Thursday August 8, 4:05 pm Eastern Time
Press Release
SOURCE: DAG Media, Inc.DAG Media, Inc. Announces Second Quarter Financial Results - Major Increase of Deferred Revenues
NEW YORK, Aug. 8 /PRNewswire-FirstCall/ -- DAG Media Inc. (Nasdaq: DAGM - News)
Net advertising revenues for the quarter ended June 30, 2002 were $1,381,000. For the same period last year net revenues were $1,431,000. There was a net loss of $72,000, or $(0.02) per diluted share (based on 2.92 million shares) compared with a net loss of $1,000 and no earnings per share (based on 2.91 million shares) for the comparative period ended June 30, 2001. The primary cause for decrease in revenue was attributable to the decrease in sales of the June 2002 edition of the Jewish Master Guide directory.
Net revenue for the six months ended June 30, 2002 was $2,955,000 compared with $2,935,000 for the same period last year. Net loss for the period was $799,000, or $(0.27) per diluted share (based on 2.92 million shares), compared with a net income of $65,000, or $0.02 per diluted share (based on 2.91 million shares), in the prior year. The cause for the increase in revenues was attributable to increased advertising revenue, primarily with respect to the fifth edition publication of new yellow Manhattan. The primarily cause for the decrease in net income was due to a goodwill write-off of $895,000 as required by the new SEC regulations, SFAS No. 141 and 142. Before giving effect to the goodwill write-off, net income for the six months ended June 30, 2002 was $96,000 versus $65,000 in the prior year, an increase of $31,000. Earnings per diluted share increased to 0.03 versus 0.02 in the same period last year.
The company also reported $6,903,000 or $2.3 per share in cash, cash equivalents, preferred stocks and other marketable securities and $3,969,000 in deferred revenue.
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.
BALANCE SHEET
JUNE 30, 2002
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $2,446,559
Preferred stocks and other marketable securities 4,456,887
Total cash and cash equivalents, preferred stocks
and other marketable securities 6,903,446
Trade accounts receivable, net of allowance for doubtful
accounts of $876,500 2,632,582
Directories in progress 1,846,616
Deferred tax asset 177,864
Other current assets 265,088
Total current assets 11,825,596
Fixed assets, net of accumulated depreciation of $139,057 266,382
Trademarks, net of accumulated amortization of $43,875 307,106
Other assets 19,462
Total assets $12,418,546
Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable and accrued expenses $118,151
Accrued commissions and commissions payable 778,000
Advanced billing for unpublished directories 3,968,642
Income tax payable 261,900
Total current liabilities 5,126,693
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 7,916,695
Treasury stock, at cost - 68,730 shares (231,113)
Deferred Compensation (46,347)
Unrealized gains on preferred stocks 34,207
Retained earnings (384,585)
Total shareholders' equity 7,291,853
Total liabilities and shareholders' equity $12,418,546
DAG MEDIA, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months ended June 30,
2002 2001 2002 2001
Advertising revenues $1,380,742 $1,431,633 $2,955,275 $2,934,832
Publishing costs 520,843 599,645 729,366 788,952
Gross profit 859,899 831,988 2,225,909 2,145,880
Operating costs
and expenses:
Selling expenses 548,935 490,452 998,998 1,076,055
General and
administrative 495,262 513,083 1,159,491 1,188,169
Total operating costs
and expenses 1,044,197 1,003,535 2,158,489 2,264,224
(Loss) income from
operation (184,298) (171,547) 67,420 (118,344)
Interest income 51,971 170,571 122,789 252,751
(Loss) earnings before
provisions for Income
taxes and cumulative
effect of change in
accounting principle (132,328) (976) 190,209 134,407
(Benefit) provision for
income taxes 60,711 -- (94,151) 69,000
(Loss) income before
cumulative effect of
change in accounting
principal (71,616) (976) 96,058 65,407
Cumulative effect of change
in accounting principle, -- -- (895,000) --
Net (loss) income $(71,616) $(976) $(798,942) $65,407
Earnings (loss) per
common share:
Basic -
(Loss) income before
cumulative effect of
change in accounting
principle $(0.02) $(0.00) $0.03 $0.02
Cumulative effect of
change in accounting
principle -- -- (0.30) --
Net (loss) income
per common share $(0.02) $(0.00) $(0.27) $0.02
Diluted-
(Loss) income before
cumulative effect of
change in accounting
principal $(0.02) $(0.00) $0.03 $0.02
Cumulative effect of
change in accounting
principle -- -- (0.30) --
Net (loss) income per
common share $(0.02) $(0.00) $(0.27) $0.02
Weighted average number
of common shares
Outstanding
- Basic 2,925,486 2,907,460 2,918,495 2,907,460
- Diluted 2,925,486 2,907,460 2,933,454 2,910,384
