DAG Media, Inc. Reports Second Quarter Consolidated Financial ResultsTuesday August 5, 8:06 pm ETNEW YORK, Aug. 5 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News), a leading independent publisher of print and online business page directories, announced today that consolidated net advertising revenue for the quarter ended June 30, 2003 was $1,526,000, versus $1,381,000 for the same period last year, an increase of $145,000 or 10.50%. The increase was primarily attributable to the general growth in business activity and to THE BLACKBOOK's contribution to recognized revenue. There was a net loss of $227,000 or $(0.08) per diluted share (based on 2.92 million shares) compared with a net loss of $72,000 and $(0.02) per diluted share (based on 2.92 million shares). The primary cause for the increase in net loss was the inclusion of THE BLACKBOOK's net loss of $149,000 in the Company's consolidated financial statements. Net revenue for six months ended June 30, 2003 was $3,688,000 compared with $2,955,000 for the same period last year. Net Loss for the period was $161,000 or $(0.05) per diluted share (based on 2.92 million shares), compared with a net loss of $799,000, or $(0.27) per diluted share (based on 2.92 million shares), in the prior period. The increase in revenues resulted primarily from increased advertising revenue, of the Jewish Israeli Yellow Pages, both its 2002 second edition and the first 2003 edition, as well as THE BLACKBOOK's contribution of $151,000 to recognized revenue for the six months period ended June 30, 2003. The Company also reported increased cash, cash equivalents and other marketable securities of $331,000 to $7,339,000 or $2.5 per share versus the same period last year. As of June 30, 2003 the Company also reported current assets of $12,698,000, total assets of $13,908,000, total shareholders' equity of $6,897,000 and a record high deferred revenues of $5,618,000, most to be recognized in the third and fourth quarter of this year. DAG Media Chairman of board and Chief Executive Officer Assaf Ran remarked, "The progress we have achieved during the second quarter of 2003 is reflected by the record high deferred revenue section of which the vast majority will be realized upon publication of our directories in the third and fourth quarters of this year". "In July 28th 2003, we appointed Mr. Ted Rubin as president of our subsidiary, BLACKBOOK Photography Inc. We trust Mr. Rubin's capability to lead THE BLACKBOOK to great success," added Mr. Ran. DAG Media publishes and distributes three yellow page directories in print as well as photography and illustration directories. We also operate several web sites that complement our directories at www.newyellow.com and at 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
JUNE 30, 2003
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $644,562
Marketable securities 6,694,683
Total cash and cash equivalents and Marketable securities 7,339,245
Trade accounts receivable, net of allowance for doubtful
accounts of $898,000 2,804,210
Directories in progress 2,200,230
Deferred tax assets 153,389
Other current assets 200,955
Total current assets 12,698,029
Fixed assets, net of accumulated depreciation of $166,618 287,749
Goodwill 458,131
Trademarks and other intangibles, net 441,037
Other assets 23,411
Total assets $13,908,357
Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable and accrued expenses $592,117
Accrued commissions and commissions payable 801,414
Advanced billing for unpublished directories 5,618,188
Total current liabilities 7,011,719
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 7,990,575
Treasury stock, at cost-68,730 shares (231,113)
Deferred Compensation (99,086)
Accumulated other comprehensive income 72,896
Accumulated deficit (839,630)
Total shareholders' equity 6,896,638
Total liabilities and shareholders' equity $13,908,357
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Advertising revenues $1,525,746 $1,380,742 $3,687,622 $2,955,275
Publishing costs 494,870 520,843 832,659 737,366
Gross profit 1,030,876 859,899 2,854,963 2,217,909
Operating costs and
expenses:
Selling expenses 524,327 548,935 1,549,546 998,998
General and
administrative 838,062 495,262 1,558,434 1,151,491
Total operating costs
and expenses 1,362,389 1,044,197 3,107,980 2,150,489
(Loss) income from
operation (331,513) (184,298) (253,017) 67,420
Total other income, net 52,662 51,971 107,861 122,789
(Loss) income before
(provisions) benefit for
income taxes (278,851) (132,327) (145,155) 190,209
Benefit (provision) for
income taxes 51,820 60,711 (15,838) (94,151)
(Loss) income before
cumulative effect of
change in accounting
principle (227,031) (71,616) (160,993) 96,058
Cumulative effect of change
in accounting principle -- -- -- (895,000)
Net loss $(227,031) $(71,616) $(160,993) $(798,942)
Net (loss) income per
common share:
---Basic
(Loss) income before
cumulative effect of
change in accounting
principle $(0.08) $(0.02) $(0.05) $0.03
Cumulative effect of change
in accounting principle -- -- -- (0.30)
Net loss per common share $(0.08) $(0.02) $(0.05) $(0.27)
---Diluted
(Loss) income before
cumulative effect of
change in accounting
principle $(0.08) $(0.02) $(0.05) $0.03
Cumulative effect of change
in accounting principle -- -- -- (0.30)
Net loss per common share $(0.08) $(0.02) $(0.05) $(0.27)
Weighted average number of
common shares outstanding
- Basic 2,927,460 2,925,486 2,927,460 2,918,495
- Diluted 2,927,460 2,925,486 2,927,460 2,933,454
DAG MEDIA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
2003 2002
Cash flows from operating activities:
Net loss $(160,993) $(798,942)
Adjustment to reconcile net income (loss) to
net cash provided by operating activities -
Cumulative effect of change in accounting
principle -- 895,000
Depreciation and amortization 80,684 39,312
Amortization of deferred compensation 4,428 1,893
Bad debt expense 321,057 407,998
Deferred taxes 285,715 13,109
Changes in operating assets and liabilities-
Accounts receivable (459,170) (711,663)
Directories in progress (89,402) (344,657)
Other current and noncurrent assets (69,618) (155,333)
Accounts payable and accrued expenses (160,088) 18,046
Accrued commissions and commissions payable (6,637) 183,000
Advance billing for unpublished directories 836,637 418,702
Income taxes payable (270,551) (4,448)
Net cash provided by (used in) operating
activities 312,062 (37,983)
Cash flows from investing activities:
Proceeds from sale of marketable
securities, net 2,848,778 3,274,944
Purchase of fixed assets (99,832) (39,687)
Proceeds from sale of fixed assets 46,200 --
Investment in marketable securities (2,665,066) (4,001,094)
Net cash provided by (used in)
investing activities 130,080 (765,837)
Cash flows from financing activities:
Proceeds from exercise of stock option -- 21,200
Net cash provided by financing activities -- 21,200
Net increase (decrease) in cash $442,142 $(782,620)
Cash and cash equivalents, beginning of period 202,420 3,229,179
Cash and cash equivalents, end of period $644,562 $2,446,559
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