DAG Media, Inc. Announces Third Quarter Financial Results


NEW YORK, Oct. 27 /PRNewswire/ -- DAG Media Inc. (Nasdaq: DAGM - news) announced today its financial results for the third quarter and nine months ended September 30, 2000.

Net revenue for the three months ended September 30, 2000 was $1,812,000 compared with $1,594,000 for the same period last year. Net income for the quarter totaled $142,000, or $0.05 per diluted share (based on 2.91 million shares), compared with $146,000, or $0.05 per diluted share (based on 2.97 million shares), in the prior year.

For the nine months ended September 30, 2000, net revenues was $5,295,000, an increase of $1,432,000, or 37.1%, from the $3,863,000 reported during the same period last year. Net income for the first nine months was $440,000, or $.15 per diluted share (based on 2.91 million shares), compared with $597,000, or $0.29 per diluted share (based on 2.07 million shares), reported during the first nine months of 1999.

``This quarters' revenue reflects sales related to our ethnic directories as well as the internet ad sales. Our mainstream directories are our main growth potential and are not reflected in this quarter. We are making significant progress with our Manhattan Yellow Pages and are preparing the launch of Queens and Brooklyn directories next year,'' commented Assaf Ran, CEO.

DAG Media publishes and distributes three yellow page directories in print and on the World Wide Web. DAG Media also operates a portal Web site on the Internet at http://www.newyellow.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. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

                           Three Months Ended           Nine Months Ended
                              September 30,               September 30,
                              2000          1999         2000          1999


    Net advertising
     revenues           $1,812,034    $1,593,800   $5,295,479    $3,862,581
    Publishing costs       187,697        68,074    1,040,509       398,843
    Gross profit         1,624,337    $1,525,726    4,254,970     3,463,738

    Operating costs
     and expenses:
    Selling expenses       773,052       949,037    1,779,137     1,568,819
    Administrative and
     general               686,459       408,988    1,929,155       910,987
    Total operating costs
     and expenses        1,459,512     1,358,025    3,708,293     2,479,806

    Interest income        111,252        86,838      297,514       129,899

    Earnings from operations
     before provision for
     income taxes and
     equity in loss
     of affiliate          276,078       254,539      844,192     1,113,831

    Provision for
     income taxes          133,648       108,677      404,173       514,590

    Equity in loss
     of affiliate               --            --           --       (2,654)

    Net income available
     to common
     shareholders         $142,430      $145,862     $440,019      $596,587

    Net income per
    common share
     --Basic                 $0.05         $0.05        $0.15         $0.29
     --Diluted               $0.05         $0.05        $0.15         $0.29

    Weighted average number
     of common shares
     outstanding
     --Basic             2,907,460     2,964,785    2,907,460     2,070,485
     --Diluted           2,907,460     2,965,104    2,910,201     2,070,502

                        DAG MEDIA, INC. BALANCE SHEET
                              SEPTEMBER 30, 2000
                                 (unaudited)
    Assets
    Current assets:
    Cash and cash equivalents                     $6,110,730
    Trade accounts receivable, net of allowance
     for doubtful accounts of $460,000             2,507,521
    Directories in progress                          657,966
    Other current assets                              78,452
    Total current assets                           9,354,669
    Restricted cash                                1,000,000
    Fixed assets, net of accumulated
     depreciation of $ 56,865                        222,658
    Goodwill and trademarks, net of
     accumulated amortization of $74,305           1,276,676
    Other assets                                     103,005

    Total assets                                 $11,957,008

    Liabilities and Shareholders' Equity

    Current liabilities:
    Accounts payable and accrued expenses            $59,764
    Accrued commissions and commissions payable      541,683
    Advanced billing for unpublished directories   1,486,201
    Income tax payable                               403,859
    Deferred tax payable                             497,080
    Total current liabilities                      2,988,587

    Shareholders' equity:
     Preferred shares - $ .01 par value;
     5,000,000 shares authorized; no shares issued        --
    Common shares - $.001 par value; 25,000,000
     authorized; 2,976,190 issued and
     2,907,460 outstanding                             2,976
    Additional paid-in capital                     7,799,789
    Treasury stock, at cost- 68,730 shares         (231,113)
    Retained earnings                              1,396,769
    Total shareholders' equity                     8,968,421
    Total liabilities and
     shareholders' equity                        $11,957,008

 

SOURCE: DAG Media Inc.

 

Back to the Press Releases