NEW YORK, Nov. 13, 2007 (PRIME NEWSWIRE) -- DAG Media, Inc. (Nasdaq:DAGM) announced today that net income per common share was $0.05 for the three month period ended September 30, 2007, versus basic and diluted net loss per common share of $(0.04) for the three month period ended September 30, 2006. The increase in net income is mainly due to income from its new short-term secured business lending operations through DAG Funding Solutions, Inc., ("Dag Funding") a wholly owned subsidiary formed in May 2007, as well as income from discontinued operations associated with a gain on the sale of the directories business and a write-off of Shopila's liabilities in accordance with the company decision to discontinued operations of Shopila and cease making advances to it.
Total revenue for the three month period ended September 30, 2007 were $62,000 versus total revenue of $8,000 for the same period in 2006. The increase in total revenue is mainly due to interest income from short term notes made through DAG Funding.
Total revenue for the nine month period ended September 30, 2007 were $70,000 versus total revenue of $8,000 for the same period in 2006. The increase in total revenue is mainly due to interest income from short term notes made through DAG Funding.
For the nine month period ended September 30, 2007 net loss per common share was $(0.11), versus net income per common share of $0.01 for the nine month period ended September 30, 2006. In 2006 net income was mainly attributable to the gain on the sale of the Directories business.
DAG Funding was formed to carry out a new business initiative centered on money lending services to businesses. It offers commercial short term funding solutions and loan services against collateral such as real estate, receivables, marketable securities, etc., accompanied, in most cases, by personal guarantees from the principals.
Assaf Ran, Chairman of the Board and CEO stated, "Our efforts to regain profitability are finally fruitful. Current market conditions in the credit industry direct significant amount of business to DAG Funding. We are working diligently to identify the best opportunities for us as we continue to exercise our expense reduction approach."
"As for Next Yellow we have completed a business plan and hope to raise money on the subsidiary level so we can revive operations of our subsidiary DAG Interactive, Inc." added Mr. Ran.
DAG Media, Inc. through our subsidiaries provides short term none banking commercial loans as well as solutions to the online yellow pages industry and to local search. We operate several web sites: http://www.dagfundingsolutions.com, http://www.nextyellow.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 success of our new business strategy; (iii) our limited operating history; (iv) potential fluctuations in our quarterly operating results; (v) challenges facing us relating to our growth; and (vi) 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)
September 30,
-------------
2007
Assets ----
Current assets:
Cash and cash equivalents $ 1,543,870
Marketable securities 1,729,260
Short term investment - insurance annuity contract -
at fair value 1,027,231
-----------
Total cash and cash equivalents, marketable
securities and short term investment 4,300,361
Interest receivable 22,945
Due from purchaser 209,465
Short term notes 2,488,618
Other current assets 33,968
-----------
Total current assets 7,055,357
Property and equipment, net 13,115
Capitalized web development costs, net 86,351
Other assets 142,515
-----------
Total assets $ 7,297,338
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 62,462
Income tax payable 312,245
Deferred gain from the sale of Jewish Directories 145,835
-----------
Total current liabilities 520,542
-----------
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
Additional paid-in capital 9,144,976
Treasury stock, at cost- 68,730 shares (231,113)
Accumulated other comprehensive loss (197,962)
Accumulated deficit (1,942,410)
-----------
Total shareholders' equity 6,776,796
-----------
Total liabilities and shareholders' equity $ 7,297,338
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DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
------------- -------------
2007 2006 2007 2006
Subscription revenues,
net $ 1,324 $ 7,821 $ 4,305 $ 7,821
Interest income from
short term notes 60,504 -- 65,471 --
--------- --------- --------- ---------
Total Revenue 61,828 7,821 69,776 7,821
--------- --------- --------- ---------
Operating costs and
expenses:
Web development costs 12,336 12,336 37,008 125,330
Marketing expenses 4,034 41,303 7,537 56,832
General and
administrative expenses 155,296 205,647 541,831 584,161
--------- --------- --------- ---------
Total operating costs and
expenses 171,666 259,286 586,376 766,323
--------- --------- --------- ---------
Loss from operations (109,838) (251,465) (516,600) (758,502)
Other income 87,990 61,603 230,224 111,342
--------- --------- --------- ---------
(Loss) income from
continuing operations (21,848) (189,862) (286,376) (647,160)
--------- --------- --------- ---------
Discontinued operations:
Gain on the sale of the
Jewish Directories 72,918 72,918 194,444 680,718
Income (Loss) from
discontinued operations
of Shopila 113,915 -- (259,089) --
Loss from discontinued
operations of the
Directories -- -- -- (75,129)
--------- --------- --------- ---------
Income (loss) from
discontinued operations 186,833 72,918 (64,645) 605,589
--------- --------- --------- ---------
Net income (loss) $ 164,985 $(116,944) $(351,021) $ (41,571)
========= ========= ========= =========
Basic and diluted net
income (loss) per common
share outstanding:
Continuing operations $ (0.01) $ (0.06) $ (0.09) $ (0.20)
Discontinued operations 0.06 0.02 (0.02) 0.19
--------- --------- --------- ---------
Total net income (loss)
per common share -
basic and diluted $ 0.05 $ (0.04) $ (0.11) $ (0.01)
========= ========= ========= =========
Weighted average number
of common shares
outstanding -
basic and diluted 3,236,460 3,179,721 3,236,460 3,156,423
========= ========= ========= =========
DAG MEDIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
September 30,
2007 2006
----------- -----------
Cash flows from operating activities:
Net loss $ (351,021) $ (41,571)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation and Amortization 40,376 20,061
Amortization of deferred compensation and
non cash compensation 121,667 257,928
Gain on the sale of Jewish Directories (194,444) (426,107)
Loss from discontinued operations of
Shopila 259,089 --
Realized (gain) loss on sale of
marketable securities (40,790) 70,861
Gain on the sale of fixed assets -- (14,232)
Changes in operating assets and
liabilities:
Interest receivable (22,945) --
Other current assets 4,622 (55,556)
Due from purchasers -- (58,881)
Accounts payable and accrued expenses (127,241) 48,952
Income tax payable (29,436) (25,652)
Assets and liabilities of discontinued
operations (94,653) (146,900)
----------- -----------
Net cash used in operating activities (434,776) (371,097)
----------- -----------
Cash flows from investing activities:
Proceeds from sale of marketable
securities 1,888,680 2,541,023
Investment in marketable securities (1,291,264) (2,562,194)
Issuance of short term notes (2,488,618) --
Cash received on sale of Jewish
Directories, net of expenses 255,860 254,610
Investment in convertible loan -- (25,000)
Purchase of fixed assets -- (18,729)
Proceeds from sale of fixed assets -- 9,213
Capitalized web development costs -- (22,429)
----------- -----------
Net cash (used in) provided by
investing activities (1,635,342) 176,494
----------- -----------
Cash flows from financing activities:
Dividend paid -- (314,246)
Proceeds from exercise of stock options -- 5,520
----------- -----------
Net cash used in financing activities -- (308,726)
----------- -----------
Net decrease in cash (2,070,118) (503,329)
Cash and cash equivalents, beginning of
period 3,613,988 4,210,427
-------------------------
Cash and cash equivalents, end of period $ 1,543,870 $ 3,707,098
=========================
Supplemental Cash Flow Information:
Taxes paid during the period $ 28,981 $ 25,535
=========================
Capitalized software acquired through
issuance of stock and grant of option -- $ 125,602
=========================
Common stock issued for services performed -- $ 80,600
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