DAG Media, Inc. Announces First Quarter Financial Results


Wednesday May 9, 9:43 am Eastern Time

Press Release

SOURCE: DAG Media, Inc.

DAG Media, Inc. Announces First Quarter Financial Results

NEW 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.

Email this story

Back to the Press Releases