IF BWT would tell us how many clinics and outlets they have, we could estimate the individual revenue stream.
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.
So it looks like they had one center and opened 3, and had two associates and opened 5. $500K from 8 new outlets (of course, we could have some revenue from the three other outlets as well, and there may be several associates in the individual cities listed), that's 62,500 per outlet, or 125 procedures at $500 each. They claim to have a dentist at each of their four centers, what do they get paid? $50K? Minimum? That's 200K for four of them, or 50K for the quarter. Staff in the centers is probably 20-30K for the assistant, 20K for the receptionist-clerk, that's another 50K per Q, so at a minimum they are using 100K for staff, and probably another 20K for the office rentals, and 10K per Q for equipment and miscellaneous. If we figure that the four centers bring in 250K per Q (62.5K times 4), minus 130K is 120K for the four of them, or about $30K each, or $10K per month.
My numbers are probably too conservative, and I'd bet the BWT numbers are too generous. $10K earnings per month per center is not that much, and hardly justifies the market cap. Of course, these figures contain broad assumptions and BWT will counter that they are ramping up and will earn more and more per center. |
