DAG Media, Inc. Reports Second Quarter Consolidated Financial Results
Tuesday August 5, 8:06 pm ET
NEW YORK, Aug. 5 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News), a leading independent publisher of print and online business page directories, announced today that consolidated net advertising revenue for the quarter ended June 30, 2003 was $1,526,000, versus $1,381,000 for the same period last year, an increase of $145,000 or 10.50%. The increase was primarily attributable to the general growth in business activity and to THE BLACKBOOK's contribution to recognized revenue. There was a net loss of $227,000 or $(0.08) per diluted share (based on 2.92 million shares) compared with a net loss of $72,000 and $(0.02) per diluted share (based on 2.92 million shares). The primary cause for the increase in net loss was the inclusion of THE BLACKBOOK's net loss of $149,000 in the Company's consolidated financial statements.
Net revenue for six months ended June 30, 2003 was $3,688,000 compared with $2,955,000 for the same period last year. Net Loss for the period was $161,000 or $(0.05) per diluted share (based on 2.92 million shares), compared with a net loss of $799,000, or $(0.27) per diluted share (based on 2.92 million shares), in the prior period. The increase in revenues resulted primarily from increased advertising revenue, of the Jewish Israeli Yellow Pages, both its 2002 second edition and the first 2003 edition, as well as THE BLACKBOOK's contribution of $151,000 to recognized revenue for the six months period ended June 30, 2003.
The Company also reported increased cash, cash equivalents and other marketable securities of $331,000 to $7,339,000 or $2.5 per share versus the same period last year. As of June 30, 2003 the Company also reported current assets of $12,698,000, total assets of $13,908,000, total shareholders' equity of $6,897,000 and a record high deferred revenues of $5,618,000, most to be recognized in the third and fourth quarter of this year.
DAG Media Chairman of board and Chief Executive Officer Assaf Ran remarked, "The progress we have achieved during the second quarter of 2003 is reflected by the record high deferred revenue section of which the vast majority will be realized upon publication of our directories in the third and fourth quarters of this year".
"In July 28th 2003, we appointed Mr. Ted Rubin as president of our subsidiary, BLACKBOOK Photography Inc. We trust Mr. Rubin's capability to lead THE BLACKBOOK to great success," added Mr. Ran.
DAG Media publishes and distributes three yellow page directories in print as well as photography and illustration directories. We also operate several web sites that complement our directories at www.newyellow.com and at www.blackbook.com.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
DAG MEDIA, INC. CONSOLIDATED BALANCE SHEET JUNE 30, 2003 (Unaudited) Assets Current assets: Cash and cash equivalents $644,562 Marketable securities 6,694,683 Total cash and cash equivalents and Marketable securities 7,339,245 Trade accounts receivable, net of allowance for doubtful accounts of $898,000 2,804,210 Directories in progress 2,200,230 Deferred tax assets 153,389 Other current assets 200,955 Total current assets 12,698,029 Fixed assets, net of accumulated depreciation of $166,618 287,749 Goodwill 458,131 Trademarks and other intangibles, net 441,037 Other assets 23,411 Total assets $13,908,357 Liabilities and Shareholder's Equity Current liabilities: Accounts payable and accrued expenses $592,117 Accrued commissions and commissions payable 801,414 Advanced billing for unpublished directories 5,618,188 Total current liabilities 7,011,719 Shareholders' equity: Preferred shares -$0.01 par value; 5,000,000 shares authorized; no shares issued -- Common shares - $0.001 par value; 25,000,000 shares authorized; 2,996,190 issued and 2,927,460 outstanding 2,996 Additional paid-in capital 7,990,575 Treasury stock, at cost-68,730 shares (231,113) Deferred Compensation (99,086) Accumulated other comprehensive income 72,896 Accumulated deficit (839,630) Total shareholders' equity 6,896,638 Total liabilities and shareholders' equity $13,908,357 DAG MEDIA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 Advertising revenues $1,525,746 $1,380,742 $3,687,622 $2,955,275 Publishing costs 494,870 520,843 832,659 737,366 Gross profit 1,030,876 859,899 2,854,963 2,217,909 Operating costs and expenses: Selling expenses 524,327 548,935 1,549,546 998,998 General and administrative 838,062 495,262 1,558,434 1,151,491 Total operating costs and expenses 1,362,389 1,044,197 3,107,980 2,150,489 (Loss) income from operation (331,513) (184,298) (253,017) 67,420 Total other income, net 52,662 51,971 107,861 122,789 (Loss) income before (provisions) benefit for income taxes (278,851) (132,327) (145,155) 190,209 Benefit (provision) for income taxes 51,820 60,711 (15,838) (94,151) (Loss) income before cumulative effect of change in accounting principle (227,031) (71,616) (160,993) 96,058 Cumulative effect of change in accounting principle -- -- -- (895,000) Net loss $(227,031) $(71,616) $(160,993) $(798,942) Net (loss) income per common share: ---Basic (Loss) income before cumulative effect of change in accounting principle $(0.08) $(0.02) $(0.05) $0.03 Cumulative effect of change in accounting principle -- -- -- (0.30) Net loss per common share $(0.08) $(0.02) $(0.05) $(0.27) ---Diluted (Loss) income before cumulative effect of change in accounting principle $(0.08) $(0.02) $(0.05) $0.03 Cumulative effect of change in accounting principle -- -- -- (0.30) Net loss per common share $(0.08) $(0.02) $(0.05) $(0.27) Weighted average number of common shares outstanding - Basic 2,927,460 2,925,486 2,927,460 2,918,495 - Diluted 2,927,460 2,925,486 2,927,460 2,933,454 DAG MEDIA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Six Months Ended Ended June 30, June 30, 2003 2002 Cash flows from operating activities: Net loss $(160,993) $(798,942) Adjustment to reconcile net income (loss) to net cash provided by operating activities - Cumulative effect of change in accounting principle -- 895,000 Depreciation and amortization 80,684 39,312 Amortization of deferred compensation 4,428 1,893 Bad debt expense 321,057 407,998 Deferred taxes 285,715 13,109 Changes in operating assets and liabilities- Accounts receivable (459,170) (711,663) Directories in progress (89,402) (344,657) Other current and noncurrent assets (69,618) (155,333) Accounts payable and accrued expenses (160,088) 18,046 Accrued commissions and commissions payable (6,637) 183,000 Advance billing for unpublished directories 836,637 418,702 Income taxes payable (270,551) (4,448) Net cash provided by (used in) operating activities 312,062 (37,983) Cash flows from investing activities: Proceeds from sale of marketable securities, net 2,848,778 3,274,944 Purchase of fixed assets (99,832) (39,687) Proceeds from sale of fixed assets 46,200 -- Investment in marketable securities (2,665,066) (4,001,094) Net cash provided by (used in) investing activities 130,080 (765,837) Cash flows from financing activities: Proceeds from exercise of stock option -- 21,200 Net cash provided by financing activities -- 21,200 Net increase (decrease) in cash $442,142 $(782,620) Cash and cash equivalents, beginning of period 202,420 3,229,179 Cash and cash equivalents, end of period $644,562 $2,446,559