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 First Quarter Financial Results

NEW YORK, May 12, 2008 / PRIME Newswire / -- DAG Media Inc. (Nasdaq: DAGM - news)

      DAG Media, Inc. announced today that net income for the quarter ended March 31, 2008 was $0.04 per basic and diluted share (based on 3.236 million shares), or $139,741, versus net loss of (0.05) per basic and diluted share (based on 3.236 million shares)or ($156,065) for the period ended March 31, 2007.

     Total revenue for the period ended March 31, 2008 were $165,000 versus total revenue of $1,000 for the period ended March 31, 2007.  The revenue in the first quarter mainly represents interest income on short term loans of $147,000 and origination fees on these loans of $18,000 made through DAG Funding.

      Income from continuing operations for the period ended March 31, 2008 was $67,000 compared to a loss from continuing operations of $185,000 for the period ended March 31, 2007, an increase of $252,000. This increase in income resulted mainly from revenue from short term notes generated through DAG Funding of $165,000, a decrease of $41,000 in general and administrative expense and an increase of $36,000 in other income.

          
    Assaf Ran, Chairman of the Board and CEO stated, “I am pleased with the progress that the company is making toward consistent profitability. As we gain more experience in the non banking commercial lending business we enhance and optimize our profits from each transaction, while simultaneously making progress in establishing a broader customer’s base and increasing deal flow.”


 

   DAG Media, Inc. through our subsidiaries provides short term, secured, non–banking, commercial loans, to small businesses. In addition we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages search . We operate several web sites: http://www.dagfundingsolutions.com, http://www.nextyellow.com, and http://www.dagmedia.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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 (unaudited)

Assets

 March 31,  2008

December 31,2007

Current assets:

     

 

Cash and cash equivalents     

$ 280,442

$ 621,724

Marketable securities

734,630

802,811

Auction rate securities

1,175,000

---

Short term investment – insurance annuity contract – at fair value

938,446

931,555

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

 

3,128,518

 

2,356,090

 

 

 

Short term commercial notes

3,739,808

4,313,211

         Interest receivable on short term commercial notes

40,774

41,184

Due from purchaser

83,186

156,103

Other current assets

37,698

17,083

            Total current assets

7,029,984

6,883,671

 

 

 

         Long term commercial notes

200,000

---

Property and equipment, net

13,090

14,261

         Capitalized web development costs, net

61,679

74,015

Security deposit

17,515

17,515

Investment in privately held company, at cost

100,000

100,000

                     
            Total assets

 

$ 7,422,268

 

$ 7,089,462

Liabilities and Shareholders’ Equity


Current liabilities:

 

 

Accounts payable and accrued expenses

$ 119,351

$ 123,886

Deferred gain from the sale of Jewish Directories

---

72,917

Deferred origination fee

---

4,597

Lines of credit

314,488

---

        Total current liabilities

433,839

201,400

             
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

 

3,305

Additional paid-in capital

9,202,151

9,180,235

Treasury stock, at cost- 68,730 shares

(231,113)

(231,113)

Accumulated other comprehensive loss

(502,562)

(441,272)

Accumulated deficit

(1,483,352)

(1,623,093)

            Total shareholders’ equity

6,988,429

6,888,062

                 
 Total liabilities and shareholders’ equity

 

$ 7,422,268

 

$ 7,089,462


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

 

 

 Three Months Ended March 31,

 

 

           2008

           2007

 

 

 

 

 

 

 

 

 

Interest income from short term commercial notes

 $ 147,461

$ ---

 

Origination fees

  17,825

---

 

Subscription revenues, net

57

1,362

 

            Total Revenue

165,343

1,362

 

 

Operating costs and expenses:

 

 

 

Web development expenses

12,336

12,336

 

General and administrative expenses

160,422

201,647

 

             Total operating costs and expenses

172,758

  213,983

 

 

 

 

 

Loss from operations

(7,415)

(212,621)

 

 

 

 

 

Interest and dividend income

24,749

54,763

 

Realized gain (loss) on marketable securities

---

(26,826)

 

Other income

39,000

---

 

             Total other income

63,749

27,937

 

 

 

 

 

Income (loss) from continuing operations before income tax benefit

 

56,334

 

(184,684)

 

Income tax benefit

10,490

---

 

Income (loss) from continuing operations

66,824

(184,684)

 

 

 

 

 

Discontinued Operations:

 

 

 

Gain on the sale of the Jewish Directories (net of tax effect of 0 in 2008 and 2007)

 

72,917

 

48,611

 

Loss from operations of Shopila (net of tax effect of 0)

 

---

 

(19,992)

 

Income from discontinued operations

72,917

28,619

 

Net Income (loss)

$139,741

$(156,065)

 

 

 

 

 

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

 

 

 

 

Continuing operations

$ 0.02

$ (0.06)

 

Discontinued operations

$ 0.02

$ 0.01

 

    Net income (loss) per common share

$ 0.04

$ (0.05)

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

--Basic and Diluted

3,236,460

3,236,460

 

 

 

 

 

 

 

DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
   Three Months ended March 31,

 

 

 2008

 

 2007

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

  Net Income (loss)

 

$ 139,741

 

$ (156,065)

  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

  Gain on the sale of Jewish Directories

 

(72,917)

 

(48,611)

  Loss from discontinued operations of Shopila

 

----

 

19,992

  Depreciation and amortization

 

13,507

 

13,458

  Non cash compensation expense

 

21,916

 

29,688

  Realized loss on sale of marketable securities

 

----

 

26,826

  Changes in operating assets and liabilities net of effects of disposition:

 

 

 

 

       Interest receivable on short term commercial notes

 

410

 

----

       Other current and non current assets

 

(20,615)

 

11,989

       Accounts payable and accrued expenses

 

(4,535)

 

(73,971)

       Deferred origination fees

 

(4,597)

 

----

       Income tax payable

 

----

 

(4,764)

       Assets and Liabilities of discontinued operations

 

----

 

(82,983)

              Net cash provided by (used in) operating activities

 

72,910

 

(264,441)

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

   Proceeds from sale of marketable securities

 

----

 

248,115

   Investment in marketable securities, annuity contract and auction rate securities

 

(1,175,000)

 

(236,991)

   Short and long term commercial notes made

 

(956,597)

 

----

   Collection received from short term commercial notes

 

1,330,000

 

----

   Cash received on sale of Jewish Directories

 

72,917

 

90,473

             Net cash (used in) provided by investing activities

 

(728,680)

 

101,597

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

    Use of lines of credit

               

314,488

 

----

              Net cash provided by financing activities

 

314,488

 

----

             

 

 

 

 

Net decrease in cash and cash equivalents

 

(341,282)

 

(162,844)

Cash and cash equivalents, beginning of period

 

621,724

 

3,630,937

Cash and cash equivalents, end of period

 

$ 280,442

 

$ 3,468,093

 

 

 

 

 

Supplemental Cash Flow Information:

 

 

 

 

Taxes paid during the period

 

$ 5,767

 

$ 4,764

Interest Paid during the period

 

$ 942

 

$ ----