DAG Media, Inc. Announces First Quarter Financial Results
Wednesday May 9, 9:43 am Eastern Time Press ReleaseSOURCE: DAG Media, Inc.DAG Media, Inc. Announces First Quarter Financial ResultsNEW YORK, May 9 /PRNewswire/ -- DAG Media Inc. (Nasdaq: DAGM - news) announced its financial results for the first quarter ended March 31, 2001. Net revenue for the three months ended March 31, 2001 was $1,503,000 compared with $2,633,000 for the same period last year. Net income for the quarter totaled $66,000, or $0.02 per diluted share (based on 2.91 million shares), compared with $(147,000), or $(0.05) per diluted share (based on 2.91 million shares), in the prior year. The primary cause for the decrease in revenues and income was the fact that in the first quarter of fiscal year 2001 only one main publication, JewishYellow was printed and distributed whereas in the comparable prior years' quarter, two main publications were released. The purpose for the change in publication schedules was to change our production schedule thereby distributing the employee workload more evenly and thus in effect reducing overhead costs. Assaf Ran, the company's CEO explained, ``This quarter's revenue reflects sales related to only one of our ethnic directories. Our mainstream directory, NewYellow, continues in its growth and was published in the beginning of April 2001 as opposed to being published in March, the first quarter, as in the prior year 2000. The elected timing has been to the company's benefit in both tangible and intangible ways. Overtime costs were lowered while employee job satisfaction was raised. We recently opened a new NewYellow sales office in Long Island City''. DAG Media publishes and distributes yellow page directories in print and on the World Wide Web. DAG Media also operates several Web site on the Internet including 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.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2001 2000
Advertising revenues $ 1,503,199 $ 2,633,454
Publishing costs 189,307 500,816
Gross profit 1,313,892 2,132,638
Operating costs and expenses:
Selling expenses 585,603 859,898
General and administrative 675,086 678,681
Total operating costs and expenses 1,260,689 1,538,579
Income from operations 53,203 594,059
Interest income 82,180 79,999
Earnings from operations before
provision for income taxes 135,383 674,058
Provision for income taxes 69,000 310,066
Cumulative effect of change in
accounting principle, net of
tax benefit $435,356 -- (511,071)
Net income available to common shareholders $ 66,383 $ (147,079)
Earnings (loss) per common share:
Basic -
Income before cumulative effect of change
in accounting principle $ .02 $ .13
Cumulative effect of change in
accounting principle -- (.18)
Net income (loss) $ .02 $ (.05)
Diluted -
Income before cumulative effect of
change in accounting principle $ .02 $ .13
Cumulative effect of change in
accounting principle -- (.18)
Net income (loss) $ .02 $ (.05)
Weighted average number of common
shares outstanding
- Basic 2,907,460 2,907,460
- Diluted 2,909,846 2,912,621
DAG MEDIA, INC.
BALANCE SHEET
MARCH 31, 2001
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $7,154,030
Trade accounts receivable, net of
allowance for doubtful accounts
of $475,157 2,280,328
Directories in progress 1,386,367
Deferred tax asset 162,859
Other current assets 153,732
Total current assets 11,137,316
Fixed assets, net of accumulated
depreciation of $78,683 212,822
Goodwill and trademarks, net of
accumulated amortization of $101,324 1,249,657
Other assets 14,196
Total assets $ 12,613,991
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $123,320
Accrued commissions and
commissions payable 544,616
Advanced billing for
unpublished directories 3,351,648
Income tax payable 380,745
Total current liabilities 4,400,329
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 7,916,701
Treasury stock, at cost- 68,730 shares (231,113)
Deferred compensation ( 72,724)
Retained earnings 597,822
Total shareholders' equity 8,213,662
Total liabilities and
shareholders' equity $ 12,613,991
SOURCE: DAG Media, Inc.
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