BSML Invesco BulletShares 2021 Municipal Bond

WALNUT CREEK, Calif., Aug. 15 /PRNewswire-FirstCall/ -- BriteSmile, Inc. (NASDAQ:BSML), a leading international provider of state-of-the-art teeth- whitening systems, today released results for the second quarter of 2005 ended June 25. Total revenue for the second quarter was $10.0 million, or 21% below the second quarter of 2004. The net loss was $(6.8) million or $(0.65) per share in the second quarter, compared with $(0.7) million or $(0.07) per share in the second quarter of 2004. Earnings before interest, tax, depreciation, and amortization (EBITDA) was a loss of $(3.9) million in the second quarter 2005. This compares to an EBITDA of $1.1 million in the second quarter of last year. Information regarding a reconciliation of EBITDA, which is a non-GAAP financial measure, to net loss, the most comparable GAAP measure, follows. Other key results for the second quarter were: -- Center whitening fees of $4.1 million were 15% below last year. -- Associated Center whitening fees of $4.5 million were 24% lower than the second quarter of 2004. -- Product sales and other revenue of $1.4 million were 25% below last year. -- Two new BriteSmile whitening Centers were opened in the second quarter: Madison Avenue in New York City in May, and Union Square in San Francisco, California, in June. A third new center at Tysons Galleria in McLean, Virginia, opened last week. -- Stonefield Josephson replaced Deloitte & Touche as the Company's independent audit firm. "Both revenue and EBITDA performance for the quarter were very disappointing" said Julian Feneley, BriteSmile's President. "In order to immediately improve BriteSmile's operating performance, we are focusing marketing on high potential markets and the most productive tactics, testing third party call center vendors, expanding the footprint in the retail and dental channels, and controlling expenses." BriteSmile has developed and manufactures the most advanced teeth whitening technology available, as well as manages state-of-the-art BriteSmile Professional Teeth Whitening Centers. BriteSmile Centers are currently operating in Beverly Hills, Irvine, Palo Alto, Walnut Creek, San Francisco and La Jolla, CA; Houston, TX; Denver, CO; Boston, MA; Boca Raton, FL; Atlanta, GA; New York, NY; Chicago and Schaumburg, IL; and, Phoenix, AZ. In addition to BriteSmile Centers, the Company has established more than 5,000 Associated Centers. Of the BriteSmile Associated Centers, more than 2000 are located outside of the United States, in more than 75 countries. For more information about BriteSmile's procedure, call 1-800-BRITESMILE or visit the Company's Website at http://www.britesmile.com/ . This release, other than historical information, consists of forward- looking statements that involve risks and uncertainties such as the Company's ability to continue past revenue and EBITDA growth, its ability to establish Associated Centers and Professional Teeth Whitening Centers, the ability of those Centers to attract clients, the development and introduction of new products, acceptance of those new products in the marketplace, development of new strategic and marketing relationships in the United States and internationally, and the Company's continued ability to secure financing to support its operations. 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-K and 10-Q, 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 any intent or obligation to update these forward-looking statements. Non-GAAP Financial Information BriteSmile provides non-GAAP EBITDA or earnings before interest, taxes, depreciation and amortization as additional information for its operating results. These measures are not in accordance with, or an alternative for, financial measures calculated in accordance with generally accepted accounting principles, including net income or loss, the most directly comparable GAAP measure, and may be different from non-GAAP measures used by other companies. BriteSmile's management believes this non-GAAP measure is useful to investors because of: (i) the significant amount of non-cash depreciation and amortization incurred by the Company in its operating results ($1.6 million in the second quarter of 2005 and $1.7 million in the second quarter of 2004), (ii) the non-cash amortization of the discount on debt of $0.7 million in the second quarter of 2005 and $0.1 million in the second quarter of 2004, and (iii) the mark-to-market loss related to the convertible notes of $0.1 million in the second quarter of 2005. Investors are cautioned that the items excluded from EBITDA are significant components in understanding and assessing BriteSmile's financial performance. BRITESMILE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA (unaudited) ($ in thousands, except share data) 13 weeks 13 weeks 26 weeks 26 weeks ended ended ended ended June 25, June 26, June 25, June 26, 2005 2004 2005 2004 REVENUES: Center whitening fees, net $4,149 $4,903 $8,581 $9,244 Associated Center whitening fees, net 4,521 5,955 8,683 10,962 Product and other revenue 1,399 1,873 2,752 4,295 Total revenues, net 10,069 12,731 20,016 24,501 OPERATING COSTS AND EXPENSES: Operating and occupancy costs 5,060 4,068 9,261 8,174 Selling, general and administrative expenses 8,815 7,414 17,874 14,256 Research and development expenses 74 143 149 315 Total Operating Costs and Expenses, excluding depreciation, amortization and stock grant non-cash charge 13,948 11,625 27,283 22,745 Operating income (loss) before depreciation and amortization (EBITDA) excluding stock grant non-cash charge (3,879) 1,106 (7,268) 1,756 Depreciation and amortization 1,618 1,677 3,209 3,350 Loss from operations (5,498) (571) (10,477) (1,594) Amortization of discount on debt (663) (65) (1,300) (128) Gain (loss) on mark-to- market of convertible note instruments (99) -- 2,631 -- Other income/(expense), net (517) (93) (725) (192) Loss before income tax provision (6,777) (729) (9,871) (1,914) INCOME TAX 25 -- 121 57 Net loss $(6,802) $(729) $(9,992) $(1,971) BASIC AND DILUTED NET LOSS PER SHARE $(0.65) $(0.07) $(0.95) $(0.19) WEIGHTED AVERAGE SHARES - BASIC AND DILUTED 10,548,621 10,309,478 10,519,416 10,250,885 Reconciliation of Non-GAAP financial measures - EBITDA to Net Loss (unaudited) ($ in thousands) 13 13 26 26 weeks weeks weeks weeks ended ended ended ended June 25, June 26, June 25, June 26, 2005 2004 2005 2004 Net loss $(6,802) $(729) $(9,992) $(1,971) Add back: Other income/ (expense), net 517 93 725 192 Add back: Amortization of debt discount 663 65 1,300 128 Add back: Income tax expense 25 -- 121 57 Add back: Stock grant non-cash charge -- -- 504 -- Add back: Depreciation and amortization 1,618 1,677 3,209 3,350 (Gain)/loss from mark-to-market of financial instruments related to convertible debt 99 -- (2,631) -- EBITDA (3,879) 1,106 (6,764) 1,756 BRITESMILE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ($ in thousands, except share data) June 25, December 25, 2005 2004 ASSETS CURRENT ASSETS: Cash and cash equivalents $9,956 $18,880 Trade accounts receivable, net of allowances of $469 and $448, respectively 2,262 2,118 Inventories 1,067 1,635 Prepaid expenses and other 674 704 Total current assets 13,959 23,337 PROPERTY AND EQUIPMENT, net 12,865 12,426 OTHER ASSETS 3,157 3,843 INTANGIBLES, net 5,142 5,469 TOTAL ASSETS $35,123 $45,075 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $5,568 $5,182 Accrued liabilities 6,475 6,867 Deferred revenue 1,787 1,049 Current portion of long-term debt and capital lease obligations 1,816 2,137 Total current liabilities 15,646 15,235 LONG-TERM LIABILITIES: Long-term debt and capital lease obligations 12,265 15,650 Other long term liabilities 1,848 1,608 Total long-term liabilities 14,113 17,258 Total liabilities 29,758 32,493 STOCKHOLDERS' EQUITY: Common stock, $.001 par value; 50,000,000 shares authorized; 10,522,646 and 9,525,265 shares issued and outstanding, respectively 38 38 Additional paid-in capital 173,062 170,601 Accumulated deficit (167,736) (158,057) Total shareholders' equity 5,365 12,582 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $35,123 $45,075 DATASOURCE: BriteSmile, Inc. CONTACT: investors, Kenneth A. Czaja, CFO, +1-925-941-6260, or media, Chris Edwards, +1-925-279-2926, both of BriteSmile, Inc. Web site: http://www.britesmile.com/

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