Press Releases
DAG Media, Inc. Announced Third Quarter Consolidated Financial Results And A $0.25 Cash Dividend Per Share
NEW YORK, Nov. 6 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News) Dag Media, Inc., a leading independent publisher of print and online business directories, announced today that consolidated net advertising revenue for the quarter ended September, 2003 was $2,178,000, versus $1,850,000 for the same period last year, an increase of $328,000 or 17.73%. The increase was primarily attributable to the general growth in business activity and reflects an increase in sales of the latest editions of the Jewish Israeli Yellow Pages directories, increased web related income and individual book's sales. Cash and cash equivalents $8,320,000 and deferred revenues of $5,393,000.
Net income for the quarter was $1,138,000, or $0.39 per share, compared with a net loss of 87,000 for the quarter ended September 30, 2002. The increase results primarily due to the sale of the New Yellow Directory which is reflected on the other income section. On August 22nd, 2003 the company sold its New Yellow directory to Yellow Book USA, Inc. for $1.3 million in cash. The company's net profit before provision for income taxes from the sale totaled $1,208,000.
Net advertising revenue for the nine months ended September 30, 2003 were $5,866,000 compared with $4,805,000 for the same period last year, an increase of $1,061,000 or 22.01%. Net income for the period was $1,151,000, or $0.39 per share, compared with a net loss of $886,000, or $(0.31 per share), in the prior year. The increase resulted primarily from the general growth in business activity and reflects an increase in sales of the latest editions of the Jewish Israeli Yellow Pages directories. In addition, the increase attributable to the increased web related income, book's sales revenues and income sources from award show entry fees as well as revenues derives from reprints and production charges.
Due to the increase in both income and cash related to the sale of the New Yellow Directory, the Board of directors decided today on a $0.25 per share cash dividend distribution to all shareholders on record as of December 15, 2003.
Assaf Ran, Chairman of board and CEO stated, "Since the sale of New Yellow we are exploring a verity of exciting opportunities. We have already successfully launched the new Complete Industry Directory of the Blackbook as well as the new Blackbook stock.com web site. Both now, generating revenues on a daily basis. In addition, we are in process of reviewing additional ventures which I hope to execute in the near future."
"With the buds of recovery in the advertising industry I'm optimistic about next year," added Mr. Ran.
DAG Media publishes and distributes Yellow Pages directories in print and online as well as photography, illustration and design directories. We also operate several web sites that complement our directories at http://www.newyellow.com and at http://www.blackbook.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.
CONSOLIDATED BALANCE SHEET
September 30, 2003
(unaudited)
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 169,013 |
|
Marketable securities |
8,150,755 |
|
Total cash and cash equivalents and marketable securities |
8,319,768 |
|
Trade accounts receivable, net of allowance for doubtful accounts of $798,000 |
2,569,529 |
|
Directories in progress |
2,019,920 |
|
Deferred tax asset |
631,739 |
|
Other current assets |
161,874 |
|
Total current assets |
13,702,830 |
|
Fixed assets, net of accumulated depreciation of $ 189,616 |
309,752 |
|
|
|
|
Goodwill |
458,131 |
|
Trademarks and other intangibles, net |
430,155 |
|
Other assets |
123,412 |
|
Total assets |
$15,024,280 |
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
Current liabilities: |
|
|
Accounts payable and accrued expenses |
$141,017 |
|
Accrued commissions and commissions payables |
779,569 |
|
Advanced billing for unpublished directories |
5,392,755 |
|
Income Tax Payable |
479,298 |
|
Total current liabilities |
6,792,639 |
|
|
|
|
Shareholders' equity: |
|
|
Preferred shares - $ .01 par value; 5,000,000 shares authorized; no shares issued |
-- |
|
|
|
|
Common shares - $ .001 par value; 25,000,000 authorized; 3,003,190 issued and 2,934,460 outstanding |
3,003 |
|
|
|
|
Additional paid-in capital |
8,001,208 |
|
Treasury stock, at cost- 68,730 shares |
(231,113) |
|
Deferred compensation |
(92,316) |
|
Accumulated other comprehensive income |
78,500 |
|
Retained earnings |
472,359 |
|
Total shareholders' equity |
8,231,641 |
|
Total liabilities and shareholders' equity |
$15,024,280 |
The accompanying notes are an integral part of this balance sheet.
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||
|
|
2003 |
2002 |
2003 |
2002 |
|
Advertising revenues |
$2,178,238 |
$1,849,750 |
$5,865,860 |
$4,805,025 |
|
Publishing costs |
262,854 |
294,933 |
1,095,513 |
1,024,299 |
|
Gross Profit |
1,915,384 |
1,554,817 |
4,770,347 |
3,780,726 |
|
Operating costs and expenses: |
|
|
|
|
|
Selling expenses |
991,530 |
862,339 |
2,541,076 |
1,861,337 |
|
Administrative and general costs |
900,657 |
912,989 |
2,459,090 |
2,072,480 |
|
Total operating costs and expenses |
1,892,187 |
1,775,328 |
5,000,166 |
3,933,817 |
|
|
|
|
|
|
|
Income (loss) from operations |
23,197 |
(220,511) |
(229,819) |
(153,091) |
|
|
|
|
|
|
|
Other income |
103,678 |
46,462 |
211,539 |
169,250 |
|
|
|
|
|
|
|
Gain from sale of the New Yellow Directory |
1,207,997 |
-- |
1,207,997 |
-- |
|
Total other income |
1,311,675 |
46,462 |
1,419,536 |
169,250 |
|
|
|
|
|
|
|
Income (loss) before (provision) benefit for income taxes |
1,334,872 |
(174,049) |
1,189,717 |
16,159 |
|
|
|
|
|
|
|
(Provision) benefit for income taxes |
(196,443) |
86,753 |
(38,721) |
(7,397) |
|
Income (loss) before cumulative effect of change in accounting principle |
1,138,429 |
(87,296) |
1,150,996 |
8,762 |
|
Cumulative effect of change in accounting principle |
-- |
-- |
-- |
(895,000) |
|
Net income (loss) |
$1,138,429 |
$(87,296) |
$1,150,996 |
$(886,238) |
|
|
|
|
|
|
|
Net income (loss) per common share |
|
|
|
|
|
-Basic |
|
|
|
|
|
Income (loss) before cumulative effect of change in accounting |
$0.39 |
$(0.03) |
$0.39 |
$0.00 |
|
Cumulative effect of change in accounting principle |
-- |
-- |
-- |
(0.31) |
|
|
|
|
|
|
|
Net income (loss) per common share |
$0.39 |
$(0.03) |
$0.39 |
$(0.31) |
|
-Diluted |
|
|
|
|
|
Income (loss) before cumulative effect of change in accounting principle |
$0.38 |
$(0.03) |
$0.37 |
$0.00 |
|
Cumulative effect of change in accounting principle |
-- |
-- |
-- |
(0.31) |
|
|
|
|
|
|
|
Net income (loss) per common share |
$0.38 |
$(0.03) |
$0.37 |
$(0.31) |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
|
|
|
|
-Basic |
2,929,895 |
2,927,460 |
2,928,281 |
2,921,516 |
|
-Diluted |
3,011,636 |
2,927,460 |
3,102,791 |
2,931,330 |
The accompanying notes are an integral part of these financial statements
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
|
Nine Months Ended September 30, 2003 |
Nine Months Ended September 30, 2002 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net income (loss) |
$1,150,996 |
$(886,238) |
|
Adjustment to reconcile net income (loss) to net cash provided by (used in) |
|
|
|
Gain on sale of New Yellow Directory |
(1,207,997) |
-- |
|
Cumulative effect of change in accounting principle |
-- |
895,000 |
|
Depreciation and amortization |
118,815 |
66,605 |
|
Amortization of deferred compensation |
11,198 |
10,513 |
|
Bad debt expense |
667,944 |
830,359 |
|
Realized gain on preferred stocks and marketable securities |
-- |
2,035 |
|
Deferred taxes |
(192,635) |
-- |
|
Changes in operating assets and liabilities- |
|
|
|
Accounts receivable |
(571,376) |
(752,293) |
|
Directories in progress |
90,906 |
(253,161) |
|
Other current assets |
(38,722) |
(68,417) |
|
Other assets |
8,181 |
-- |
|
Accounts payable and accrued expenses |
(611,188) |
(28,137) |
|
Accrued commissions and commissions payable |
(28,481) |
163,837 |
|
Advance billing for unpublished directories |
611,204 |
409,393 |
|
Income taxes payable |
208,749 |
(78,094) |
|
Net cash provided by (used in) operating activities |
217,594 |
(311,402) |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Proceeds from sale of marketable securities, net |
4,460,453 |
3,327,925 |
|
Purchase of fixed assets |
(149,082) |
(60,480) |
|
Cash received on sale of New Yellow Directory, net of expenses |
1,207,997 |
-- |
|
Proceeds from sale of fixed assets |
46,200 |
-- |
|
Cash paid for acquisition of subsidiary |
-- |
(70,537) |
|
Investment in Dune Medical Devises Ltd. |
(100,000) |
--- |
|
Investment in marketable securities |
(5,727,209) |
(4,995,927) |
|
Net cash used in investing activities |
(261,641) |
(1,799,019) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from exercise of stock options |
10,640 |
21,200 |
|
|
|
|
|
Net cash provided by financing activities |
10,640 |
21,200 |
|
Net decrease in cash |
$(33,407) |
$(1,466,417) |
|
Cash and cash equivalents, beginning of period |
202,420 |
3,229,179 |
|
Cash and cash equivalents, end of period |
$169,013 |
$1,762,762 |
The accompanying notes are an integral part of these financial statements.