Press Releases
DAG Media, Inc. Announces First Quarter Financial Results
NEW YORK, May 9 /PRNewswire/ -- DAG Media Inc. (Nasdaq: DAGM - news) announced its financial results for the first quarter ended March 31, 2001.
Net revenue for the three months ended March 31, 2001 was $1,503,000 compared with $2,633,000 for the same period last year. Net income for the quarter totaled $66,000, or $0.02 per diluted share (based on 2.91 million shares), compared with $(147,000), or $(0.05) per diluted share (based on 2.91 million shares), in the prior year. The primary cause for the decrease in revenues and income was the fact that in the first quarter of fiscal year 2001 only one main publication, JewishYellow was printed and distributed whereas in the comparable prior years' quarter, two main publications were released. The purpose for the change in publication schedules was to change our production schedule thereby distributing the employee workload more evenly and thus in effect reducing overhead costs.
Assaf Ran, the company's CEO explained, ``This quarter's revenue reflects sales related to only one of our ethnic directories. Our mainstream directory, NewYellow, continues in its growth and was published in the beginning of April 2001 as opposed to being published in March, the first quarter, as in the prior year 2000. The elected timing has been to the company's benefit in both tangible and intangible ways. Overtime costs were lowered while employee job satisfaction was raised. We recently opened a new NewYellow sales office in Long Island City''.
DAG Media publishes and distributes yellow page directories in print and on the World Wide Web. DAG Media also operates several Web site on the Internet including 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.
STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months Ended March 31, 2001 |
Three Months Ended March 31, 2000 |
Advertising revenues |
$1,503,199 |
$2,633,454 |
Publishing costs |
189,307 |
500,816 |
Gross profit |
1,313,892 |
2,132,638 |
Operating costs and expenses: |
|
|
Selling expenses |
585,603 |
859,898 |
General and administrative |
675,086 |
678,681 |
Total operating costs and expenses |
1,260,689 |
1,538,579 |
|
|
|
Income from operations |
53,203 |
594,059 |
|
|
|
Interest income |
82,180 |
79,999 |
Earnings from operations before |
|
|
provision for income taxes |
135,383 |
674,058 |
Provision for income taxes |
69,000 |
310,066 |
Cumulative effect of change in accounting principle, net of tax benefit $435,356 |
-- |
(511,071) |
Net income available to common shareholders |
$66,383 |
$(147,079) |
|
|
|
Earnings (loss) per common share: |
|
|
Basic - |
|
|
Income before cumulative effect of change in accounting principle |
$.02 |
$.13 |
Cumulative effect of change in accounting principle |
-- |
(.18) |
Net income (loss) |
$.02 |
$(.05) |
|
|
|
Diluted- |
|
|
Income before cumulative effect of change in accounting principle |
$.02 |
$ .13 |
Cumulative effect of change in accounting principle |
-- |
(.18) |
Net income (loss) |
$.02 |
$(.05) |
|
|
|
Weighted average number of common shares outstanding |
|
|
- Basic |
2,907,460 |
2,907,460 |
- Diluted |
2,909,846 |
2,912,621 |
DAG MEDIA, INC.
BALANCE SHEET
MARCH 31, 2001
(Unaudited)
.
Assets |
|
Current assets: |
|
Cash and cash equivalents |
$7,154,030 |
Trade accounts receivable, net of allowance for doubtful accounts of $475,157 |
2,280,328 |
Directories in progress |
1,386,367 |
Deferred tax asset |
162,859 |
Other current assets |
153,732 |
Total current assets |
11,137,316 |
Fixed assets, net of accumulated depreciation of $78,683 |
212,822 |
Goodwill and trademarks, net of accumulated amortization of $101,324 |
1,249,657 |
Other assets |
14,196 |
|
|
Total assets |
$12,613,991 |
|
|
Liabilities and Shareholders' Equity |
|
Current liabilities: |
|
Accounts payable and accrued expenses |
$123,320 |
Accrued commissions and commissions payable |
544,616 |
Advanced billing for unpublished directories |
3,351,648 |
Income tax payable |
380,745 |
Total current liabilities |
4,400,329 |
Shareholders' equity: |
|
Preferred shares - $.01 par value; |
|
5,000,000 shares authorized; |
|
no shares issued |
|
Common shares - $.001 par value; |
|
25,000,000 authorized; 2,976,190 issued and 2,907,460 outstanding |
2,976 |
Additional paid-in capital |
7,916,701 |
Treasury stock, at cost- 68,730 shares |
(231,113) |
Deferred compensation |
(72,724) |
Retained earnings |
597,822 |
Total shareholders' equity |
8,213,662 |
Total liabilities and shareholders' equity |
$12,613,991 |