Thursday August 9, 2:16 pm Eastern Time
Press ReleaseSOURCE: DAG Media Inc.
DAG Media, Inc. Announces Second Quarter Financial Results
Net revenue for the quarter ended June 30, 2001 was $1,432,000 compared with $135,000 for the same period last year. There was a net loss of $(1,000) and no earnings per share (based on 2.91 million shares) compared with a net loss of $(258,000), or $(.09) per diluted share (based on 2.91 million shares) for the comparative period ended June 30, 2000. The primary cause for the increase in revenues and income was the fact that in the three months ended June 30, 2001 two yellow page directories were published including ``NewYellow,'' whereas in the three months ended June 30, 2000, only one directory was published.
Net revenue for the six months ended June 30, 2001 was $2,935,000 compared with $2,769,000 for the same period last year. Net income for the period was $65,000, or $.02 per diluted share (based on 2.91 million shares), compared with a net loss of $(405,000), or $(.14) per diluted share (based on 2.91 million shares), in the prior year. The primary cause for the increase in revenues and income was the fact that in the six months ended June 30, 2000, there was a loss of $(511,000) taken into account the cumulative effect of change in accounting principle whereas this loss did not effect the 2001 period.
Assaf Ran, the company's CEO commented, ``We are facing a very competitive and challenging period and I am confident in our Company's ability to overcome and increase our market share in the yellow page market. The fourth edition of our Manhattan New Yellow directory is scheduled for October of this year and hopefully, by then, we will see the breakthrough that we anticipate.''
On July 9, 2001, the Company's CFO, Orna Kirsh gave notice to the Company's Board of Directors that she would not be renewing her employment contract that terminated on July 19, 2001 due to personal considerations. Ms. Kirsh indicated that she would remain with Company until August 15, 2001 thereby allowing management enough time to transition in a new CFO. The transitioning CFO, Yael Shimor-Golan began her employment on July 31, 2001. Mrs. Yael Shimor-Golan, who maintains her CPA in Israel, previously worked at Marks, Paneth & Shron LLP, a Manhattan accounting firm since 1999. From 1995 until 1999, Mrs. Shimor-Golan was a Partner at the firm Shimon Dill & Co. an accounting firm in Jerusalem, Israel. Ms. Kirsh added, `` I wish the Company success. I know the Company has grown in the last few years and I hope it continues its growth further. The transition DAG Media has made from a private to public Company was most beneficial to its shareholders as well as to the success thus achieved.''
DAG Media publishes and distributes yellow page directories in print and on the World Wide Web. DAG Media also operates several Web sites 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. BALANCE SHEET JUNE 30, 2001 (unaudited) Assets Current assets: Cash and cash equivalents $6,652,893 Restricted cash 244,987 Trade accounts receivable, net of allowance for doubtful accounts of $528,500 2,313,962 Directories in progress 1,430,585 Deferred tax asset 78,202 Other current assets 210,700 Total current assets 10,931,329 Fixed assets, net of accumulated depreciation of $89,820 243,619 Goodwill and trademarks, net of accumulated amortization of $114,835 1,236,146 Other assets 17,346 Total assets $12,428,440 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued expenses $126,664 Accrued commissions and commissions payable 552,000 Advanced billing for unpublished directories 3,236,666 Income tax payable 296,090 Total current liabilities 4,211,420 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 (68,387) Retained earnings 596,843 Total shareholders' equity 8,217,020 Total liabilities and shareholders' equity $12,428,440 DAG MEDIA, INC. STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2001 2000 2001 2000 Advertising revenues $1,431,633 $135,498 $2,934,832 $2,768,952 Publishing costs 599,645 61,466 788,952 562,282 Gross profit 831,988 74,032 2,145,880 2,206,670 Operating costs and expenses: Selling expenses 490,452 84,491 1,076,055 944,389 Administrative and general 513,083 568,976 1,188,169 1,247,657 Total operating costs and expenses 1,003,535 653,467 2,264,224 2,192,046 Interest income 80,708 106,263 162,888 186,262 Gain on sale of investments 89,863 -- 89,863 -- Other income 170,571 106,263 252,751 186,262 (Loss) earnings from operations before provision (benefits) for income taxes and cumulative effect of change in accounting principle (976) (473,172) 134,407 200,886 Provision (benefit) for income taxes -- (215,359) 69,000 (94,707) Cumulative effect of change in accounting principle, net of tax benefit -- -- -- (511,071) Net (loss) income available to common shareholders $(976) $(257,813) $65,407 $(404,892) Net (loss) income per common share --Basic Income before cumulative effect of change in accounting principle $0.00 $(.09) $.02 $.04 Cumulative effect of change in accounting principle -- -- -- (.18) Net loss (income) per common share $0.00 $(.09) $.02 $(.14) --Diluted Income before cumulative effect of change in accounting principle $0.00 $(.09) $.02 $.04 Cumulative effect of change in accounting principle -- -- -- (.18) Net loss (income) per common share $0.00 $(.09) $.02 $(.14) Weighted average number of common shares outstanding --Basic 2,907,460 2,907,460 2,907,460 2,907,460 --Diluted 2,907,460 2,907,460 2,910,384 2,908,133
|SOURCE: DAG Media, Inc.|