Thursday August 9, 2:16 pm Eastern Time
Press Release
SOURCE: DAG Media Inc.DAG Media, Inc. Announces Second Quarter Financial Results
KEW GARDENS, N.Y., Aug. 9 /PRNewswire/ -- DAG Media Inc. (Nasdaq: DAGM - news) announced its financial results for the second quarter ended June 30, 2001.
Net revenue for the quarter ended June 30, 2001 was $1,432,000 compared with $135,000 for the same period last year. There was a net loss of $(1,000) and no earnings per share (based on 2.91 million shares) compared with a net loss of $(258,000), or $(.09) per diluted share (based on 2.91 million shares) for the comparative period ended June 30, 2000. The primary cause for the increase in revenues and income was the fact that in the three months ended June 30, 2001 two yellow page directories were published including ``NewYellow,'' whereas in the three months ended June 30, 2000, only one directory was published.
Net revenue for the six months ended June 30, 2001 was $2,935,000 compared with $2,769,000 for the same period last year. Net income for the period was $65,000, or $.02 per diluted share (based on 2.91 million shares), compared with a net loss of $(405,000), or $(.14) per diluted share (based on 2.91 million shares), in the prior year. The primary cause for the increase in revenues and income was the fact that in the six months ended June 30, 2000, there was a loss of $(511,000) taken into account the cumulative effect of change in accounting principle whereas this loss did not effect the 2001 period.
Assaf Ran, the company's CEO commented, ``We are facing a very competitive and challenging period and I am confident in our Company's ability to overcome and increase our market share in the yellow page market. The fourth edition of our Manhattan New Yellow directory is scheduled for October of this year and hopefully, by then, we will see the breakthrough that we anticipate.''
On July 9, 2001, the Company's CFO, Orna Kirsh gave notice to the Company's Board of Directors that she would not be renewing her employment contract that terminated on July 19, 2001 due to personal considerations. Ms. Kirsh indicated that she would remain with Company until August 15, 2001 thereby allowing management enough time to transition in a new CFO. The transitioning CFO, Yael Shimor-Golan began her employment on July 31, 2001. Mrs. Yael Shimor-Golan, who maintains her CPA in Israel, previously worked at Marks, Paneth & Shron LLP, a Manhattan accounting firm since 1999. From 1995 until 1999, Mrs. Shimor-Golan was a Partner at the firm Shimon Dill & Co. an accounting firm in Jerusalem, Israel. Ms. Kirsh added, `` I wish the Company success. I know the Company has grown in the last few years and I hope it continues its growth further. The transition DAG Media has made from a private to public Company was most beneficial to its shareholders as well as to the success thus achieved.''
DAG Media publishes and distributes yellow page directories in print and on the World Wide Web. DAG Media also operates several Web sites on the Internet including 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, 2001
(unaudited)
Assets
Current assets:
Cash and cash equivalents $6,652,893
Restricted cash 244,987
Trade accounts receivable, net of allowance for
doubtful accounts of $528,500 2,313,962
Directories in progress 1,430,585
Deferred tax asset 78,202
Other current assets 210,700
Total current assets 10,931,329
Fixed assets, net of accumulated depreciation
of $89,820 243,619
Goodwill and trademarks, net of accumulated
amortization of $114,835 1,236,146
Other assets 17,346
Total assets $12,428,440
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $126,664
Accrued commissions and commissions payable 552,000
Advanced billing for unpublished directories 3,236,666
Income tax payable 296,090
Total current liabilities 4,211,420
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 7,916,701
Treasury stock, at cost- 68,730 shares (231,113)
Deferred compensation (68,387)
Retained earnings 596,843
Total shareholders' equity 8,217,020
Total liabilities and shareholders'
equity $12,428,440
DAG MEDIA, INC.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Advertising
revenues $1,431,633 $135,498 $2,934,832 $2,768,952
Publishing costs 599,645 61,466 788,952 562,282
Gross profit 831,988 74,032 2,145,880 2,206,670
Operating costs and expenses:
Selling expenses 490,452 84,491 1,076,055 944,389
Administrative and
general 513,083 568,976 1,188,169 1,247,657
Total operating costs
and expenses 1,003,535 653,467 2,264,224 2,192,046
Interest income 80,708 106,263 162,888 186,262
Gain on sale of
investments 89,863 -- 89,863 --
Other income 170,571 106,263 252,751 186,262
(Loss) earnings from
operations before
provision (benefits)
for income taxes and
cumulative effect of
change in accounting
principle (976) (473,172) 134,407 200,886
Provision (benefit) for
income taxes -- (215,359) 69,000 (94,707)
Cumulative effect of
change in accounting
principle, net of
tax benefit -- -- -- (511,071)
Net (loss) income available
to common
shareholders $(976) $(257,813) $65,407 $(404,892)
Net (loss) income per common share
--Basic
Income before cumulative
effect of change in
accounting
principle $0.00 $(.09) $.02 $.04
Cumulative effect of
change in accounting
principle -- -- -- (.18)
Net loss (income) per
common share $0.00 $(.09) $.02 $(.14)
--Diluted
Income before cumulative
effect of change in
accounting
principle $0.00 $(.09) $.02 $.04
Cumulative effect of
change in accounting
principle -- -- -- (.18)
Net loss (income) per
common share $0.00 $(.09) $.02 $(.14)
Weighted average number
of common shares outstanding
--Basic 2,907,460 2,907,460 2,907,460 2,907,460
--Diluted 2,907,460 2,907,460 2,910,384 2,908,133
