Press Releases
DAG Media, Inc. Announces Second Quarter Financial Results - Major Increase of Deferred Revenues
NEW YORK, Aug. 8 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News)
Net advertising revenues for the quarter ended June 30, 2002 were $1,381,000. For the same period last year net revenues were $1,431,000. There was a net loss of $72,000, or $(0.02) per diluted share (based on 2.92 million shares) compared with a net loss of $1,000 and no earnings per share (based on 2.91 million shares) for the comparative period ended June 30, 2001. The primary cause for decrease in revenue was attributable to the decrease in sales of the June 2002 edition of the Jewish Master Guide directory.
Net revenue for the six months ended June 30, 2002 was $2,955,000 compared with $2,935,000 for the same period last year. Net loss for the period was $799,000, or $(0.27) per diluted share (based on 2.92 million shares), compared with a net income of $65,000, or $0.02 per diluted share (based on 2.91 million shares), in the prior year. The cause for the increase in revenues was attributable to increased advertising revenue, primarily with respect to the fifth edition publication of new yellow Manhattan. The primarily cause for the decrease in net income was due to a goodwill write-off of $895,000 as required by the new SEC regulations, SFAS No. 141 and 142. Before giving effect to the goodwill write-off, net income for the six months ended June 30, 2002 was $96,000 versus $65,000 in the prior year, an increase of $31,000. Earnings per diluted share increased to 0.03 versus 0.02 in the same period last year.
The company also reported $6,903,000 or $2.3 per share in cash, cash equivalents, preferred stocks and other marketable securities and $3,969,000 in deferred revenue.
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 JUNE 30, 2002 (Unaudited)
Assets |
|
Current assets: |
|
Cash and cash equivalents |
$2,446,559 |
Preferred stocks and other marketable securities |
4,456,887 |
Total cash and cash equivalents, preferred stocks and other marketable securities |
6,903,446 |
Trade accounts receivable, net of allowance for doubtful accounts of $876,500 |
2,632,582 |
Directories in progress |
1,846,616 |
Deferred tax asset |
177,864 |
Other current assets |
265,088 |
Total current assets |
11,825,596 |
Fixed assets, net of accumulated depreciation of $139,057 |
266,382 |
Trademarks, net of accumulated amortization of $43,875 |
307,106 |
Other assets |
19,462 |
Total assets |
$12,418,546 |
Liabilities and Shareholder's Equity |
|
Current liabilities: |
|
Accounts payable and accrued expenses |
$118,151 |
Accrued commissions and commissions payable |
778,000 |
Advanced billing for unpublished directories |
3,968,642 |
Income tax payable |
261,900 |
Total current liabilities |
5,126,693 |
Shareholders' equity: |
|
Preferred shares - $0.01 par value; |
|
5,000,000 shares authorized; no shares issued |
|
Common shares - $0.001 par value; |
|
25,000,000 shares authorized; |
|
2,996,190 issued and 2,927,460 outstanding |
2,996 |
Additional paid-in capital |
7,916,695 |
Treasury stock, at cost - 68,730 shares |
(231,113) |
Deferred Compensation |
(46,347) |
Unrealized gains on preferred stocks |
34,207 |
Retained earnings |
(384,585) |
Total shareholders' equity |
7,291,853 |
Total liabilities and shareholders' equity |
$12,418,546 |
DAG MEDIA, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months Ended June 30 |
Six Months ended June 30, |
||
|
2002 |
2001 |
2002 |
2001 |
Advertising revenues |
$1,380,742 |
$1,431,633 |
$2,955,275 |
$2,934,832 |
Publishing costs |
520,843 |
599,645 |
729,366 |
788,952 |
Gross profit |
859,899 |
831,988 |
2,225,909 |
2,145,880 |
Operating costs and expenses: |
|
|
|
|
Selling expenses |
548,935 |
490,452 |
998,998 |
1,076,055 |
General and administrative |
495,262 |
513,08 |
1,159,491 |
1,188,169 |
Total operating costs and expenses |
1,044,197 |
1,003,535 |
2,158,489 |
2,264,224 |
(Loss) income from operation |
(184,298) |
(171,547) |
67,420 |
(118,344) |
Interest income |
51,971 |
170,571 |
122,789 |
252,751 |
(Loss) earnings before provisions for Income taxes and cumulative |
(132,328) |
(976) |
190,209 |
134,407 |
(Benefit) provision for income taxes |
60,711 |
-- |
(94,151) |
69,000 |
(Loss) income before cumulative effect of change in accounting |
(71,616) |
(976) |
96,058 |
65,407 |
Cumulative effect of change in accounting principle, |
-- |
-- |
(895,000) |
-- |
Net (loss) income |
$(71,616) |
$(976) |
$(798,942) |
$65,407 |
Earnings (loss) per common share: |
|
|
|
|
Basic - |
|
|
|
|
(Loss) income before cumulative effect of change in accounting |
$(0.02) |
$(0.00) |
$0.03 |
$0.02 |
Cumulative effect of change in accounting |
-- |
-- |
(0.30) |
-- |
Net (loss) income per common share |
$(0.02) |
$(0.00) |
$(0.27) |
$0.02 |
Diluted- |
|
|
|
|
(Loss) income before cumulative effect of change in accounting principal |
$(0.02) |
$(0.00) |
$0.03 |
$0.02 |
Cumulative effect of change in accounting principle |
-- |
-- |
(0.30) |
-- |
Net (loss) income per common share |
$(0.02) |
$(0.00) |
$(0.27) |
$0.02 |
Weighted average number of common shares Outstanding |
|
|
|
|
- Basic |
2,925,486 |
2,907,460 |
2,918,495 |
2,907,460 |
- Diluted |
2,925,486 |
2,907,460 |
2,933,454 |
2,910,384 |