Joint Corp (JYNT) 2022 Q3 法說會逐字稿

Good day, and welcome to The Joint Corp. Third Quarter 2022 Financial Results Conference Call.

您好，歡迎您參加 The Joint Corp. 2022 年第三季財務業績電話會議。

(Operator Instructions)

（操作員指令）

Please note, this event is being recorded. I would now like to turn the conference over to David Barnard, with LHA Investor Relations. Please go ahead.

請注意，此事件正在被記錄。現在，我想將會議交給 LHA 投資者關係部的 David Barnard。請繼續。

Thank you, Sarah. Good afternoon, everyone. This is David Barnard of LHA Investor Relations. On the call today, President and CEO, Peter Holt, will review our third quarter 2022 performance metrics and provide an update on the business. CFO, Jake Singleton, will detail our financial results and guidance. Then Peter will close with a summary and open the call for questions. Please note, we are using a slide presentation that can be found at https://ir.thejoint.com/events.

謝謝你，莎拉。大家下午好。我是 LHA 投資者關係部的 David Barnard。在今天的電話會議上，總裁兼執行長 Peter Holt 將回顧我們 2022 年第三季的績效指標並提供業務最新進展。財務長傑克辛格頓 (Jake Singleton) 將詳細介紹我們的財務表現和指導。然後，彼得將做總結並開始提問。請注意，我們正在使用可以在 https://ir.thejoint.com/events 找到的幻燈片簡報。

After the close of the market, The Joint Corp. issued its financial results for the quarter ended September 30, 2022. If you not already have a copy of this press release, it can be found in the Investor Relations section of the company's website. As provided on Slide 2, please be advised today's discussion includes forward-looking statements including statements concerning our strategy, future operations, future financial position and plans and objectives of management. Throughout today's discussion, we will present some important factors relating to our business that could affect these forward-looking statements.

收盤後，聯合公司發布了截至 2022 年 9 月 30 日的季度財務業績。如投影片 2 所示，請注意，今天的討論包括前瞻性陳述，其中包括有關我們的策略、未來營運、未來財務狀況以及管理計劃和目標的陳述。在今天的討論中，我們將提出一些與我們的業務有關的可能影響這些前瞻性陳述的重要因素。

The forward-looking statements are made based on our current predictions, expectations, estimates and assumptions and are also subject to risks and uncertainties that may cause actual results to differ materially from the statements we make today. Factors that could contribute to these differences include, but are not limited to, the continuing impact of the COVID-19 outbreak on the economy and our operations, including temporary clinic closures, shortened business hours and reduced patient demand, inflation exacerbated by COVID-19 and the current war in Ukraine, 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, our inability to identify and recruit enough qualified chiropractors and other personnel to staff our clinics due in part to the nationwide labor shortage, 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 the current or 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 other factors described in our filings with the SEC, including the section entitled Risk Factors in our annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 14, 2022 and subsequently filed current and quarterly reports.

前瞻性陳述是基於我們目前的預測、預期、估計和假設做出的，同時也受風險和不確定性的影響，這些風險和不確定性可能導致實際結果與我們今天所做的陳述有重大差異。可能導致這些差異的因素包括但不限於Covid-19爆發對經濟的持續影響，包括臨時診所關閉，縮短了工作時間和減少患者的需求，Covid-19加劇了通貨膨脹，而當前的戰爭和當前的戰爭在我們的烏克蘭中失敗了，我們將成為公司的臨床臨床，我們的臨床臨床是我們的臨床臨床臨床確定並招募足夠的脊椎會降低我們的普通股的市場價格，並導致集體訴訟的訴訟，我們未能彌補我們的當前物質弱點，以防止我們的內部控制範圍，以防止我們的財務報告，從而確定我們的財務範圍，以確定我們的範圍，以確定我們的範圍，並確定我們的範圍的範圍，以確定我們的範圍，並確定我們的範圍的範圍或能夠準確地限制我們的年度證券的標題為“風險因素”，並隨後提交了當前和季度報告。

As a result, we caution you against placing undue reliance on these forward-looking statements and encourage you to review our filings with the SEC for a discussion of these factors and other risks that may affect our future results or the market price of our stock. Finally, we are not obligating ourselves to revise our results or publicly release any updates to these forward-looking statements in light of new information or future events.

因此，我們提醒您不要過度依賴這些前瞻性陳述，並鼓勵您查看我們向美國證券交易委員會提交的文件，以討論這些因素以及可能影響我們未來業績或股票市場價格的其他風險。最後，我們沒有義務根據新資訊或未來事件修改我們的結果或公開發布這些前瞻性陳述的任何更新。

Management uses EBITDA and adjusted EBITDA, which are non-GAAP financial measures. These are presented because they are important measures used by management to assess financial performance. Management believes they provide a more transparent view of the company's underlying operating performance and operating trends and GAAP measures alone. Reconciliation of net income to EBITDA and adjusted EBITDA is presented in the press release. The company defines EBITDA as net income or loss before net interest, tax expense, depreciation and amortization expenses. The company defines adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, net gain or loss on disposition or impairment and stock-based compensation expenses. Management also includes commonly discussed performance metrics.

管理層使用 EBITDA 和調整後的 EBITDA，它們是非 GAAP 財務指標。之所以呈現這些指標，是因為它們是管理階層用來評估財務表現的重要指標。管理層認為，它們可以更透明地反映公司的基本經營業績和經營趨勢以及 GAAP 指標。新聞稿中介紹了淨收入與 EBITDA 以及調整後 EBITDA 的對帳情況。該公司將EBITDA定義為扣除淨利息、稅金費用、折舊及攤銷費用前的淨收入或虧損。該公司將調整後的 EBITDA 定義為扣除收購相關費用、廉價購買收益、處置或減損淨損益以及股票薪酬費用前的 EBITDA。管理也包括常見的績效指標。

System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchise 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 includes revenues from both company-owned or managed clinics and franchise clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.

全系統銷售額包括所有診所的收入，無論是由公司經營還是由特許經營商經營。雖然特許經營銷售額不被公司記錄為收入，但管理層認為這些資訊對於了解公司的財務業績非常重要，因為這些銷售額是公司計算和記錄特許權使用費的基礎，並且表明了特許經營商的財務狀況。可比較銷售額包括公司自有或管理的診所以及特許經營診所的收入，這些診所均已開業至少 13 個月，且不包括已關閉的診所。

Turning to Slide 3. It is now my pleasure to turn the call over to Peter Holt.

翻到幻燈片 3。

Thank you, David, and I welcome everybody to the call. During the third quarter of 2022, we continued our vigorous pace of clinic openings and these new units delivering strong performance, both reflecting a robust underlying business model particularly in the current macroeconomic environment. I want to take this opportunity to welcome our new and existing investors to the call. The Joint is revolutionizing access to chiropractic care by providing an affordable concierge-style membership-based services in convenient retail settings.

謝謝你，大衛，我歡迎大家參加電話會議。 2022 年第三季度，我們繼續大力開設診所，這些新單位表現強勁，這兩者都反映出強勁的基礎業務模式，尤其是在當前宏觀經濟環境下。我想藉此機會歡迎我們的新舊投資者參加電話會議。 The Joint 透過在便利的零售環境中提供價格合理的禮賓式會員制服務，徹底改變了人們獲得脊椎矯正的方式。

Since our inception over a decade ago with fewer than a dozen clinics, we've grown tremendously. In fact, we reached the 800-unit milestone in September, which places us in the top 2% of the roughly 3,500 franchisors in the United States according to FRANdata. As we build upon and leverage our national brand recognition, we continue to capitalize on the opportunity for more significant growth.

自十多年前成立以來，我們僅擁有不到十幾家診所，但已經取得了巨大的發展。事實上，我們在 9 月就達到了 800 家門市的里程碑，根據 FRANdata 的數據，這讓我們在全美約 3,500 家特許經營商中排名前 2%。隨著我們鞏固和利用國家品牌認知度，我們將繼續抓住機會實現更顯著的成長。

The 2022 IBIS World report noted that chiropractic market increased from $18 billion to $19.5 billion annually. And in October 2022, reported linker stated that the global chiropractic care market is expected to reach $52 billion by 2027. Yet the sector remains highly fragmented with over 40,000 chiropractic offices in the United States. The Joint leads the profession as the largest chiropractic chain in the world with the greatest market share, in addition to publishing the most chiropractic care content in the public domain.

2022 年 IBIS World 報告指出，脊椎矯正療法市場每年從 180 億美元成長到 195 億美元。 2022 年 10 月，linker 報告稱，預計到 2027 年全球脊椎矯正治療市場規模將達到 520 億美元。該聯合公司是世界上最大的脊椎矯正連鎖機構，擁有最大的市場份額，並且在公共領域出版了最多的脊椎按摩護理內容，是脊椎按摩治療行業的領導者。

Based on year-end '21 sales, The Joint is approaching 20 -- 2% of market share with competitors in aggregate estimated to also approximately 2%. With our nationwide clinic base, we have economies of scale in marketing, in talent and in infrastructure. And using our proven protocols and standards, we are systematically expanding in areas of known demand. As a result, during the time of our consumer uncertainty The Joint is continuing to post positive comp rates.

根據 21 年年底的銷售額，The Joint 的市佔率接近 20-2%，而競爭對手的總份額估計也約為 2%。憑藉我們遍布全國的診所基地，我們在行銷、人才和基礎設施方面擁有規模經濟。利用我們經過驗證的協議和標準，我們正在已知需求的領域系統地擴張。因此，在消費者感到不確定的時期，The Joint 仍持續保持積極的競爭率。

Turning to Slide 4. I'll review the summary of our financial highlights for Q3 2022 metrics compared to Q3 2021. Later, Jake will discuss our results in greater detail. System-wide sales grew to $110.4 million, increasing 18%. Our comp sales for clinics that have been open for at least full -- 13 full months grew 6%. Revenue increased 27%. Adjusted EBITDA was $3.1 million. And as of September 30, 2022, our unrestricted cash was $10.3 million compared to $9.4 million at June 30, 2022.

轉到幻燈片 4。全系統銷售額成長至 1.104 億美元，成長 18%。我們開業至少整整 13 個月的診所的同店銷售額成長了 6%。收入增加27%。調整後的 EBITDA 為 310 萬美元。截至 2022 年 9 月 30 日，我們的無限制現金為 1,030 萬美元，而 2022 年 6 月 30 日為 940 萬美元。

Turning to Slide 5. During Q3 2022, we opened 38 clinics, up from 33 clinics in the prior year quarter. Regarding franchise clinics, during Q3 2022, we opened 33 and closed 2. Regarding change in ownership, corporate purchased 4 previously franchised clinics, 3 in North Carolina and 1 in Scottsdale, and sold 1 company-managed clinic in California to a franchisee. Regarding greenfield clinics, we opened 5, 3 in California and 2 in our new market, Kansas City. Greenfields are performing well into 2022 with gross sales on par with our class of 2021. This is an important point that validates the strength of our new-clinic launch strategy and the growing demand for chiropractic care.

轉到投影片 5。2022 年第三季度，我們開設了 38 家診所，比去年同期的 33 家有所增加。關於特許經營診所，在 2022 年第三季度，我們開設了 33 家診所，關閉了 2 家。至於新建診所，我們開設了 5 家，其中 3 家在加州，2 家在我們的新市場堪薩斯城。 Greenfields 在 2022 年的表現良好，總銷售額與我們 2021 年的水平相當。

For the first 9 months of 2022, we opened 103 clinics, 91 franchised and 12 greenfield. This compares to 87 openings in the first 9 months of 2021 that consisted of 76 franchised and 11 greenfields. The net total purchase of previously franchised clinics was 7 and the closures were 3. Our low unit closure rate of less than 1% annually continues to lead the franchise community. At September 30, 2022, we had 805 clinics in operation, consisting of 690 franchise clinics and 115 company-owned or managed clinics, maintaining a portfolio mix of 86% franchise clinics and 14% corporate clinics.

2022 年前 9 個月，我們開設了 103 家診所，其中特許經營診所 91 家，新建診所 12 家。相比之下，2021 年前 9 個月共開設 87 家門市，其中包括 76 家特許經營店和 11 家新建店。先前特許經營的診所的淨總購買量為 7 家，關閉 3 家。截至 2022 年 9 月 30 日，我們擁有 805 家診所投入運營，其中包括 690 家特許經營診所和 115 家公司自有或管理的診所，投資組合中特許經營診所佔 86%，公司診所佔 14%。

At quarter end, we also had 252 franchise licenses in active development compared to 283 at December 31, 2021. This metric continues to demonstrate the strength of our strong pipeline for franchise clinic openings and reflects the accelerated number of franchise openings. Subsequent to quarter end, we acquired 2 previously franchised clinics in North Carolina for approximately $2.2 million. We also opened 2 more greenfield clinics in Kansas City market. Additionally, we sold 1 company managed clinic in California to a franchisee. Our corporate portfolio now stands at 118 clinics as of November 3, 2022.

截至季度末，我們還擁有 252 個正在積極開發中的特許經營許可證，而 2021 年 12 月 31 日為 283 個。季度末之後，我們以約 220 萬美元的價格收購了北卡羅來納州 2 家之前特許經營的診所。我們也在堪薩斯城市場開設了另外 2 間綠地診所。此外，我們還將加州的一家公司管理的診所出售給了一家特許經營商。截至 2022 年 11 月 3 日，我們的公司投資組合目前已增至 118 家診所。

Turning to Slide 6. In Q3 2022, we sold 12 franchise licenses compared to 44 in Q3 2021. For the first 9 months of 2022, 58 licenses were sold compared to 132 in the same period last year when COVID has led to the pent-up demand of our franchise licenses. Although the number of franchise sales is fewer than last year, we believe it is holding strong considering today's macroeconomic environment, including factors such as high inflation, higher interest rates and decreased bottom line that have been impacting our -- by rising costs. Further, while higher unemployment is known to be a driver of franchise sales, today, the U.S. has a historically low unemployment rate of around 3.5% to 3.7%.

轉到投影片 6。2022 年第三季度，我們出售了 12 個特許經營許可證，而 2021 年第三季度為 44 個。儘管特許經營銷售數量少於去年，但考慮到當今的宏觀經濟環境，包括高通膨、高利率和利潤下降等因素（因成本上升而對我們造成影響），我們認為特許經營銷售仍保持強勁。此外，雖然較高的失業率被認為是特許經營銷售的推動力，但目前美國的失業率處於歷史低位，約為 3.5% 至 3.7%。

As of September 30, we had 19 regional developers who sold 62% of our franchise licenses year-to-date. Our aggregate 10-year minimum development schedule for the new RD territories established since 2017 was 642 clinics as of September 30. While this program continues to perform well under certain circumstances, we'll reacquire some of those RD rights. In October, we reduced RD count to 18 when we reacquired the right-to-develop franchises in the Philadelphia market. The net consideration for the transaction was $151,000. This was an undeveloped market with 2 clinics, and we believe we have the opportunity to develop another 30 sites.

截至 9 月 30 日，我們擁有 19 家區域開發商，他們今年迄今已銷售了 62% 的特許經營許可證。自 2017 年以來，我們在新 RD 領域建立的 10 年最低開發總計劃為截至 9 月 30 日的 642 家診所。 10月份，當我們重新獲得費城市場的開發特許經營權時，我們將研發團隊的數量減少到了18人。此次交易的淨對價為151,000美元。這是一個尚未開發的市場，擁有 2 家診所，我們相信有機會開發另外 30 家診所。

Turning to Slide 7. Let's review our marketing efforts. Although we continue to attract healthy numbers of new patient prospects to our clinics, our average number of new patients per clinic is down when compared to our record-breaking year 2021. One of the challenges we faced was last year, Google changed its algorithms which negatively impacted our organic search traffic. As a result, we've been aggressively adopting -- adapting our SEO strategy in 2022, which is beginning to pay dividends with positive website traffic growth in August and in September.

翻到投影片 7。儘管我們的診所繼續吸引大量新患者，但與創紀錄的 2021 年相比，每家診所的平均新患者數量有所下降。因此，我們一直在積極採用——在 2022 年調整我們的 SEO 策略，該策略開始帶來回報，8 月和 9 月網站流量呈正增長。

Another challenge is the impact of inflation on consumer confidence. With the average age of our patient base is just 36.4 years, the majority have never lived through an era of high inflation. Today, the average American household is spending $445 more per month to buy the same goods and services that they did a year ago, according to CNBC. This is forcing consumers into financial trade-offs. Two years ago, we faced somewhat similar circumstances during the COVID-19 pandemic and related government shutdowns and restrictions. At that time, we responded with our essential health care services statement and positioned The Joint to survive and thrive despite the devastating impact to so much of the retail industry. We believe this positioning will continue to serve us well, while consumers make tough choices on where to allocate their discretionary spending.

另一個挑戰是通貨膨脹對消費者信心的影響。我們的患者群體平均年齡僅為 36.4 歲，大多數人從未經歷過高通膨時代。根據 CNBC 報道，如今美國家庭平均每月比一年前多花費 445 美元來購買相同的商品和服務。這迫使消費者做出財務權衡。兩年前，我們在新冠疫情以及相關的政府關閉和限制期間也面臨類似的情況。當時，我們以基本醫療服務聲明作出回應，並定位 The Joint，儘管零售業遭受了毀滅性打擊，但仍能生存和發展。我們相信，當消費者在如何分配可自由支配的開支方面做出艱難選擇時，這種定位將繼續為我們提供良好的服務。

We responded to the lower new patient counts with robust testing of new market tactics, promotions, media channels and consumer messages. We continue to reinvest our marketing technology. This includes the launch of our new patient portal and an upgraded marketing automation platform planned for 2023. Additionally, our clinic local marketing spending has been robust, particularly for sponsorships of athletic programs in our communities. Our ability to form market co-ops distinguishes us from the single practitioners and small competitors as we leverage the power of our combined marketing dollars spent in those markets.

我們對新患者數量的減少進行了嚴格的市場策略、促銷、媒體管道和消費者資訊的測試，以應對這一問題。我們將繼續對行銷技術進行再投資。其中包括推出我們的新患者入口網站和計劃於 2023 年升級的行銷自動化平台。我們組成市場合作社的能力使我們有別於單一從業者和小型競爭對手，因為我們可以利用我們在這些市場上投入的綜合行銷資金的力量。

According to the American Chiropractic Association, chiropractic care gained wide use among professional and amateur sports teams across the country. Studies have shown that chiropractic care can be linked to faster injury recovery, injury prevention, improved levels of strength and enhanced sports performance for athletes. According to consumer reports, it's estimated that 90% of all world-class athletes use chiropractic care to prevent injuries and increase their performance potential. It's notable that all NFL teams rely on doctors of chiropractic in various capacities and 77% of the athletic trainers have referred players to a chiropractor for evaluation or treatment.

據美國脊椎按摩治療協會稱，脊椎按摩治療在全國各地的專業和業餘運動隊中得到了廣泛的應用。研究表明，脊椎按摩治療可以幫助運動員更快地恢復傷害、預防傷害、提高力量水平並增強運動表現。根據消費者報告，估計 90% 的世界級運動員都使用脊椎矯正來預防傷害並提高他們的運動表現潛力。值得注意的是，所有 NFL 球隊都以各種方式依賴脊椎按摩治療師，並且 77% 的運動訓練師已將球員轉介給脊椎按摩治療師進行評估或治療。

Finally, we're turning our attention to our annual holiday promotions, our Black Friday package sale in November and our year-end membership promotion in December and January. Each year, these events grow in financial impact and franchisee participation. Our network is energized to make 2022 our best performance yet, and we look forward to reporting on the results.

最後，我們將注意力轉向我們的年度假期促銷、11 月的黑色星期五套餐促銷以及 12 月和 1 月的年終會員促銷。每年，這些活動的財務影響力和加盟商參與度都在不斷提升。我們的網絡充滿活力，致力於使 2022 年取得迄今為止最好的業績，我們期待著報告結果。

And with that, Jake, I'll turn it over to you.

說完這些，傑克，我就把麥克風交給你了。

Thank you, Peter. Turning to Slide 8. I'll review the financial results for Q3 2020 (sic) [2021] compared to Q3 2021. System-wide sales for all clinics opened for any amount of time increased to $110.4 million, up 18%. System-wide comp sales for all clinics opened 13 months or more were 6%. System-wide comp sales for mature clinics opened 48 months or more were 2%. It's worth noting that both the franchise and corporate clinic cohorts comped positively across both time frames.

謝謝你，彼得。轉到投影片 8。所有開業 13 個月或以上的診所的全系統同店銷售額成長了 6%。開業 48 個月或以上的成熟診所的系統範圍內同店銷售額增長了 2%。值得注意的是，特許經營診所和企業診所群體在兩個時間內都取得了積極的回報。

Revenue was $26.6 million, up $5.6 million or 27%. Company-owned or managed clinic revenue increased 36%, contributing $15.8 million. Franchise operations increased 15%, contributing $10.8 million. The increases represent continued growth in both the corporate portfolio and franchise base. On March 1, we implemented a price increase in approximately 75% of our clinics. However, existing patient memberships are grandfathered at their original price. Therefore, the revenue impact from our price adjustment will be gradual and incremental. At the end of the quarter, about 50% of our active members were on the new price structure.

營收為 2,660 萬美元，成長 560 萬美元，增幅 27%。該公司自有或管理的診所收入成長了 36%，貢獻了 1,580 萬美元。特許經營業務成長 15%，貢獻 1,080 萬美元。這些成長顯示公司投資組合和特許經營基礎均持續成長。 3月1日，我們對大約75%的診所實施了價格上漲。然而，現有患者的會員資格將保留原價。因此，我們的價格調整對收入的影響將是漸進的、增量的。截至本季末，我們約有 50% 的活躍會員採用了新的價格結構。

Cost of revenues was $2.5 million, up 8% over the same period last year, reflecting the increase in franchise clinics and the associated higher regional developer royalties and commissions. Selling and marketing expenses were $3.5 million, up 23% over the same period last year, driven by an increase in advertising fund expenditures from a larger franchise base and an increase in local marketing expenditures by our company-owned or managed clinics.

收入成本為 250 萬美元，比去年同期增長 8%，反映了特許經營診所的增加以及相關的區域開發商特許權使用費和佣金的增加。銷售和行銷費用為 350 萬美元，比去年同期成長 23%，這主要是由於特許經營基礎擴大導致的廣告基金支出增加，以及我們公司自有或管理的診所的本地行銷支出增加。

Depreciation and amortization expenses increased compared to the prior year period, primarily due to the depreciation and amortization expenses associated with our continued greenfield development and acquired clinics. G&A expenses were $18.1 million compared to $12.8 million, up 41%, reflecting the cost to support total clinic and revenue growth and higher payroll to remain competitive in the tight labor market.

折舊和攤提費用與去年同期相比有所增加，主要原因是我們持續的綠地開發和收購診所產生的折舊和攤提費用。一般及行政費用為 1,810 萬美元，而去年同期為 1,280 萬美元，增長 41%，反映了支持整個診所和收入增長以及更高的工資以在緊張的勞動力市場中保持競爭力的成本。

Operating income was $500,000 compared to $1.3 million in Q3 2021. The Q3 2022 results reflected the compressed margins from continued greenfield developments, the aforementioned higher depreciation and amortization and higher G&A expenses. While greenfields compress the bottom line until they breakeven, they're an excellent use of capital as their sales accelerate in year 2 and beyond, significantly contributing to the bottom line and increasing our return on investment.

營業收入為 50 萬美元，而 2021 年第三季為 130 萬美元。儘管綠地專案在實現收支平衡之前會壓縮利潤，但它們是對資本的極好利用，因為它們的銷售在第二年及以後會加速，從而顯著提高利潤並增加我們的投資回報率。

Income tax benefit was $16,000 compared to $614,000 in Q3 2021. Net income was $491,000 or $0.03 per diluted share compared to net income of $1.9 million or $0.13 per diluted share in Q3 2021. Adjusted EBITDA was $3.1 million compared to $3.3 million for the same period last year. Franchise clinic adjusted EBITDA increased 25% to $5.4 million. Company-owned or managed clinic adjusted EBITDA was $1.7 million compared to Q3 of last year, decreased $1.1 million, reflecting the margin compression related to greenfield development and higher payroll expenses. Corporate expense as a component of adjusted EBITDA loss was $4 million, increasing $160,000 compared to Q3 2021.

所得稅收益為 16,000 美元，而 2021 年第三季為 614,000 美元。特許經營診所調整後的 EBITDA 成長 25%，達到 540 萬美元。該公司自有或管理診所的調整後 EBITDA 為 170 萬美元，與去年第三季相比減少了 110 萬美元，反映了與綠地開發和更高的工資支出相關的利潤率壓縮。調整後 EBITDA 虧損的部分企業費用為 400 萬美元，與 2021 年第三季相比增加了 16 萬美元。

On to our balance sheet and cash flow review. At September 30, 2022, our unrestricted cash was $10.3 million compared to $19.5 million at December 31, 2021. During the first 9 months of the year, our investing activities of $14.9 million consisted of the acquisition of RD territory rights, franchise clinic acquisitions and greenfield development. These were partially offset by $5.7 million provided by operating activities.

繼續審查我們的資產負債表和現金流量。截至 2022 年 9 月 30 日，我們的無限現金為 1,030 萬美元，而 2021 年 12 月 31 日為 1,950 萬美元。今年前 9 個月，我們的投資活動為 1,490 萬美元，包括收購 RD 區域權、特許經營診所收購和綠地開發。這些被經營活動提供的 570 萬美元部分抵消。

On to Slide 9. I'll review our results for the first 9 months of 2022 compared to the same period 2021. Revenue increased 26% to $74.1 million, and adjusted EBITDA was $7.5 million compared to $10.5 million in the prior year period. This reflects the compression of earnings by the influx of new corporate greenfield clinics and higher payroll expenses associated with the tight labor market.

轉到投影片 9。這反映出新企業綠地診所的湧入和勞動市場緊張導致的工資支出增加對獲利造成的壓縮。

On to Slide 10 for a review of our guidance for 2022. We have tightened guidance, raising the lower end of our revenue expectations. We now expect revenue for the year to be between $100 million and $102 million compared to $80.9 million in 2021. We've also narrowed and modestly lowered adjusted EBITDA guidance to reflect the impact of the greenfield simulation on our bottom line and lower-than-expected same-store sales. Now we expect adjusted EBITDA to be between $11.5 million and $12.5 million compared to $12.6 million in 2021.

轉到投影片 10，回顧我們對 2022 年的指導。 我們已收緊指導，提高了收入預期的下限。我們現在預計今年的營收將在 1 億美元至 1.02 億美元之間，而 2021 年的營收為 8,090 萬美元。現在我們預計調整後的 EBITDA 將在 1,150 萬美元至 1,250 萬美元之間，而 2021 年為 1,260 萬美元。

We continue to expect franchise clinic openings to be between 110 and 130 compared to 110 in 2021, and we continue to expect to increase our company-owned or managed clinics by between 30 and 40 through a combination of greenfield openings and franchise clinic purchases compared to 32 in 2021.

我們繼續預計特許經營診所的開業數量將在 110 至 130 家之間，而 2021 年為 110 家，並且我們繼續預計透過新建診所和收購特許經營診所相結合的方式，將公司自有或管理的診所數量從 2021 年的 32 家增加 30 至 40 家。

And with that, I'll turn the call back over to you, Peter.

說完這些，我將把電話轉回給你，彼得。

Thanks, Jake. Turning to Slide 11. We have a remarkable growth opportunity ahead with a young patient base in an expanding chiropractic market. Yet in this environment of uncertainty, the business also faces challenges and critical work remains. For the remainder of 2022 and for 2023, we are and will continue to be focused on the following actions: attracting new patients and franchise prospects; attracting and developing talent, especially the doctors required to staff our clinics and grow our footprint; enhancing our IT platform and leveraging the power of our data; increasing our pace of build-out, including successfully penetrating underdeveloped and new markets; and finally, optimizing our clinic performance to support growth, profitability and lifetime patient value. We remain focused on driving long-term growth and stakeholder value.

謝謝，傑克。翻到第 11 張投影片。然而，在這種不確定的環境下，企業經營也面臨挑戰，關鍵工作仍待完成。在 2022 年剩餘時間和 2023 年，我們將並將繼續專注於以下行動：吸引新患者和特許經營前景；吸引和培養人才，特別是我們診所所需的醫生以及擴大我們的影響力；增強我們的 IT 平台並利用我們的數據力量；加快我們的建設步伐，包括成功滲透欠發達市場和新興市場；最後，優化我們的診所表現以支持成長、獲利能力和終身患者價值。我們仍然專注於推動長期成長和利害關係人價值。

Sarah, I'm ready to begin the Q&A.

莎拉，我準備開始問答環節。

(Operator Instructions)

（操作員指令）

Our first question comes from Brooks O'Neil with Lake Street Capital Markets.

我們的第一個問題來自 Lake Street Capital Markets 的布魯克斯奧尼爾 (Brooks O’Neil)。

I confess I got on a few minutes into your call, so if I ask something that you've already discussed, I can go back and read the transcript. You don't need to repeat yourself. But can you just talk a little bit about headwinds and tailwinds that you think might be affecting new patient starts?

我承認我在你通話幾分鐘後就接聽了電話，因此，如果我問一些你們已經討論過的事情，我可以回去閱讀通話記錄。你不需要重複自己的話。但是，您能否稍微談談您認為可能影響新患者開始接受治療的不利因素和有利因素？

Sure. And it's great to talk to you, Brooks. As we've talked about before, one of the headwinds that we've been facing was that changing algorithms with Google, and it really impacted our organic growth search. We've spent a lot of time adapting our SEO strategy. And so if we look at our traffic, our web traffic, is that for the first time this year in August and September, we were outpacing that web traffic compared to the same period last year. So we feel that we are making some inroads on that new patient count just with those changes to that Google algorithm.

當然。很高興與您交談，布魯克斯。正如我們之前談到的，我們面臨的阻力之一是Google演算法的改變，這確實影響了我們的自然成長搜尋。我們花了大量時間來調整我們的 SEO 策略。因此，如果我們查看我們的流量，即我們的網路流量，就會發現今年 8 月和 9 月我們的網路流量首次超過了去年同期。因此，我們認為，僅透過對 Google 演算法的這些更改，我們在增加新患者數量方面就取得了一些進展。

We have a very young patient base, as I said, it's 36.4 years old. And those younger people are not going to friends and families for recommendations for their medical services. They're doing that search online. And so they're going to Dr. Google, they're looking at reviews, they're doing that search. And so it's so important to be there. What we've seen now is that we -- about our new patient count that historically, we've seen about 40% of it comes through our digital marketing strategy. And right now, we have noted that 61% of our new patients at some point have touched our digital campaign, our digital strategy, our online. So you can see that's just increasingly important to us. And so when changes like what Google did, it can impact our new patient count.

我們的患者群體非常年輕，正如我所說，他們的年齡為 36.4 歲。而且這些年輕人不會向朋友和家人尋求醫療服務的推薦。他們正在網路上搜尋。因此，他們會去找谷歌醫生查看評論，然後進行搜尋。因此，到那裡去非常重要。我們現在看到的情況是，從歷史上看，關於我們新患者的數量，大約 40% 是透過我們的數位行銷策略獲得的。現在，我們注意到 61% 的新患者都曾接觸過我們的數位活動、數位策略和線上服務。所以你可以看出這對我們來說越來越重要。因此，當谷歌做出類似改變時，可能會影響我們的新患者數量。

I think we also have a macroeconomic issue that has to be taken into consideration. And so you have increasing inflation, you have consumer confidence concerns. I don't know if we're going directly into a recession or when it will be or how deep or how long, but I think that's also impacting some of the performance on the clinics and we see it in our same-store sales. So I think there are some macroeconomic issues that are impacting that new patient count. There are some critical [tactical] issues on the digital side that are affecting us.

我認為我們還有一個必須考慮的宏觀經濟問題。因此，通貨膨脹會不斷上升，消費者信心也會受到擔憂。我不知道我們是否會直接陷入經濟衰退，也不知道什麼時候會陷入，或者衰退程度有多深、持續多久，但我認為這也對診所的一些業績產生了影響，我們從同店銷售額中就可以看出這一點。所以我認為有一些宏觀經濟問題影響了新患者的數量。數字方面存在一些影響我們的關鍵[戰術]問題。

I think the tailwinds for us continue to be just the high performance of our clinics, especially the new greenfield that we've had. We're headed toward a record-breaking number of new openings this year. We're guiding the course between 110 to 130. We're expecting to add somewhere between 30 and 40 new clinics or clinics in our corporate portfolio, and that will be that mix of both corporate and our acquisitions in greenfield. But through the year, we've seen some really strong greenfield openings and getting to breakeven, which bodes well for: number one, that our model continues to work; and number two, there's continued interest in chiropractic care.

我認為，我們的順風繼續是我們的診所的高性能，特別是我們擁有的新綠地。今年，我們新開店的數量將創下紀錄。我們的目標是在 110 到 130 之間。但在這一年中，我們看到一些非常強勁的綠地開業並實現收支平衡，這預示著：第一，我們的模式繼續有效；第二，人們對脊椎矯正治療的興趣持續高漲。

Absolutely. That's really helpful. And in fact, you just touched on the second thing, I just wanted to ask you a little bit about, do you have any metrics about the performance of new corporate stores in the portfolio this year versus years past? Or would you say you're continuing to open as strongly as you have in the past? Again, recognize there are some important and sort of uncontrollable headwinds out there in the market right now.

絕對地。這真的很有幫助。事實上，您剛才提到了第二件事，我只是想問您一點，您是否有任何關於今年與過去幾年相比投資組合中新公司商店的表現的指標？或者您會說您會繼續像過去一樣強勢開放？再次，認識到目前市場中存在一些重要且難以控制的阻力。

Yes. And I think, Brooks, we continue to get more and more sophisticated in how we create and use our grand opening strategy. And so when I look at it, just the overall portfolio that includes both franchise and corporate units in terms of their time to breakeven, I would say we're seeing them operating at least equal to 2021, and that's in that 6 to 9 months to break even. So very, very strong. When we break out corporate units, I would say we're even stronger compared to 2021. So what we're seeing is that, yes, there's all these headwinds out there that we're talking about. But when we're opening up those clinics and we're using our grand opening strategy, that we are seeing the high performance of those clinics as they get to breakeven.

是的。布魯克斯，我認為我們在製定和運用盛大開幕策略方面會變得越來越成熟。因此，當我查看包括特許經營和企業單位在內的整體投資組合時，就其收支平衡時間而言，我會說我們看到它們的運營水平至少與 2021 年持平，也就是在 6 到 9 個月內實現收支平衡。非常非常強大。當我們拆分企業部門時，我想說我們比 2021 年更強大。 所以我們看到的是，是的，我們正在談論的所有這些不利因素都存在。但是，當我們開設這些診所並採用我們的盛大開幕策略時，我們看到這些診所實現了收支平衡，並且表現出色。

Our next question comes from George Kelly with ROTH Capital Partners.

我們的下一個問題來自 ROTH Capital Partners 的喬治凱利 (George Kelly)。

So maybe to start on the comp growth. I think in the prepared remarks, you commented that the comp growth is not sort of what you expected, I think, last time you offered guidance. So just curious, you just said that pricing is taking longer to kind of filter through the system or maybe the new patient stuff that you've talked about is -- the impact is lasting longer than expected. Or anything else to highlight just as far as your expectations for comp growth?

因此也許可以從公司成長開始。我認為，在準備好的評論中，您評論說，上次您提供指導時，同店銷售額的增長並不像您預期的那樣。所以只是好奇，您剛才說定價需要更長的時間才能通過系統進行過濾，或者也許您談到的新患者的情況——影響持續時間比預期的要長。或者就您對公司成長的期望而言還有什麼需要強調的嗎？

Yes. Thanks, George. As you touched on, I think -- as I think about the pace in which we're rolling on to the new price point, I would say we're at expectation, maybe a tick behind. But in my mind, that's not a material driver. As we look at the 3 core KPIs of this model, we have to attract new patients, convert model to our subscription or package and retain them as long as we can. Conversion has remained steady year-over-year, which 2021 was a banner year for us in terms of conversion. So we're still seeing strength in that metric. Attrition, we've actually seen favorability in that, which one could expect when you grandfather in pricing, maybe your patients are going to stick around a little bit longer. But we've actually seen that metric improve. But as we said, the metric where we're still seeing challenges is in those new patients.

是的。謝謝，喬治。正如你所提到的，我認為 - 當我思考我們邁向新價格點的速度時，我會說我們達到了預期，甚至可能落後了一點。但在我看來，這並不是物質驅動因素。當我們查看該模型的 3 個核心 KPI 時，我們必須吸引新患者、將模型轉換為我們的訂閱或套餐並盡可能長時間地留住他們。轉換率年比保持穩定，2021 年對我們來說是轉換率輝煌的一年。因此，我們仍然看到該指標的強勁表現。對於人員流失，我們實際上看到了有利的一面，當你在定價上保留祖父條款時，你可以預料到，也許你的病人會停留更長時間。但我們確實看到該指標有所改善。但正如我們所說，我們仍然看到挑戰的指標是那些新患者。

And so if you're not filling the funnel at quite the same rate while the numbers are still strong, that's going to be a headwind for your existing patient base. And that's really where we're seeing those numbers come in a little bit lower than expectation. As we talked about, the greenfields are still performing to my pro forma expectations on the top line. Those cost structures are increasing in terms of that time to breakeven, but it's still maintaining a strong pace, as Peter mentioned. But when you're talking about the existing base, I think you have to look at that new patient as a way that we can really start to move the needle.

因此，如果您沒有在患者數量仍然強勁的情況下以相同的速度填補空缺，那麼這對您現有的患者群來說將是一個阻力。我們確實看到這些數字略低於預期。正如我們剛才所說，綠地的營收表現仍然符合我的預期。正如彼得所說，這些成本結構在收支平衡時間方面正在增加，但仍保持著強勁的成長動能。但是當您談論現有基礎時，我認為您必須將新患者視為我們真正開始推動進展的一種方式。

Okay, okay. And then the second -- actually, a couple of more questions for you. So on the topic you were just talking about, the owned portfolio and the greenfield openings, et cetera. Is the legacy 4-wall margin of that owned base -- before you started doing greenfields, my math has it somewhere in the mid-30% EBITDA kind of range. And that's come in quite a bit, even excluding for greenfield openings. And so I guess the question is, I understand you're absorbing a lot higher labor costs and there's a bunch of things that been had with, but how long do you think it will take? I mean, I guess, it's a 2-part question. How long do you think it will take to recover or start to show margin improvement there? And the second one is do you think that, that previous kind of margin profile that you had on a 4-wall basis is achievable over the next couple of years? Or is it just kind of the model is so different now that it's unlikely to go back there?

好的，好的。然後是第二個——實際上，我還想問您幾個問題。關於您剛才談到的話題，自有投資組合和綠地開幕等等。在您開始進行綠地投資之前，該自有基地的遺留四壁利潤率是否根據我的計算處於 EBITDA 30% 左右的範圍內。即使不計新建項目，這一數字也相當可觀。所以我想問題是，我知道你正在吸收更高的勞動成本，還有很多事情要做，但你認為這需要多長時間？我的意思是，我猜，這是一個由兩個部分組成的問題。您認為需要多長時間才能恢復或開始顯示利潤率的提高？第二個問題是，您是否認為，在未來幾年內，您先前在四面牆基礎上所實現的利潤率水準可以實現？還是說現在的模式已經完全不同了，不可能再回到以前的狀態了？

Yes, a lot of questions rolled in there. I'll try to touch on them all. I think to start in terms of the margin expectation, and we have a chart in the investor deck that kind of takes it to a 5-year market maturity and that actual system sells against an estimated cost structure. And what that would show you on a 4-wall basis is we would expect somewhere around a 30% 4-wall margin. We have units that do more than that and we have some that are still marching to that number. But on average, that's what we would expect is kind of that low 30% mark on a 4-wall basis.

是的，有很多問題。我將盡力觸及所有這些問題。我認為首先要考慮利潤預期，我們在投資者平台上有一個圖表，它反映了 5 年的市場成熟度，而實際系統的銷售情況是按照預期的成本結構進行的。從 4 面牆的角度來看，我們預計 4 面牆的利潤率約為 30%。我們有一些部隊做得更多，還有一些部隊仍在朝這個數字邁進。但平均而言，我們預計在四面牆的基礎上該比例會低至 30%。

Now as I think about -- with the increased labor pressures that we're seeing, if I roll through the benefits of the price increase over time, actually still get back to the same pro forma expectations at maturity. So I would say our 4-wall economics really remain unchanged as we continue to see the benefits of the price increase roll through. And that gives us a little bit of room in case there's additional labor pressures that we continue to see. But I would still expect over time to reach that 30% plus 4-wall margin.

現在我想到 - 隨著我們看到的勞動力壓力的增加，如果我隨著時間的推移將價格上漲帶來的好處滾動起來，實際上在到期時仍然會回到相同的預期。因此我想說，隨著我們繼續看到價格上漲的好處，我們的四面牆經濟確實保持不變。如果我們繼續看到額外的勞動力壓力，這就會給我們一點空間。但我仍然希望隨著時間的推移能夠達到 30% 加上 4 面牆的利潤。

As you think about the corporate portfolio and when we would expect those margins to turn around, I think you have to put into context just how many greenfields that we've added in the last portion of time. I think if you look at the number of greenfield we did in the last 100 days of 2021, I think that number was 13. And then we've added another, what, 12 so far this year -- I'm sorry...

當您考慮公司投資組合以及我們預計利潤率何時會好轉時，我認為您必須考慮到我們在最近一段時間內增加了多少綠地。我認為，如果您查看我們在 2021 年最後 100 天完成的綠地數量，我認為這個數字是 13。 然後，今年到目前為止，我們又增加了 12 個——抱歉......

12 through the quarter.

本季共有 12 名學生。

12 through the quarter and 14 overall. So when you add those 2 together, most of them being in their first, call it, 13 months of operations, historically, that's a significant period of drag. If you look at it on an annualized basis, you're probably working through around $75,000 of losses in that first 12 months. Now if you roll forward to the next year, the sales averages for year 2 are going to increase around 58%. So my sales have a really significant jump from year 1 to year 2, and then you really flip from an expected $75,000 of losses to probably contributing $75,000 in that second year of operation. And so we've really taken on a lot of investment as it turns to greenfield. It's still an excellent pro forma ramp. It's a great use of capital for us, but it just takes time to work through that maturity curve.

本季有 12 起，總共有 14 起。因此，當你將這兩者加在一起時，大多數公司都處於最初的 13 個月的營運期，從歷史上看，這是一個相當拖延的時期。如果以年化為基礎，那麼在前 12 個月的損失可能約為 75,000 美元。現在，如果滾動到下一年，第二年的銷售額平均值將成長約 58%。因此，我的銷售額從第一年到第二年實現了顯著的增長，然後從預期的 75,000 美元損失轉變為第二年可能貢獻 75,000 美元。因此，當它變成綠地時，我們確實承擔了大量的投資。它仍然是一個很好的考試坡道。對我們來說，這是資本的絕佳利用，但它需要時間來實現成熟。

And the thing I'd add to that, Jake, is that -- or to George, is that when you made the comment that have things changed because your models changed, and I would say the model hasn't changed. I mean, there's no question that we're seeing a higher cost of labor. So our labor line is definitely there. We're offsetting that by putting the price increase that we put in place in March. And that, as Jake talked about, will take time to be -- to have the full effect. But in terms of the fundamentals of the model, it's really -- it continues to be a relatively simple business. We're only offering that one service. As we go forward, we can certainly look at offering products and services outside of just pure chiropractic adjustments. But in terms of actual fundamental structure of the model is that it has not changed to date.

傑克，我想補充的是——或者對喬治來說，當你發表評論說事情是否因為模型的改變而改變時，我想說模型並沒有改變。我的意思是，毫無疑問，我們的勞動成本正在上升。所以我們的產線一定是存在的。我們將透過三月實施的漲價來抵消這一影響。正如傑克所說，這需要時間才能發揮全部效果。但從模型的基本原理來看，它實際上仍然是一個相對簡單的業務。我們只提供那一項服務。隨著我們不斷前進，我們當然可以考慮提供除了純粹的脊椎矯正之外的產品和服務。但就該模型的實際基本結構而言，它迄今並未改變。

Our next question comes from Jeremy Hamblin with Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Jeremy Hamblin。

So I want to kind of expand on the last point in terms of looking ahead a little bit towards the clinic growth for 2023. Wanted to get an understanding of kind of 2 things. First, how you expect the composition of that? Is it going to likely replicate what we saw in '22 in terms of greenfield development? Do you expect it to be higher or lower? And then the second part of the question is, look, it's clear that the support staff and clinic dock costs are higher, maybe quite a bit higher than they were a year ago. I want to think about the potential for margin recovery into next year. So first question is the composition of how you expect clinic growth to look next year? And then second one is really a question on cost and ability to recapture some of the EBITDA margin loss this year.

因此，我想就最後一點進行擴展，稍微展望一下 2023 年的診所成長。首先，您認為它的組成是怎麼樣的？就綠地開發而言，它是否有可能複製我們在2022年看到的景象？您預計它會更高還是更低？然後問題的第二部分是，很明顯，支援人員和診所碼頭的成本更高了，可能比一年前高出不少。我想考慮一下明年利潤率回升的可能性。所以第一個問題是，您預計明年診所的成長情況如何？第二個問題實際上是關於成本以及今年收回部分 EBITDA 利潤損失的能力的問題。

Yes, I'll take that first question and then turn it over to Jake. And I would say that when we think about -- obviously, we don't guide to composition other than giving some very wide ranges in terms of as I think about '23 and beyond. As we said in the call that 86% of our system is franchised, 14% is corporate. While we don't set a specific number out there, I would say that you probably can expect to see that kind of same ratio as we look at '23 and beyond. Just as we continue to grow the market, we'd have to really fundamentally change our greenfield strategy if we're going to significantly increase that portion of ownership or number of greenfield in that portfolio.

是的，我先回答第一個問題，然後交給傑克。我想說的是，當我們思考時——顯然，我們不會指導構圖，除了給出一些非常廣泛的範圍，正如我所想的，關於 23 年及以後。正如我們在電話會議中所說，我們的系統 86％是特許經營的，14％是企業經營的。雖然我們沒有設定一個具體的數字，但我想說，當我們展望23年及以後時，你可能會看到相同的比例。隨著我們繼續擴大市場，如果我們要大幅增加該投資組合中的所有權比例或綠地數量，我們就必須從根本上改變我們的綠地策略。

So as I think about '23 and going forward, I think our ratios will stay relatively the same and that we'll continue to expand our portfolio through greenfield at a moderate pace. We'll continue to focus on opportunistic acquisitions as we go through the year. And we'll, of course, be setting our guidance for 2023 when we do our fourth quarter and full year report out next probably in March.

因此，當我考慮23年及以後時，我認為我們的比例將保持相對不變，並且我們將繼續以適度的速度透過綠地擴大我們的投資組合。今年我們將持續關注機會性收購。當然，當我們在明年 3 月發布第四季和全年報告時，我們會制定 2023 年的指引。

And then I'll touch on the margin recovery. Jeremy, you're right. We have seen the DC costs continue to increase, and we have seen the wellness coordinator position, that hourly retail position. We've seen pressure there as well. And when that represents 45% of your cost at maturity, those are significant pressures in terms of the economics. Where I've seen the DC salary goes, because that's more the significant driver, we continue to see pressure there. But I have seen it taper. That's not me telling you that the labor market is not tight. I don't think -- also our franchisees would say that. But the rate of increase, I'd seen start to taper here recently. So not to say that we're not done taking on some of those labor pressures because we still are in a tight market, but I have seen the rate of acceleration start to taper a little bit there.

然後我將談談利潤率的恢復。傑里米，你說得對。我們看到 DC 成本持續增加，我們也看到健康協調員職位、小時零售職位。我們也看到了那裡的壓力。當這占到到期成本的 45% 時，從經濟角度來看這將是巨大的壓力。我看到了 DC 工資的去向，因為這是更重要的驅動因素，我們繼續看到那裡的壓力。但我已經看到它逐漸減弱。我並不是告訴你勞動市場不緊張。我不認為——我們的特許經營商也會這麼說。但我發現最近成長率開始放緩。因此，並不是說我們還沒有承擔完一些勞動力壓力，因為我們仍然處於一個緊張的市場，但我已經看到加速度的速度開始減弱。

In terms of overall margin recovery, that's really going to be driven by the maturation of the portfolio, all those greenfields coming through and being contributors. We've got a portfolio right now of 17 executed leases. So in terms of our continued investment in greenfields, we still very much believe in that strategy and we'll continue to develop those. But we have moderated that pace to kind of what we saw in the late periods of 2021. So as we moderate that greenfield pace and allow the existing ones to continue their maturity, I think you start to see those incremental improvements in margin again. So as far as time frame, again, it's all predicated on our level of investment. But we have tapered that greenfield pace from what we were doing at the tail end of 2021, and that will just allow those existing units to continue to mature. And when you've got so many of them that are just really completing the first year of operation, we're looking forward to their contributions in 2023.

就整體利潤率的回升而言，這實際上將受到投資組合的成熟度、所有綠地的湧現和貢獻的推動。我們目前擁有 17 份已執行的租約。因此，就我們對綠地的持續投資而言，我們仍然非常相信這項策略，並且我們將繼續發展它。但我們已將這一速度放慢至 2021 年末的水平。因此就時間框架而言，這一切都取決於我們的投資水準。但與 2021 年底相比，我們已經放慢了新建專案的步伐，這將使現有專案能夠繼續成熟。當其中許多公司剛完成第一年的營運時，我們期待他們在 2023 年做出貢獻。

Got it. And just to kind of piggyback on that one a little bit. Slide 14, the year-to-date segment results with the split out of the corporate clinics, how well do you think the corporate clinic performance represents what your franchisees are seeing kind of on a 4-wall basis? Are their business model's like slightly more profitable because they have more maturity? Or how does it compare?

知道了。只是為了稍微利用一下這一點。投影片 14，今年迄今分部的業績將公司診所分拆出來，您認為公司診所的業績在多大程度上反映了您的加盟商在四面牆基礎上所看到的情況？由於他們的商業模式更加成熟，他們的獲利能力是否更佳？或說如何比較？

Well, they have a royalty structure. So their overall economics are going to be impacted by that. From a 4-wall basis, we would expect similar economics. You can triangulate against kind of what we see in the FDD year-over-year because we do collect those franchisee P&Ls. If you look at the 2021 results from our latest FDD, I think they did a 4-wall number that was 30.8%. And again, that's a mature portfolio, kind of in that year 4, year 5 mark in terms of months in operation, and they're reaching that same potential. So I think that's a great representation of where the unit economics are and what they can be. As you look at our corporate margin right now, again, it's just being suppressed by the labor pressures without the full benefit of the price increase and all those young units that suppress as they continue to work through their maturity.

嗯，他們有版稅結構。因此他們的整體經濟將會受到影響。從四面牆的基礎來看，我們預期經濟狀況會類似。您可以根據我們在 FDD 中看到的逐年情況進行三角測量，因為我們確實收集了那些特許經營商的損益表。如果您查看我們最新 FDD 的 2021 年結果，我認為他們得出的 4 牆數字是 30.8%。而且，這是一個成熟的投資組合，從營運月份來看，大概已經進入第 4 年或第 5 年，並​​且正在發揮同樣的潛力。所以我認為這很好地體現了單位經濟的現狀和潛力。現在你再看看我們公司的利潤率，它只是受到勞動力壓力的壓制，並沒有充分享受到價格上漲的好處，而且那些年輕單位在不斷成熟過程中也受到了壓制。

Got it. Okay. And then last one for me. In terms of -- your cash balance is down quite a bit, almost cut in half from where you were at the start of the year through the first 9 months. Quite a bit of that is due to some acquisition activity. But in terms of thinking of where you are on the balance sheet, is the flexibility limited in terms of what you might do on the acquisition side as we look ahead into 2023 because the cash balance is down? Or do you see that not really as any type of limiting factor in terms of what you might look to do?

知道了。好的。這對我來說是最後一個。就這一點而言——您的現金餘額下降了不少，與年初到前 9 個月的水平相比幾乎減少了一半。其中很大一部分是由於一些收購活動。但是，從資產負債表的角度來看，展望 2023 年，由於現金餘額下降，您在收購方面的靈活性是否受到限制？或者您認為這對於您想要做的事情而言實際上並不是任何限制因素？

Yes. I think cash on hand is one element of that. When you say moderate acquisition activity, I mean, we've done almost $15 million of investing activities so far in the first 9 months of the year, and that's been offset by $5.7 million of cash flow from operations. If you look at through the 6 months, I think our net cash provided by operating activities was around $1.5 million. So this is still a cash-generative business. We're choosing to reinvest that right now. And I think the other piece is, while we have this $10.3 million of cash on hand at the end of the quarter, we also have an additional $18 million of credit available through the line with JPMorgan. So as I think about it from an overall liquidity perspective, I'm thinking about that whole pool. And as I look out and model the potential uses of that capital, I'm not seeing any restrictive elements of that right now.

是的。我認為庫存現金是其中一個因素。當您說適度的收購活動時，我的意思是，今年前 9 個月到目前為止，我們已經進行了近 1500 萬美元的投資活動，而這被 570 萬美元的經營現金流所抵消。如果你回顧這 6 個月，我認為我們的經營活動提供的淨現金約為 150 萬美元。所以這仍然是一個能產生現金的業務。我們現在選擇重新投資。我認為另一件事是，雖然我們在本季末擁有 1,030 萬美元的現金，但我們也可以透過摩根大通獲得額外的 1,800 萬美元信貸額度。因此，當我從整體流動性的角度考慮這個問題時，我正在考慮整個資金池。當我觀察並模擬這些資本的潛在用途時，我目前沒有看到任何限制。

Our next question comes from Jeffrey Van Sinderen with B. Riley FBR.

下一個問題來自 B. Riley FBR 的 Jeffrey Van Sinderen。

Just looking towards 2023, realize it's early, and noting the macroeconomic backdrop. But just thinking relevant to attracting new patients, and I'm wondering how much do you think that the -- I realize you're now like kind of the 50-50. But how much do you think the price increases are serving as a headwind to attract the new patients? And also, how are you planning to further evolve the marketing for next year? Wondering if you maybe shift the mix of -- I think you do quite a bit of performance digital. Maybe you can just touch on those items.

展望 2023 年，意識到現在還為時過早，並注意到宏觀經濟背景。但只是思考與吸引新患者有關，我想知道您認為——我意識到您現在就像 50-50 那樣。但是您認為價格上漲對吸引新患者有多大的阻礙呢？另外，您計劃如何進一步發展明年的行銷？想知道您是否可以改變組合——我認為您做了相當多的數位化表演。也許你可以稍微觸及一下這些物品。

Yes. No, Jeff, thank you. To answer your question about the impact that pricing has on those new patients, as we've talked a lot about, of course, one of the tenets of this concept is affordability. And when we went in the past and we did that -- full price increase in 2016 and some of the market adjustments in 2019, the impact we saw that our new patient counts and the key metrics of the business was relatively neutral or positive. As we look at this most recent increase, so we went -- our 3 tiers went from $59, $69, $79 to $69, $79, $89, I'd say that we did see, especially on the $89 number degradation a little bit in the new patient count. The majority of our system is on that $79 a month. And so that's the core. But we are very, very sensitive to price as it relates to those new patients. So I think that there's been some impact on that because this is also the first time when we did a price increase in this kind of macroeconomic environment that has so much uncertainty around it.

是的。不，傑夫，謝謝你。關於定價對這些新患者的影響的問題，我們已經討論過很多了，當然，這個概念的原則之一就是可負擔性。當我們過去這樣做的時候 - 2016 年全額提價以及 2019 年的一些市場調整，我們看到對我們的新患者數量和業務關鍵指標的影響相對中性或積極。當我們看到最近的成長時，我們的三個等級從 59 美元、69 美元、79 美元增加到 69 美元、79 美元、89 美元，我想說我們確實看到了，特別是 89 美元的新患者數量有所下降。我們系統的大部分費用是每月 79 美元。這就是核心。但我們對新患者的價格非常敏感。所以我認為這是有影響的，因為這也是我們第一次在這種充滿不確定性的宏觀經濟環境下提高價格。

I think as we -- your second question was really kind of what are the changes that you're doing of the activity to make sure that you're green and admitting new patients as you can. And again, there's really 3 sources of new patients for us. One is referral. And this is a patient who refer their friends and family to the doctor. And right now, about 30%, 35% of our new patient comes directly from that. And that's just as a point of delivering world-class service to your patients, and they tell the friends and family to come in. The faster-growing segment is that digital marketing campaign, and it's changing by the day. And I think that we can recognize the importance of it.

我想，您的第二個問題實際上是您對活動做了哪些改變，以確保您的醫院是綠色的，並盡可能接收新病人。再說一次，我們實際上有 3 個新患者來源。一是轉介。這是一位將自己的朋友和家人介紹給醫生的病人。目前，我們約有 30% 到 35% 的新患者直接來自此。這只是向您的患者提供世界一流服務的一個方面，他們會告訴朋友和家人來這裡。我認為我們能夠認識到它的重要性。

We're putting more and more resources against it. We talked about in 2023, that we're going to put a platform in, that has a much more sophisticated automated marketing program, direct marketing to our patients. Looking to creating the patient portal that we've made changes in our micro sites and all these different activities to make sure that we are maximizing the SEO opportunity that's out there. We're doing all kinds of new testing of advertising platforms, both nationally and locally including TikTok, Yelp, and Next Door, conversational marketing, that we're doing a lot of lead nurturing just in terms of those leads come in the door because there's more and more sophisticated software programs that we can use to manage those leads to bring those digital leads into close. And then we're also working in coaching and training our franchisees and their staff to be more effective as they're managing those leads.

我們正在投入越來越多的資源來應對這個問題。我們在 2023 年談到，我們將建立一個平台，該平台擁有更複雜的自動化行銷程序，直接向我們的患者行銷。為了創建患者門戶，我們對微型網站和所有這些不同的活動進行了更改，以確保我們最大限度地利用現有的 SEO 機會。我們正在對全國和地方的廣告平台進行各種新的測試，包括 TikTok、Yelp 和 Next Door、對話式行銷，我們正在做大量的潛在客戶培育工作，因為現在有越來越複雜的軟體程式可以用來管理這些潛在客戶，從而將這些數位潛在客戶拉近。然後，我們也致力於指導和培訓我們的特許經營者和他們的員工，使他們更有效地管理這些潛在客戶。

That third source of new patients is really coming from what I just call that grow marketing activities. And then we're still small box retail. So it's the coupons, it's the flyers, it's the science shows or it's the reaching out to the schools, the gyms, the hospitals, anything that's around that clinic because your core customers are going to be living, working and traveling in that, I would say, 5- to 15-minute radius around that clinic. So I think that we are continually evaluating and stretching and pushing because this whole digital marketing campaign is still critical to that younger patients who is our database. Right now, 45% of our patients are millennial, 16% are Gen Z. And these are people who are using online to make their consumer purchases. And that it's essential that we're effectively there where they are.

新患者的第三個來源其實來自於我所說的成長行銷活動。我們仍然是小型零售企業。因此，可以透過優惠券、傳單、科學展覽或向學校、健身房、醫院等診所周邊的地方進行推廣，因為你的核心客戶將會生活、工作和旅行在診所周圍 5 到 15 分鐘的範圍內。所以我認為我們正在不斷評估、擴展和推動，因為整個數位行銷活動對於我們的資料庫中的年輕患者來說仍然至關重要。目前，我們 45% 的患者是千禧世代，16% 是 Z 世代。我們必須有效地在他們所在的地方開展工作。

And I think you said -- did you say 60% of your new patients are touching the digital marketing?

我想您說過—您是否說過 60% 的新病患都在接觸數位行銷？

Yes. And again, patient attribution is kind of tricky because how many points were you -- did you see it whether it's in a radio or a TV commercial or something -- an ad or something online? So we have a lot of different points that you can be exposed to the brand. And so it's always hard to say, okay, which one is that, that really tipped it over and you as a new patient opened that door. But what we can measure is that of our patient base, 61% of our patient base today touched us digitally before they opened up that door.

是的。再次，患者歸因有點棘手，因為你有多少分——你是否在廣播、電視廣告或類似的東西——廣告或在線的東西中看到過它？因此，我們可以透過許多不同的方式讓您了解該品牌。因此總是很難說，好吧，哪一個才是真正將它推翻的，而你作為一個新病人打開了那扇門。但我們可以衡量的是，在我們的患者群中，61% 的患者在打開這扇門之前就透過數位方式與我們進行了接觸。

Okay. And then just sort of as a follow-on to that, I know you mentioned the new patient portal. Can you remind us the timing of when you're standing that up? And then I also wanted to kind of get a gauge from you in terms of what you're experiencing with the new enterprise software system? What still needs to be done in the current stage there, if anything? Just if you could touch on those things.

好的。然後作為對此的後續報道，我知道您提到了新的患者入口網站。可以提醒我們一下你站起來的時間嗎？然後，我還想從您那裡了解您對新企業軟體系統的體驗？現階段那裡還需要做些什麼呢？如果你能談談這些事情就好了。

Sure, absolutely. As it relates to the patient portal, it's going to be phased in and there'll be all kinds of key components behind it. But the initial work will probably be released in late Q1, early Q2 in terms of a patient portal. And then we'll be continually adding functionality to it as we go through the year. We're also putting in a platform where we can do that more automated marketing to the individual patients so you can go through your information, those people who are golfers or have migraines or whatever, so that you can literally market individually to them. And that's, again, just increasingly a more sophisticated marketing approach we're seeing all kinds of organizations utilize.

當然，絕對是如此。由於它與患者入口網站相關，因此它將分階段實施，並且背後會有各種關鍵組件。但就患者入口網站而言，初步工作可能會在第一季末或第二季初發布。然後，我們會在這一年中不斷添加功能。我們還建立了一個平台，可以對個別患者進行更自動化的營銷，這樣你就可以查看你的信息，那些打高爾夫球的人或者患有偏頭痛的人或者其他什麼人，這樣你就可以真正地對他們進行個別營銷。我們看到，各種各樣的組織都在採用這種越來越複雜的行銷方法。

In terms of the IT platform, we have certainly had some growing pains associated with it in terms of getting some enhancements put in place. The system we have now has benefits compared to the old system. It also has some more complexity. And so that we've been working through cleaning up some of those bugs and putting in those enhancements to make it more and more effective on that line level of our users. And so what I would tell you is that, that is an ongoing, never-ending process of continually refining and improving the platform that we use to run the business.

就 IT 平台而言，我們在實施一些增強功能的過程中確實遇到了一些成長的煩惱。我們現在的系統比起舊系統來說有很多優點。它還具有一些複雜性。因此，我們一直在努力清理一些錯誤並進行改進，以使其在用戶層面上越來越有效。所以我想告訴你們的是，這是一個持續的、永無止境的過程，我們需要不斷改進和改進我們用來經營業務的平台。

(Operator Instructions)

（操作員指令）

Our next question comes from Thomas McGovern with Maxum Group.

下一個問題來自 Maxum Group 的 Thomas McGovern。

A lot of my questions have already been answered very thoroughly, so I appreciate that as well. I just have a question going off of something other analysts asked about the breakdown of franchises versus corporate clinics. You guys said that it is currently and will remain about 86% franchise and 14% corporate. And my question is, is that accounting for a potential recession? If the macro environment does continue to get more difficult to operate in, will that breakdown change potentially in an effort to conserve costs or just allocate resources differently?

我的許多問題已經得到了非常徹底的解答，所以我也很感激。我只是根據其他分析師提出的問題而提出一個問題，關於特許經營診所與企業診所的細分問題。你們說過，目前特許經營和企業經營的比例約為 86%，並且未來仍將維持在 14% 左右。我的問題是，這是否考慮到了潛在的經濟衰退？如果宏觀環境確實繼續變得更加難以運營，那麼為了節省成本或只是以不同的方式分配資源，這種分類是否可能會改變？

Sure, sure. It's a great question. And the way I'd answer that if we truly grow into a recession, and a recession meaning that you among whatever else is going on, you have high unemployment. Historically, you see franchise sales increase. The only time that hasn't happened is in the Great Recession because during the Great Recession, there was absolutely no financing taking place. And so you saw really franchise growth just come to a screeching halt in that Great Recession. But any other recession, certainly in my career, is historically I would expect franchise sales to increase because people are being laid off, maybe they've got a little money, they're tired of being at the whim of an employer and so they start seeking out buying that franchise. And so I would expect if we truly go into recession, that you would expect that the interest in franchise sales to increase.

當然，當然。這是一個很好的問題。我的回答是，如果我們真的陷入衰退，那麼衰退就意味著，無論發生什麼，失業率都會很高。從歷史上看，你會看到特許經營銷售額正在成長。唯一沒有發生這種情況的一次是在大衰退期間，因為在大衰退期間，根本沒有任何融資。因此，您會看到特許經營的成長在那場大衰退中戛然而止。但在我的職業生涯中，任何其他經濟衰退都會導致特許經營銷售額增加，因為人們被解僱，也許他們有一點錢，他們厭倦了受雇主的擺佈，所以他們開始尋求購買特許經營權。因此我預計，如果我們真的陷入衰退，你會預期對特許經營銷售的興趣會增加。

Now wherever we are today, we've been averaging 3.5% to 3.7% unemployment. And so as long as you see that incredibly low unemployment rate, it's hard to imagine that, that's going to be a driver in people to buy franchises. In that ratio right now, as we are today, we're 86%, 14% I would say, as you just see the growth both on the franchise side and the measured growth of our corporate portfolio driven by greenfield and acquisitions, it's going to be hard just given the math that we have now to change those percentages to any great degree without a fundamental change in the strategy. And as we've talked about is that it's not our intent to fundamentally change strategy. We don't guide to a specific percentage. But as I said earlier in the call, is that if you look at 2023, we can reflect in '22 and expect a similar result.

現在無論我們身在何處，平均失業率都達到 3.5% 至 3.7%。所以只要你看到如此低的失業率，你就很難想像這會成為人們購買特許經營權的動力。就目前的情況來看，我們的比率是 86%，我想說的是 14%，正如您所看到的，特許經營方面的增長以及由綠地和收購推動的公司投資組合的衡量增長，考慮到我們現在的計算結果，如果不從根本上改變戰略，很難在很大程度上改變這些百分比。正如我們已經討論過的，我們無意從根本上改變戰略。我們不指導特定的百分比。但正如我早些時候在電話會議中所說的那樣，如果你展望 2023 年，我們可以反思 2022 年並期待類似的結果。

This concludes our question-and-answer session. I would like to turn the conference back over to Peter Holt for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Peter Holt 做最後發言。

Before I close, I want to share a few comments. Earlier, I reviewed our marketing co-op sponsorship of athletic programs in their communities. Studies report chiropractic care provides natural and preventive benefits that are vital to keeping the body balanced, flexible and functioning at its best, especially for athletes. I'd like to tell you about our patient, Nicole, an amateur beach volleyball player. A few years ago, she hurt her back and was told she could never play competitive sports again. She was diagnosed with lupus, which really affected her joints, challenged her athletic activities and forced her to walk with a cane. After a few months of chiropractic care, Nicole returned to the court. She knows while the volleyball is demanding and still affects her back, The Joint enables her to enjoy frequent competition. To summarize Nicole's testimony, being able to play is a gift. I wouldn't be playing without chiropractic care. My joints in general gets so much relief with the necessary constant maintenance. I go weekly, if not more, without fail.

在結束之前，我想分享一些評論。之前，我回顧了我們的行銷合作社對他們所在社區的體育項目的贊助。研究表明，脊椎矯正具有自然和預防作用，對於保持身體平衡、靈活和最佳功能至關重要，尤其是對於運動員而言。我想向你們介紹一下我們的病人妮可，她是一名業餘沙灘排球運動員。幾年前，她傷了背部，被告知永遠不能再參加競技運動。她被診斷出患有狼瘡，這嚴重影響了她的關節，對她的運動造成了挑戰，並迫使她拄著拐杖行走。經過幾個月的脊椎治療後，妮可重返球場。她知道，雖然排球運動很艱苦，而且會影響她的背部，但 The Joint 讓她能夠享受頻繁的比賽。總結妮可的證言，能夠演奏是一種天賦。如果沒有脊椎矯正的話我就不會參加比賽。透過必要的持續保養，我的關節總體上得到了很大的緩解。我每週都會去，甚至更多次，從不間斷。

Thank you and stay well adjusted.

謝謝您並保持良好狀態。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。