Estimate by 1.5%. The bottom line increased 15.8% year over year. Operating revenues of $1.08 billion improved 15% year over year The top line outpaced the consensus mark by 1.7%. Ensign Group’s adjusted net income grew 17.7% year over year to $81.1 million .
Same-store occupancy improved 280 basis points (bps) year over year, while transitioning occupancy expanded 480 bps year over year. The Skilled Services segment’s revenues rose 14.4% year over year to $1 billion in the third quarter. Segment income of $128.5 million improved 9.1% year over year. Skilled nursing and campus operations of the segment totaled 282 and 29, respectively, at the third-quarter end.