Press Releases
DAG Media, Inc. Announces First Quarter Financial Results - Back to Positive Cash Flow
NEW YORK, May 9 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - news) -- Net advertising revenues for the three months ended March 31, 2002 were $1,575,000. For the same period last year net revenues were $1,503,000. Due to a goodwill write-off of $895,000 as required by the new SEC regulations, SFAS No. 141 and 142, the net loss for the quarter totaled $727,000, or ($0.25) per diluted share (based on 2.91 million shares). This compared to a net income of $66,000, or $0.02 per diluted share (based on 2.91 million shares), in the same period last year. Before giving effect to the goodwill write-off, net income for the three months ended March 31, 2002 was $167,000 versus $66,000 in the prior year, an increase of $101,000. Earnings per diluted share increased to 0.06 versus 0.02 in the same period last year.
The primary cause for the increase in revenues was an increase in sales of the Jewish Israeli Yellow Pages, which was the only source providing recognized revenues this quarter. The company also reported $6,993,000 or $2.34 per share in cash and cash equivalents and $3,462,000 in deferred revenue.
"We're returning to growth and an earnings path. It seems that the New York and New Jersey economy is recovering from its recent recession and from the negative effect of September 11th. We are improving both average prices per add as well as closing rates per sales office. These are strong indications for a better future," said Assaf Ran, the company's chief executive officer and chairman of the board.
"We are now completing the distribution of the fifth edition of our Manhattan Yellow Pages, which has became the most popular directory among Manhattan residents," added Mr. Ran.
DAG Media publishes and distributes three yellow page directories in print and on the World Wide Web. DAG Media also operates a portal Web site on the Internet at 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.
BALANCE SHEET
MARCH 31, 2002
(Unaudited)
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$4,758,883 |
|
Preferred stocks and other marketable securities |
2,234,232 |
|
Total cash and cash equivalents, preferred stocks and other marketable securities |
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $785,000 |
2,379,008 |
|
Directories in progress |
1,449,755 |
|
Deferred tax asset |
141,477 |
|
Other current assets |
241,945 |
|
Total current asset |
11,205,300 |
|
|
|
|
Fixed assets, net of accumulated depreciation of $ 125,760 |
258,282 |
|
Trademarks, net of accumulated amortization of $40,365 |
310,616 |
|
Other assets |
19,462 |
|
Total assets |
$11,793,660 |
DAG MEDIA, INC. STATEMENTS OF OPERATIONS (Unaudited)
|
|
Three Months Ended March 31, 2002 |
Three Months March 31,2001 |
|
Advertising revenues |
$1,574,533 |
$1,503,199 |
|
Publishing costs |
216,523 |
189,307 |
|
Gross profit |
1,358,010 |
1,313,892 |
|
Operating costs and expenses: |
|
|
|
Selling expenses |
450,063 |
585,603 |
|
General and administrative |
656,229 |
675,086 |
|
Total operating costs and expenses |
1,106,292 |
1,260,689 |
|
Income from operation |
251,718 |
53,203 |
|
Interest income |
70,818 |
82,180 |
|
Earnings from operations before provisions for Income taxes and cumulative effect of changein accounting principle |
322,536 |
135,383 |
|
Provision for income taxes |
(154,862) |
(69,000) |
|
Income before cumulative effect of change |
167,674 |
66,383 |
|
Cumulative effect of change in accounting principle, |
(895,000) |
-- |
|
Net income (loss) |
$(727,326) |
$66,383 |
|
Earnings (loss) per common share: |
|
|
|
Basic - |
|
|
|
Income before cumulative effect of change in accounting principle |
0.06 |
0.02 |
|
Cumulative effect of change in accounting principle |
(0.31) |
-- |
|
Net income (loss) per common share |
(0.25) |
0.02 |
|
Diluted- |
|
|
|
Income before cumulative effect of change in accounting principle |
0.06 |
0.02 |
|
Cumulative effect of change in accounting principle |
(0.31) |
-- |
|
Net income (loss) per common share |
(0.25) |
0.02 |
|
Weighted average number of common shares Outstanding |
|
|
|
- Basic |
|
|
|
- Diluted |
2,911,950 |
2,909,846 |