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DAG Media, Inc. Announced Third Quarter Consolidated Financial Results And A $0.25 Cash Dividend Per ShareThursday November 6, 4:03 pm ETNEW YORK, Nov. 6 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News) Dag Media, Inc., a leading independent publisher of print and online business directories, announced today that consolidated net advertising revenue for the quarter ended September, 2003 was $2,178,000, versus $1,850,000 for the same period last year, an increase of $328,000 or 17.73%. The increase was primarily attributable to the general growth in business activity and reflects an increase in sales of the latest editions of the Jewish Israeli Yellow Pages directories, increased web related income and individual book's sales. Cash and cash equivalents $8,320,000 and deferred revenues of $5,393,000. Net income for the quarter was $1,138,000, or $0.39 per share, compared with a net loss of 87,000 for the quarter ended September 30, 2002. The increase results primarily due to the sale of the New Yellow Directory which is reflected on the other income section. On August 22nd, 2003 the company sold its New Yellow directory to Yellow Book USA, Inc. for $1.3 million in cash. The company's net profit before provision for income taxes from the sale totaled $1,208,000. Net advertising revenue for the nine months ended September 30, 2003 were $5,866,000 compared with $4,805,000 for the same period last year, an increase of $1,061,000 or 22.01%. Net income for the period was $1,151,000, or $0.39 per share, compared with a net loss of $886,000, or $(0.31 per share), in the prior year. The increase resulted primarily from the general growth in business activity and reflects an increase in sales of the latest editions of the Jewish Israeli Yellow Pages directories. In addition, the increase attributable to the increased web related income, book's sales revenues and income sources from award show entry fees as well as revenues derives from reprints and production charges. Due to the increase in both income and cash related to the sale of the New Yellow Directory, the Board of directors decided today on a $0.25 per share cash dividend distribution to all shareholders on record as of December 15, 2003. Assaf Ran, Chairman of board and CEO stated, "Since the sale of New Yellow we are exploring a verity of exciting opportunities. We have already successfully launched the new Complete Industry Directory of the Blackbook as well as the new Blackbook stock.com web site. Both now, generating revenues on a daily basis. In addition, we are in process of reviewing additional ventures which I hope to execute in the near future." "With the buds of recovery in the advertising industry I'm optimistic about next year," added Mr. Ran. DAG Media publishes and distributes Yellow Pages directories in print and online as well as photography, illustration and design directories. We also operate several web sites that complement our directories at http://www.newyellow.com and at http://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
September 30, 2003
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 169,013
Marketable securities 8,150,755
Total cash and cash equivalents
and marketable securities 8,319,768
Trade accounts receivable, net of
allowance for doubtful accounts of $798,000 2,569,529
Directories in progress 2,019,920
Deferred tax asset 631,739
Other current assets 161,874
Total current assets 13,702,830
Fixed assets, net of accumulated depreciation
of $ 189,616 309,752
Goodwill 458,131
Trademarks and other intangibles, net 430,155
Other assets 123,412
Total assets $ 15,024,280
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 141,017
Accrued commissions and commissions payables 779,569
Advanced billing for unpublished directories 5,392,755
Income Tax Payable 479,298
Total current liabilities 6,792,639
Shareholders' equity:
Preferred shares - $ .01 par value;
5,000,000 shares authorized; no shares
issued --
Common shares - $ .001 par value;
25,000,000 authorized; 3,003,190 issued
and 2,934,460 outstanding 3,003
Additional paid-in capital 8,001,208
Treasury stock, at cost- 68,730 shares (231,113)
Deferred compensation (92,316)
Accumulated other comprehensive income 78,500
Retained earnings 472,359
Total shareholders' equity 8,231,641
Total liabilities and shareholders'
equity $ 15,024,280
The accompanying notes are an integral part of this balance sheet.
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Advertising revenues $2,178,238 $1,849,750 $5,865,860 $4,805,025
Publishing costs 262,854 294,933 1,095,513 1,024,299
Gross Profit 1,915,384 1,554,817 4,770,347 3,780,726
Operating costs and
expenses:
Selling expenses 991,530 862,339 2,541,076 1,861,337
Administrative and
general costs 900,657 912,989 2,459,090 2,072,480
Total operating costs
and expenses 1,892,187 1,775,328 5,000,166 3,933,817
Income (loss) from
operations 23,197 (220,511) (229,819) (153,091)
Other income 103,678 46,462 211,539 169,250
Gain from sale of the
New Yellow Directory 1,207,997 -- 1,207,997 --
Total other income 1,311,675 46,462 1,419,536 169,250
Income (loss) before
(provision) benefit
for income taxes 1,334,872 (174,049) 1,189,717 16,159
(Provision) benefit
for income taxes (196,443) 86,753 (38,721) (7,397)
Income (loss) before
cumulative effect of
change in accounting
principle 1,138,429 (87,296) 1,150,996 8,762
Cumulative effect of
change in accounting
principle -- -- -- (895,000)
Net income (loss) $1,138,429 $(87,296) $1,150,996 $(886,238)
Net income (loss) per
common share
-Basic
Income (loss) before
cumulative effect of
change in accounting
principle $ 0.39 $ (0.03) $ 0.39 $ 0.00
Cumulative effect of
change in accounting
principle -- -- -- (0.31)
Net income (loss) per
common share $ 0.39 $ (0.03) $ 0.39 $ (0.31)
-Diluted
Income (loss) before
cumulative effect of
change in accounting
principle $ 0.38 $ (0.03) $ 0.37 $ 0.00
Cumulative effect of
change in accounting
principle -- -- -- (0.31)
Net income (loss) per
common share $ 0.38 $ (0.03) $ 0.37 $ (0.31)
Weighted average number
of common shares
outstanding
-Basic 2,929,895 2,927,460 2,928,281 2,921,516
-Diluted 3,011,636 2,927,460 3,102,791 2,931,330
The accompanying notes are an integral part of these financial statements
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
2003 2002
Cash flows from operating activities:
Net income (loss) $ 1,150,996 $ (886,238)
Adjustment to reconcile net income
(loss) to net cash provided by (used in)
operating activities:
Gain on sale of New Yellow Directory (1,207,997) --
Cumulative effect of change in accounting
principle -- 895,000
Depreciation and amortization 118,815 66,605
Amortization of deferred compensation 11,198 10,513
Bad debt expense 667,944 830,359
Realized gain on preferred stocks and
marketable securities -- 2,035
Deferred taxes (192,635) --
Changes in operating assets and liabilities-
Accounts receivable (571,376) (752,293)
Directories in progress 90,906 (253,161)
Other current assets (38,722) (68,417)
Other assets 8,181 --
Accounts payable and accrued expenses (611,188) (28,137)
Accrued commissions and commissions payable (28,481) 163,837
Advance billing for unpublished directories 611,204 409,393
Income taxes payable 208,749 (78,094)
Net cash provided by (used in) operating
activities 217,594 (311,402)
Cash flows from investing activities:
Proceeds from sale of marketable securities,
net 4,460,453 3,327,925
Purchase of fixed assets (149,082) (60,480)
Cash received on sale of New Yellow Directory,
net of expenses 1,207,997 --
Proceeds from sale of fixed assets 46,200 --
Cash paid for acquisition of subsidiary -- (70,537)
Investment in Dune Medical Devises Ltd. (100,000) ---
Investment in marketable securities (5,727,209) (4,995,927)
Net cash used in investing activities (261,641) (1,799,019)
Cash flows from financing activities:
Proceeds from exercise of stock options 10,640 21,200
Net cash provided by financing activities 10,640 21,200
Net decrease in cash $ (33,407) $ (1,466,417)
Cash and cash equivalents, beginning of period 202,420 3,229,179
Cash and cash equivalents, end of period $ 169,013 $ 1,762,762
The accompanying notes are an integral part of these financial statements.
Source: DAG Media Inc. |
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