Joint Corp (JYNT) 2023 Q2 法說會逐字稿

Hello, and welcome to The Joint Corp. Second Quarter 2023 Financial Results Conference Call.[Operator Instruction]. Please note, this event is being recorded.

您好，歡迎參加聯合公司2023年第二季度財務業績電話會議。【操作員說明】。請注意，此事件正在被記錄。

I would now like to turn the conference over to Kirsten Chapman of LHA Investor Relations. Please go ahead.

我現在想將會議轉交給 LHA 投資者關係部的 Kirsten Chapman。請繼續。

Thank you, MJ. Good afternoon, everyone. This is Kirsten Chapman of LHA Investor Relations. Joining us on the call today are President and CEO, Peter Holt; and CFO, Jake Singleton. Please note, we are using a slide presentation that can be found at ir.thejoint.com. Today, after the close of market, The Joint issued its operating metrics for the quarter ended June 30, 2023. If you do not already have a copy of this press release, it can be found in the Investor Relations section of the company's website.

謝謝你，喬丹。大家下午好。我是 LHA 投資者關係部的克爾斯滕·查普曼 (Kirsten Chapman)。今天加入我們電話會議的還有總裁兼首席執行官 Peter Holt；和首席財務官傑克·辛格爾頓。請注意，我們使用的幻燈片演示文稿可以在 ir.thejoint.com 上找到。今天收盤後，The Joint 發布了截至 2023 年 6 月 30 日的季度運營指標。如果您還沒有本新聞稿的副本，可以在公司網站的投資者關係部分找到。

As provided on Slide 2, please be advised that 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. The forward-looking statements are made based on current predictions, expectations, estimates and assumptions and are also subject to risks and uncertainties that may cause actual results to differ materially from statements we make today. 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 increase in operating expenses due to measures we may need to take to address such shortage; inflation exasperated by COVID-19 and the current War in Ukraine, which has increased our cost and which could otherwise negatively impact our business; the potential for further disruption to our operations and predictable impact on our business of the COVID-19 outbreaks and outbreaks of other contagious diseases; 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, 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 any 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, 2022, filed with the SEC on March 10, 2023, and subsequently filed current and quarterly reports. As a result, we caution you against placing undue reliance on these forward-looking statements. I 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're 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.

如幻燈片 2 所示，請注意，今天的討論包含前瞻性陳述，包括有關我們的戰略、未來運營、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，我們將介紹一些與我們業務相關、可能影響這些前瞻性陳述的重要因素。前瞻性陳述是基於當前的預測、預期、估計和假設而做出的，並且還受到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存在重大差異。可能導致這些差異的因素包括但不限於我們無法識別和招募足夠的合格脊椎按摩師和其他人員來為我們的診所配備人員，部分原因是全國范圍內勞動力短缺以及我們可能採取的措施導致運營費用增加需要採取措施解決這種短缺問題； COVID-19 和當前的烏克蘭戰爭加劇了通貨膨脹，這增加了我們的成本，否則可能會對我們的業務產生負面影響； COVID-19 爆發和其他傳染病的爆發可能會進一步擾亂我們的運營，並對我們的業務產生可預測的影響；我們未能按照我們的預期盡快開發或收購公司擁有或管理的診所；我們未能以盈利方式運營公司擁有或管理的診所、賣空策略以及互聯網上發布的負面意見，這可能會壓低我們普通股的市場價格並導致集體訴訟；我們未能糾正未來財務報告內部控制中的任何重大缺陷，這可能會對我們準確報告財務業績、防止欺詐或維持投資者信心的能力產生負面影響，以及我們向SEC 提交的文件中描述的其他因素，包括標題為“我們於 2023 年 3 月 10 日向 SEC 提交的截至 2022 年 12 月 31 日的 10-K 表格年度報告中的風險因素，以及隨後提交的當期報告和季度報告。因此，我們提醒您不要過度依賴這些前瞻性陳述。我鼓勵您查看我們向 SEC 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信息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。

Due to ongoing quarterly review procedures being performed in conjunction with The Joint's independent public accounting firm, management has postponed issuance of its second quarter financial results as of June 30, 2023. The matter in question is related to our regional developer arrangements that would have a noncash impact to the company's financial statements.

由於正在與The Joint 的獨立公共會計師事務所一起執行季度審查程序，管理層已推遲發布截至2023 年6 月30 日的第二季度財務業績。所涉問題與我們的區域開發商安排有關，該安排將有對公司財務報表的非現金影響。

Management also includes commonly discussed performance metrics. System-wide sales includes revenue 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 franchise base. Comp sales include the revenues from both company-owned or managed clinics and franchise clinics that in each case have been open at least 13 full months and 48 full months and excludes any clinics that have been closed.

管理還包括常見討論的績效指標。全系統銷售額包括所有診所的收入，無論是由公司還是特許經營商經營。雖然特許經營銷售並未記錄為公司收入，但管理層認為這些信息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，並且表明特許經營基地的財務狀況。補償銷售額包括公司擁有或管理的診所和特許經營診所的收入，這些診所在每種情況下都已開業至少 13 個完整個月和 48 個完整個月，並且不包括任何已關閉的診所。

Turning to Slide 3. It's my pleasure to turn the call over to Peter Holt. Please go ahead, Peter.

轉向幻燈片 3。我很高興將電話轉給 Peter Holt。請繼續，彼得。

Thank you, Kirsten, and I welcome everybody to the call. For Q2 2023, during an environment of continued economic uncertainty, we posted growth in system-wide sales, supported by our ongoing franchise license sales, clinic openings and new patient acquisitions. That said, we strive to do more and to do better. As such, we're implementing strategies to increase our long-term opportunities. I'll review these in detail in a moment. First, for those investors who are new to the company, The Joint is revolutionizing access to chiropractic care by providing affordable concierge-style membership-based services in convenient retail settings.

謝謝你，克爾斯滕，我歡迎大家參加電話會議。 2023 年第二季度，在經濟持續不確定的環境下，我們在持續的特許經營許可證銷售、診所開設和新患者收購的支持下，全系統銷售額實現增長。也就是說，我們努力做得更多、做得更好。因此，我們正在實施戰略來增加我們的長期機會。我稍後將詳細回顧這些內容。首先，對於那些新加入公司的投資者來說，The Joint 正在通過在便利的零售環境中提供價格實惠的禮賓式會員制服務，徹底改變脊椎按摩治療的獲取方式。

Turning to Slide 4. Let's review our operating metrics for the second quarter 2023 compared to the second quarter of '22. System-wide sales grew to $120.1 million, increasing 13%. Comp sales for clinics that have been opened for at least 13 full months increased by 5%. And at the end of June 30, 2023, our unrestricted cash was $13.6 million compared to $9.7 million at December 31, 2022.

轉向幻燈片 4。讓我們回顧一下 2023 年第二季度與 2022 年第二季度的運營指標。全系統銷售額增至 1.201 億美元，增長 13%。開業至少 13 個月的診所的贈品銷售額增長了 5%。截至 2023 年 6 月 30 日，我們的非限制性現金為 1,360 萬美元，而 2022 年 12 月 31 日為 970 萬美元。

Turning to Slide 5, I'll discuss our clinic metrics. During Q2, we opened 26 clinics, 23 franchise and 3 greenfields, one of which is in Southern California, another in Santa Fe and the third in Fort Dix in New Jersey in conjunction with our Army and Air Force Exchange Service. This compares to Q2 '22 in which we opened 34 clinics, 31 franchise and 3 greenfields. We also acquired 3 previously franchised clinics in Northern California, which is made possible by the acquisition of the regional developer rights to that territory in April '22 as compared to the acquisition of 4 previously franchise clinics in Q2 '22. In Q2 '23, we closed 2 corporate clinics, 1 which will be relocated, and 4 franchise clinics compared to closing 1 franchise clinic in Q2 2022. At less than 1%, our closure rate remains one of the lowest in the franchise community.

轉向幻燈片 5，我將討論我們的臨床指標。第二季度，我們與陸軍和空軍交換服務中心合作開設了26 家診所、23 家特許經營店和3 家新建診所，其中一家位於南加州，另一家位於聖達菲，第三家位於新澤西州迪克斯堡。相比之下，22 年第二季度我們開設了 34 家診所、31 家特許經營店和 3 家新建診所。我們還在北加州收購了 3 家以前的特許經營診所，這是通過 22 年 4 月收購該地區的區域開發商權利而實現的，而 22 年第二季度收購了 4 家以前的特許經營診所。 23 年第二季度，我們關閉了2 家企業診所（其中1 家將搬遷）和4 家特許經營診所，而2022 年第二季度關閉了1 家特許經營診所。我們的關閉率不到1%，仍然是特許經營社區中最低的之一。

In summary, in June 30, 2023, we had 890 clinics in operation, consisting of 556 clinics -- franchise clinics and 134 company-owned or managed clinics. The portfolio mix remained at 85% franchise clinics and 15% company-owned or managed clinics. At the quarter end, we had a solid pipeline for future franchise clinic openings with 214 franchise licenses in active development. Subsequent to quarter and through the end of August 9, we opened 1 greenfield clinic and 9 franchise clinics. And we are delighted to announce that we opened our 900th clinic in Texas earlier this week.

總而言之，截至2023年6月30日，我們有890家診所在運營，其中包括556家診所——特許診所和134家公司擁有或管理的診所。投資組合組合仍為 85% 為特許經營診所，15% 為公司擁有或管理的診所。截至本季度末，我們為未來開設特許經營診所做好了準備，目前正在積極開發 214 個特許經營許可證。季度末至 8 月 9 日止，我們開設了 1 家新建診所和 9 家特許診所。我們很高興地宣布，本週早些時候，我們在德克薩斯州開設了第 900 家診所。

Turning to Slide 6. In Q2 2023, we opened 21 franchise licenses, up from 17 in Q1 2023 compared to 24 franchise licenses sold in Q2 2022. This past quarter, 76% of our new licenses were purchased by existing franchisees. Their reinvestment reflects their understanding and their confidence in The Joint, even in this environment, which we believe indicates the strength of our business model and demonstrates the health of our franchise system. In June, we acquired the territory rights of Wisconsin, reducing our regional developer count to 17. Our aggregate 10-year minimum development schedule for new RD territories established since 2017 is 590 clinics.

轉向幻燈片6。2023 年第二季度，我們開設了21 個特許經營許可證，高於2023 年第一季度的17 個，而2022 年第二季度售出了24 個特許經營許可證。上個季度，我們76% 的新許可證是由現有特許經營商購買的。即使在這種環境下，他們的再投資也反映了他們對 The Joint 的理解和信心，我們相信這表明了我們商業模式的優勢，並證明了我們特許經營體系的健康狀況。 6 月，我們獲得了威斯康星州的領土權利，將我們的區域開發商數量減少到 17 家。自 2017 年以來，我們為新 RD 領土製定的 10 年最低開發計劃總計為 590 家診所。

Turning to Slide 7. Let's review our marketing efforts. Our new patient acquisition is our highest priority. And in Q2, we've implemented new tools, programs and several tests. And I'll review a few for you now. We launched our first phase of our marketing automation initiative on May 31 with a different e-mail series designed to support lead generation, new patient onboarding and patient retention. Each e-mail campaign is tailored to the unique needs and perceptions of the perspective and current patients based on their chiropractic journey. Using our new marketing technology, we are automating the sending of the right message at the right time in that patient journey. We have multiple initiatives underway, including employee incentive plans, new lead management programs and new regional landing pages. Additionally, we're assessing appointments for first-time patients to improve the experience and ensure smooth patient flow in the clinics.

轉向幻燈片 7。讓我們回顧一下我們的營銷工作。獲取新患者是我們的首要任務。在第二季度，我們實施了新的工具、程序和多項測試。我現在將為您回顧一些。我們於 5 月 31 日啟動了營銷自動化計劃的第一階段，推出了一系列不同的電子郵件，旨在支持潛在客戶開發、新患者入職和患者保留。每封電子郵件活動都是根據他們的脊椎按摩治療歷程，根據觀點和當前患者的獨特需求和看法量身定制的。利用我們新的營銷技術，我們可以在患者旅程中的正確時間自動發送正確的信息。我們正在進行多項舉措，包括員工激勵計劃、新的潛在客戶管理計劃和新的區域登陸頁面。此外，我們正在評估首次就診的患者的預約，以改善體驗並確保診所內的患者流動順暢。

We also continue to expand our digital marketing efforts. For example, we started a test with TikTok in four markets. The initial results were positive with lead costs 15% lower than when compared to Meta. Subsequently, we increased the test to include four additional markets on expanding the targeted radius and updating the creative for better optimization. We continued two new promotions in our mix. In April, we launched the digital referral program to drive new patient counts during the most effective validation marketing. In June, we introduced the Buy 5, Get 1 Free wellness sale, which is very successful and allowed any patient that made an advanced wellness plan purchase of 5 months to receive the 6-month free, demonstrating our patient's value in an affordable commitment to their treatment plan.

我們還繼續擴大我們的數字營銷工作。例如，我們在四個市場開始對 TikTok 進行測試。初步結果是積極的，與 Meta 相比，鉛成本降低了 15%。隨後，我們增加了測試範圍，增加了四個市場，以擴大目標半徑並更新創意以進行更好的優化。我們繼續開展兩項新的促銷活動。四月，我們啟動了數字轉診計劃，以在最有效的驗證營銷期間增加新患者數量。 6 月，我們推出了“買5 送1”健康促銷活動，非常成功，任何購買5 個月高級健康計劃的患者都可以免費獲得6 個月的優惠，這證明了我們的患者以負擔得起的承諾的價值。他們的治療計劃。

Lastly, we're updating our patient journey research. These findings will inform message optimization and customer experience from their initial search for chiropractor to becoming and remaining a patient. As noted on prior calls, chiropractic care is a natural fit with sports and military, and we enjoyed opportunities to support veterans in the local support teams. The Department of Manpower and Reserve Affairs conducted a trial and found increased isometric strength and endurance among members of the military who received chiropractic adjustments and noted chiropractic care improves key fitness characteristics among active duty service members with lower back pain.

最後，我們正在更新我們的患者旅程研究。這些發現將為消息優化和客戶體驗提供信息，從最初尋找脊椎按摩師到成為並繼續成為患者。正如之前的電話中所指出的，脊椎按摩療法與體育和軍事有著天然的契合，我們很享受為當地支持團隊中的退伍軍人提供支持的機會。人力和後備事務部進行了一項試驗，發現接受脊椎按摩治療的軍人的等距力量和耐力有所提高，並指出脊椎按摩治療改善了患有下背痛的現役軍人的關鍵健康特徵。

In June, we began the collaboration with our K9 For Warriors, a nonprofit organization that pairs highly trained service dogs with military veterans suffering from service-connected traumas. Military training, deployment in the service can take a serious toll on the body's physical and mental state, and the K9 For Warriors' program mirrors the joints philosophy that everyone can benefit from a natural approach to pain relief. We're sponsoring an impactful conversation surrounding a shared philosophy that supports a drug-free approach to wellness as well as the training and pairing of a service dog for a veteran in need. Through our year-round military appreciation program we also honor active and retired members of the military as well as their immediate families nationwide with discounted initial visits to monthly wellness plans. Also, chiropractic economics has several articles citing the study that demonstrate chiropractic boost sports performance and assist with rehab. In July, we were excited to announce that The Joint Chiropractic was named the official chiropractor for the Tampa Bay Buccaneers, our first NFL partnership and our second major league sports sponsorship.

6 月，我們開始與 K9 For Warriors 合作，這是一個非營利組織，將訓練有素的服務犬與遭受服役相關創傷的退伍軍人配對。軍事訓練、服役部署會對身體的身體和精神狀態造成嚴重損害，K9 For Warriors 計劃反映了關節理念，即每個人都可以從自然的疼痛緩解方法中受益。我們正在讚助一場有影響力的對話，圍繞一個共同的理念，支持無藥物的健康方法，以及為有需要的退伍軍人訓練和配對服務犬。通過我們全年的軍人答謝計劃，我們還向全國各地的現役和退役軍人及其直系親屬提供月度健康計劃首次就診折扣。此外，脊椎按摩經濟學有幾篇文章引用了這項研究，證明脊椎按摩可以提高運動表現並有助於康復。 7 月，我們很高興地宣布，The Joint Chiropractic 被任命為坦帕灣海盜隊的官方脊椎按摩師，這是我們的第一個 NFL 合作夥伴，也是我們的第二個大聯盟體育贊助商。

The Tampen Orlando marketing co-op groups, which cover almost 40 clinics, partnered with the team to highlight the benefit of routine chiropractic care for the loyal fan base in the surrounding community. Before I turn the call to Jake, I'd like to note that I'm excited that next week, we will welcome our new Chief Marketing Officer. With vast experience, franchise experience, she is an expert in digital marketing and building customer loyalty. We're excited to have her join the team as we implement our programs, including additional brand-building efforts with a focus on increasing new patient acquisition.

覆蓋近 40 家診所的 Tampen Orlando 營銷合作團體與該團隊合作，向周邊社區的忠實粉絲群強調常規脊椎按摩療法的好處。在給傑克打電話之前，我想指出，我很高興下週我們將迎來新的首席營銷官。憑藉豐富的經驗和特許經營經驗，她是數字營銷和建立客戶忠誠度方面的專家。我們很高興她在我們實施計劃時加入我們的團隊，包括以增加新患者獲取為重點的額外品牌建設工作。

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

傑克，我會把它翻過來。

Thanks, Peter, and we'll turn to Slide 8. As mentioned earlier, due to ongoing quarterly review procedures being performed in conjunction with The Joint's independent public accounting firm, management has postponed the issuance of its second quarter financial results as of June 30, 2023. The matter in question is related to our regional developer arrangements and would have a noncash impact to the company's financial statements. I'll review our clinic comps for Q2 '23 compared to Q2 '22.

謝謝 Peter，我們將轉向幻燈片 8。如前所述，由於正在與 The Joint 的獨立公共會計師事務所一起執行季度審查程序，管理層已推遲發布截至 6 月 30 日的第二季度財務業績，2023年。所涉事項與我們的區域開發商安排有關，將對公司的財務報表產生非現金影響。我將回顧我們 23 年第 2 季度與 22 年第 2 季度的臨床比較。

System-wide sales for all clinics open for any amount of time increased to $120.1 million, up 13%. System-wide comp sales for all clinics open 13 months or more increased 5%. System-wide comp sales for mature clinics open 48 months or more decreased 1%. This comp reflects fewer-than-anticipated new patients at some of the more mature clinics.

所有營業時間不限的診所的全系統銷售額增至 1.201 億美元，增長 13%。所有開業 13 個月或以上的診所的全系統補償銷售額增長了 5%。開業 48 個月或以上的成熟診所的全系統補償銷售額下降了 1%。該比較反映了一些較成熟診所的新患者數量少於預期。

I can state that at June 30, 2023, our unrestricted cash was $13.6 million compared to $9.7 million at December 31, 2022. For the 6 months ended June 30, 2023, cash flow from operations was $8.4 million, including the receipt of the employee retention credits of $4.8 million in the first quarter.

我可以說，截至2023 年6 月30 日，我們的非限制性現金為1,360 萬美元，而2022 年12 月31 日為970 萬美元。截至2023 年6 月30 日的6 個月，運營現金流為840 萬美元，包括員工的收入第一季度的保留信貸為 480 萬美元。

For the 6-month period, we invested $4.7 million in acquiring previously franchised clinics and the rights to an RD territory as well as ongoing greenfield clinics and upgrading existing clinics. Also, we continue to have access to additional cash through our line of credit with JPMorgan Chase. To date, we've drawn $2 million and have an additional $18 million available.

在這 6 個月期間，我們投資了 470 萬美元來收購以前的特許診所和 RD 區域的權利以及正在進行的新建診所和升級現有診所。此外，我們繼續通過摩根大通的信貸額度獲得額外現金。迄今為止，我們已提取 200 萬美元，並還有 1800 萬美元可用。

Due to the ongoing quarterly review procedures, I can't provide financial guidance at this time, However, I can reaffirm our guidance for clinic openings is on track for 2023. For franchise clinics, we continue to expect openings to range between 100 and 120 compared to 121 in 2022. And for greenfield clinics, we continue to expect to open a range of 8 to 12 compared to 16 in 2022.

由於正在進行的季度審查程序，我目前無法提供財務指導，但是，我可以重申我們對 2023 年診所開業的指導正在按計劃進行。對於特許經營診所，我們仍然預計開業數量將在 100 到 120 之間相比之下，2022 年將開設121 家診所。對於新建診所，我們預計將開設8 至12 家診所，而2022 年將開設16 家診所。

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

這樣，我會將電話轉回給你，彼得。

Thanks, Jake. Turning to Slide 19 with the success of Joint's national growth with over 900 clinics, we're entering new territory. With a portfolio of 135 corporate clinics, we've reached the natural stage where we'll continually evaluate unit performance and respond as market and retail environments change. This entails considering selling certain clinics to franchisees, closing clinics and/or relocating others due to performance, loss of an anchor store at the strip center or changes in the local retail market.

謝謝，傑克。轉向幻燈片 19，隨著 Joint 在全國范圍內的成功發展，擁有 900 多家診所，我們正在進入新的領域。憑藉 135 家企業診所的投資組合，我們已經達到了一個自然階段，我們將不斷評估單位績效並隨著市場和零售環境的變化做出反應。這需要考慮將某些診所出售給特許經營商、關閉診所和/或由於業績、在地帶中心失去一家主力商店或當地零售市場的變化而搬遷其他診所。

This analysis in execution has been thoughtfully and methodically and especially since we have a talented team, lease obligations and other factors to consider. With that said, it's important to note that we're exiting certain clinics would be accretive and enable us to devote our key resources to more productive areas. Also, as discussed on previous quarter end conference calls, we're slowing down our greenfield strategy.

執行中的分析經過深思熟慮、系統化，特別是因為我們擁有一支才華橫溢的團隊、租賃義務和其他需要考慮的因素。話雖如此，值得注意的是，我們退出某些診所將帶來增值，並使我們能夠將關鍵資源投入到更俱生產力的領域。此外，正如上一季度末電話會議所討論的那樣，我們正在放慢綠地戰略。

We began to fulfill our outstanding lease obligations and then we will pause to assess strategic markets based on economics and demographics. Further, as Jake mentioned, we're also focusing on general and administrative cost cutting initiatives. Finally, we're implementing tactics to drive new patient acquisition. Let me start by saying our total new patients conversion is still strong at approximately 50% and up from around 45% pre-COVID. Also, our attrition remains low around 11% per month compared to the 12% to 13% in recent years. As such, we're focused on increasing new patient leads.

我們開始履行未履行的租賃義務，然後我們將暫停根據經濟和人口統計評估戰略市場。此外，正如傑克提到的，我們還關註一般和管理成本削減計劃。最後，我們正在實施策略來推動新患者的獲取。首先我要說的是，我們的新患者轉化率仍然很高，約為 50%，高於新冠疫情前的 45% 左右。此外，與近年來的 12% 至 13% 相比，我們的員工流失率仍然較低，約為每月 11%。因此，我們專注於增加新的患者線索。

As noted in my marketing review earlier, we're also building our national brand through digital, automated and traditional marketing. While we're managing this unusual economic environment, it's critical to understand the underlying market fundamentals remain strong for our business, and the drivers of our long-term growth are compelling. Pain, opioid and obesity epidemics continue to plague our nation. Americans, particularly younger ones, which is our patient base, are searching for natural, more holistic ways to treat pain and are spending about $19.5 billion a year on chiropractic care.

正如我之前的營銷評論中所指出的，我們還通過數字、自動化和傳統營銷來打造我們的全國品牌。在我們應對這種不尋常的經濟環境的同時，了解我們業務的基本市場基本面依然強勁，以及我們長期增長的驅動力令人信服，這一點至關重要。疼痛、阿片類藥物和肥胖症的流行繼續困擾著我們的國家。美國人，尤其是年輕人（我們的患者群體）正在尋找自然、更全面的方法來治療疼痛，並且每年在脊椎按摩治療上花費約 195 億美元。

Our clinics offer doctors of chiropractic sustainable path to practice what they love and leverage our system-wide resources like staffing, productivity tools and more importantly, marketing. The whole system also benefits from frequent educational outreach efforts with associations and schools of chiropractic. For example, a few weeks back, I enjoyed participating in the Texas Chiropractic Colleges' 115th homecoming, and next week with my team -- with my team, we're headed to the world's largest event of chiropractic care, the national convention organized by the Florida chiropractic Association.

我們的診所為脊椎按摩醫生提供可持續的途徑來實踐他們喜歡的事情，並利用我們的系統範圍資源，如人員配備、生產力工具，更重要的是，營銷。整個系統還受益於與脊椎按摩療法協會和學校的頻繁教育外展活動。例如，幾週前，我很高興參加德克薩斯脊椎按摩學院第 115 屆返校節，下週我將與我的團隊一起參加世界上最大的脊椎按摩護理活動，即由佛羅里達脊椎按摩療法協會。

We remain focused on what we control, executing programs to improve clinic performance and to reduce G&A for our long-term profitable growth. The core of what we're doing and the impact of our mission to improve quality of life through routine and affordable chiropractic care is our guiding principle. I'd like to thank our community of doctors, wellness coordinators, franchisees, regional developers and employees for their passion and dedication. The team is committed to growing the overall chiropractic care market, educating the consumer about the efficacy of chiropractic, capturing a greater share in enhancing performance, all with the goal of fulfilling our mission.

我們仍然專注於我們控制的事情，執行計劃來提高診所績效並減少一般費用和管理費用，以實現我們的長期盈利增長。我們正在做的事情的核心以及通過常規和負擔得起的脊椎按摩治療來改善生活質量的使命的影響是我們的指導原則。我要感謝我們的醫生、健康協調員、特許經營商、區域開發商和員工的熱情和奉獻精神。該團隊致力於發展整個脊椎按摩治療市場，教育消費者了解脊椎按摩療法的功效，在提高績效方面獲得更大的份額，所有這些都是為了完成我們的使命。

And with that, MJ, I'm ready to take the Q&A.

MJ，我已經準備好接受問答了。

[Operator Instruction]. Today's first question comes from Jeremy Hamblin with Craig-Hallum Capital Group.

[操作員說明]。今天的第一個問題來自 Craig-Hallum Capital Group 的 Jeremy Hamblin。

Thanks. So I wanted to ask a question about the Aligned Franchisee Association, the AFA, which is now representing more than 50% of the franchise clinics. And just to understand a little bit more of the types of engagement that you're having with AFA, kind of what are the major discussion points and points of interest from the AFA, and what you can share about how you're working with them to help build the brand.

謝謝。所以我想問一個關於聯合特許經營者協會 (AFA) 的問題，該協會目前代表了超過 50% 的特許經營診所。只是為了更多地了解您與 AFA 的互動類型，AFA 的主要討論點和興趣點是什麼，以及您可以分享如何與他們合作的內容幫助打造品牌。

Sure, Jeremy. I'll take that question. Obviously, the AFA has formed -- in any organization, they can -- in a franchise system and from time to time, you will see an independent franchise association form. We also have our National Franchise Advisory Board. This is made up of 9 members that are elected to that position, and that is our formal form of communication with our franchise community.

當然，傑里米。我來回答這個問題。顯然，AFA 已經形成了——在任何組織中，他們都可以——在一個特許經營體系中，並且時不時地，你會看到一個獨立的特許經營協會的形式。我們還有國家特許經營諮詢委員會。該委員會由當選擔任該職位的 9 名成員組成，這是我們與特許經營社區溝通的正式形式。

Outside of, of course, I will take a call from any franchisee in our network. And so at this point that we really don't have a formal relationship with the independent association that we believe that the National Franchise Advisory Board is the most appropriate form of communication and to address the issues and concerns that the association -- the independent association has. And so that's really kind of the approach that we're taking to the situation.

當然，除此之外，我還會接聽我們網絡中任何加盟商的電話。因此，在這一點上，我們確實與獨立協會沒有正式的關係，我們認為國家特許經營諮詢委員會是最合適的溝通形式，可以解決該協會（獨立協會）的問題和擔憂有。這就是我們針對這種情況採取的方法。

Okay. Got it. And then since it seems like maybe you're limited in what you can discuss on this call, are you planning to have like a follow-up call after you issue kind of formal results? And can you discuss the time line in which you expect to have the matter resolved with the auditors in the more formal or more full release.

好的。知道了。然後，由於您在這次電話會議上可以討論的內容似乎有限，您是否計劃在發布正式結果後進行後續電話會議？您能否在更正式或更完整的版本中討論您期望與審計師解決問題的時間表？

Yes. Jeremy, this is Jake. Yes, we're disappointed we couldn't release the financial results today due to the ongoing quarterly review procedures. There was a late question that came up around our regional developer arrangements. We know that, that's going to have a noncash impact, but we have some further documentation and procedures to get through to align on that. We know we have a 10-Q filing deadline on Monday and we are dedicating all resources to adhere to that. But yes, we would have an additional press release to release that information.

是的。傑里米，這是傑克。是的，由於正在進行的季度審查程序，我們很遺憾今天無法發布財務業績。最近出現了一個關於我們區域開發商安排的問題。我們知道，這將產生非現金影響，但我們還有一些進一步的文件和程序需要完成以對此進行協調。我們知道周一有 10-Q 的提交截止日期，我們將投入所有資源來遵守該截止日期。但是，是的，我們將有一個額外的新聞稿來發布這些信息。

But are you going to have an additional conference call?

但是您還要再舉行一次電話會議嗎？

We haven't made that determination at this time.

目前我們還沒有做出這個決定。

Okay. And is it fair to assume though that you would kind of definitively be wrapped up with reporting Q2 by the end of the month?

好的。可以公平地假設您將在本月底之前明確完成第二季度的報告嗎？

Yes, that is the goal. We're down to a narrow range of ongoing issues. So like I said, we are dedicating all resources to address the issue and get our financial information out there as quickly as possible.

是的，這就是目標。我們只關註一小部分持續存在的問題。正如我所說，我們正在投入所有資源來解決這個問題，並儘快提供我們的財務信息。

The next question comes from Jeff Van Sinderen with B. Riley.

下一個問題來自 Jeff Van Sinderen 和 B. Riley。

Yes. Not to beat a dead horse here, but just maybe if there's anything else you can shed light on related to the issue with your auditors related to your RDs. Maybe what part of the financials might be impacted? Sort of what is the heart of the issue there? And you said you're planning to file the 10-Q by Monday, is that right? Or I'm a little confused when you said you'll get the results out by the end of the month.

是的。並不是要在這裡打敗一匹馬，只是也許您還可以向您的審計師提供與您的 RD 相關的問題的任何其他信息。也許財務的哪一部分可能會受到影響？問題的核心是什麼？您說您計劃在周一之前提交 10-Q，是嗎？或者當你說你會在月底之前得到結果時，我有點困惑。

No. We know we have a filing deadline, a timely filing deadline for Monday, and we are doing everything we can to adhere to that time line. We do have unresolved issues that we have to work through. And so we know the urgency of the information, and we're dedicating the resources to get it out there. But yes, I'm shooting to hit that filing deadline on Monday. That's absolutely true.

不。我們知道我們有一個提交截止日期，週一的及時提交截止日期，我們正在盡一切努力遵守該時間表。我們確實有必須解決的未解決問題。因此，我們知道信息的緊迫性，並且我們正在投入資源來將其發布。但是，是的，我準備在周一提交申請。這絕對是真的。

The heart of the issue is around our regional developer arrangements. These were transactions that we've entered into in the past and a reacquisition that we executed in the quarter that we've also done in the past. We used similar accounting treatments that we've used in the past under previous audits. And there's a new question that has arisen that we have to work through and get the documentation together to align with our outside accounting firm.

問題的核心在於我們的區域開發商安排。這些是我們過去進行的交易以及我們在過去也進行過的本季度執行的重新收購。我們在之前的審計中使用了類似的會計處理方法。出現了一個新問題，我們必須解決並整理文件，以便與我們的外部會計師事務所保持一致。

Okay. So it sounds like -- correct me if I'm wrong here, but it sounds like it's really more revolving around the reacquisition, in other words if you had not reacquired in the quarter, this issue probably would not come up. Am I correct on that?

好的。所以聽起來——如果我錯了，請糾正我，但這聽起來更多是圍繞重新收購，換句話說，如果你在本季度沒有重新收購，這個問題可能不會出現。我的說法正確嗎？

That's correct. Yes. Sometimes when you have a new set of eyes, you get a new set of questions, and that's what we had this time. And we got to make sure we have the appropriate documentation in place so that all parties can agree to release the financial information.

這是正確的。是的。有時，當你有一雙新的眼睛時，你會得到一系列新的問題，這就是我們這次遇到的問題。我們必須確保擁有適當的文件，以便各方都能同意發布財務信息。

Just to emphasize, it's a noncash issue. It is definitely just to make sure that we are complying with GAAP revenue terms.

只是強調一下，這是一個非現金問題。這絕對只是為了確保我們遵守公認會計準則收入條款。

Yes, that's correct. The flow of funds will be the same. It will really just be the GAAP accounting that sits behind that.

對，那是正確的。資金流向將是相同的。這實際上只是其背後的公認會計準則會計。

Okay. Got it. And then if you could maybe speak more about your plans for the mature corporate clinics. I think you highlighted that in the press release, just kind of what the performance has been there and what the threshold is to close some of them. I realize you guys have a very low closure rate. Maybe how many you expect to close? I know it's a tough question now because you're probably evaluating that. And then also just kind of as a follow-up to that, maybe touch a little bit more on the expense reductions you're looking into?

好的。知道了。然後您是否可以更多地談談您對成熟企業診所的計劃。我認為您在新聞稿中強調了這一點，即目前的表現以及關閉其中一些的門檻是什麼。我知道你們的關閉率非常低。也許您預計會關閉多少個？我知道現在這是一個棘手的問題，因為你可能正在評估它。然後，作為後續行動，也許更多地涉及您正在考慮的費用削減？

Yes, great questions. Kind of we categorize that more of a strategic review. And so I don't have a strategic number or a target that we're shooting for. We're looking at that and how we're allocating resources, and realizing we can be more efficient there.

是的，很好的問題。我們將其更多地歸類為戰略審查。所以我沒有我們要追求的戰略數字或目標。我們正在研究這個問題以及我們如何分配資源，並意識到我們可以在那裡提高效率。

And also just to be clear, Jeff, that these aren't always closures. That some of them can be sold to a franchise in terms of just looking at our geographical spread, so there's a lot of factors there that we're really looking at. So that some could be -- will be sold off. Others will be sold. Others can be relocated.

傑夫，還要澄清的是，這些並不總是關閉。僅從我們的地理分佈來看，其中一些就可以出售給特許經營權，因此我們真正關注的因素有很多。因此，有些可能會被出售。其他的將被出售。其他人可以搬遷。

Yes. I don't have a fixed number for you today, Jeff. We're going through that process. We've identified a number of clinics already that are on kind of our action item list, if you will. So I do expect the mix of corporate and franchise to shift in accordance with that. Again, we're going to be methodical with it as we mentioned in the transcript, realizing that there's a lot of factors that we have to consider.

是的。我今天沒有給你固定的電話號碼，傑夫。我們正在經歷這個過程。如果您願意的話，我們已經確定了一些診所，它們已列入我們的行動項目列表中。因此，我確實預計公司和特許經營的組合會隨之變化。同樣，正如我們在文字記錄中提到的那樣，我們將有條不紊地處理它，並意識到我們必須考慮很多因素。

And I'll reiterate Peter's point that this is not an immediate closure exercise. This is potentially refranchising a portion of that. So what we do know is that we still have the vast majority of our corporate portfolio are profitable units. We have a good number of units that are still young units. Obviously, we've gone through a pretty significant investing cycle in that space. And the fundamentals of the business are still strong. So we're not abandoning the corporate approach by any means. This is a kind of a strategic optimization exercise, looking for those efficiencies in the portfolio and also realizing that we have issues to address, and we're going to allocate our resources appropriately.

我將重申彼得的觀點，即這不是立即結束活動。這可能會重新特許經營其中的一部分。因此，我們所知道的是，我們的企業投資組合中的絕大多數仍然是盈利單位。我們有很多單位還很年輕。顯然，我們在該領域經歷了相當重要的投資週期。而且該業務的基本面仍然強勁。因此，我們無論如何都不會放棄企業方法。這是一種戰略優化練習，尋找投資組合中的效率，並意識到我們有問題需要解決，我們將適當地分配我們的資源。

As far as your G&A question, that's, again, a strategic review. As we kind of pull back the scale of a portfolio, there's some natural flow-through and trimming that can happen there. And then also making sure that with the level of development and where we're going to exert our effort that we're finding the efficiencies in our G&A structure. And so I think in periods where we're looking to accelerate the profitability of the company, I think it's only prudent to go back and look at your cost structures and make sure that they're right sized for your organization. And that's the exercise that we're going to take on.

至於你的一般管理費用問題，這又是一次戰略審查。當我們縮小投資組合的規模時，可能會發生一些自然的流動和調整。然後還要確保根據開發水平以及我們將努力的方向，我們能夠在 G&A 結構中找到效率。因此，我認為，在我們尋求加速公司盈利能力的時期，我認為謹慎的做法是回顧一下您的成本結構，並確保它們的規模適合您的組織。這就是我們要進行的練習。

Okay. And then just as a follow-up to that, if I could. Can you tell us the difference in the comps between the corporate-owned clinics and the franchise clinics.

好的。如果可以的話，然後作為後續行動。您能告訴我們公司自營診所和特許經營診所之間的比較差異嗎？

Yes, we don't split that out. I think it was less than a 1% difference for the second quarter. So again, like we've said historically, we traditionally don't see a large spread between the two, just given the model, and some of its simplicity. So there's not a material delta there in the second quarter or really in the first quarter. But obviously, when we have the full economics captured on our P&L, we just have a more outsized impact to our overall consolidated position just given the economics and the flow-through of the corporate unit versus the franchise.

是的，我們不會把它分開。我認為第二季度的差異不到 1%。所以，就像我們歷史上所說的那樣，我們傳統上不會看到兩者之間存在很大的差異，只是考慮到模型及其一些簡單性。因此，第二季度或第一季度實際上沒有實質性的增量。但顯然，當我們在損益表中獲得完整的經濟數據時，考慮到公司部門與特許經營權的經濟狀況和流通量，我們對我們的整體合併地位產生了更大的影響。

Right. But that sort of speaks to if there's only a 1% difference and your overall comp is 5%. That suggests that the corporate-owned clinics are still performing well and comping positive.

正確的。但是，如果只有 1% 的差異，而你的整體競爭是 5%，那就說明了這一點。這表明企業擁有的診所仍然表現良好並且盈利良好。

Yes. Like I said, the fundamentals and the vast majority of our portfolio is still maturing. We still have profitable units that are out there. I don't want it to come across that we're doing something drastic here. This is absolutely a strategic review that we're performing because the fundamentals of the business are still strong.

是的。正如我所說，我們的基本面和絕大多數投資組合仍處於成熟階段。我們仍然有盈利的單位。我不想讓人覺得我們正在這裡做一些激烈的事情。這絕對是我們正在進行的戰略審查，因為業務的基本面仍然強勁。

Right. And then that impact should be accretion. So that's also very positive.

正確的。然後這種影響應該是累積的。所以這也是非常積極的。

To the bottom line.

到底線。

To the bottom line. Correct. I'll take the rest offline.

到底線。正確的。我會把剩下的部分離線。

[Operator Instruction]. The next question comes from Thomas McGovern with Maxim Group.

[操作員說明]。下一個問題來自馬克西姆集團的托馬斯·麥戈文。

So just I know you guys mentioned it briefly on the call, but I just wanted to make sure I have the numbers down. Could you guys just real quick review some of those KPIs you provided us with, specifically, the conversion, attrition and retention rates?

我知道你們在電話中簡短地提到了這一點，但我只是想確保我記下了數字。你們能快速回顧一下你們向我們提供的一些 KPI，特別是轉化率、流失率和保留率嗎？

Sure. If you look at our system, there's really three fundamental KPIs we really focus on. One is our new patients, that we really track that very closely and that's, of course, the very important source of the revenue for our clinics. The second one is conversion. And so when that new patient comes in, do they convert by buying a package or a membership. And what I was saying is that our total conversion, so whether it's a new patient or existing patient that converts, that right now that's running both for franchise and corporate right around 50%. And if I compare that in a pre-COVID environment that we were running probably somewhere around 44%, 45% pre-COVID with that number. And then when we look at attrition, I said that it's running roughly around 11% per month. Actually corporate clinics are running a little better than that. I think under 10%. And that compares to, let's say, 12% to 13% in recent years. So you're seeing, again, an improvement overall in the attrition rate. The one area that we're really focused on, as I mentioned in the call, is improving our new patient account. And that's where the real focus is today and going forward.

當然。如果您查看我們的系統，就會發現我們真正關注的三個基本 KPI。一是我們的新患者，我們確實非常密切地跟踪，這當然是我們診所非常重要的收入來源。第二個是轉換。因此，當新患者進來時，他們會通過購買套餐或會員資格來轉換。我想說的是，我們的總轉化率，無論是新患者還是現有患者，目前的特許經營和企業轉化率都在 50% 左右。如果我在新冠疫情之前的環境中進行比較，我們的運行率可能在 44% 左右，新冠疫情之前的 45% 與這個數字相比較。然後，當我們查看員工流失率時，我說每月流失率大約為 11% 左右。事實上，企業診所的運營情況比這要好一些。我認為不到10%。相比之下，近年來這一比例為 12% 至 13%。因此，您再次看到總體流失率有所改善。正如我在電話中提到的，我們真正關注的一個領域是改善我們的新患者賬戶。這就是今天和未來真正的焦點所在。

Great. That sounds like -- it sounds like things are trending in the right direction there. And then my next question is could you provide a little bit more color on your digital marketing campaign? I know you guys went over it in the slide. But just kind of where you're at with that. And then maybe touch a little bit more on the issues you guys kind of solved with Meta?

偉大的。聽起來好像事情正在朝著正確的方向發展。我的下一個問題是，您能否為您的數字營銷活動提供更多色彩？我知道你們在幻燈片中已經討論過了。但就是你現在的情況。然後也許可以更多地談談你們用 Meta 解決的問題？

Sure. And if you look at just our whole new patient strategy, basically, we have three sources for new patients. One is referral. And what that is, is an existing patient has a great experience with the doctor, and they refer their friends and family to that doctor. And right now, about 30% of our new patients are coming directly from referral. The second and increasingly more important is our digital marketing activity. And there's just a whole range of services that are supported by that, both organic and paid search. And so that right now, we've been able to measure that of our new patients that 63% of them at least at some point had touched us digitally. And we have a whole series of different programs and evolves over time that we're using. And so for example, we've entered a new program or a new platform with TikTok. And I talked about how we started that in four markets. We've expanded to four more markets, and we're seeing some really positive results with that.

當然。如果你看看我們的全新患者策略，基本上，我們有三個新患者來源。一是轉介。也就是說，現有患者對醫生有很好的體驗，他們會將自己的朋友和家人推薦給該醫生。目前，我們大約 30% 的新患者直接來自轉診。第二個也是越來越重要的是我們的數字營銷活動。它支持一整套服務，包括有機搜索和付費搜索。因此，現在，我們已經能夠衡量新患者的情況，其中 63% 的患者至少在某個時候通過數字方式接觸過我們。我們有一系列不同的程序，並且隨著我們使用的時間的推移而不斷發展。例如，我們通過 TikTok 進入了一個新項目或一個新平台。我談到了我們如何在四個市場開始這一點。我們已經擴展到另外四個市場，並且我們看到了一些非常積極的成果。

Meta, or what was Facebook, is also an important source of new patients for us. And what we have found is that we've increased some of that Meta spend, and that has, in fact, increased the number of leads that have come from that activity. So that's an area we're also focused. If we go back a little bit, we were spending a lot of time on YouTube, and that we'd probably pull back a little bit on that. And because what you're finding in the 21st century is marketing changes so quickly. And the data that you have to drive your marketing becomes only more and more relevant. So one of the things that we've been finishing up is really updating our research on that whole patient journey. When a potential patient coming in, what's the path they go, what are the messages they need in order to be able to be driven into the clinic. And so there's a lot of work that's been done with that. And then that research will then guide our marketing activities going forward.

Meta，或者說 Facebook，也是我們新患者的重要來源。我們發現，我們增加了一些元支出，事實上，這增加了來自該活動的潛在客戶數量。這也是我們關注的一個領域。如果我們回顧一下，我們在 YouTube 上花費了很多時間，我們可能會稍微減少一點。因為在 21 世紀你會發現營銷變化如此之快。推動營銷所需的數據只會變得越來越相關。因此，我們一直在完成的事情之一就是更新我們對整個患者旅程的研究。當潛在患者進來時，他們會走哪條路，他們需要什麼信息才能被送進診所。為此我們做了很多工作。然後該研究將指導我們今後的營銷活動。

The third source for new patients for us would be what I'm going to just call that gorilla marketing activity. That's typical of all small box retail because what you've got to do is educate that consumer that lives, travels and -- lives, travels and works within that 5- to 15-minute radius around that box that you're there when they need your product or service. And so right now, let's say, about 25%, 30% of our new patient count is coming from that signs or the coupon drop or the outreach to the gym or the school or the hospital or whatever is around that specific clinic. And so that's kind of the overall source of our new patients.

我們新患者的第三個來源就是我所說的大猩猩營銷活動。這是所有小盒子零售的典型特徵，因為你要做的就是教育消費者，讓他們在你所在的盒子周圍 5 到 15 分鐘的半徑內生活、旅行和工作。需要您的產品或服務。所以現在，我們大約有 25%、30% 的新患者數量來自這些標誌、優惠券掉落或到健身房、學校、醫院或特定診所周圍的任何地方。這就是我們新患者的總體來源。

Got you. I appreciate that color. And then real quick before I hop back in the queue. You guys you mentioned again also on the call about some of your staff retention and briefly mentioned that you guys have a new initiative to increase staff retention. Can you guys just provide a little bit more color on where you're at this quarter versus last quarter and how you guys anticipate that to trend throughout the year?

明白你了。我很欣賞那種顏色。然後很快我就跳回隊列了。你們在電話會議上也再次提到了一些員工保留率，並簡要提到你們有一項新舉措來提高員工保留率。你們能否提供更多關於本季度與上季度相比的情況以及你們對全年趨勢的預測？

Yes, I think the way I would categorize that is the labor market is still tight. And for us, when you have two roles within your clinics, you have your doctor and your wellness coordinator, each are vitally important to the success of the clinic. And what we absolutely know is quality doctors is the lifeblood of what we do here. And so I think we will always have a strategic initiative focused on the retention of our employees, certainly our field employees. And so as you go through these economic times, we just have to be critically focused on that.

是的，我認為我的分類方式是勞動力市場仍然緊張。對於我們來說，當您在診所中擔任兩種角色時，您有您的醫生和您的健康協調員，每個角色對於診所的成功都至關重要。我們絕對知道，優質的醫生是我們在這裡所做的事情的命脈。因此，我認為我們將始終制定一項戰略舉措，重點關注留住我們的員工，當然是我們的現場員工。因此，當你經歷這些經濟時期時，我們必須嚴格關注這一點。

And especially as we have the ambitious growth goals that we have, not only do you need to maintain the workforce that you have today, but also prepare yourself for future growth. And I think that's where all the successes and the initiatives that we've had with the schools and associations is really starting to pay off. And Peter mentioned a couple of those that we have attended or will be attending, which is just only improving our position within the chiropractic space, it will just help that retention and attraction of those doctors going forward.

尤其是當我們擁有雄心勃勃的增長目標時，您不僅需要維持現有的員工隊伍，還需要為未來的增長做好準備。我認為這就是我們與學校和協會合作取得的所有成功和舉措真正開始獲得回報的地方。彼得提到了我們已經參加過或將要參加的一些活動，這只會提高我們在脊椎按摩療法領域的地位，只會有助於保留和吸引這些醫生的發展。

The next question comes from George Kelly with ROTH's MKM.

下一個問題來自喬治·凱利和羅斯的 MKM。

Apologies if these have been asked. I wasn't on the beginning part of your call. But first on the strategic review process on the owned portfolio. I was curious, could this very well -- I mean, is the entire portfolio kind of up for review? And could this lead to a sale of most of the units there? And then the second question on the same topic is what is the 4-wall EBITDA of that portfolio?

如果有人問這些問題，我們深表歉意。我不在你通話的開頭部分。但首先是對自有投資組合的戰略審查流程。我很好奇，這能很好嗎——我的意思是，整個投資組合是否都需要接受審查？這是否會導致那里大部分單位的出售？然後關於同一主題的第二個問題是該投資組合的 4 壁 EBITDA 是多少？

Yes. No, the strategic review is just that. This is not a wholesale review of the portfolio. These are specific targeted clinics that are either in unique geographic areas. We've seen market dynamics change within the specific markets that they're operating in or they're underperforming. That could be part of that subset. We only have a handful of unprofitable clinics. And certainly, those are ones that you critically pay attention to, but this is not an indication that we're exiting our corporate strategy. This will be a smaller strategic review and really trying to optimize the portfolio that we have. If you look at the overall profitability of the units, those -- as a whole, we're still seeing profitability into the 20%. And then we have the outside the 4-wall bleed that brings it down above that.

是的。不，戰略審查就是這樣。這不是對投資組合的全面審查。這些是特定的目標診所，位於獨特的地理區域。我們已經看到他們正在經營或表現不佳的特定市場內的市場動態發生變化。這可能是該子集的一部分。我們只有少數不盈利的診所。當然，這些是您密切關注的，但這並不表明我們正在退出我們的公司戰略。這將是一次較小的戰略審查，並真正嘗試優化我們擁有的產品組合。如果你看看這些單位的整體盈利能力，那麼作為一個整體，我們仍然看到盈利能力達到 20%。然後我們有 4 壁出血的外部，使其低於該值。

So we'll be excited to release those full financial results and get you an update by segment so you can see how those are trending. We have seen sequential improvement quarter-over-quarter in the profitability of the units. So again, this is not a wholesale exit, this is a strategic review of a subset of clinics. Because really, we understand the importance of profitability in this environment, and we know that, that is affected by the performance of our corporate portfolio. It's affected by the outside the 4-wall G&A we have and the associated unallocated G&A that we have in the system, and that's why we're going to take a strategic look at all of those to try to drive profitability into this organization moving forward.

因此，我們將很高興發布這些完整的財務業績，並按細分市場為您提供最新信息，以便您了解這些業績的趨勢。我們看到這些部門的盈利能力逐季連續改善。再說一次，這不是大規模退出，而是對一部分診所的戰略審查。因為實際上，我們了解在這種環境下盈利能力的重要性，並且我們知道，這受到我們公司投資組合績效的影響。它受到我們擁有的 4 牆外部 G&A 以及系統中相關的未分配 G&A 的影響，這就是為什麼我們將對所有這些進行戰略性審視，以嘗試推動該組織向前發展的盈利能力。

Yes, it's a refinement, not a change in policy.

是的，這是一種改進，而不是政策的改變。

Okay. Then I guess I'm a bit surprised, it's gotten a lot attention in the part of the call that I have listened to and in your press release. I mean, isn't that a normal course of business? What's unique here about the review? I would think that you're always doing status checks on your locations. So maybe I'm off there, but I guess, what -- this seems like...

好的。然後我想我有點驚訝，在我聽過的電話會議和你們的新聞稿中，它引起了很多關注。我的意思是，這不是正常的業務流程嗎？這篇評論有什麼獨特之處？我認為您總是對您的位置進行狀態檢查。所以也許我已經不在了，但我想，這看起來像是……

No, George, the point you're making is correct. I mean, as an organization, we should be doing this every day, and we do, do that. And I think, again, part of this is just -- I will say that we've more than doubled the size of our portfolio over a relatively short period of time. And so much of that focus really was on the increasing of the portfolio as opposed to maybe a little more attention on kind of the existing portfolio and what we need to do with that. And so it's really just recognizing as the portfolio goes in size and importance to the company that we've got to be much more focused on, and that's really what we're saying.

不，喬治，你的觀點是正確的。我的意思是，作為一個組織，我們應該每天都這樣做，而且我們確實這樣做了。我再次認為，其中一部分原因是——我會說，在相對較短的時間內，我們的投資組合規模增加了一倍多。大部分注意力實際上都集中在增加投資組合上，而不是更多地關注現有投資組合的類型以及我們需要用它做什麼。因此，我們實際上只是認識到，隨著投資組合的規模和對公司的重要性，我們必須更加關注，這正是我們所說的。

Okay. Okay. And then second question is on guidance. Did you provide any kind of update on your full year guidance?

好的。好的。第二個問題是關於指導。您是否提供了全年指導的任何更新？

No, I can't give the financial metrics at this time. We certainly will update that, but we did do the openings guidance and reaffirmed the range for both franchise openings and the corporate greenfields.

不，我目前無法提供財務指標。我們當然會更新這一點，但我們確實做了空缺指導，並重申了特許經營空缺和公司綠地的範圍。

Okay. Great. And then last question for me is back to the cost savings and strategic review and everything. Is the cost savings initiatives that you're sort of targeting also outside of your owned portfolio? And said a different way, I look at your G&A, the unallocated corporate overhead, and there's been a lot of increase in that line in the last 2 or 3 years. And I'm curious if you're kind of looking at some of that and there could be savings there as well. And that's all I had.

好的。偉大的。對我來說，最後一個問題又回到了成本節約和戰略審查等等。您所針對的成本節約計劃是否也在您擁有的投資組合之外？換句話說，我查看了你們的一般管理費用（G&A），即未分配的公司管理費用，在過去的兩三年裡，這一行有很大的增長。我很好奇你是否會考慮其中的一些，並且那裡也可能有節省。這就是我所擁有的一切。

Yes. That is part of the review and stepping back and looking at the overall structure and G&A run rate in that unallocated bucket and doing what we can to optimize and reduce that run rate on a go-forward basis. We're striving for leverage and profitability, and so we're going to do what we need to do to get there.

是的。這是審查的一部分，退後一步，查看未分配桶中的整體結構和一般行政費用運行率，並儘我們所能優化和降低未來的運行率。我們正在努力提高槓桿率和盈利能力，因此我們將採取我們需要採取的措施來實現這一目標。

Okay. I'm sorry, I guess I have one more. When do you expect to conclude this process? Is this something we could start to sort of see play through by year-end?

好的。抱歉，我想我還有一個。您預計什麼時候結束這個過程？這是我們可以在年底之前開始看到的事情嗎？

Yes, we're -- we have started now, and we'll continue to go through that exercise. As of right now, we're absolutely in the throes of strategic planning for 2024 and beyond. We'll quickly align on our budgeting strategies for a go-forward basis. So these are absolutely active discussions that we're having right now that will -- some of them we're able to put in place now, and then we'll look at what we can further find efficiency in as we move forward. So I would say both, and I would say there's not a definitive time line other than this is going to be an ongoing strategic focus for us.

是的，我們——我們現在已經開始了，我們將繼續進行這項工作。截至目前，我們正處於 2024 年及以後戰略規劃的陣痛之中。我們將快速調整我們的預算策略，以實現未來的發展。因此，這些絕對是我們現在正在進行的積極討論——其中一些我們現在就能夠落實到位，然後我們將看看在我們前進的過程中可以進一步提高效率。所以我想說，兩者都是，而且我想說，除了這將成為我們持續的戰略重點之外，沒有明確的時間表。

[Operator Instruction]. Seeing no further questions, I would now like to turn the call back over to Peter Holt for closing remarks.

[操作員說明]。由於沒有其他問題，我現在想將電話轉回給 Peter Holt 進行結束語。

Thank you, MJ. Before I close, I'd like to note that we'll be in New York City on September 14, presenting and conducting meetings at the Lake Street Capital Markets' Big 7 Conference and the B. Riley Securities Consumer Conference.

謝謝你，喬丹。在結束之前，我想指出，我們將於 9 月 14 日抵達紐約，在 Lake Street Capital Markets 的 Big 7 Conference 和 B. Riley Securities Consumer Conference 上進行演示和主持會議。

Our patient story today comes from Melanie, a Marine Corp veteran. During her service, Melanie would participate in training and often lasted up to 30 hours, often while carrying a significant amount of gear. She suffered lower back, upper back and neck injuries, which left her with debilitating chronic pain. Seeking pain relief in 2017, Melanie joined The Joint and got into a full alignment, which made a difference in her daily life and enable her to work out again.

今天我們的病人故事來自海軍陸戰隊老兵梅蘭妮。在服役期間，梅蘭妮會參加訓練，訓練時間通常長達 30 小時，而且通常還要攜帶大量裝備。她的下背部、上背部和頸部都受傷了，這給她帶來了令人衰弱的慢性疼痛。為了緩解疼痛，Melanie 在 2017 年加入了 The Joint 並進行了全面調整，這改變了她的日常生活，使她能夠再次鍛煉。

She credits that The Joint Chiropractic care have given her back both -- given back to her, both her physical body and the opportunity to do healthy things like hiking with her dog and supporting her mental well-being. When asked to describe The Joint in one word, Melanie stated, life changing, because that's how it helped her. Then realizing the two words, she said chiropractic is necessary. Thank you, and stay well adjusted.

她認為，聯合脊椎按摩治療讓她得到了回報——既回報了她的身體，也回報了她做健康事情的機會，比如和她的狗一起徒步旅行，並支持她的心理健康。當被要求用一個詞來形容 The Joint 時，Melanie 表示，生活改變了，因為這就是它對她的幫助。然後意識到這兩個詞，她說脊椎按摩療法是必要的。謝謝你，並保持良好的調整。

The conference has now concluded. Thank you for your participation. You may now disconnect your lines.

會議現已結束。感謝您的參與。您現在可以斷開線路。