JOINT Corp (JYNT) saw its loss widen to $2.63 million, or $0.21 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.66 million, or $0.17 a share. Revenue during the quarter surged 33 percent to $5.50 million from $4.14 million in the previous year period. Gross margin for the quarter expanded 496 basis points over the previous year period to 86.94 percent. Operating margin for the quarter stood at negative 47.51 percent as compared to a negative 49.56 percent for the previous year period.
Operating loss for the quarter was $2.61 million, compared with an operating loss of $2.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.65 million compared to negative $1.17 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 30.01 percent for the quarter compared to negative 28.23 percent in the last year period.
"Our performance in the third quarter reflects strong revenue growth, which was driven by the addition of 77 clinics over the last 12 months, and significant improvement in reducing general and administrative expenses, which positively impacted our Adjusted EBITDA guidance for full year 2016. Furthermore, we continue to focus on opportunities to effectively manage our costs as we build our business," said Peter D. Holt, chief executive officer of The Joint Corp. "Our company-owned or managed clinic buybacks are currently cash positive and our greenfield clinics are making progress towards profitability. However, the growth of our Chicago-area clinics continues to underperform our expectations. While we are working to improve the operating performance of the Chicago area clinics, we are also exploring strategic alternatives for those clinics that are in the best interest of our shareholders. In addition, we are considering non-dilutive financing options to strengthen our financial position."
JOINT Corp forecasts revenue to be in the range of $20 million to $21 million for fiscal year 2016.
Operating cash flow remains negativeJOINT Corp has spent $10.34 million cash to meet operating activities during the nine month period as against cash outgo of $4.01 million in the last year period. The company has spent $2.61 million cash to meet investing activities during the nine month period as against cash outgo of $7.16 million in the last year period.
The company has spent $0.45 million cash to carry out financing activities during the nine month period as against cash outgo of $0.11 million in the last year period.
Cash and cash equivalents stood at stood at $3.39 million as at Sep. 30, 2016.
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