The Joint Corp. plans to restate financial statements, adjusting net loss and asset values for 2024 and Q1 2025.
Quiver AI Summary
The Joint Corp. announced plans to restate its previously issued financial statements for the year ended December 31, 2024, and the quarter ended March 31, 2025, due to errors related to the impairment of assets held for sale in discontinued operations. The correction is expected to reduce the reported net loss by approximately $2.2 million for 2024, increasing the carrying value of these assets by the same amount. For the first quarter of 2025, an increase in net income of about $0.5 million and a cumulative increase in carrying value by approximately $2.7 million are anticipated. These adjustments will not impact Adjusted EBITDA or cash balances. The company also recognizes a likely material weakness in its internal controls over financial reporting due to these findings and will implement measures to address it.
Potential Positives
- Expects to reduce the 2024 net loss by approximately $2.2 million, indicating an improvement in financial performance.
- Anticipates an increase in first quarter 2025 net income by approximately $0.5 million, which reflects potential growth and improved operational efficiency.
- Foresees a cumulative increase of approximately $2.7 million in the carrying value of assets held for sale, suggesting a stronger asset position for the company.
Potential Negatives
- The company plans to restate previously issued financial statements due to errors in accounting, which raises concerns about financial reporting accuracy.
- The identification of a material weakness in internal controls over financial reporting could undermine investor confidence and suggests potential for undetected errors in future financial statements.
- The inability to correct these accounting discrepancies without a financial restatement may negatively affect the company's perceived reliability and governance practices.
FAQ
What is the expected financial impact for 2024 and 2025?
The company anticipates a $2.2 million decrease in net loss for 2024 and a $0.5 million increase in net income for Q1 2025.
Why is The Joint Corp. restating its financial statements?
The restatement is due to a misapplication of accounting guidance related to asset valuation for clinics held for sale.
Will the restatement affect Adjusted EBITDA?
No, the adjustments are not expected to impact Adjusted EBITDA for either 2024 or Q1 2025.
What is the carrying value adjustment related to?
The adjustments reflect an increase in the carrying value of assets held for sale by approximately $2.7 million cumulatively.
How is The Joint Corp. addressing internal control weaknesses?
The company is evaluating and implementing remedial measures to address material weaknesses in its internal control over financial reporting.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$JYNT Hedge Fund Activity
We have seen 25 institutional investors add shares of $JYNT stock to their portfolio, and 48 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALTA FOX CAPITAL MANAGEMENT, LLC added 403,096 shares (+inf%) to their portfolio in Q1 2025, for an estimated $5,034,669
- CLAYTON PARTNERS LLC removed 95,000 shares (-30.6%) from their portfolio in Q1 2025, for an estimated $1,186,550
- TOPLINE CAPITAL MANAGEMENT, LLC added 52,956 shares (+16.3%) to their portfolio in Q1 2025, for an estimated $661,420
- GOLDMAN SACHS GROUP INC removed 37,377 shares (-9.9%) from their portfolio in Q1 2025, for an estimated $466,838
- RUSSELL INVESTMENTS GROUP, LTD. added 36,319 shares (+45.0%) to their portfolio in Q1 2025, for an estimated $453,624
- GREENWOOD CAPITAL ASSOCIATES LLC removed 33,621 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $419,926
- FIRST FOUNDATION ADVISORS added 27,444 shares (+21.0%) to their portfolio in Q1 2025, for an estimated $342,775
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$JYNT Analyst Ratings
Wall Street analysts have issued reports on $JYNT in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Lake Street issued a "Buy" rating on 05/09/2025
To track analyst ratings and price targets for $JYNT, check out Quiver Quantitative's $JYNT forecast page.
Full Release
- Expects to reduce 2024 net loss and increase carrying value of assets held for sale
by approximately $2.2 million -
- Expects to increase first quarter 2025 net income by approximately $0.5 million, resulting in a cumulative increase in carrying value of assets held for sale by approximately $2.7 million -
- No change to 2024 or first quarter 2025 Adj. EBITDA -
SCOTTSDALE, Ariz., July 30, 2025 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic ® network, announced the Company intends to restate previously issued audited financial statements as of and for the year ended December 31, 2024 contained in the Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 14, 2025 and the unaudited interim financial statements as of and for the quarter ended March 31, 2025 contained in the Quarterly Report on Form 10-Q filed with the SEC on May 9, 2025 (collectively, the “Previously Issued Financial Statements”) related to the impairment on the carrying values of company-owned or managed clinics classified as held for sale and included in discontinued operations.
Background
The errors relate to previously recorded impairment on the carrying values of company-owned or managed clinics held for sale and included in discontinued operations. Specifically, there was a misapplication of accounting guidance related to the valuation methodology for certain assets held for sale. Upon further evaluation, the Company determined that the original methodology applied was not consistent with generally accepted accounting principles, and adjustments are necessary to accurately present the Company’s financial position and results of operations.
Estimated Impact
The Company is in the process of but has not yet completed, its determination of the degree to which these errors will have an effect on the Company’s Previously Issued Financial Statements. Based on its review to date, the following preliminary estimated impact of the identified errors on the Previously Issued Financial Statements are the Company’s current estimates of the impact and are subject to change in connection with the completion of the restatements.
For the year ended December 31, 2024, the correction for the impairment on assets held for sale is expected to result in a reduction of previously reported loss from discontinued operations before income taxes of approximately $2.2 million. As a result, the total impact of this adjustment for the year is an estimated $2.2 million decrease in net loss for the year ended December 31, 2024, and an estimated $2.2 million increase in the carrying value of assets held for sale reported in discontinued operations current assets for the period then ended.
This adjustment is not expected to have any impact on Adjusted EBITDA for the year ended December 31, 2024, nor on cash, cash equivalents, or restricted cash as of that date.
For the period ended March 31, 2025, the correction for the impairment on assets held for sale is expected to result in an increase of previously reported income from discontinued operations before income taxes of approximately $0.5 million. As a result, the total impact of these adjustments is an estimated $0.5 million in net income for the quarter ended March 31, 2025 and an estimated cumulative $2.7 million increase in the carrying value of assets held for sale reported in discontinued operations current assets for the period then ended.
The adjustment is not expected to have any impact on Adjusted EBITDA for the quarter ended March 31, 2025, or on cash, cash equivalents, or restricted cash as of that date.
The Company is also evaluating the impact of the identified error on its internal control over financial reporting and disclosure controls and procedures. Although the evaluation is not yet complete, the Company expects it will result in a material weakness in the Company’s internal control over financial reporting and will conclude that its disclosure controls and procedures were ineffective during the applicable periods related to the Previously Issued Financial Statements. The Company continues to evaluate and implement remedial measures to address such material weaknesses.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements, including expectations about the timing of the completion and filing of the 10-K/A and 10-Q/A, the anticipated impact and effects of the errors on the Previously Issued Financial Statements, and the impact of the identified errors on our internal control over financial reporting and disclosure controls and procedures, 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 inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics, due in part to the nationwide labor shortage and an increase in operating expenses due to measures we may need to take to address such shortage; inflation, leading to increased labor costs and interest rates, as well as changes to import tariffs, may lead to reduced discretionary spending, all of which may negatively impact our business; our failure to profitably operate company-owned or managed clinics; our failure to refranchise as planned; short-selling strategies and negative opinions posted on the internet, which could drive down the market price of our common stock and result in class action lawsuits; our failure to remediate future material weaknesses in our internal control over financial reporting, which could negatively impact our ability to accurately report our financial results, prevent fraud, or maintain investor confidence; and the factors described in our filings with the SEC, including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 14, 2025 and subsequently-filed current and quarterly reports. 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)
The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. With over 950 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to
Franchise Times’
annual “Top 400” and “Fast & Serious” list of 40 smartest growing brands.
Entrepreneur
named The Joint “No. 1 in Chiropractic Services,” and is regularly ranked on the publication’s “Franchise 500,” the “Fastest-Growing Franchises,” the “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners.”
SUCCESS
named the company as one of the “Top 50 Franchises” in 2024. The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit
www.thejoint.com
. To learn about franchise opportunities, visit
www.thejointfranchise.com
.
The Joint 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, 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.,
[email protected]
Investor Contact:
Kirsten Chapman, Alliance Advisors IR, 415-433-3777,
[email protected]