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.

 

SOURCE: DAG Media, Inc.

Back to the Press Releases