NEW YORK, Nov. 6 /PRNewswire-FirstCall/ -- DAG Media
Inc. (Nasdaq: DAGM
- News)
Net advertising revenues for the quarter ended September 30, 2002
were $1,850,000 versus $1,464,000 for the same period last year, an
increase of $386,000 or 26%. The increase resulted primarily from
increased sales of the Jewish Israeli Yellow Pages, the 25th edition
of which was published during the third quarter. Publication of the
Jewish Israeli Yellow Pages accounted for the majority of third quarter
revenues. Cash and cash equivalents increased by $125,000 to $7,148,000
or $2.40 per share versus the same period last year.
Net loss for the quarter of $87,000 $(0.03 per share) compared with
a net income of $124,000 ($0.04 per share) for the quarter ended September
30, 2001. The decrease resulted primarily from the consolidation of
Blackbook, which, because of its publication cycle, did not generate
revenue in the third quarter.
Net advertising revenues for the nine months ended September 30,
2002 were $4,805,000 compared with $4,399,000 for the same period
last year, an increase of $406,000 or 9.2%. Net loss for the period
was $886,000 $(0.31 per share) compared with a net income of $183,000,
($0.07 per share), in the prior year. The increase resulted primarily
from increased advertising revenues from publication of the twenty-fifth
edition of the Jewish Israeli Yellow Pages as well as publication
of the fifth edition of the New Yellow Manhattan directory. The primary
cause for the net loss was a goodwill write-off of $895,000 as required
by the new SEC regulations, SFAS No. 141 and 142. Before giving effect
to the goodwill write-off, net income for the nine months ended September
30, 2002 was $9,000 versus net income of $183,000 in the prior year.
The company also reported $3,956,000 in deferred revenue.
Assaf Ran, Chairman of the Board and CEO stated, "We are encouraged
by the increasing market penetration of our New Yellow Manhattan directory
as well as by the continuing strong performance of the Jewish Israeli
Yellow Pages, particularly in the face of reduced advertising budgets
for many customers in today's generally slack economy. Based on the
performance of New Yellow we intend to shortly open a fourth New Yellow
sales office. We are also pleased with the progress we have made in
restructuring Blackbook's operations and integrating it with our other
activities. We expect Blackbook to contribute to our financial performance
beginning with its publication of Blackbook Photography in December.
Blackbook Photography is the largest directory published by Blackbook.
In recognition of the importance of Blackbook to our future, our Board
of Directors elected Howard Bernstein to the Board. Mr. Bernstein
is the CEO and proprietor of Bernstein & Andriulli, a leading
artist management agency. I'm confident that Mr. Bernstein's excellent
skills and knowledge will help us better understand Blackbook's market
and industry environments."
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.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 1,762,762
Preferred stocks and other
marketable securities 5,384,970
Total cash and cash equivalents,
preferred stocks and other marketable
securities 7,147,732
Trade accounts receivable, net of allowance
for doubtful accounts of $867,148 2,644,431
Directories in progress 1,755,120
Other current assets 191,954
Total current assets 11,739,237
Fixed assets, net of accumulated
depreciation of $158,901 288,542
Deferred Tax Asset 472,606
Trademarks, net of accumulated
amortization of $47,385 303,596
Intangibles in connection with
Blackbook acquisition 333,422
Other assets 27,823
Total assets $ 13,165,226
Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable and accrued expenses $1,007,403
Accrued commissions and commissions payable 808,794
Advanced billing for unpublished directories 3,959,334
Income tax payable 188,257
Total current liabilities 5,963,788
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;
2,996,190 issued and 2,927,460 outstanding 2,996
Additional paid-in capital 8,033,066
Treasury stock, at cost-68,730 shares (231,113)
Deferred Compensation (154,098)
Unrealized gains on preferred stocks 22,470
Retained earnings (471,883)
Total shareholders' equity 7,201,438
Total liabilities and
shareholders' equity $13,165,226
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months ended
September 30, September 30,
2002 2001 2002 2001
Advertising
revenues $1,849,750 $1,464,425 $4,805,025 $4,399,257
Publishing costs 294,933 212,922 1,024,299 1,001,873
Gross profit 1,558,055 1,251,503 3,780,726 3,397,384
Operating costs and
expenses:
Selling expenses 862,339 624,000 1,861,337 1,700,054
General and
administrative 912,989 479,407 2,072,480 1,667,598
Total operating
costs and
expenses 1,775,328 1,103,407 3,933,817 3,367,652
(Loss) income
from operation (220,511) 148,096 (153,091) 29,732
Interest income 46,462 74,018 169,250 320,324
(Loss) earnings
before provisions for
Income taxes and
cumulative effect
of change in
accounting
principle (174,049) 222,114 16,159 350,056
Benefit (provision)
for income taxes 86,753 (98,490) (7,397) (167,490)
(Loss) income before
cumulative effect of
change in accounting
principal (87,296) 123,624 8,762 182,566
Cumulative effect of
change in accounting
principle, ---- ---- (895,000) ----
Net (loss) income $(87,296) $123,624 $(886,238) $182,566
Earnings (loss)
per common share:
Basic -
(Loss) income before
cumulative effect of
change in accounting
principle $(0.03) $0.04 $0.00 $0.07
Cumulative effect
of change in
accounting principle ---- ---- (0.31) 0.00
Net (loss) income
per common share $(0.03) $0.04 $(0.31) $0.076
Diluted-
(Loss) income before
cumulative effect of
change in accounting
principal $(0.03) $0.04 $0.00 $0.07
Cumulative effect of
change in accounting
principle ---- ---- (0.31) 0.00
Net (loss) income
per common share $( 0.03) $0.04 $(0.31) $0.07
Weighted average number
of common shares
Outstanding
- Basic 2,927,460 2,907,460 2,921,516 2,907,460
- Diluted 2,927,460 2,908,744 2,931,330 2,914,438
