DAG Media, Inc. Announces Third Quarter Financial Results
NEW YORK, Oct. 27 /PRNewswire/ -- DAG Media Inc. (Nasdaq: DAGM - news) announced today its financial results for the third quarter and nine months ended September 30, 2000.
Net revenue for the three months ended September 30, 2000 was $1,812,000 compared with $1,594,000 for the same period last year. Net income for the quarter totaled $142,000, or $0.05 per diluted share (based on 2.91 million shares), compared with $146,000, or $0.05 per diluted share (based on 2.97 million shares), in the prior year.
For the nine months ended September 30, 2000, net revenues was $5,295,000, an increase of $1,432,000, or 37.1%, from the $3,863,000 reported during the same period last year. Net income for the first nine months was $440,000, or $.15 per diluted share (based on 2.91 million shares), compared with $597,000, or $0.29 per diluted share (based on 2.07 million shares), reported during the first nine months of 1999.
``This quarters' revenue reflects sales related to our ethnic directories as well as the internet ad sales. Our mainstream directories are our main growth potential and are not reflected in this quarter. We are making significant progress with our Manhattan Yellow Pages and are preparing the launch of Queens and Brooklyn directories next year,'' commented Assaf Ran, CEO.
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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Net advertising
revenues $1,812,034 $1,593,800 $5,295,479 $3,862,581
Publishing costs 187,697 68,074 1,040,509 398,843
Gross profit 1,624,337 $1,525,726 4,254,970 3,463,738
Operating costs
and expenses:
Selling expenses 773,052 949,037 1,779,137 1,568,819
Administrative and
general 686,459 408,988 1,929,155 910,987
Total operating costs
and expenses 1,459,512 1,358,025 3,708,293 2,479,806
Interest income 111,252 86,838 297,514 129,899
Earnings from operations
before provision for
income taxes and
equity in loss
of affiliate 276,078 254,539 844,192 1,113,831
Provision for
income taxes 133,648 108,677 404,173 514,590
Equity in loss
of affiliate -- -- -- (2,654)
Net income available
to common
shareholders $142,430 $145,862 $440,019 $596,587
Net income per
common share
--Basic $0.05 $0.05 $0.15 $0.29
--Diluted $0.05 $0.05 $0.15 $0.29
Weighted average number
of common shares
outstanding
--Basic 2,907,460 2,964,785 2,907,460 2,070,485
--Diluted 2,907,460 2,965,104 2,910,201 2,070,502
DAG MEDIA, INC. BALANCE SHEET
SEPTEMBER 30, 2000
(unaudited)
Assets
Current assets:
Cash and cash equivalents $6,110,730
Trade accounts receivable, net of allowance
for doubtful accounts of $460,000 2,507,521
Directories in progress 657,966
Other current assets 78,452
Total current assets 9,354,669
Restricted cash 1,000,000
Fixed assets, net of accumulated
depreciation of $ 56,865 222,658
Goodwill and trademarks, net of
accumulated amortization of $74,305 1,276,676
Other assets 103,005
Total assets $11,957,008
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $59,764
Accrued commissions and commissions payable 541,683
Advanced billing for unpublished directories 1,486,201
Income tax payable 403,859
Deferred tax payable 497,080
Total current liabilities 2,988,587
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
Additional paid-in capital 7,799,789
Treasury stock, at cost- 68,730 shares (231,113)
Retained earnings 1,396,769
Total shareholders' equity 8,968,421
Total liabilities and
shareholders' equity $11,957,008
SOURCE: DAG Media Inc.
