Thursday May 9, 4:21 pm Eastern Time
Press Release
SOURCE: DAG Media Inc.DAG Media, Inc. Announces First Quarter Financial Results - Back to Positive Cash Flow
NEW YORK, May 9 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - news) -- Net advertising revenues for the three months ended March 31, 2002 were $1,575,000. For the same period last year net revenues were $1,503,000. Due to a goodwill write-off of $895,000 as required by the new SEC regulations, SFAS No. 141 and 142, the net loss for the quarter totaled $727,000, or ($0.25) per diluted share (based on 2.91 million shares). This compared to a net income of $66,000, or $0.02 per diluted share (based on 2.91 million shares), in the same period last year. Before giving effect to the goodwill write-off, net income for the three months ended March 31, 2002 was $167,000 versus $66,000 in the prior year, an increase of $101,000. Earnings per diluted share increased to 0.06 versus 0.02 in the same period last year.
The primary cause for the increase in revenues was an increase in sales of the Jewish Israeli Yellow Pages, which was the only source providing recognized revenues this quarter. The company also reported $6,993,000 or $2.34 per share in cash and cash equivalents and $3,462,000 in deferred revenue.
"We're returning to growth and an earnings path. It seems that the New York and New Jersey economy is recovering from its recent recession and from the negative effect of September 11th. We are improving both average prices per add as well as closing rates per sales office. These are strong indications for a better future," said Assaf Ran, the company's chief executive officer and chairman of the board.
"We are now completing the distribution of the fifth edition of our Manhattan Yellow Pages, which has became the most popular directory among Manhattan residents," added Mr. Ran.
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.
BALANCE SHEET
MARCH 31, 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 4,758,883
Preferred stocks and other marketable securities 2,234,232
Total cash and cash equivalents, preferred stocks
and other marketable securities 6,993,115
Trade accounts receivable, net of allowance
for doubtful accounts of $ 785,000 2,379,008
Directories in progress 1,449,755
Deferred tax asset 141,477
Other current assets 241,945
Total current assets 11,205,300
Fixed assets, net of accumulated depreciation of $ 125,760 258,282
Trademarks, net of accumulated amortization of $ 40,365 310,616
Other assets 19,462
Total assets $11,793,660
Liabilities and Shareholder's Equity
Current liabilities
Accounts payable and accrued expenses $ 105,119
Accrued commissions and commissions payable 574,000
Advanced billing for unpublished directories 3,461,595
Income tax payable 305,582
Total current liabilities 4,446,296
Shareholders' equity:
Preferred shares -$0.01 par value; 5,000,000 shares
authorized; no shares issued --
Common shares - $0.001 par value; 25,000,000 shares
authorized; 2,986,200 issued and 2,917,460 outstanding 2,986
Additional paid-in capital 7,872,697
Treasury stock, at cost-68,730 shares (231,113)
Deferred Compensation (15,293)
Unrealized gains on preferred stocks 31,056
Retained earnings (312,969)
Total shareholders' equity 7,759,064
Total liabilities and shareholders' equity $ 11,793,660
DAG MEDIA, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2002 March 31,2001
Advertising revenues $ 1,574,533 $ 1,503,199
Publishing costs 216,523 189,307
Gross profit 1,358,010 1,313,892
Operating costs and expenses:
Selling expenses 450,063 585,603
General and administrative 656,229 675,086
Total operating costs and expenses 1,106,292 1,260,689
Income from operation 251,718 53,203
Interest income 70,818 82,180
Earnings from operations before provisions for
Income taxes and cumulative effect of change
in accounting principle 322,536 135,383
Provision for income taxes (154,862) (69,000)
Income before cumulative effect of change
in accounting principal 167,674 66,383
Cumulative effect of change in accounting
principle, (895,000) --
Net income (loss) $ (727,326) $ 66,383
Earnings (loss) per common share:
Basic -
Income before cumulative effect of change in
accounting principle 0.06 0.02
Cumulative effect of change in accounting
principle (0.31) --
Net income (loss) per common share (0.25) 0.02
Diluted-
Income before cumulative effect of change in
accounting principle 0.06 0.02
Cumulative effect of change in accounting
principle (0.31) --
Net income (loss) per common share (0.25) 0.02
Weighted average number of common shares
Outstanding
- Basic 2,911,793 2,907,460
- Diluted 2,911,950 2,909,846
SOURCE: DAG Media Inc.
