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

 

Press Releases

Contact:
Assaf Ran, CEO
Inbar Evron-Yogev, CFO
(718) 520-1000
SOURCE: DAG Media, Inc.

DAG Media, Inc. Reports Third Quarter Financial Results

         NEW YORK, November 13, 2007 / PRIME NEWSWIRE/ -- DAG Media, Inc. (Nasdaq: DAGM - news)

       DAG Media, Inc. announced today that net income per common share was $0.05 for the three month period ended September 30, 2007, versus basic and diluted net loss per common share of $(0.04)  for the three month period ended September 30, 2006. The increase in net income is mainly due to income from its new short-term secured business lending operations through DAG Funding Solutions, Inc., (“Dag Funding”) a wholly owned subsidiary formed in May 2007, as well as income from discontinued operations associated with a gain on the sale of the directories business and a write-off of Shopila’s liabilities in accordance with the company decision to discontinued operations of Shopila and cease making advances to it.

      Total revenue for the three month period ended September 30, 2007 were $62,000 versus total revenue of $8,000 for the same period in 2006.  The increase in total revenue is mainly due to interest income from short term notes made through DAG Funding.

      Total revenue for the nine month period ended September 30, 2007 were $70,000 versus total revenue of $8,000 for the same period in 2006.  The increase in total revenue is mainly due to interest income from short term notes made through DAG Funding.
 
     For the nine month period ended September 30, 2007 net loss per common share was $(0.11), versus net income per common share of $0.01 for the nine month period ended September 30, 2006. In 2006 net income was mainly attributable to the gain on the sale of the Directories business.

    DAG Funding was formed to carry out a new business initiative centered on money lending services to businesses. It offers commercial short term funding solutions and loan services against collateral such as real estate, receivables, marketable securities, etc., accompanied, in most cases, by personal guarantees from the principals.

 

Assaf Ran, Chairman of the Board and CEO stated, “Our efforts to regain profitability are finally fruitful. Current market conditions in the credit industry direct significant amount of business to DAG Funding. We are working diligently to identify the best opportunities for us as we continue to exercise our expense reduction approach.”

  “As for Next Yellow we have completed a business plan and hope to raise money on the subsidiary level so we can revive operations of our subsidiary DAG Interactive, Inc.” added Mr. Ran.

    
    DAG Media, Inc. through our subsidiaries provides short term none banking commercial loans as well as solutions to the online yellow pages industry and to local search. We operate several web sites: http://www.dagfundingsolutions.com, http://www.nextyellow.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 success of our new business strategy; (iii) our limited operating history; (iv) potential fluctuations in our quarterly operating results; (v) challenges facing us relating to our growth; and (vi) 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

September 30, 2007

Current assets:

    

Cash and cash equivalents

   $  1,543,870

Marketable securities

1,729,260

Short term investment – insurance annuity contract – at fair value

       1,027,231

         Total cash and cash equivalents, marketable securities and short term investment

4,300,361

 

 

   Interest receivable

22,945

   Due from purchaser

209,465

   Short term notes

2,488,618

   Other current assets

            33,968

            Total current assets

7,055,357

 

 

Property and equipment, net

13,115

Capitalized web development costs, net

86,351

Other assets

         142,515

            Total assets

   $ 7,297,338

Liabilities and Shareholders’ Equity


Current liabilities:

 

Accounts payable and accrued expenses

    $       62,462

Income tax payable

312,245

   Deferred gain from the sale of Jewish Directories

         145,835

            Total current liabilities

           520,542

 

Commitments and contingencies

 

 

 

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

9,144,976

   Treasury stock, at cost- 68,730 shares

(231,113)

   Accumulated other comprehensive loss

(197,962)

Accumulated deficit

      (1,942,410)

           Total shareholders’ equity

        6,776,796

           Total liabilities and shareholders’ equity

   $ 7,297,338


DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

 

Three Months
Ended September 30,

Nine Months
Ended September 30,

 

2007

2006

2007

2006

 

 

 

 

 

Subscription revenues, net

$ 1,324

          $ 7,821          

          $ 4,305          

          $ 7,821          

Interest income from short term notes

 

60,504

 

----

 

65,471

 

----

Total Revenue

            61,828

               7,821

            69,776

              7,821

Operating costs and expenses:

 

 

 

 

Web development costs

12,336

12,336

37,008

125,330

Marketing expenses

4,034

41,303

7,537

56,832

General and administrative expenses

            155,296

            205,647

            541,831

            584,161

Total operating costs and expenses

            171,666

            259,286

           586,376

           766,323

 

 

 

 

 

Loss from operations

(109,838)

(251,465)

   (516,600)

   (758,502)

 

 

 

 

 

Other income

              87,990

              61,603

           230,224

           111,342

(Loss) income from continuing operations

(21,848)

(189,862)

(286,376)

(647,160)

 

 

 

 

 

Discontinued operations:

 

 

 

 

Gain on the sale of the Jewish Directories

72,918

72,918

194,444

680,718

Income (Loss) from discontinued operations of Shopila

 

113,915

 

----

(259,089)

 

----

Loss from discontinued operations of the Directories

             
               ----         

             
               ----         

             
               ----         

          (75,129)

Income (loss) from discontinued operations

            186,833

              72,918

          (64,645)

         605,589

 

 

 

 

 

Net income (loss)

    $     164,985

    $    (116,944)

   $  (351,021)

   $     (41,571)

 

 

 

 

 

Basic and diluted net income (loss) per common share outstanding:

 

 

 

 

Continuing operations

     $      (0.01)

     $      (0.06)

   $       (0.09)

   $       (0.20)

Discontinued operations

              0.06

              0.02

            (0.02)

              0.19

Total net income (loss) per common share – basic and diluted

    $        0.05

    $       (0.04)

   $       (0.11)

   $       (0.01)

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

--Basic and Diluted

        3,236,460

        3,179,721

     3,236,460

     3,156,423


DAG MEDIA, INC.  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended September 30,

 

 2007

 2006

Cash flows from operating activities:

 

 

  Net loss

     $     (351,021)

     $        (41,571)

  Adjustment to reconcile net loss to net cash used in

 

 

  operating activities:

 

 

  Depreciation and Amortization

40,376

20,061

  Amortization of deferred compensation and non cash compensation

121,667

257,928

  Gain on the sale of  Jewish Directories

(194,444)

(426,107)

  Loss from discontinued operations of Shopila

259,089

----

  Realized (gain) loss on sale of marketable securities

(40,790)

70,861

  Gain on the sale of fixed assets

----

(14,232)

  Changes in operating assets and liabilities:

 

 

       Interest receivable

(22,945)

----

       Other current assets

4,622

(55,556)

       Due from purchasers

----

(58,881)

       Accounts payable and accrued expenses

(127,241)

48,952

       Income tax payable

(29,436)

(25,652)

       Assets and liabilities of discontinued operations

(94,653)

(146,900)

              Net cash used in operating activities

(434,776)

(371,097)

 

 

 

Cash flows from investing activities:

 

 

   Proceeds from sale of marketable securities

1,888,680

2,541,023

   Investment in marketable securities

(1,291,264)

(2,562,194)

   Issuance of short term notes

(2,488,618)

----

   Cash received on sale of Jewish Directories, net of expenses

255,860

254,610

   Investment in convertible loan

----

(25,000)

   Purchase of fixed assets

----

(18,729)

   Proceeds  from sale of fixed assets

----

9,213

   Capitalized web development costs

----

(22,429)

             Net cash (used in) provided by investing activities

(1,635,342)

176,494

 

 

 

Cash flows from financing activities:

 

 

    Dividend paid

----

(314,246)

    Proceeds from exercise of stock options

----

5,520

              Net cash used in financing activities

----

(308,726)

             

 

 

Net decrease in cash

          (2,070,118)

             (503,329)

Cash and cash equivalents, beginning of period

3,613,988

4,210,427

Cash and cash equivalents, end of period

      $   1,543,870

      $   3,707,098

 

 

 

Supplemental Cash Flow Information:

 

 

Taxes paid during the period

$28,981

$25,535

Capitalized software acquired through issuance of stock and grant of option

----

$125,602

Common stock issued for services performed

----

$80,600