BriteSmile, Inc. Reports First Quarter Results
Appoints New Board Member
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Thursday August 5, 2:16 pm Eastern Time
Company Press Release
BriteSmile, Inc. Reports First Quarter Results
Appoints New Board Member
LESTER, Pa.--(BUSINESS WIRE)--July 28, 1999--BriteSmile, Inc. (AMEX: BWT - news) today announced results for the first quarter ended June 30, 1999. The Company also has named Peter Schechter, founding partner of Chlopak Leonard Schechter and Associates, as a new member of its Board of Directors.
As previously announced, the Company exited all previous lines of business to focus exclusively on the development of its proprietary BriteSmile 2000 Teeth Whitening System and the launch of its new BriteSmile Teeth Whitening Centers, which began to open in 1999. Therefore, as expected, the Company reported a net loss for the first fiscal quarter.
The net loss for the quarter ended June 30, 1999 was ($3,527,000), or ($0.20) per share, compared to a net loss of ($2,115,000), or ($0.30) per share, for the quarter ended June 30, 1998. The loss is principally attributable to the introduction and operation of BriteSmile Teeth Whitening Centers and Associated Centers, including advertising costs, professional service costs as well as the operating start up losses at new centers. During the quarter ended June 30, 1999, the Company opened three BriteSmile Teeth Whitening Centers and five BriteSmile Associated Teeth Whitening Centers.
Revenues for the quarter increased 243% to $874,000 from $360,000 in the prior year. The increase in revenues principally reflects initial revenues from the recently opened BriteSmile Teeth Whitening Centers and Associated Centers.
Currently, BriteSmile Teeth Whitening Centers are open in Walnut Creek, Pasadena, Irvine and Beverly Hills, California. In addition, BriteSmile Associated Centers, in which the proprietary BriteSmile Teeth Whitening procedure is available within an existing dental office, are now open in: Louisville, KY; Denver, CO; Houston, TX; Toronto, ON; Huntington, NY, Canton, MA and San Francisco, CA. The Company plans to open additional Centers and Associated Centers in major markets during 1999 and 2000.
During the first fiscal quarter, BriteSmile announced a joint venture with Mejiro Precision Inc. of Japan to launch the BriteSmile 2000 system in Japan. The Company also announced a partnership with Orthodontic Centers of America (OCA) to offer the BriteSmile system in selected OCA locations. The Company expects to place Associated Centers in several international markets during 1999 and 2000 and introduce the BriteSmile system in several OCA locations in 1999.
Also during the first fiscal quarter, BriteSmile secured an additional $15 million in financing from private investors and virtually every member of BriteSmile senior management. The funds will be used to further the expansion of BriteSmile's retail platform.
''This has been a very exciting quarter for BriteSmile as we continued to open BriteSmile Teeth Whitening Centers and Associated Centers across North America, as well as negotiated key strategic partnerships that will further expand our presence both domestically and internationally,'' said John L. Reed, BriteSmile's Chief Executive Officer. ''The feedback we are receiving from customers of our BriteSmile Centers is excellent, and we look forward to providing even more people with whiter, brighter smiles in just over an hour through our proven revolutionary and safe teeth whitening process. We have in place a strong retail platform for accelerated revenue growth, and plan to build on the success of our new Centers to create significant value for our shareholders in the years ahead.''
Results for the three-month period are summarized in the table
below:
(Unaudited)
For the Three Months Ended
--------------------------
June 30, 1999 June 30, 1998
------------- -------------
Net Sales $ 874,000 $ 360,000
Net (Loss) $ (3,527,000) $ (2,115,000)
(Loss) per share $ (.20) $ (.30)
Weighted average common shares
issued and outstanding 17,536,551 6,974,653
The Company also announced that it has named Peter Schechter as a Director of BriteSmile. Prior to forming CLS, an international communications consulting firm, Mr. Schechter was Managing Director at the Sawyer/Miller Group, specializing in the management of international financial issues, corporate image, political campaigns and country image programs. A graduate of the School of Advanced International Studies at Johns Hopkins University, Mr. Schechter has lived in Europe and Latin America and has extensive experience in the area of communicating images for private and public sector clients. He is fluent in six languages.
''Peter's international consulting and marketing expertise will be invaluable to BriteSmile as we continue our expansion in both the U.S. and abroad,'' said Mr. Reed. ''We look forward to his contributions in the years ahead.'' Mr. Schechter's appointment brings the BriteSmile Board of Directors to a total of eight members.
About BriteSmile
BriteSmile, Inc. develops 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. BriteSmile Centers are currently operating in Beverly Hills, Irvine, Pasadena and Walnut Creek, CA, with Associated Centers located within existing dentist offices in: Louisville, KY; Denver, CO; Houston, TX; Toronto, ON; Huntington, NY; Canton, MA and San Francisco, CA. For more information about BriteSmile's procedure, call 1-877-BRITESMILE or visit the Website at www.britesmile.com.
This release, other than historical information, consists of forward-looking statements that involve risks and uncertainties such as the development and introduction of new products and the acceptance of those new products in the marketplace. Readers are referred to the documents filed by BriteSmile with the Securities and Exchange Commission, specifically the Company's current and past reports on forms 10-QSB and 10-KSB, that identify important risk factors which could cause actual results to differ materially from those contained in the forward-looking statements. BriteSmile, its subsidiaries and affiliates disclaim any intent or obligation to update these forward-looking statements. |
