NEW YORK, May 9, 2007 (PRIME NEWSWIRE) -- DAG Media Inc. (Nasdaq:DAGM) today announced that basic and diluted net loss per common share was $(0.05) in for the period ended March 31, 2007 versus basic and diluted net loss per common share of $(0.12) for the period ended March 31, 2006.
Net sales for the period ended March 31, 2007 were $25,000 versus net sales of $0 for the period ended March 31, 2006. This increase in net sales is mainly due to $24,000 in sales made through DAG Media, Inc.'s subsidiary, Shopila, Inc.'s marketplaces.
Loss from operations for the period ended March 31, 2007 was $242,000 compared to a loss of $207,000 for the period ended March 31, 2006, an increase of $35,000, or 16.9%. This increase is mainly due to nextyellow.com web development expenses of $12,000, an increase in payroll expenses of approximately $35,000, due to the acquisition of Shopila, Inc., and an increase in insurance expenses of approximately $6,000, offset by a decrease in shared based compensation expenses and professional fees.
For the period ended March 31, 2007, consolidated losses from continuing operation were $205,000 or $(0.06) per basic and diluted share (based on 3.236 million shares), compared to a loss of $249,000 or $(0.08) per basic and diluted share (based on 3.142 million shares), for the period ended March 31, 2006. The decrease in a loss of $44,000 resulted mainly from the increase in other income (net) of $67,000. The increase in other income (net) is primarily attributable to realized losses on marketable securities in 2007 in the amount of approximately $27,000, as compared to realized losses on marketable securities in 2006 in the amount of approximately $64,000.
We at DAG Media, Inc. through our subsidiaries, provide solutions to the online yellow pages industry by providing a local search and lead generation mechanism. We operate an e-commerce web site as well as several other web sites that complement our directories at http://www.nextyellow.com, http://www.shopila.com and http://www.dagmedia.com
This release contains forward-looking statements within the meaning Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the words "believe", "expect", "intend", "estimate" and similar expressions. Those statements appear in a number of places in this release and include statements regarding our intent, belief or current expectations or those of our directors or officers with respect to, among other things, trends affecting our financial conditions and results of operations and our business and growth strategies. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors (such factors are referred to herein as "Cautionary Statements"), including but not limited to the following: (i) the successful integration of new businesses that we have acquired or may acquire; (ii) the successful consummation of the sale of our directories business; (iii) the success of our new business strategy; (iv) our limited operating history; (v) potential fluctuations in our quarterly operating results; (vi) challenges facing us relating to our growth; and (vii) our dependence on a limited number of suppliers. These forward-looking statements speak only as of the date of this release, and we caution potential investors not to place undue reliance on such statements. You should review all of our reports filed with the Securities and Exchange Commission along with this press release. We undertake no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
March 31, 2007
--------------
Assets
Current assets:
Cash and cash equivalents $3,468,093
Marketable securities 2,281,206
Short term investment - insurance annuity
contract - at fair value 1,124,607
----------
Total cash and cash equivalents, marketable
securities and short term investment 6,873,906
Trade accounts receivable 3,253
Due from purchaser- current portion 350,548
Other current assets 26,602
----------
Total current assets 7,254,309
Property and equipment, net 15,361
Goodwill and other intangible assets, net 449,057
Capitalized web development costs, net 111,023
Due from purchaser- non current portion 24,306
Other assets 142,515
----------
Total assets $7,996,571
==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 131,623
Promissory note 50,000
Income tax payable 336,917
Deferred gain from the sale of
Jewish Directories 291,668
----------
Total current liabilities 810,208
Long term liabilities:
Line of credit 54,506
Deferred tax liability 61,290
----------
Total liabilities 926,004
Commitments and contingencies
Minority Interest 60,148
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
Additional paid-in capital 9,052,997
Treasury stock, at cost- 68,730 shares (231,113)
Accumulated other comprehensive loss (67,316)
Accumulated deficit (1,747,454)
----------
Total shareholders' equity 7,010,419
----------
Total liabilities and shareholders' equity $7,996,571
==========
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31,
----------------------------
2007 2006
---- ----
Net Sales $ 25,024 $ ----
Cost of goods sold 18,013 ----
---------- ---------
Gross profit 7,011 ----
----------
Operating costs and expenses:
Selling expenses 4,833 ----
Web development expenses 12,336 ----
Marketing expenses 3,189 ----
General and administrative expenses 229,022 206,833
---------- ---------
Total operating costs and expenses
(249,380) (206,833)
Loss from operations (242,369) (206,833)
---------- ---------
Other income (expenses) 24,807 (42,629)
---------- ---------
Loss from continuing operations before
provision for income taxes and minority
interest (217,562) (249,462)
Income tax benefit 6,310 ----
---------- ---------
(Loss) from continuing operations before
minority interest (211,252) (249,462)
Minority interest 6,576 ----
---------- ---------
(Loss) from continuing operations (204,676) (249,462)
Discontinued Operations:
Gain (loss) on the sale of discontinued
operations
48,611 (158,585)
Gain from discontinued operations ---- 38,844
---------- ---------
Income (Loss) from discontinued operations 48,611 (119,741)
---------- ---------
Net loss $ (156,065) $(369,203)
========== =========
Basic and Diluted net income (loss)
per common share outstanding:
Continuing operations $ (0.06) $ (0.08)
Discontinued operations $ 0.01 $ (0.04)
---------- ---------
Net loss per common share $ (0.05) $ (0.12)
========== =========
Weighted average number of common shares
outstanding
--Basic and Diluted 3,236,460 3,142,460
========== =========
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months ended March 31,
2007 2006
------------- --------------
Cash flows from operating activities:
Net loss $ (156,065) $ (369,203)
Adjustments to reconcile net loss to net
cash used in operating activities:
Gain on the sale of DAG Jewish Directories (48,611) ----
Depreciation and amortization 18,871 3,714
Deferred tax (6,310) ----
Amortization of deferred compensation and
non cash compensation 29,688 43,580
Minority Interest (6,576) ----
Realized loss on sale of marketable
securities 26,826 64,473
Changes in operating assets and liabilities:
Accounts receivable 2,869 ----
Other current assets 11,989 (4,200)
Other assets ---- (13,138)
Income tax payable (4,764) ----
Accounts payable and accrued expenses (132,358) 17,025
Assets and Liabilities of discontinued
operations ---- 116,386
------------- --------------
Net cash used in operating activities (264,441) (141,363)
------------- --------------
Cash flows from investing activities:
Proceeds from sale of marketable
securities 248,115 2,420,000
Investment in convertible loan ---- (25,000)
Investment in marketable securities (236,991) (2,824,379)
Cash received on sale of
Jewish Directories 90,473 ----
------------- --------------
Net cash provided by (used in)
investing activities 101,597 (429,379)
------------- --------------
Cash flows from financing activities:
Dividend paid ($0.4 per share) ---- (314,246)
------------- --------------
Net cash used in financing activities ---- (314,246)
------------- --------------
Net decrease in cash and cash equivalents (162,844) (884,988)
Cash and cash equivalents,
beginning of period 3,630,937 4,210,427
------------- --------------
Cash and cash equivalents, end of period $3,468,093 $3,325,439
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Supplemental Cash Flow Information:
Taxes paid during the period $ 4,764 $ 5,844
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Capitalized software acquired through
issuance of stock $ ---- $ 29,388
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