BriteSmile Reports Third Quarter Results.Business Editors Walnut Creek Walnut Creek, residential city (1990 pop. 60,569), Contra Costa co., W Calif., in the San Francisco Bay area; inc. 1914. It is the trade and shipping center of an extensive agricultural area where walnuts are among the major product. , CA--(BUSINESS WIRE)--February 7, 2000 BriteSmile, Inc. (AMEX AMEX See: American Stock Exchange : BWT BWT Burrows Wheeler Transform (compression technology) BWT Boundary Waters Treaty (United States and Canada) BWT Basic Warrior Training BWT Bronchial Wall Thickness BWT Big White Truck ) Company Reports Record Sales as Nationwide Expansion Continues; Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. A. Poch, Managing Director of Pequot Pequot (pē`kwŏt), Native North Americans whose language belongs to the Algonquian branch of the Algonquian-Wakashan linguistic stock (see Native American languages). Capital, Elected as Director BriteSmile, Inc. (AMEX: BWT), the leading national provider of advanced teeth whitening Teeth Whitening Definition Teeth whitening is the process of using bleach or other materials to make teeth look whiter. The materials remove stains or other discoloration from the tooth surface. solutions, today reported record sales for the fiscal third quarter and nine months. Contributing to this growth was the opening of ten BriteSmile Professional Teeth Whitening Centers and the expansion of the Company's Associated Center dentist dentist /den·tist/ (den´tist) a person with a degree in dentistry and authorized to practice dentistry. den·tist n. A person who is trained and licensed to practice dentistry. base across the U.S. and internationally. Third Quarter Results For the three months ended December December: see month. 31, 1999, BriteSmile reported record sales of $2.4 million. During the year-earlier period, the Company had not yet introduced its Light Activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. Teeth Whitening System and therefore reported no sales for the fiscal 1998 third quarter. The Company's revenue growth is due to the expansion of both its Associated Center dentist base and BriteSmile Professional Teeth Whitening Centers. As of December 31, 1999, the Company had ten company-owned Centers and over 250 dentists Dentists can refer to one of the following:
The earliest stage of a new business venture. costs associated with the increased expansion of the Company's BriteSmile Professional Teeth Whitening Centers and Associated Center platform. This compares to a loss of $3.0 million, or $0.30 per share, for the three months ended December 31, 1998. Nine Month Results For the nine months ended December 31, 1999, revenues increased 837.5% to $4.7 million, compared with $0.5 million for the nine months ended December 31, 1998, largely reflecting an increase in the number of Associated Centers offering the BriteSmile teeth whitening process. The Company reported a net loss of $16.4 million, or $0.87 per share, for the nine months ended December 31, 1999, compared to a loss of $8.5 million, or $1.04 per share, for the nine months ended December 31, 1998. The increase in net loss largely reflects start-up costs associated with the increased expansion of the Company's BriteSmile Teeth Whitening Centers and Associated Center platform. John L. Reed, Chief Executive Officer of BriteSmile, said, &uot;We are tremendously encouraged by the response, nationwide, of dentists and consumers alike to our teeth whitening technology (patents pending). Our advanced system is safe, effective and affordable - driving the rapid expansion BriteSmile Centers and Associated Centers not only in the U.S. but internationally as well.&uot; BriteSmile plans to introduce nine additional company-owned centers in seven nationwide markets within the next twelve months, including new centers in Miami (3), Chicago, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Seattle, Phoenix, Dallas and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . At the same time, BriteSmile is expanding its network of Associated Centers nationwide. With over 250 dentists currently signed up to operate the BriteSmile Teeth Whitening Systems in existing dental offices, the BriteSmile Associated Centers will be principally located in 14 major metropolitan areas across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in which wholly-owned BriteSmile Centers will operate, enabling the Company to maximize its advertising and marketing efforts. BriteSmile recently announced that it would be accelerating the roll-out of new centers by offering its proprietary teeth whitening procedure through centers affiliated with Orthodontic orthodontic (ôr´th  dän´tik),adj Centers of America (NYSE NYSE See: New York Stock Exchange : OCA OCA oculocutaneous albinism. ). This affiliate relationship is expected to begin later this month in Atlanta and Miami, and will be expanded nationwide through the remainder of the year. In addition, BriteSmile recently introduced its Light Activated Teeth Whitening System into Japan, Argentina and Switzerland through BriteSmile Associated Centers. The Company continues to plan for further international expansion. Equity Investment Effective January 18, 2000, BriteSmile secured a $20 million equity investment from Pequot Capital Management. Proceeds will be used for general working capital purposes and to continue the aggressive expansion of its retail platform. The Company also announced that Gerald A. Poch, a Managing Director of Pequot Capital, has joined the Board of Directors. About BriteSmile BriteSmile, Inc. has developed and manufactures the most advanced teeth-whitening technology in the United States, as well as manages state-of-the-art BriteSmile Professional Teeth Whitening Centers. Its 11 company-owned, dentist supervised su·per·vise tr.v. su·per·vised, su·per·vis·ing, su·per·vis·es To have the charge and direction of; superintend. [Middle English *supervisen, from Medieval Latin BriteSmile Centers are currently operating in Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Irvine, Pasadena, Walnut Creek, Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. and La Jolla La Jolla (lə hoi`yə), on the Pacific Ocean, S Calif., an uninc. district within the confines of San Diego; founded 1869. The beautiful ocean beaches, in particular La Jolla shores and Black's Beach, and sea-washed caves attract visitors and , CA; Denver, CO; Honolulu, HI; Atlanta, GA; Boston, MA; and Houston, TX. BriteSmile Teeth Whitening Systems are located within existing dentist offices in cities including: Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , and San Francisco, CA; Honolulu, HI; Tucson, AZ; Denver, CO; Louisville, KY; Boston, MA; Raleigh, NC; New York, NY; Toronto, ON; and Houston, TX. For more information about BriteSmile and its whitening whit·en·ing n. 1. An agent used to make something white or whiter. 2. The act or process of making white or whiter. Noun 1. centers, call 1-800-BRITESMILE or visit the Company's Website at www.britesmile.com. Financial table attached Cautionary Statement This release, other than historical information, consists of forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties such as the development and introduction of new products, acceptance of those new products in the marketplace and development of new strategic and marketing relationships in the United States and internationally. Readers are referred to the documents filed by BriteSmile with the Securities and Exchange Commission, specifically the Company's most recent reports on Forms 10-KSB and 10-QSB, that identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements. BriteSmile and its affiliates disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intent or obligation to update these forward-looking statements.
BRITESMILE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
December 31, December 31,
1999 1998
--------------------------
REVENUES:
Center whitening fees, net............... $ 1,683,081 $ -
Associated Center whitening fees, net.... 599,259 -
Product sales............................ 70,244 -
----------- -----------
Total revenues, net.................. 2,353,584 -
----------- -----------
OPERATING COSTS AND EXPENSES
Center selling and occupancy costs....... 3,470,857 -
Whitening and product cost of sales...... 147,719 -
Selling, General and Administrative expenses 4,088,352
2,530,000
Research and development expenses........ 348,225 1,525,090
Depreciation and amortization............ 372,384 26,259
Termination benefits, impairment charges and
write-down of assets................. 91 -
----------- -----------
Total operating costs and expenses... 8,427,628 3,010,157
----------- -----------
Loss from operations........... (6,075,044) (3,010,157)
----------- -------------
OTHER INCOME (EXPENSE), net:
Interest expense..................... (5,666) (20,914)
Interest income...................... 94,754 46,971
----------- -----------
Total other income (expense), net..... 89,088 26,057
----------- -----------
Loss before income tax provision... (5,985,956) (2,984,100)
INCOME TAX PROVISION..................... - -
----------- -----------
Net loss.............................. $(5,985,956) $(2,984,100)
============ ============
Basic and diluted net loss per share..... $ (0.30) $ (0.30)
=========== ===========
Weighted average common shares outstanding,
basic and diluted..................... 20,074,016 10,048,410
=========== ===========
Nine Months Ended
December 31, December 31,
1999 1998
----------------------------
REVENUES:
Center whitening fees, net............... $ 3,642,285 $ -
Associated Center whitening fees, net.... 957,914 -
Product sales............................ 97,329 500,957
----------- ------------
Total revenues, net.................. 4,697,528 500,957
----------- ------------
OPERATING COSTS AND EXPENSES
Center selling and occupancy costs....... 6,720,716 -
Whitening and product cost of sales...... 375,929 423,290
Selling, General and Administrative expenses 1,458,808 11,824,711
2,530,000
Research and development expenses........ 1,417,540 2,922,272
Depreciation and amortization............ 774,442 95,000
Termination benefits, impairment charges and
write-down of assets................. 301,291 3,127,000
----------- ------------
Total operating costs and expenses... 21,414,629 9,097,562
----------- ------------
Loss from operations........... (16,717,101) (8,596,605)
------------ ------------
OTHER INCOME (EXPENSE), net:
Interest expense..................... (23,776) (72,221)
Interest income...................... 333,798 130,657
----------- ------------
Total other income (expense), net..... 310,022 58,436
----------- ------------
Loss before income tax provision... (16,407,079) (8,538,169)
INCOME TAX PROVISION..................... - -
----------- ------------
Net loss.............................. $(16,407,079) $(8,538,169)
=========================
Basic and diluted net loss per share..... $ (0.87) $ (1.04)
=========== ============
Weighted average common shares outstanding,
basic and diluted..................... 18,783,918 8,233,305
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