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SCOTTSDALE, Ariz. - The Joint Corp. (NASDAQ:JYNT), a $181 million market cap chiropractic care provider trading near its InvestingPro Fair Value, has signed a binding agreement to sell 31 corporate-owned clinics in Arizona and New Mexico to its largest franchisee, Joint Ventures, LLC, the company announced Wednesday.
The transaction, expected to close by June 30, will increase Joint Ventures’ ownership to 96 clinics across California, Oregon, New Mexico, and Arizona. The franchisee has also committed to opening 10 additional clinics in these regions. The company maintains a healthy balance sheet with more cash than debt and an impressive 77.68% gross profit margin, according to InvestingPro data.
As part of the deal, The Joint will acquire regional developer rights to the Northwest region, which includes 46 existing franchised clinics and 30 sites for future development. The company stated this acquisition represents 8.5% of clinics under regional developer management.
In a separate transaction, The Joint has refranchised five clinics to Chiro 93, LLC in the Kansas City region, led by existing franchisee Dr. Clint Morrow.
"We are executing our plan to become the largest pure play chiropractic care franchise system," said Sanjiv Razdan, President and CEO of The Joint Corp. "As part of this strategy, we will deploy capital from the sales of corporate clinics to improve our profitability." This strategic shift comes as analysts expect net income growth this year, with InvestingPro showing multiple positive indicators for the company’s financial health. Get access to 8 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
Chris O’Neal, Joint Ventures franchisee, stated, "We are proud to be the largest franchise group at The Joint and plan to increase our ownership by more than 50% to over 100 clinics when we complete our expansion."
The Joint Corp., which operates a network of over 950 chiropractic clinics nationwide with 14 million annual patient visits and generates annual revenue of $52.79 million, indicated the moves are intended to reduce regional developer commissions and enhance its operating margin.
This information is based on a press release statement from The Joint Corp.
In other recent news, The Joint Corp. announced the appointment of Scott J. Bowman as the new Chief Financial Officer, succeeding Jake Singleton. Bowman’s extensive background includes CFO roles at Leslie’s Inc., Dave & Buster’s, and Hibbett Sports, bringing significant expertise in capital markets and strategic planning. Additionally, The Joint Corp. has authorized a stock repurchase program, allowing the buyback of up to $5 million of its common stock starting in August 2025. This move reflects the company’s confidence in its long-term strategy and aims to deliver value to shareholders. Furthermore, The Joint Corp. expanded its board of directors by appointing Sandi Karrmann and Christopher M. Grandpre, both bringing a wealth of experience in human resources and franchising, respectively. These appointments are part of the company’s strategy to enhance talent development and support franchisee growth. Grandpre’s addition fills a vacancy left by Glenn Krevlin, who did not seek re-election. The company continues to focus on its strategic priorities for 2025, emphasizing growth and profitability.
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