JOINT Corp (JYNT) saw its loss narrow to $1.65 million, or $0.13 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $3.53 million, or $0.28 a share.
Revenue during the quarter surged 33.03 percent to $5.67 million from $4.27 million in the previous year period. Gross margin for the quarter expanded 427 basis points over the previous year period to 86.92 percent. Operating margin for the quarter stood at negative 27.97 percent as compared to a negative 81.62 percent for the previous year period.
Operating loss for the quarter was $1.59 million, compared with an operating loss of $3.48 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $0.48 million compared to negative $2.67 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 8.42 percent for the quarter compared to negative 62.65 percent in the last year period.
"We continued our progress toward profitability in the first quarter," said Peter D. Holt, president and chief executive officer of The Joint Corp. "First quarter results reflect continued strong growth in our business as system-wide comp sales were 19% and revenue growth was 33%, in both cases as compared with the first quarter of last year. For the remainder of the year we are focused on achieving profitability in our corporate clinic segment, expanding our franchise network by adding 50 to 60 new franchised clinics in 2017, and continuing to control operating costs."
JOINT Corp forecasts revenue to be in the range of $22 million to $24 million for fiscal year 2017.
Operating cash flow remains negative
JOINT Corp has spent $1.26 million cash to meet operating activities during the quarter as against cash outgo of $5.76 million in the last year period.
The company has spent $0.03 million cash to meet investing activities during the quarter as against cash outgo of $0.55 million in the last year period.
Cash flow from financing activities was $0.95 million for the quarter as against cash outgo of $0.12 million in the last year period.
Cash and cash equivalents stood at $2.68 million as on Mar. 31, 2017, down 74.18 percent or $7.69 million from $10.37 million on Mar. 31, 2016.
Working capital drops significantly
JOINT Corp has witnessed a decline in the working capital over the last year. It stood at $0.81 million as at Mar. 31, 2017, down 89.12 percent or $6.65 million from $7.46 million on Mar. 31, 2016. Current ratio was at 1.16 as on Mar. 31, 2017, down from 2.21 on Mar. 31, 2016.
Days sales outstanding went down to 10 days for the quarter compared with 18 days for the same period last year.
At the same time, days payable outstanding went down to 66 days for the quarter from 96 for the same period last year.
Debt increases substantially
JOINT Corp has witnessed an increase in total debt over the last one year. It stood at $1.17 million as on Mar. 31, 2017, up 153.17 percent or $0.71 million from $0.46 million on Mar. 31, 2016. Long-term debt stood at $1 million as on Mar. 31, 2017. Total debt was 7.09 percent of total assets as on Mar. 31, 2017, compared with 1.61 percent on Mar. 31, 2016. Debt to equity ratio was at 0.21 as on Mar. 31, 2017, up from 0.03 as on Mar. 31, 2016.
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