a
60 Cutter Mill Rd.
Suite 205
Great Neck, NY
11021
Tel: 516.444.3400
Fax: 516.444.3404

 

Press Releases

Press Release Source: DAG Media, Inc.

DAG Media, Inc. Reports First Quarter Financial Results

Monday, May 9

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