BSML, Inc. Announces Revenue and Net Income for its Second Quarter and First Half Ended June 30, 2007

Name	Symbol	Market	Type
Invesco BulletShares 2021 Municipal Bond	NASDAQ:BSML	NASDAQ	Exchange Traded Fund

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	0.00	0.00%	25.195	19.77	27.52				0	01:00:00

Invesco BulletShares 202... (NASDAQ:BSML)
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WALNUT CREEK, Calif., Aug. 13 /PRNewswire-FirstCall/ -- BSML, Inc., formerly known as BriteSmile, Inc., (OTC:BSML) today announced its financial results for its fiscal second quarter and first half ended June 30, 2007. For the Company's second quarter ended June 30, 2007, revenues decreased approximately 13%, to $6.8 million, compared to $7.8 million in the second quarter of 2006. Center revenues, primarily related to performance of our whitening procedures, decreased by $1.4 million, with sales of our teeth whitening products through other channels, primarily the QVC network, increasing by $0.4 million. The Company's net loss in the second quarter of 2007 was $0.7 million, or $0.07 per share, compared to a net loss of $0.8 million, or $0.07 per share in the second quarter of 2006. The net loss for the second quarter of 2006 included a non-recurring gain on settlement of litigation in the amount of $1.3 million. For the Company's first half ended June 30, 2007, revenues from continuing operations increased approximately 1%, to $13.9 million, compared to $13.8 million in the first half of 2006. The Company's net loss from continuing operations in the first half of 2007 was $1.1 million, or $0.10 per share, compared to a net loss from continuing operations of $10.1 million, or $0.96 per share, in the first half of 2006. Included in the net loss from continuing operations for the first half of 2006 are non-recurring items totaling $5.2 million, including a $5.0 million loss associated with early extinguishment of debt, $0.5 million expense for debt discount amortization on now-retired debt, $0.8 million in other non-recurring or non-operating expenses and the $1.3 million non-recurring gain on settlement of litigation mentioned above. The Company does not expect similar non-recurring expenses of this magnitude in 2007 or future periods. The Company had no income from discontinued operations in the first half of 2007. However, the Company's sale of its Associated Centers business in first quarter of 2006 resulted in reported income from discontinued operations for the first half of 2006 of $21.0 million, or $1.99 per share. (Net income from discontinued operations for 2006 was subsequently revised in the third quarter of 2006 to reflect additional legal expenses, net of tax, of $1.7 million, resulting in income from discontinued operations for fiscal 2006, net of tax, of $19.3 million.) The Company's net loss in the first half of 2007 was $1.1 million, or $0.10 per share, compared with net income of $10.9 million, or $1.03 per share, in the first half of 2006. The Company's EBITDA (defined as earnings before interest, tax, depreciation, amortization and large non-recurring gains and losses including income from discontinued operations) for the second quarter ended June 30, 2007, was a loss of $0.5 million, compared to a loss of $1.4 million in the second quarter of 2006. For the first half ended June 30, 2007, the Company's EBITDA was a loss of $0.6 million, compared to a loss of $4.1 million in the first half of 2006. EBITDA is a non-GAAP financial measure. More information regarding this non-GAAP financial measure, and a reconciliation of EBITDA to net loss, the most directly comparable GAAP measure, is provided below. Dr. Julian Feneley, BSML's President and Chief Executive Officer, commented on the Company's results as follows: "The year over year revenue comparison is impacted by the strong response in Q2 2006 to the whitening procedure price decrease announced at that time. However, we remain pleased by a significant increase in our revenues from distribution of our BriteSmile-To- Go(TM) product through the QVC network and, despite lower overall revenues, by a significant improvement in our EBITDA, which was achieved through marketing and operating expense optimization. In addition, during the period we reached a satisfactory agreement to settle the Smile, Inc. litigation." The Company finished its 2007 fiscal first half with $2.6 million in cash, compared with $4.7 million at December 30, 2006. The decrease is almost entirely due to operating uses, including payments to vendors and for income taxes and the redemption of outstanding gift certificates. Non-GAAP Financial Information BSML provides non-GAAP EBITDA, defined by the Company as earnings before interest, taxes, depreciation, amortization and large non-recurring gains and losses 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. BSML's management believes this non-GAAP measure is useful to investors because it adjusts for large non-cash or non-recurring items, including: (i) the significant amount of non-cash depreciation and amortization historically incurred by the Company in its operating results, (ii) the non-cash amortization of the discount on debt of $0.5 million in the first quarter of 2006, (iii) the loss on the early extinguishment of debt of $5.0 million reported in the first quarter of 2006 and (iv) the non-recurring $1.3 million gain on settlement of a legal claim we recognized in the second quarter of 2006. Our calculation of EBITDA further excludes results from discontinued operations. Investors are cautioned that the items excluded from EBITDA are significant components in understanding and assessing BSML's financial performance. BSML, Inc., formerly known as BriteSmile, Inc., markets the most advanced teeth whitening technology available and manages state-of-the-art BriteSmile Professional Teeth Whitening Centers. BSML Spa Centers are currently operating in Beverly Hills, Irvine, Palo Alto, Walnut Creek, San Francisco and La Jolla, CA; Houston, TX; Denver, CO; Boston, MA; McLean, VA; Atlanta, GA; New York, NY; Chicago and Schaumburg, IL. For more information about BSML's procedures, 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. Readers are referred to the documents filed by BSML with the Securities and Exchange Commission, specifically the Company's most recent reports on Forms 10-K, 10-K/A and 10-Q, that identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements. BSML and its affiliates disclaim any intent or obligation to update these forward-looking statements. Summary Unaudited Financial Results Follow Condensed Consolidated Statement of Operations Unaudited (In thousands, except per share amounts) 26 Weeks 13 Weeks 13 Weeks 26 Weeks Ended Ended Ended Ended July 1, June 30, July 1, June 30, 2006 2007 2006 2007 (restated) Revenues $6,778 $7,760 $13,939 $13,795 Operating costs and expenses: Operating and occupancy costs 3,585 3,663 7,229 7,001 Selling, general and administrative expenses 3,693 5,522 7,359 10,858 Depreciation and amortization 361 714 723 821 Total operating costs and expenses 7,639 9,899 15,311 18,680 Loss from operations (861) (2,139) (1,372) (4,885) Amortization of discount on debt -- -- -- (530) Loss on early extinguishment of debt -- -- -- (5,039) Gain on settlement of legal claim -- 1,257 -- 1,257 Other income / (expense), net 176 119 317 (845) Loss from continuing operations before income tax provision (685) (763) (1,055) (10,042) Income tax provision 19 11 37 46 Net loss from continuing operations (704) (774) (1,092) (10,088) Discontinued operations (Note 5): Income from discontinued operations, net of tax (twenty-six weeks ended July 1, 2006, includes gain from sale of business of $14,664, net of tax, and gain on settlement of litigation of $5,202, net of tax) -- -- -- 20,996 Net income (loss) attributable to common shareholders $(704) $(774) $(1,092) $10,908 Basic and diluted net loss per common share from continuing operations $(0.07) $(0.07) $(0.10) $(0.96) Basic net income per common share from discontinued operations $-- $-- $-- $1.99 Diluted net income per common share from discontinued operations $-- $-- $-- $1.99 Basic net income (loss) per common share $(0.07) $(0.07) $(0.10) $1.03 Diluted net income (loss) per common share $(0.07) $(0.07) $(0.10) $1.03 Shares used in computing net loss per common share from continuing operations, basic and diluted 10,744 10,549 10,731 10,549 Shares used in computing net income per common share from discontinued operations, basic 10,744 10,549 10,731 10,549 Shares used in computing net income per common share from discontinued operations, diluted 10,744 10,555 10,731 10,559 Shares used in computing net income (loss) per common share, basic 10,744 10,549 10,731 10,549 Shares used in computing net income (loss) per common share, diluted 10,744 10,555 10,731 10,559 Condensed Consolidated Balance Sheet Unaudited (In thousands) June 30, 2007 December 30, (Unaudited) 2006 ASSETS Current assets: Cash and cash equivalents $2,601 $4,734 Trade accounts receivable, net 353 213 Inventories 1,043 1,273 Investments, restricted as to use 177 3,625 Prepaid expenses and other current assets 266 243 Total current assets 4,440 10,088 Property and equipment, net 3,641 4,258 Investments, restricted as to use 6,199 2,761 Other assets 930 958 Total assets $15,210 $18,065 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $905 $1,770 Accrued liabilities 6,305 6,776 Accrual for Center closures 178 170 Gift certificate liability 1,252 1,775 Deferred revenue 2,972 2,590 Total current liabilities 11,612 13,081 Long term liabilities: Accrual for Center closures 238 258 Deferred revenue 905 1,352 Other long term liabilities 782 892 Total long term liabilities 1,925 2,502 Total liabilities 13,537 15,583 Shareholders' equity Common stock, $0.001 par value, 50,000,000 shares authorized, 10,744,281 and 10,664,281 shares issued and outstanding at June 30, 2007 and December 30, 2006, respectively 39 39 Additional paid-in capital 174,186 173,903 Accumulated deficit (172,552) (171,460) Total shareholders' equity 1,673 2,482 Total liabilities and shareholders' equity $15,210 $18,065 Reconciliation of Net Income / (Loss) to EBITDA Unaudited (In thousands) 13 Weeks 13 Weeks 26 Weeks 26 Weeks Ended Ended Ended Ended June 30, July 1, June 30, July 1, 2007 2006 2007 2006 Net income (loss) $(704) $(774) $(1,092) $10,908 Deduct: income from discontinued operations -- -- -- (20,996) Deduct: gain on settlement of legal claim -- (1,257) -- (1,257) Add: income tax provision 19 11 37 46 Add (deduct): other (income) / expense, net (176) (119) (317) 845 Add: loss on early extinguishment of debt -- -- -- 5,039 Add: amortization of discount on debt -- -- -- 530 Add: depreciation and amortization 361 714 723 821 EBITDA $(500) $(1,425) $(649) $(4,064) DATASOURCE: BSML, Inc. CONTACT: Investors, Rich De Young, CFO, +1-925-279-2883, or Media, Dr. Julian Feneley, CEO, +1-925-279-2863, both of BSML, Inc. Web site: http://www.britesmile.com/

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BSML Invesco BulletShares 2021 Municipal Bond