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DAG Media, Inc. Reports First Quarter Financial Results NEW YORK, May 12, 2008 (PRIME NEWSWIRE) -- DAG Media Inc.
(NasdaqCM:DAGM - News) announced today that net income for the quarter
ended March 31, 2008 was $0.04 per basic and diluted share
(based on 3.236 million shares), or $139,741, versus net
loss of (0.05) per basic and diluted share (based on 3.236
million shares)or ($156,065) for the period ended March
31, 2007. Total revenue for the period ended March 31, 2008 were $165,000 versus total revenue of $1,000 for the period ended March 31, 2007. The revenue in the first quarter mainly represents interest income on short term loans of $147,000 and origination fees on these loans of $18,000 made through DAG Funding. Income from continuing operations for the period ended March 31, 2008 was $67,000 compared to a loss from continuing operations of $185,000 for the period ended March 31, 2007, an increase of $252,000. This increase in income resulted mainly from revenue from short term notes generated through DAG Funding of $165,000, a decrease of $41,000 in general and administrative expense and an increase of $36,000 in other income. Assaf Ran, Chairman of the Board and CEO, stated, ``I am pleased with the progress that the company is making toward consistent profitability. As we gain more experience in the non banking commercial lending business, we enhance and optimize our profits from each transaction, while simultaneously making progress in establishing a broader customer's base and increasing deal flow.'' DAG Media, Inc. through our subsidiaries provides short term, secured, non-banking, commercial loans, to small businesses. In addition we developed innovative software and a related web site that allows retail businesses and other service providers to reach prospective customers and clients for their goods and services in a more effective way than traditional on-line and print yellow pages search. We operate several web sites: http://www.dagfundingsolutions.com, http://www.nextyellow.com, and http://www.dagmedia.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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
Assets March 31, December 31,
----------- -----------
2008 2007
----------- -----------
Current assets:
Cash and cash equivalents $ 280,442 $ 621,724
Marketable securities 734,630 802,811
Auction rate securities 1,175,000 --
Short term investment - insurance
annuity contract - at fair value 938,446 931,555
--------------------------
Total cash and cash
equivalents, marketable
securities and short
term investment 3,128,518 2,356,090
Short term commercial notes 3,739,808 4,313,211
Interest receivable on short
term commercial notes 40,774 41,184
Due from purchaser 83,186 156,103
Other current assets 37,698 17,083
--------------------------
Total current assets 7,029,984 6,883,671
Long term commercial notes 200,000 --
Property and equipment, net 13,090 14,261
Capitalized web development
costs, net 61,679 74,015
Security deposit 17,515 17,515
Investment in privately held
company, at cost 100,000 100,000
--------------------------
Total assets $ 7,422,268 $ 7,089,462
==========================
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $ 119,351 $ 123,886
Deferred gain from the sale of
Jewish Directories -- 72,917
Deferred origination fee -- 4,597
Lines of credit 314,488 --
--------------------------
Total current liabilities 433,839 201,400
--------------------------
Commitments and contingencies
Shareholders' equity:
Preferred shares - $.01 par
value; 5,000,000 shares
authorized; no shares issued -- --
Common shares - $.001 par value;
25,000,000 authorized;
3,305,190 issued and 3,236,460
outstanding 3,305 3,305
Additional paid-in capital 9,202,151 9,180,235
Treasury stock, at cost- 68,730
shares (231,113) (231,113)
Accumulated other comprehensive
loss (502,562) (441,272)
Accumulated deficit (1,483,352) (1,623,093)
--------------------------
Total shareholders' equity 6,988,429 6,888,062
--------------------------
Total liabilities and
shareholders' equity $ 7,422,268 $ 7,089,462
==========================
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
-------------------------
2008 2007
---- ----
Interest income from short term
commercial notes $ 147,461 $ --
Origination fees 17,825 --
Subscription revenues, net 57 1,362
-------------------------
Total Revenue 165,343 1,362
-------------------------
Operating costs and expenses:
Web development expenses 12,336 12,336
General and administrative expenses 160,422 201,647
-------------------------
Total operating costs
and expenses 172,758 213,983
-------------------------
Loss from operations (7,415) (212,621)
-------------------------
Interest and dividend income 24,749 54,763
Realized gain (loss) on
marketable securities -- (26,826)
Other income 39,000 --
-------------------------
Total other income 63,749 27,937
-------------------------
Income (loss) from continuing
operations before income tax
benefit 56,334 (184,684)
Income tax benefit 10,490 --
-------------------------
Income (loss) from continuing
operations 66,824 (184,684)
-------------------------
Discontinued Operations:
Gain on the sale of the Jewish
Directories (net of tax effect
of 0 in 2008 and 2007) 72,917 48,611
Loss from operations of Shopila
(net of tax effect of 0) -- (19,992)
-------------------------
Income from discontinued
operations 72,917 28,619
-------------------------
Net Income (loss) $139,741 $(156,065)
=========================
Basic and Diluted net income
(loss) per common share
outstanding:
Continuing operations $ 0.02 $ (0.06)
Discontinued operations $ 0.02 $ 0.01
--------------------------
Net income (loss) per
common share $ 0.04 $ (0.05)
=========================
Weighted average number of common
shares outstanding
-- Basic and Diluted 3,236,460 3,236,460
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months ended
March 31,
2008 2007
------------------------
Cash flows from operating activities:
Net Income (loss) $ 139,741 $ (156,065)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in)
operating activities:
Gain on the sale of Jewish
Directories (72,917) (48,611)
Loss from discontinued
operations of Shopila -- 19,992
Depreciation and amortization 13,507 13,458
Non cash compensation expense 21,916 29,688
Realized loss on sale of
marketable securities -- 26,826
Changes in operating assets and
liabilities net of effects
of disposition:
Interest receivable on short
term commercial notes 410 --
Other current and non current
assets (20,615) 11,989
Accounts payable and accrued
expenses (4,535) (73,971)
Deferred origination fees (4,597) --
Income tax payable -- (4,764)
Assets and Liabilities of
discontinued operations -- (82,983)
---------- ----------
Net cash provided by (used
in) operating activities 72,910 (264,441)
---------- ----------
Cash flows from investing activities:
Proceeds from sale of
marketable securities -- 248,115
Investment in marketable
securities, annuity contract
and auction rate securities (1,175,000) (236,991)
Short and long term commercial
notes made (956,597) --
Collection received from short
term commercial notes 1,330,000 --
Cash received on sale of Jewish
Directories 72,917 90,473
---------- ----------
Net cash (used in) provided
by investing activities (728,680) 101,597
---------- ----------
Cash flows from financing activities:
Use of lines of credit 314,488 --
---------- ----------
Net cash provided by
financing activities 314,488 --
---------- ----------
Net decrease in cash and cash
equivalents (341,282) (162,844)
Cash and cash equivalents,
beginning of period 621,724 3,630,937
---------- ----------
Cash and cash equivalents, end
of period $ 280,442 $3,468,093
========== ==========
Supplemental Cash Flow Information:
Taxes paid during the period $ 5,767 $ 4,764
========== ==========
Interest Paid during the period $ 942 $ --
========== ==========
Contact: DAG Media, Inc.
Assaf Ran, CEO
Inbar Evron-Yogev, CFO
(718) 520-1000
Source: DAG Media, Inc.
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