DAG Media Reports Fiscal
Year 2000 Financial Results
Monday March 26, 3:59 pm Eastern Time
NEW YORK, March 26 /PRNewswire/ -- DAG Media, Inc (Nasdaq: DAGM), a leading independent print and online publisher of yellow page directories, today announced that the Company's net advertising revenue for the fiscal year ended December 31, 2000 was $6,237,000, a significant 42.9% increase compared to revenues of $4,365,000 for fiscal year 1999.
The Company's gross profit increased to $4,815,000 in fiscal 2000 from $3,927,000 in the 12-month period ending December 31, 1999.
In fiscal 2000, DAG Media's income before provision for income taxes and equity in loss of affiliate was $173,000 as opposed to $827,000 in 1999. This 79% decrease is primarily attributable to increases in both publishing costs and general and administrative costs associated with the initial publication year of New Yellow and the initial full calendar year in which the company has maintained itself as a publicly traded NASDAQ company. The resulting net loss of $(425,000) compared to net income of $433,000 in 1999 was also due to a cumulative effect of change in accounting principle (as required by GAAP under SAB 101) of $(511,000). Basic net (loss) income per common share outstanding was ($0.15) in 2000 and $0.19 in 1999, based on the basic weighted average number of common shares of 2,907,460 and 2,285,639, respectively.
``This year we expect to publish and distribute the third edition of New Yellow - Manhattan in the beginning of the second quarter as opposed to the end of the first quarter of fiscal year 2000, the initial directory publication period. The purpose of the change in the publication schedule is to level our revenues from quarter to quarter in 2001, and thereafter, so that at least one major directory is published each quarter,'' added Orna Kirsh, the Company's Chief Financial Officer.
As of December 31, 2000, the Company reported $7,149,000, or approximately $2.46 per share, in cash and cash equivalents, current assets of $11,153,000, and total assets of $12,653,000. DAG Media also reported total shareholders' equity of $8,143,000 and deferred revenues of $3,545,000.
DAG Media Chairman of the Board and Chief Executive Officer Assaf Ran remarked, ``We have broken into the $100 million Manhattan yellow page market and will continue to expand our foothold into 2001 and beyond. We are also preparing to approach the other New York City boroughs.''
``We are now starting our second year publication of New Yellow Manhattan and receiving great responses from our original advertisers which are up for their advertisement renewals for the 2001 directory. We also are reaching record numbers of visitors at our NewYellow.com nationwide online directory,'' added Mr. Ran.
DAG Media publishes and distributes 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.
SOURCE: DAG Media, Inc