DAG MEDIA ANNOUNCES RECORD REVENUES AND EARNINGS FOR THE FIRST NINE MONTHS OF 1999
KEW GARDENS, N.Y., Oct. 21 /PRNewswire/ -- DAG Media, Inc. (Nasdaq: DAGM) announced today that net advertising revenues, net income, and net income per share for the nine months and quarter ending September 30, 1999 have exceeded the expectations of analysts in spite of added expenses for expanded marketing, public relations, and improved management and human resources.
Net advertising revenue and net income for the third quarter ending September 30, 1999 were $2,159,000 and $426,000, respectively; and for the first nine months of the year were $4,428,000 and $876,000, respectively. Net advertising revenue and net income for the third quarter of 1998 were $1,688,000 and $548,000, respectively; and for the first nine months of 1998 were $2,675,000 and $592,000, respectively. The increased earnings resulted from higher than expected advertising revenues, including strong advertising revenue numbers from the online publication of New Yellow, the company's general interest English-only yellow page directory. Other factors that contributed to DAG's successful third quarter earnings included a fortified sales force, additional sales offices, and sales via newly expanded online services.
The weighted average number of DAG's common shares outstanding for the three months and nine months period ended September 30, 1999, were 2,964,785 and 2,968,695, respectively. These figures are significantly higher than the 1,250,000 weighted average common shares outstanding for the comparative quarter and nine month period in 1998 because DAG Media hadn't had its initial public offering until May, 1999. On a comparative basis, using the weighted average shares outstanding at September 30, 1999 for calculating net income per share, the net income per share results for the quarter ended September 30, 1999 and 1998 was $.14 and $.18 per share, respectively; and for the nine month period ended September 30, 1999 and 1998 was $.30 and $.20 per share, respectively.
Assaf Ran, President and Chief Executive Officer stated: "We are extremely pleased with our performance to date. The third quarter and nine month results give me great confidence in our business plan and in our future growth. We are especially pleased with the strong performance of New Yellow, which saw great increases in sales, and has established itself as a strong competitor against Bell Atlantic Yellow Pages. I am looking forward to the Company's continuing growth in."
As the Company continues to perform strongly and revenue increases, DAG Media is still buying back its shares through the stock re-purchase program recently initiated by the Company. Ran believes strongly in DAG Media's value and growth potential, and also feels the DAG's current stock price is undervalued.
Looking ahead to the fourth quarter and 2000, DAG Media will continue to expand its marketing and promotion activities, increase efforts to market via Web portals, improve management, and will hire an investor relations executive. The Company expects its working capital to increase significantly over the next 12 months due to the marketing of New Yellow and the expansion of online services.
DAG Media is the leading independent print and on-line publisher of yellow page directories, including New Yellow, a general interest yellow page directory that is challenging the monopoly of the Bell Atlantic Yellow Pages in the New York market. The company's directories are published on the Internet at http://www.porty.com.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this release which look forward in time involve risks and uncertainties that may cause actual results or achievements to materially differ from those indicated by the forward-looking statements. These forward-looking statements include any statements relating to increased demand for the Company's services, expansion of the Company's business as well as any other statements which are not solely historical. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance that the forward-looking statements will prove to be accurate. The Company's documents filed with the SEC identify important factors that may cause the actual results to differ materially from those indicated by the forward-looking statements.
SOURCE DAG Media, Inc. -0- 10/21/1999 /CONTACT: Assaf Ran, CEO of DAG Media, 718-263-8454/ /Web site: http://www.porty.com/ (DAGM)
CO: DAG Media, Inc. ST: New York IN: MLM PUB SU: ERN -0- Oct/21/1999 12:08 EOS (PRN) Oct/21/1999 12:08 85 -0- (PRN) Oct/21/1999 12:23