DAG Media, Inc. Announces Second Quarter Financial Results
KEW GARDENS, N.Y., Aug. 4 /PRNewswire/ -- DAG Media, Inc. (Nasdaq: DAGM - news), a leading print and online publisher of yellow page directories in the New York Metro area, announced financial results for the second quarter and six months ended June 30, 2000.
Net advertising revenues for the three months ended June 30, 2000 were $413,000, up $130,000, or 46%, compared with $283,000 for the same period last year. Net loss for the quarter totaled ($124,000), or ($0.04) per diluted share, compared with a gain of $46,000, or $0.02 per diluted share, in the prior year.
For the six months ended June 30, 2000, net advertising revenues were $3,483,000, up $1,215,000, or 54%, compared with $2,269,000 reported during the first half of calendar 1999. Net income for the first six months was $298,000, or $.10 per diluted share, a 34% decrease when compared with $451,000 reported during the first six months of 1999.
``Dag Media's 46% increase in net advertising revenues during the second quarter was primarily related to an increase in Internet advertising sales for NewYellow.com and an increase in sales for The Jewish Master Guide. We finished the quarter with over $7 million in cash and believe the company has adequate capital to strategically launch competing yellow page directories in the other boroughs of New York City,'' commented Assaf Ran, CEO. ``We expect to have a solid, profitable second half of the year as Dag Media works toward its fall publishing dates for both the second edition of the Manhattan NewYellow and the Jewish Israeli Yellow Pages. The modest loss in the second quarter was primarily related to the company's expansion of its infrastructure to support NewYellow. Dag Media also did not have a major publication released during the second quarter.''
The increase in revenues for the six months ended June 30th were the result of the first edition of NewYellow Manhattan directory and Internet advertising sales directly related to NewYellow, the February issue of the Jewish Israeli Yellow Pages and the third edition of the Master Guide directory in June,`` Mr. Ran continued.
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2000 1999 2000 1999
Net advertising
revenues $413,172 $282,909 $3,483,445 $2,268,781
Publishing costs 57,179 35,970 852,812 330,769
Gross profit 355,993 246,939 2,630,633 1,938,012
Operating costs
and expenses:
Selling expenses 118,380 45,697 1,006,085 619,782
Administrative
and general 564,016 183,212 1,242,696 501,999
Total operating
costs and expenses 682,396 228,909 2,248,781 1,121,781
Interest income 106,263 40,959 186,262 43,062
Earnings from
operations before
provision for
income taxes and
equity in
loss of
affiliate (220,140) 58,989 568,114 859,293
Provision (refund)
for income taxes (96,075) 12,913 270,525 405,913
Equity in loss
of affiliate -- -- -- (2,654)
Net (loss) income
available to common
shareholders $(124,065) $ 46,076 $297,589 $450,726
Net income per
common share
--Basic $(.04) $ .02 $.10 $ .28
--Diluted $(.04) $ .02 $.10 $ .28
Weighted average
number of common
shares outstanding
--Basic 2,907,460 2,101,452 2,907,460 1,615,923
--Diluted 2,907,460 2,101,452 2,908,133 1,615,923
DAG MEDIA, INC. BALANCE SHEET
(unaudited)
Three Months Three Months
Ended June 30, Ended March 31,
2000 2000
Assets
Current assets:
Cash and cash equivalents $ 7,055,694 $ 7,317,926
Trade accounts receivable,
net of allowance for doubtful
accounts of $ 447,750 2,660,014 2,622,298
Directories in progress 744,765 403,035
Other current assets 261,850 143,394
Total current assets 10,722,323 10,486,653
Fixed assets, net of accumulated
depreciation of $ 46,578 228,515 215,814
Goodwill and trademarks, net of
accumulated amortization of $ 60,795 1,290,186 1,303,696
Other assets 12,501 9,093
Total assets $ 12,253,525 $12,015,256
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 53,506 $618,867
Accrued commissions and commissions
payable 598,234 555,280
Advanced billing for unpublished
directories 1,998,265 1,015,873
Income tax payable 424,819 469,545
Deferred tax payable 352,710 405,635
Total current liabilities 3,427,534 3,065,200
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 2,976
Additional paid-in capital 7,799,789 7,799,789
Treasury stock, at cost- 68,730 shares (231,113) (231,113)
Retained earnings 1,254,339 1,378,404
Total shareholders' equity 8,825,991 8,950,056
Total liabilities and shareholders'
equity $ 12,253,525 $12,015,256
SOURCE: DAG Media, Inc.
