A little more than a year ago, we covered The Joint Corp. (JYNT), a small-cap specialized franchisor of chiropractic clinics in the United States. The company initially grabbed our attention because of its snowballing expansion over the past few years, causing shares to jump from $2 to $20 during a relatively short period of time.

Source: Google Finance

We are particularly interested in franchises with the potential to scale, as many successful brands have utilized this type of business model to grow rapidly, with limited capital intensity. We have previously discussed such cases in our recent Domino’s Pizza and Dunkin’ Brands articles.

In this article, we will:

  • Discuss The Joint Corp.’s business model and financials.
  • Assess the stock’s valuation and investor returns.
  • Conclude why The Joint Corp. could provide a profitable investment opportunity, though risks remain.

Source: shesafitchick

Business model and financials

Over the past few years, The Joint Corp. has revolutionized access to chiropractic services since it launched its retail healthcare business model in 2010. The company strives to make quality care convenient and affordable while ending the need for insurance for millions of patients seeking pain relief and long-term wellness.

From the get-go, we are particularly excited about investing in the wellness space. Wellness, in general, has been gaining increasingly more attention, with practices like meditation and yoga undergoing a propelling trend. The company is capitalizing on this trend by offering chiropractic services at an affordable price. An appointment which normally costs around $77 is offered at $29 – a significantly lower price. While the sessions are provided on the cheap, each location’s operations are able to maintain profitability through increased volume. Management estimates that average patient visits per clinic are around 600/month in general clinics, vs. 1,350+/month in its own branded clinics. COVID-19’s staying-at-home way of life

The newly-listed Siemens Energy has signed a memorandum of understanding with Siemens Mobility to “jointly develop and offer hydrogen systems for trains.”

Announced on Monday, the partnership is the latest example of companies attempting to ramp up and expand the use of hydrogen fuel-cell technology.

The collaboration will look to produce “a standardized hydrogen infrastructure solution for fueling the hydrogen-powered trains of Siemens Mobility.”

In addition, the idea is that the products of the partnership will be offered to external customers in order to “promote the hydrogen economy in Germany and Europe and support decarbonization in the mobility sector.”

The broad aim is to link up Siemens Energy’s work on the production of green hydrogen – a term that refers to hydrogen produced using renewable sources such as wind and solar – with Siemens Mobility’s specialism in transportation.

According to the International Energy Agency (IEA), hydrogen is a “versatile energy carrier.” Generating it does have an environmental impact, however.

The IEA has said that hydrogen production is responsible for roughly 830 million metric tons of carbon dioxide each year. It’s within this context that the idea of green hydrogen is so attractive.

“Working together with Siemens Mobility, we want to drive sector coupling by developing, among other things, an electrolysis and fueling solution for the fast fueling of hydrogen-powered trains,” Armin Schnettler, who is executive vice president of Siemens Energy’s New Energy Business, said in a statement.

Siemens shareholders voted to spin off the industrial giant’s energy business back in July. The standalone firm, Siemens Energy, made its debut on the Frankfurt Stock Exchange last week. Its largest shareholder is Siemens. Siemens Mobility remains part of the larger Siemens organization.

Hydrogen fuel-cell plane

Elsewhere, trials of a hydrogen-powered train in the U.K. got underway at the end of September, while

Tough news today as PMRC, the recently announced joint venture between Deadline parent company PMC and MRC, will lay off around 50 of the 250 employees who are coming over from Billboard, The Hollywood Reporter and Vibe. I got from a THR source a copy of an internal email sent out this morning by MRC co-CEOs Modi Wiczyk and Asif Satchu (read below). Editorial is not expected to be among those laid off. As often happens in a joint venture like this, layoffs will fall in the area of brand support employees, where there are shared positions in the back offices of PMC and MRC. Those impacted are being told this morning and the memo discloses that there will be exit packages and up to six months of COBRA insurance, and job placement assistance offered. There will be approximately 40 layoffs today, while the rest will stay temporarily in a transitioning process. Deadline is not directly part of the PMRC configuration, but after reporting all the painful consolidation at agencies and studios in the past six months, we certainly feel for those impacted by this morning’s action. Here is the memo from Wiczyk and Satchu just sent out.

Colleagues –

With the news of Billboard, The Hollywood Reporter and VIBE moving into PMRC, our joint venture with Penske Media (PMC), many questions about the path forward have begun to circulate. As you can imagine, there are various elements to the strategy for a stable and long-term future for these iconic brands and not everything can possibly be covered in one letter. We will gather on Friday, and will discuss more in the coming weeks.

For now, our first and most painful step has implications on our workforce. Unfortunately, we will be saying goodbye to some of our colleagues today. It’s