Press Releases
DAG Media, Inc. Reports First Quarter Financial Results
NEW YORK, -- DAG Media Inc -- DAG Media, Inc. today announced that basic and diluted net loss per common share was $(0.05) in for the period ended March 31, 2007 versus basic and diluted net loss per common share of $(0.12) for the period ended March 31, 2006.
Net sales for the period ended March 31, 2007 were $25,000 versus net sales of $0 for the period ended March 31, 2006. This increase in net sales is mainly due to $24,000 in sales made through DAG Media, Inc.'s subsidiary, Shopila, Inc.'s marketplaces.
Loss from operations for the period ended March 31, 2007 was $242,000 compared to a loss of $207,000 for the period ended March 31, 2006, an increase of $35,000, or 16.9%. This increase is mainly due to nextyellow.com web development expenses of $12,000, an increase in payroll expenses of approximately $35,000, due to the acquisition of Shopila, Inc., and an increase in insurance expenses of approximately $6,000, offset by a decrease in shared based compensation expenses and professional fees.
For the period ended March 31, 2007, consolidated losses from continuing operation were $205,000 or $(0.06) per basic and diluted share (based on 3.236 million shares), compared to a loss of $249,000 or $(0.08) per basic and diluted share (based on 3.142 million shares), for the period ended March 31, 2006. The decrease in a loss of $44,000 resulted mainly from the increase in other income (net) of $67,000. The increase in other income (net) is primarily attributable to realized losses on marketable securities in 2007 in the amount of approximately $27,000, as compared to realized losses on marketable securities in 2006 in the amount of approximately $64,000.
We at DAG Media, Inc. through our subsidiaries, provide solutions to the online yellow pages industry by providing a local search and lead generation mechanism. We operate an e-commerce web site as well as several other web sites that complement our directories at http://www.nextyellow.com, http://www.shopila.com and http://www.dagmedia.com
This release contains forward-looking statements within the meaning Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the words "believe", "expect", "intend", "estimate" and similar expressions. Those statements appear in a number of places in this release and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) the successful integration of new businesses that we have acquired or may acquire; (ii) the successful consummation of the sale of our directories business; (iii) the success of our new business strategy; (iv) our limited operating history; (v) potential fluctuations in our quarterly operating results; (vi) challenges facing us relating to our growth; and (vii) our dependence on a limited number of suppliers. These forward-looking statements speak only as of the date of this release, and we caution potential investors not to place undue reliance on such statements. You should review all of our reports filed with the Securities and Exchange Commission along with this press release. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
DAG MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET
(unaudited)
Assets |
March 31, 2007 |
Current assets: |
|
Cash and cash equivalents |
$3,468,093 |
Marketable securities |
2,281,206 |
Short term investment – insurance annuity contract – at fair value |
1,124,607 |
Total cash and cash equivalents, marketable securities and short term investment |
6,873,906 |
|
|
Trade accounts receivable |
3,253 |
Due from purchaser- current portion |
350,548 |
Other current assets |
26,602 |
Total current assets |
7,254,309 |
|
|
Property and equipment, net |
15,361 |
Goodwill and other intangible assets, net |
449,057 |
Capitalized web development costs, net |
111,023 |
Due from purchaser- non current portion |
24,306 |
Other assets |
142,515 |
Total assets |
$7,996,571 |
Liabilities and Shareholders’ Equity
Current liabilities: |
|
Accounts payable and accrued expenses |
$131,623 |
Promissory note |
50,000 |
Income tax payable |
336,917 |
Deferred gain from the sale of Jewish Directories |
291,668 |
Total current liabilities |
810,208 |
Long term liabilities: |
|
Line of credit |
54,506 |
Deferred tax liability |
61,290 |
Total liabilities |
926,004 |
Commitments and contingencies |
|
Minority Interest |
60,148 |
|
|
Shareholders’ equity: |
|
Preferred shares - $.01 par value; 5,000,000 shares authorized; no shares issued |
---- |
Common shares - $.001 par value; 25,000,000 authorized; 3,305,190 issued and 3,236,460 outstanding |
3,305 |
Additional paid-in capital |
9,052,997 |
Treasury stock, at cost- 68,730 shares |
(231,113) |
Accumulated other comprehensive loss |
(67,316) |
Accumulated deficit |
(1,747,454) |
Total shareholders’ equity |
7,010,419 |
Total liabilities and shareholders’ equity |
$7,996,571 |
DAG MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31, |
||
|
2007 |
2006 |
|
|
|
Net Sales |
$25,024 |
$---- |
Cost of goods sold |
18,013 |
---- |
Gross profit |
7,011 |
---- |
Operating costs and expenses: |
|
|
Selling expenses |
4,833 |
---- |
Web development expenses |
12,336 |
---- |
Marketing expenses |
3,189 |
---- |
General and administrative expenses |
229,022 |
206,833 |
Total operating costs and expenses |
(249,380) |
(206,833) |
|
|
|
Loss from operations |
(242,369) |
(206,833) |
Other income (expenses) |
24,807 |
(42,629) |
Loss from continuing operations before provision for income taxes and minority interest |
(217,562) |
(249,462) |
Income tax benefit |
6,310 |
---- |
(Loss) from continuing operations before minority interest |
(211,252) |
(249,462) |
Minority interest |
6,576 |
---- |
(Loss) from continuing operations |
(204,676) |
(249,462) |
|
|
|
Discontinued Operations: |
|
|
Gain (loss) on the sale of discontinued operations |
48,611 |
(158,585) |
Gain from discontinued operations |
---- |
38,844 |
Income (Loss) from discontinued operations |
48,611 |
(119,741) |
|
|
|
Net loss |
$(156,065) |
$(369,203) |
|
|
|
Basic and Diluted net income (loss) per common share outstanding: |
|
|
Continuing operations |
$(0.06) |
$(0.08) |
Discontinued operations |
$0.01 |
$(0.04) |
Net loss per common share |
$(0.05) |
$(0.12) |
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
|
--Basic and Diluted |
3,236,460 |
3,142,460 |
|
|
|
DAG MEDIA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months ended March 31,
|
2007 |
2006 |
|
|
|
Cash flows from operating activities: |
|
|
Net loss |
$(156,065) |
$(369,203) |
Adjustments to reconcile net loss to net cash used in |
|
|
operating activities: |
|
|
Gain on the sale of DAG Jewish Directories |
(48,611) |
---- |
Depreciation and amortization |
18,871 |
3,714 |
Deferred tax |
(6,310) |
---- |
Amortization of deferred compensation and non cash compensation |
29,688 |
43,580 |
Minority Interest |
(6,576) |
---- |
Realized loss on sale of marketable securities |
26,826 |
64,473 |
Changes in operating assets and liabilities: |
|
|
Accounts receivable |
2,869 |
---- |
Other current assets |
11,989 |
(4,200) |
Other assets |
---- |
(13,138) |
Income tax payable |
(4,764) |
---- |
Accounts payable and accrued expenses |
(132,358) |
17,025 |
Assets and Liabilities of discontinued operations |
---- |
116,386 |
Net cash used in operating activities |
(264,441) |
(141,363) |
|
|
|
Cash flows from investing activities: |
|
|
Proceeds from sale of marketable securities |
248,115 |
2,420,000 |
Investment in convertible loan |
---- |
(25,000) |
Investment in marketable securities |
(236,991) |
(2,824,379) |
Cash received on sale of Jewish Directories |
90,473 |
---- |
Net cash provided by (used in) investing activities |
101,597 |
(429,379) |
|
|
|
Cash flows from financing activities: |
|
|
Dividend paid ($0.4 per share) |
---- |
(314,246) |
Net cash used in financing activities |
---- |
(314,246) |
|
|
|
Net decrease in cash and cash equivalents |
(162,844) |
(884,988) |
Cash and cash equivalents, beginning of period |
3,630,937 |
4,210,427 |
Cash and cash equivalents, end of period |
$3,468,093 |
$3,325,439 |
|
|
|
Supplemental Cash Flow Information: |
|
|
Taxes paid during the period |
$4,764 |
$5,844 |
Capitalized software acquired through issuance of stock |
$ ---- |
$29,388 |